Amazon ships cheaper than FedEx, UPS

|By:, SA News Editor

UPS (UPS -1%) drops on news that Amazon (AMZN -2.7%) is offering 50% cheaper shipping for sellers in its pilot shipping program in the Los Angeles area.

A seller tells CNBC that Amazon charged $80 for his shipment of 600 pounds of boxes from his warehouse to the tech giant’s fulfillment center. UPS would have charged $160 and FedEx (FDX -2.4%) $104. 

The Amazon Shipping program reportedly only handles small packages from third-party merchants to Amazon warehouses in the L.A. area and doesn’t include final delivery to a customer’s home. 

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