UPS, FedEx stocks fall after report of Amazon testing new delivery service

Amazon said to be testing its own delivery service with expansion planned for 2018

Amazon said to be testing its own delivery service with expansion planned for 2018

The company is not giving up its partnerships with UPS and FedEx, but the new service enables Amazon - not the seller - to control how a package is sent, Bloomberg reported.

The company has used other delivery services such as FedEx Corp. Amazon has already been using local couriers for same-day deliveries in major markets, and has been leaning more heavily on the U.S. Postal Service, including on Sundays.

Currently, third-party sellers on Amazon - people who use Amazon's website to sell, but don't store products in an Amazon warehouse - handle their shipping themselves, using Amazon's tools with UPS and FedEx to ship products. Amazon recorded an all-time high of almost $7.2 billion lost on shipping in 2016, according to GeekWire's analysis of the e-commerce giant's financial results.

He told analysts that the overwhelming majority of business at FedEx is from business to business as more than 85% of its business does not have anything to do with online sales or e-commerce.

Now, with the new delivery service by Amazon itself, this will eliminate the hassle of the third-party sellers to deal with other delivery services. And while it doesn't eliminate UPS and FedEx from the mix, it would probably move more control over to Amazon long-term. Amazon would not comment about the project. And with its latest actions, the company is getting closer to becoming a real challenger in two industries: delivery and apparel.

Las Vegas shooting: Marilou Danley's relatives speak out
Police reported that in 3 different locations, including hotel room of paddock, 47 weapons were seized from attacker's search. She added Danley was likely "even (more) shocked than us" by his actions.

Don't miss: Amazon partners with Atlas Air Worldwide for cargo services. And they will still need FedEx and UPS to deliver for them. "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".

The online giant is experimenting with a program that rivals services handled by longtime partners UPS and FedEx.

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.

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.

But the popularity of this service strains Amazon's capacity during the end-of-year holidays.

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