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Amazon to cut fees to compete with UPS, FedEx

January 24, 2019

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Amazon Shipping is not the first player to enter the my-fees-are-lower-than-yours fight. Last year, FedEx decided not to charge any residential surcharge for the holiday season, while UPS charged a $0.28 peak fee — a one-cent increase over 2017’s holiday surcharge.

When news of Amazon’s entry into the carrier market became public last year, it was reported the company planned to undercut its competitors’ prices in an attempt to bring in business. “3PLs aren’t able to drive down costs as quickly and effectively as Amazon can,” AArete’s Director of Retail Practice Sean Maharaj told sister publication Supply Chain Dive last year.

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