How Amazon is shipping for third parties to compete with FedEx and UPS


Amazon is on a spending spree to grow its shipping business and isn’t content with only delivering products purchased on its own site. The company is now moving cargo for outside customers in its latest move to compete directly with FedEx and UPS.

“They want to be a new kind of U.S. Postal Service where everything can get everywhere, but also quickly,” said e-commerce consultant Chris McCabe, who was a seller performance investigator at Amazon from 2006 to 2012.

Amazon said in its first-quarter earnings report that capital expenditures were up a whopping 80% from a year earlier, helping it increase capacity of its in-house logistics network by 50% year over year. According to SJ Consulting…


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