Amazon creates fierce competition for retailers and parcel shippers. Amazon purchases often require the “last mile” segment of the delivery to be handled by USPS, because of their mutually beneficial relationship. The postal service’s parcel shipments for Amazon allow them to compete with other parcel carriers including FedEx and UPS, and Amazon sees the best rates.
In addition, the e-commerce world favors Amazon over many other retailers, and the lack of significant competition is driving many former stores like Toys R Us out of business. Smaller businesses will not be able to compete with Amazon on cheap parcel shipping, so they will need to instead offer a unique shopping experience.
Read the full article at Inc.com.