Freight Transportation: Amazon Shipping Reportedly Pursues Competitive Pricing to Gain Share

Research evidence excerpt

Freight Transportation: Amazon Shipping Reportedly Pursues Competitive Pricing to Gain Share

Update

July 9, 2026 05:43 PM GMT

Morgan Stanley & Co. LLCMFreight Transportation | North America Ravi Shanker

Equity Analyst

Amazon Shipping Reportedly Ravi.Shanker@morganstanley.comNancy Hipp +1 212 761-6350

Research Associate

Nancy.Hipp@morganstanley.com +1 212 761-1311

Pursues Competitive Pricing to Madison J Pasterchick

Madison.Pasterchick@morganstanley.com +1 212 761-3787

Gain Share

Freight Transportation

North America

According to an unconfirmed media report, Amazon Shipping is offering U.S. Industry View In-Line

businesses pricing that is competitive with or lower than FDX and UPS, according

to parcel pricing experts who spoke with Supply Chain Dive. See our initial thoughts

on the AMZN SCS rollout here and here. The service, now open to all customers

after expanding from a narrower focus on lightweight packages to metro areas in

2024–2025, uses tactics such as waived surcharges, no residential or weekend

delivery fees, and simplified pricing structures. Logistics platform Loop reported

clients saving up to $6 per package by shifting eligible residential volume to

Amazon Shipping, with one large retail client saving over 33% annually on the

roughly 90% of distribution Amazon could service. Amazon Shipping is even

reportedly pricing lower than the USPS on rates for packages under one pound.

However, the service currently offers only two-to-five-day ground shipping in the

contiguous U.S. and lacks capabilities like overnight delivery that FDX and UPS

provide. However, we believe it is likely not long before that becomes an option as

well. Amazon Shipping is seeking volume commitments from shippers as part of