Amazon testing own deliveries with Seller Flex – UPS, FedEx shares tumble

Jeff Bezos and Amazon have successfully delved into a wide array of fields in recent years. But there is still one thing that is holding back the online retailer juggernaut: shipping.

The quarterly figures keep highlighting that shipping costs are on the rise, even as Amazon attempts to utilize drones, launch a sort of Uber-esque delivery service and airplane leases to keep a lid on these numbers.

Amazon is now reportedly trying out something new: Seller Flex.

Bloomberg is reporting that this is a new delivery program that allows the website to pick up packages from third-party sellers on its platform and deliver the products to customers. If successfully, it could disrupt the nation’s entire delivery landscape.

Many analysts, including Baird analyst Colin Sebastian, think it could work:

“Given the investments that Amazon is making in fulfillment infrastructure and transportation to support its own retail business, we view it simply a matter of time until they offer these services to third parties more broadly. This is the same strategy that Amazon has successfully utilized in retail (third party marketplace) and technology (AWS) where they offer as a service the same platforms built to run their business.”

As a result, FedEx shares fell nearly one percent the UPS stock tumbled close to two percent.

You can add another victory for Amazon.

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