Amazon Steps Into Delivery with Seller Flex, Acquires 3-D Model Business

Report Amazon Is Toying With A New Delivery Service That Could Replace UPS And FedEx

Shares of United Parcel Service Inc and FedEx Corp fell on Thursday after a report that Amazon.com Inc was testing its own delivery service, potentially encroaching on the territory of the package delivery companies.

Amazon is exploring the concept of a new delivery system dubbed "project Seller Flex", in which the e-commerce giant will assume a bigger role in functions provided by FedEx and UPS, two people familiar with the plan told Bloomberg.

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 USA states, is to expand the breadth of items available under Amazon Prime.

Amazon, which effectively confirmed the program, said its current delivery partners also includes the U.S. Postal Service (USPS).

Word of Amazon making a move into home delivery of third-party goods sent UPS shares down 1.3 percent in early Thursday trading. Sellers who are approved must purchase shipping for all Prime items through Amazon's Buy Shipping Services.

FedEx shares were down less than 1 percent.

FedEx CEO Fred Smith downplayed concerns about Amazon's potential entrance into delivery during a conference call with analysts last March. Secondly, one doubts FedEx and UPS are going to welcome a competitor with open arms and smiles, especially since this means they're losing business.

Bloomberg Intelligence's Charles Allen added that Amazon has lower "drop density", or having many delivery points close together, than FedEx and UPS, which could be a disadvantage.

Don't miss: Amazon partners with Atlas Air Worldwide for cargo services. "If Amazon does take a few customers, the whole e-commerce pie is growing so fast that FedEx and UPS won't miss a beat". So what'll happen once they start shipping packages themselves?

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. Online holiday spending in the US will hit $129 billion this year, up 12 percent from a year ago, according to Forrester Research Inc.

Related News:

  • Calls For Gun Control Measures In Wake Of Vegas Massacre Go Unanswered

    The SHARE Act, introduced by Duncan, would relax some restrictions on the purchase of suppressors , making them easier to buy. California, Florida, and IL and the District of Columbia generally prohibit people from openly carrying firearms in public.
    BloodSource Calls For Donors In Wake Of Las Vegas Shooting

    BloodSource Calls For Donors In Wake Of Las Vegas Shooting

    One in seven people entering the hospital needs blood, every three seconds someone in this country relies on blood. Late Sunday night the Inland Northwest Blood Center sent 55 units of blood to their sister center in Las Vegas.
    Conte: I think Guardiola is the best

    Conte: I think Guardiola is the best

    We're only six matches into the Premier League campaign and the title race is looking extremely exciting. Manchester City is in the First place with sixteen points by winning five matches and draw one matches.
  • Making A Murderer's Steven Avery denied request for new trial

    Making A Murderer's Steven Avery denied request for new trial

    An attorney for Steven Avery said she intends to file an amended appeal after a judge denied his request for a new trial. His lawyer Kathleen Zellner told EW in a statement that they will be filing a motion to vacate Sutkiewicz's ruling.
    Tiger admits he may be done with competitive golf

    Tiger admits he may be done with competitive golf

    As I've told you guys, I'm hitting 60-yard shots". "The bouncing just hurt too much". "That's all gone now, which is fantastic". Asked if there was chance he may never compete again, he said: "Yeah, definitely.
    Playboy Magazine Founder, Hugh Hefner, Dies at 91

    Playboy Magazine Founder, Hugh Hefner, Dies at 91

    WireImage Hugh Hefner and Holly Madison arrive at Spike TV's 2nd Annual Guys Choice Awards on May 29, 2008 in Los Angeles . Asked by The New York Times in 1992 of what he was proudest, Hefner said: "That I changed attitudes toward sex".
  • Gareth Bale ruled out of Wales' World Cup qualifiers with calf injury

    Gareth Bale ruled out of Wales' World Cup qualifiers with calf injury

    Those chances have been bolstered considerably with news that Gareth Bale will miss his country's last two games. The 17-year-old came off the bench to score the victor against Austria last month.
    Rex Tillerson: The US 'Does Not Recognize' Kurdish Independence Referendum Results

    Rex Tillerson: The US 'Does Not Recognize' Kurdish Independence Referendum Results

    Mr Abadi vowed to "impose Iraq's rule" and reaffirmed his threat to stop direct global flights to and from the Kurdistan Region. Iraqi Kurds overwhelmingly voted in favour of independence in a vote earlier this week.
    It's National Coffee Day & C-store Retailers Are Celebrating

    It's National Coffee Day & C-store Retailers Are Celebrating

    Peet's Coffee: Customers can enjoy a free coffee or tea with any bean purchase, and take 25 percent off whole bean purchases. Also, get a coupon for a free cup when you join Wawa Rewards or by doing a quick survey on Wawa receipts.
  • Facebook Comes Clean About Russian Ads

