The company will be overseeing pickup of packages from warehouses of third-party businesses who sell on Amazon Seller Central.
The disruption that Amazon might cause has been downplayed by UPS in the past. "We support all our customers with industry-leading e-commerce solutions and expect to expand these relationships further in the future".
The company confirmed on Tuesday that it signed a lease for the entire office portion of a planned downtown skyscraper that will become the second-tallest building in the Pacific Northwest, the Seattle Times reports. The first is that it could allow the retailer to reduce clutter in its own warehouses by offering more goods for free two-day shipping. Amazon would not comment about the project. The new service gives Amazon control over those deliveries instead, even if it continues to use third-party couriers. On a call to discuss those earnings results in February, Amazon CFO Brian Olsavsky also noted a 40 percent increase in items shipped from the company's warehouses for Amazon's own online retail business and the Fulfillment by Amazon program. When it comes to logistics, the science of getting stuff from point A to point B in the fastest, most efficient way possible, Amazon has changed how we ship in ways only a package company can really appreciate. But that system has been strained during the holiday shopping season.
According a report in Bloomberg, citing people familiar with the plan, Amazon is experimenting with a new delivery service meant to make more products available for free two-day delivery.
That Amazon might want greater control over the delivery process is not a big surprise.
A broad rollout is possible in 2018, said Bloomberg.
"But if you look at the world of e-commerce and double-digit growth year after year, FedEx and UPS are still going to get their share of growth". That's why the fashion industry is just one among many on edge as it awaits Amazon's next move, especially since the e-commerce giant has made no secret of its apparel aspirations.
Amazon doesn't always offer the cheapest price for goods.