Delivery Wars: Is Amazon a Threat To FedEx, UPS? Perhaps Not

How much impact could Amazon.com’s (AMZN) new delivery service have on United Parcel Services (UPS) and FedEx (FDX)?

That is the question swirling about after new broke yesterday that the e-commerce giant is testing a delivery service called Seller Flex that picks up packages from third-party sellers on Amazon’s web site and delivers them to consumers.

Some analysts are warning that Amazon’s new venture could put pressure on delivery rates and steal business from the transport giants. Yet Credit Suisse analyst Allison Landry has shrugged it off as “more noise than anything of substance,“ arguing that FedEx and UPS handle residential deliveries for only a small subset of Amazon third-party sellers.

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jim

Fedex and ups handle residential deliveries? So what are they dumping on our loading dock every morning?