    Facebook Comes Clean About Russian Ads

    Since its disclosure, Facebook has faced questions and calls for increased US regulation from USA authorities. According to Schrage, the company is still looking for "abuse and bad actors" on its platform.
    Canadian woman could go blind after getting her eyeball tattooed

    Canadian woman could go blind after getting her eyeball tattooed

    The tattoo was a "massive mistake" and she is facing a long recovery from the procedure. Catt initially went to hospital complaining of a purple discharge coming from her eye.
    SCOTUS will hear mandatory union dues challenge

    SCOTUS will hear mandatory union dues challenge

    The arrangement was supposed to prevent non-members from "free riding", since the union has a legal duty to represent all workers. Half the states, including MI , have enacted right-to-work laws that say employees don't have to join a union or pay agency fees.


Most liked

GM to go all-electric by 2023
GM declined to provide specific details about the next-generation propulsion system or which vehicles will become electrified. Reuss said GM is pursuing a two-prong strategy in developing both battery and fuel cell powered electric vehicles .

West TN man's son reportedly injured in Las Vegas mass shooting
His aunt, Kilee Wells Sanders, confirmed his death in a Facebook post: "He was the most kind and loving soul". His contagious laugh and smile.He was truly an unbelievable person.

White House Accused of 'Softness' as Tax Plan Hits Early Bumps
GOP lawmakers said the study was flawed because it presumed details that they haven't yet chose to include in legislation. Of course, there are many taxpayers who don't itemize and may be just as eager to vote another tax on the rich as not.

Google, Facebook, & YouTube Promote Hoaxes On Las Vegas Mass Shooter
Facebook is expected to share with Congress more than 3,000 examples of ads Russia-linked accounts bought on the platform from 2015 to 2017.

Should explain injustice to Gujarat during its rule: Shah
The assembly elections in Gujarat will be conducted in December, so there's just around 2 months left to complete the campaigning. The Gaurav Yatra is meant to highlight the achievements of the BJP government in the State.

Homeland Security chief Elaine Duke just made Trump's Puerto Rico problem worse
Trump praised military and first responders for the relief efforts in Puerto Rico . Ms Yulin Cruz acknowledged Mr Trump's help, but asked for more immediate action.

Panthers' Ed Dickson projected for another quiet start in Week 4
Stick with the rookie: The one Carolina player who can make things hard for defenses is rookie running back Christian McCaffrey . Brady has no doubt been spectacular as usual, but he could be in for a challenge against the No. 1-ranked defense in the NFL .

Catalan FM calls on European Union to stop Spain's crackdown
Catalonia accounts for almost a fifth of Spain's economy, and leads all regions in producing 25% of the country's exports. Jordi Marti drives a taxi in Barcelona plastered with stickers supporting the vote.

Ginger biscuits for morning sickness, Kate?
On a visit to Milton Keynes yesterday, the Duke of Cambridge reportedly revealed the Prince is "over" the whole school thing. Prince William was speaking to mom-of-two Louise Smith when he revealed George's change in attitude.

FDA Pilot Project Aims at Quick Approvals for Medical Software
Participants also agreed to be available for site visits from FDA staff, and to provide information about their quality management system.

Hot Stocks Report: CVS Health Corporation (CVS), Suncor Energy Inc. (SU)
Currently, 397.5 million total shares are owned by the public and among those 394.5 million shares have been available to trade. Arete Wealth Advisors Llc decreased Barrick Gold Corp (NYSE:ABX) stake by 26,994 shares to 100,914 valued at $1.61M in 2017Q2.

Ryan Tubridy interviews Hillary Clinton for The Late Late Show
She was taking a swipe at a large swath of the population - according to exit polls , 41 percent of women voted for Trump in November.

Watch The 'Blade Runner 2022' Anime, Scored By Flying Lotus
They even used a DSLR to film this scene (I'm sure Roger Deakins , the DP, has a very good reason to do that). Practical, Practical, PracticalJust one example of the gorgeous sets " Blade Runner 2049 " utilizes.

Unilever to acquire personal care company Carver Korea
Unilever is working hard to boost its performance after an unexpected takeover bid by Kraft Heinz KHC.O in February. "It will significantly strengthen our position in North Asia, the largest skincare market in the world".

Mexico volcano 'erupts' AGAIN after deadly quake
While survival for those trapped becomes a faint reality after several days without food or water, it is not an impossibility. There were also 73 deaths in Morelos state, 45 in Puebla, 13 in the State of Mexico , six in Guerrero and one in Oaxaca.