Amazon Shipping undercuts FedEx and UPS by up to 30% on corporate contracts

Industry
โดย TheStreet·Read original
Summary · why it matters

Amazon Shipping is offering corporate shippers rates up to 30% below comparable FedEx and UPS pricing, while waiving residential surcharges, according to a Supply Chain Dive report. Logistics platform Loop has seen shippers save as much as $6 per package by shifting eligible residential volume to Amazon Shipping, and one large retail client cut its annual shipping costs by more than 33% after routing most of its distribution through Amazon. Amazon Shipping is even undercutting the U.S. Postal Service on packages under a pound, according to Hannah Testani, chief executive of freight audit firm Intelligent Audit. FedEx and UPS shares slid after Morgan Stanley analyst Ravi Shanker warned that Amazon's growing delivery reach threatens both carriers, and both stocks surrendered gains once the pricing specifics circulated. Amazon still lacks overnight delivery, but Shanker believes it is likely not long before that becomes an option as well.

Impact on stocks 4

Industrials▼ · 2 stocks
FedEx Corporation
FDX
▼ NegativeCompetitionrelevance

Amazon Shipping offers rates up to 30% below FedEx, causing shares to slide on analyst warning.

United Parcel Service Inc
UPS
▼ NegativeCompetitionrelevance

Amazon Shipping undercuts UPS by up to 30%, with shares falling after pricing details emerge.

Artificial Intelligence▲ · 1 stocks
Amazon.com Inc
AMZN
▲ PositiveCompetitionrelevance

Amazon Shipping undercuts FedEx and UPS by up to 30%, expanding its delivery reach and threatening rivals.

Financials▲ · 1 stocks
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