A recent article in The Wall Street Journal (subscription required) details how Amazon is attempting to undercut FedEx and UPS by avoiding pesky fuel surcharges and other such fees. The e-commerce giant is also now using its own logistics service to deliver about 26% of its own orders, according to Wolfe Research, showing that it’s already built a significant logistics business, as the company controls about half of e-commerce sales in the U.S., both through its own retail operation and its third-party marketplace. Amazon is the U.S. Postal Service’s biggest customer, and is one of the biggest for FedEx and UPS, so its initiatives threaten not only to take away a valuable customer from the shipping giants but also to put pressure on prices in the industry as Amazon has made a habit of in other sectors. To deflect concerns about Amazon, FedEx recently released a statement saying the e-commerce giant made up just 1.3% of its business.
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