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Home  /  Blog  /  Amazonâs Free Shipping Pushes Small Retailers, Delivery Firms to Compete Shipping companies, ranging from startups to the biggest package handlers, are vying to help small retailers compete with Amazon.com Inc.âs AMZN -0.62% rapid expansion of free shipping.

They see a lifeline in going after smaller customers, ranging from retail startups to midsize national chains that canât afford to match the billions of dollars Amazon, Wal-Mart Stores Inc. and other major retailers are spending to speed delivery.

It is a shift in strategy for companies like FedEx Corp. , which until recently tailored their e-commerce services mainly to giant retailers needing to quickly process thousands of shipments a day. Now, they are betting even tiny online storefronts will pay for access to nationwide networks of warehouses, trucks and planes that can whisk online orders to customersâ doorsteps in less than 48 hoursâeven if Amazonâs growing same-day delivery service remains out of reach for most.

âThere is no universe where you can beat Amazonâs shipping prices,â said Stefan Weitz, chief product and strategy officer at Radial, which handles online orders from about two-dozen warehouses and clientsâ stores. âI donât have to beat Amazon. I have to get close enough to provide a service level to my customers.â

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