Amazon Reportedly Testing Local Delivery from Merchant DCs

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

Amazon would pick up packages from third-party merchants selling on its platform and deliver the products to consumers.

Amazon has invested heavily in its logistics network over the years and taken on losses to build it out.

Amazon's new program could give carriers like United Parcel Service and FedEx a run for their money. While that might be alarmist, it's fair to ask, what will Amazon disrupt next? "We support all our customers with industry-leading e-commerce solutions and expect to expand these relationships further in the future", the statement said. Amazon declined to comment on the report and has yet to address the situation. Amazon has already been experimenting more with drone deliveries in order to have more control over the shipping experience for customers and also cut costs.

"Amazon is a valued customer", UPS said in statement sent to MarketWatch. That centralized approach can create logjams, particularly during the busy holiday shopping season.

The new experiment is meant to make more products available for free-two day shipping and relieve overcrowding in its warehouses, Bloomberg reported.

Tesco restores dividend as profits rise
Tesco chief executive Dave Lewis has hailed "strong progress" at the supermarket as sales rose for the seventh quarter in a row. In Tesco's prime market, the United Kingdom, like-for-like turnover grew 2.2 % and there was a 1.1 % increase in Ireland.

And while FedEx suggested risks of Amazon's in-house capabilities in its 2016 10-K, FedEx explained they are well-positioned and said any negative reaction misunderstands the scale and complexity of its business.

Amazon will now have full control of its eCommerce business if the company does launch its own delivery service.

Morningstar analyst Keith Schoonmaker downplayed Amazon's potential threat, saying the retailer constitutes a mid-single-digit proportion of earnings at UPS and low-single-digit at FedEx.

FedEx shares FDX, -0.26% slipped 0.3%, after being down as much as 1.6% earlier, and were also on course for a third-straight loss from Monday's record high. The internet e-commerce giant is up 29 percent year to date through Wednesday versus UPS' 4 percent and FedEx's 19 percent returns. So what'll happen once they start shipping packages themselves?

Prime Now offers a limited assortment of products, such as phone chargers and bottled water, in as little as an hour to shoppers in many cities. What if Amazon used excess capacity in the warehouse of their merchants to store its own goods or those of other merchants? 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 following mass shooting in Las Vegas

    Calls for gun control following mass shooting in Las Vegas

    In light of the tragedy in Las Vegas, and the ongoing tragedy of gun violence in America , this could not be more inappropriate. John Lewis of Georgia said prayers were not enough, asking "how many more dead bodies will it take to wake up this Congress? ".

    A Bit Overly Ripe For Owning: Microsoft Corporation (MSFT), Criteo SA (CRTO)

    The California-based One Management Limited Liability Corporation has invested 1.15% in Microsoft Corporation (NASDAQ: MSFT ). Following the transaction, the insider now owns 537,519 shares of the company's stock, valued at approximately $39,776,406.
    Catalans go on strike over referendum violent crackdown

    Catalans go on strike over referendum violent crackdown

    Two demonstrators, one wearing a Spanish flag and the other a Catalan independence flag, walk in Barcelona . Mr Puigdemont has called on the worldwide community to help mediate between the two sides.
  • Police release detailed timeline of response to Las Vegas shooting

    Police release detailed timeline of response to Las Vegas shooting

    Danley was originally called Stephen Paddock's roommate, but later identified as his live-in girlfriend. The motive for the shooting remains unclear, but police have said it was "obviously premeditated".
    Pauley Perrette to leave NCIS after 15 seasons

    Pauley Perrette to leave NCIS after 15 seasons

    Pauley Perrette's departure from NCIS at the conclusion of season 15 is one of the big stories breaking today and for good reason.
    Las Vegas gunman's girlfriend located in Philippines

    Las Vegas gunman's girlfriend located in Philippines

    Danley, who it is believed was born in the Philippines, is reported to have lived on the Gold Coast in Queensland 20 years ago. Shortly afterwards she moved to the U.S. - this is where her history appears more complicated.
  • Al-Nusra leader gravely injured by airstrike, 12 commanders killed - Russian MoD

    Al-Nusra leader gravely injured by airstrike, 12 commanders killed - Russian MoD

    The spokesman said that the attackers had the precise coordinates of the Syrian government forces, which could only have been obtained through aerial reconnaissance.
    FBI to interview alleged shooter's girlfriend

    FBI to interview alleged shooter's girlfriend

    An unidentified acquaintance of Danley who was reached by the Reno Gazette-Journal said, "She had nothing to do with this psycho". Prior to Danley's arrival in the U.S., Las Vegas Sheriff Joseph Lombardo said "we anticipate some information from her shortly".

