Amazon to test its own Delivery Service

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Amazon.com, Inc. (NASDAQ:AMZN) is reportedly testing out its own delivery service.

"We are using the same carrier partners to offer this program that we've used for years, including UPS, USPS and FedEx", said Amazon spokeswoman Kelly Cheeseman in an email to CNNMoney about the Bloomberg report.

The goal of the program Amazon is reportedly experimenting with, which Bloomberg reports began in India two years ago and is being tested in western US states, is to expand the breadth of items available under Amazon Prime.

The service began two years ago in India, and Amazon has been slowly marketing it to US merchants in preparation for a national expansion, said the people, who asked not to be identified because the USA pilot project is confidential. Under the plan, Amazon would pick up goods from the seller warehouses and deliver them to customers.

"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". This third-party delivery service is called Amazon Seller Flex.

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UPS and FedEx don't seem too concerned about the report. It also increases Amazon's role in the decision-making chain, and downgrades FedEx and UPS from all-knowing logistics companies to a glorified courier service.

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Seller Flex would help give Amazon more control and help it save money through volume shipping discounts, without clogging up space in its own warehouses, according to Bloomberg. 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.

It launched Amazon Flex, which uses independent contractors driving their own vehicles to deliver packages from Amazon shipping hubs, guided by a smartphone app.

In 2016, Amazon introduced the Seller Fulfilled Prime program, which allowed third-party sellers to sell with the Prime two-day shipping guarantee if they could prove that that time frame was feasible even if the items didn't ship from Amazon's warehouses.

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