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Amazon challenges FedEx, UPS with shipping service

February 9, 2018

For years now, speculation about Amazon’s delivery ambitions have swirled, with some analysts predicting that, beyond solving its own internal logistics problems, it could be an Amazon business unto itself. Bypassing third-party shippers like UPS and FedEx could save Amazon $1.1 billion annually, Citigroup analysts said in 2016. That translates to savings of $3 or more on a typical delivery, which now costs $7.81 on average. Amazon’s shipping and fulfillment costs until its most recent quarter grew faster than its revenue, but so far the company has focused on making moves to optimize those operations.

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