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Report: Amazon can’t compete on cost with traditional carriers

Amazon’s potential shipping service will come at a cost to merchants.

The online giant won't be able to compete with traditional carriers like FedEx and UPS as e-commerce costs increase over the next decade, reported CNBC, citing a report by Bernstein analyst David Vernon, who wrote that UPS, FedEx, and USPS are “uniquely positioned to deliver that next decade of growth."

"Delivering through Amazon clearly has a cost. For merchants fulfilling by Amazon, that cost is going up significantly this year,” Vernon wrote.

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