Delivery companies like FedEx, UPS, and the US Postal Service make a lot of money from the business that Amazon sends their way. However, the online retail giant 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 to compete with the likes of FedEx and UPS. According to a new report, Amazon is testing a new program which will see the company shipping its sellers’ products on its own.
The Wall Street Journal reports that Amazon is going to launch its own delivery service in the coming weeks. The service will reportedly be called “Shipping with Amazon” and it may only be tested in Los Angeles initially before it’s expanded to other cities across the country later this year.
Shipping with Amazon will see the company picking up products from third-party merchants that are selling them on Amazon. It would 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 what’s more cost-effective.
The report mentions that while this test is going to be limited to merchants selling products on Amazon, the company might offer this logistics service to other businesses as well at rates lower than its competitors. That’s going to put pressure on the likes of UPS and FedEx.
Amazon hasn’t confirmed anything about this so far, the company only said that it’s “always innovating and experimenting on behalf of customers and the businesses that sell and grow on Amazon to create faster lower-cost delivery choices.”
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