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Amazon to take on UPS, FedEx via “Shipping with Amazon”

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Amazon's plans to take on UPS and FedEx are reportedly coming to fruition. According to a report by The Wall Street Journal, the online retailer's new shipping service, named "Shipping with Amazon" (SWA), will roll out in Los Angeles in the coming weeks. With SWA, Amazon will pick up packages from businesses and ship them to customers, relying almost entirely on Amazon's shipping infrastructure.

Aside from first starting in LA, SWA will first serve third-party merchants that already sell on Amazon. The company plans to send drivers to pick up shipments from these businesses and deliver the packages for them. While shipping and delivery will mostly go through Amazon, anything outside of the retailer's reach will be given to the USPS and other shipping services for the "last mile" portion of the delivery.

In the future, Amazon reportedly wants to open up SWA to businesses that aren't affiliated with the site—meaning Amazon could ship and deliver packages from companies of all sizes. Amazon also believes it can compete with UPS and FedEx by making SWA more affordable for business customers, but its pricing structure hasn't been revealed.

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