Amazon Moves Deeper Into Delivery Biz

Amazon is taking on a greater role in how third-party sellers ship

Amazon is taking on a greater role in how third-party sellers ship

As part of the service, Amazon will oversee pickup of packages from warehouses of third-party merchants and delivery to customers, the report said, which is now handled by UPS and FedEx.

The service first began in India, and Amazon began to slowly push it into USA consumers.

Amazon itself will handle the pickup of packages from sellers. The report also said Amazon is calling the project "Seller Flex" and that it plans a broader rollout in 2018. Amazon declined to comment.

Amazon is testing a new delivery service for shipping goods for third parties that sell on its website, Bloomberg reported on October 5, citing unnamed sources. Customers may see their favorite third-party sellers jumping ship rather than be consumed by degrees by Amazon.

Amazon has invested heavily in its logistics network over the years and taken on losses to build it out.

"We are using the same carrier partners to offer this program that we've used for years, including UPS, USPS and FedEx", said Amazon spokeswoman Kelly Cheeseman in an email to CNNMoney about the Bloomberg report.

"Amazon is a valued UPS customer", said Steve Gaut, a UPS spokesman.

The hit to delivery service companies' stocks on fears that Amazon will disrupt the industry might have some staying power, CNBC's Jim Cramer said Thursday.

Of course, from a customer perspective, this means cheaper shipping and faster delivery, as well as the expansion of services like Amazon Locker, so the majority of Amazon shoppers may not care.

However, the threat of Amazon turning the industry upside down had popped up periodically during conference calls held with analysts the past year for both FedEx and UPS. The new service gives Amazon control over those deliveries instead, even if it continues to use third-party couriers. Amazon is now experimenting with its own shipping service on the west coast, before moving to expand it nationwide. But that system has been strained during the holiday shopping season. Specifically, it is dabbling in a program created to make more products available for free two-day delivery and relieve overcrowding in its warehouses, according to Bloomberg. And they will still need FedEx and UPS to deliver for them.

Don't miss: Amazon partners with Atlas Air Worldwide for cargo services.

FedEx shares were down less than 1 percent.

It's important to remember that Amazon is not the only e-commerce game in town.

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