    Google Home Mini speaker official

    The Google Home Max is official and here's everything you need to know about the specs, price and United Kingdom release date. Taking on Apple's Home Pod and Sonos, the Google Home Max is a stereo smart speaker focusing on audio fidelity.
  • Watchdog's safety clearance for Tepco reactors irks Fukushima victims

    Watchdog's safety clearance for Tepco reactors irks Fukushima victims

    Anti-nuclear activists rallied outside the regulation authority's building Wednesday. Greenpeace said 23 seismic faultlines ran through the Kashiwazaki-Kariwa site.
    Woman who lived with Las Vegas shooter described as 'person of interest'

    Woman who lived with Las Vegas shooter described as 'person of interest'

    Public records contained no indication of any financial problems, and his brother described him as a wealthy real estate investor. After his conviction, Patrick was sentenced to 20 years in federal prison, but escaped and went on the run again.
    Wells Fargo back in front of Congress

    Wells Fargo back in front of Congress

    STOR share have rallied by 1.94% in percentage terms since the start of the year - and retreated -1.45% in the last month . Wells Fargo & Company's insider ownership stands at 79.58 percent, while its insider transaction is -0.18 percent.


Most liked

Humhama gunfight over, 3 militants, BSF officer killed
Police said one of the attackers was shot dead first and the other two were killed later in an operation that lasted several hours.

WWE Smackdown: Kevin Owens beats down Shane McMahon
Nakamura quickly got the upper hand on Mahal, but the Singhs jumped on him and allowed Mahal the opportunity to hit The Khallas. After the match, Dolph Ziggler taunts Bobby Roode by making an entrance with a lot of theatrics, but it is purposely obnoxious.

Issue of Trump campaign collusion with Russian Federation 'still open'
"As it relates to the Steele dossier, unfortunately, the committee has hit a wall", North Carolina Republican Sen. The committee is examining Russian efforts to push out social media messages on Twitter and Facebook.

2.5 million more consumers affected, ex-CEO faces Congress
Smith also said the sales occurred after quarterly earnings were reported, which is a common practice within the company. On top of that, Smith failed to ask basic questions when he was notified of suspicious activity on July 31.

Not giving in to critics, Pique commits to Spain
Pique has won 91 caps for Spain, while Ramos has 153 global appearances to his name. "I have been here since I was 15", he said . Adriana Garcia is a Valencia-based football writer who covers La Liga for ESPN FC.

Who is Rajnish Kumar, next chairman of State Bank of India?
Kumar will take over the charge after Arundhati Bhattacharya tenure gets over on 6th October. The Banks Board Bureau had interviewed all four SBI managing directors for the top position.

Force India 'named in Vijay Mallya money laundering'
Known for his lavish lifestyle, Mallya made Kingfisher beer a global brand and ran a now-defunct airline with the same name. Force India , which started competing in F1 in 2008, is co-owned by Mallya and jailed Sahara India Parivar boss Subrata Roy.

Cubans, Americans in Havana bewildered by diplomatic spat
At the same time, Washington stopped short of severing diplomatic ties with the island, restored in summer 2015. Havana has pledged to continue to investigate and the USA will assist in the effort, Tillerson said.

Fourth Woman Accuses Roman Polanski Of Sexually Assaulting Her As A Teenager
Mr Polanski has become involved in legal problems during brief visits to Switzerland and Poland in the past. Detectives in the Swiss town of Gallen met Ms Langer last week, and she made a formal criminal complaint.

Saudi king arrives in Moscow on first historic visit to Russian Federation
Chris Weafer, senior partner at Macro Advisory Partners, told CNBC on Tuesday that King Salman's attendance at the meeting was "very significant".

US shooter's girlfriend returns to US from Philippines
Paddock killed himself in the room, they added . "He sent her away so that he can plan what he is planning without interruptions". Prior to Danley's arrival in the U.S., Las Vegas Sheriff Joseph Lombardo said "we anticipate some information from her shortly".

Court asked to restore details of Kim Jong Nam post-mortem
The four North Korean suspects flew out of Kuala Lumpur for Pyongyang on the day of the killing and remain at large. The murder charge under Section 302 of the Penal Code carries the mandatory death sentence upon conviction.

Marine takes truck to save victims of Las Vegas shooting
Winston and his girlfriend were dancing the two-step while Jason Aldean was playing when the gunfire started, he told CBS . Richard Phillips rescue mission, the Daily Beast reports. "We needed to get them out of there regardless of our safety".

Toys R Us releases an AR app
The company is planning to improve its online presence and to be more active in interactive areas. The app is also gamified, with the objective being to collect "stars" to unlock more experiences.

Scientists awarded Nobel Prize in Chemistry for biomolecular imaging
Between 1975 and 1986, Frank developed a new method to process electron microscopes' images into a more sharp, 3D structure. Richard Henderson, Joachim Frank and Jacques Dubochet helped to develop cryo-electron microscopy.