Amazon is relaunching a shipping service to compete with FedEx and UPS

Amazon has restarted a shipping service that was suspended in the early days of the COVID-19 pandemic and is competing with carriers such as FedEx and UPS.

Amazon has restarted a shipping service that was suspended in the early days of the COVID-19 pandemic and is competing with carriers such as FedEx and UPS.

The Seattle-based retailer already offers shipping to fulfillment merchants through its warehouse and delivery service, Amazon. Amazon Shipping allows sellers to use the company’s delivery services without storing their products in its warehouses. It works only for domestic exports.

The e-commerce giant has tested this scheme in the past. But the company suspended it in 2020 to better handle orders placed on its own platform amid a pandemic-induced surge in online shopping.

“We’re always working to create new, innovative ways to support Amazon’s selling partners, and Amazon Shipping is another option for sending packages to customers quickly and cost-effectively,” Amazon spokeswoman Olivia Connors said in a statement.

“We’ve been offering this service for some time with positive feedback, so we’re now making it available to our top selling partners,” Connors said.

During the pandemic, Amazon improved its logistics footprint in an effort to handle orders flooding its site. But as the worst of the pandemic subsided, the company had excess warehouse space around the country, which it later dealt with by leasing some, terminating leases and postponing construction of new buildings.

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Meanwhile, Amazon’s shipping speed has also accelerated. In the second quarter of this year, more than half of Prime orders in the top 60 U.S. metro areas arrived the same day or next day, the company said last month, its fastest Prime speed. The company also announced plans to double the number of same-day delivery sites in the coming years.

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