Amazon’s expanded shipping service targets corporate clients with discounts up to 30% below FedEx and UPS pricing.
Amazon Shipping is challenging FedEx (FDX) and UPS with rates up to 30% lower, waived residential surcharges, and simplified pricing for corporate shippers. The move expands a service previously limited to small metro-area packages into a broader threat to incumbents’ volume.
FedEx and UPS have dominated U.S. package delivery for decades, but Amazon’s push comes as logistics platforms report savings of up to $6 per package for shippers switching from the two carriers. One large retailer reduced annual shipping costs by over 33% after shifting volume to Amazon, highlighting the speed at which contracts can migrate.
Amazon is also undercutting the U.S. Postal Service on lightweight packages, adding pressure across the sector. The discounts target a vulnerable moment for FedEx and UPS as shippers prioritize cost efficiency.