Amazon Preparing To Launch Delivery Service For Businesses

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The retailer expects to roll out the new delivery service in Los Angeles in coming weeks, the Journal said, citing unnamed people familiar with the matter. And if Amazon starts delivering to businesses, it may undercut the incumbents on rates, he said. But for the rest of the country, it relies on UPS, FedEx, the US Postal Service and smaller outfits like Lasership for "the last mile", or the delivery between a parcel's final stop and the home.

"Amazon's move to add delivery services to their business customers is a demonstration of how they are working to enable end-to-end, customer-centric experiences for everyone, said Scott Webb, president of Avionos LLC, a digital customer experience firm". It will be interesting to see how consumers take to the idea of Amazon as a courier of products that aren't always from Amazon.

"In a move that will send shivers down the spines of the traditional delivery companies, Amazon has finally made a decision to try its hand at fulfilment", Neil Saunders, managing director of research firm GlobalData Retail, wrote in a note to clients. The "Shipping with Amazon" service has already been tested in London, according to the Journal.

Demonstrating its boundless ecommerce ambition, Amazon is reportedly set to begin delivering orders from business partners directly to customers. Last year, Gizmodo reported on Amazon's trouble with this part of the delivery and the incredible stresses it placed on workers.

Amazon's creation of the new delivery service comes as the company pushes into new avenues of business including the acquisition of grocer Whole Foods and a newly-announced joint healthcare venture with JPMorgan and Berkshire Hathaway.

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In other FedEx Corporation news, VP John L. Merino sold 7,200 shares of the stock in a transaction that occurred on Thursday, June 22nd.

Meanwhile, Amazon has leased 40 airplanes, begun arranging ocean freight shipments from China to the USA, and built up a corps of delivery drivers.

According to the report, Amazon is planning to beat UPS and FedEx on pricing, which could make Amazon a more attractive option. With this strategy, it seeks to streamline sales process by shortening delivery times, reducing costs, logistics and warehousing software, among ors, to have more attractive prices and avoid overloading ir warehouses.

In the U.K, for example, Amazon is experimenting with the use of delivery drones, an approach that has the potential to reshape the shipping market fundamentally if it ever becomes viable on a large scale. Then along came Amazon and, in a little over a decade, it was out of business. Neither company offered much comment on the story, nor did Amazon officially confirm its plans. Krilogy Financial LLC grew its holdings in shares of FedEx by 0.4% during the second quarter.