Delivery companies like FedEx, UPS, and the US Postal Service make a lot of money from the business that Amazon sends their way,but you may have noticed that Amazon has gradually been expanding its own presence in the shipping and delivery process. It may soon take things a step further by launching its own shipping service and then it would compete with FedEx and UPS. According to a new report, Amazon is testing a new program which will have the company shipping its sellers’ products on its own. If true, this is going to cost UPS, FedEx and the like a lot of money.
The Wall Street Journal reports that Amazon is going to launch its own delivery service in the next few weeks. The service will be called “Shipping with Amazon” and it may only be tested in Los Angeles initially. If it works out good, they will expand to other cities across the country later in the year.
The company will pick up products from third-party merchants that are selling them on Amazon, then deliver those products directly to the customer itself or hand over the packages to services like FedEx and UPS for last-mile delivery, depending on the cost.
This test is going to be limited to merchants selling products on Amazon, but the company might offer this logistics service to other businesses as well at rates lower than its competitors. UPS and FedEx better be prepared for this.
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