Amazon saves up to $6 per package by handling its own deliveries instead of relying on external carriers like UPS.

This is made possible by several key factors:

• Extreme route density: Amazon’s trucks deliver to many houses on the same street at the same time.
• No middlemen: By owning the entire chain, Amazon avoids external profit margins, residential surcharges, fuel surcharges, and holiday fees.
• Full control: Cutting out intermediaries gives Amazon complete control over the process.

This strategy has made Amazon the largest shipping company in the United States. Meanwhile, UPS is deliberately reducing its Amazon volumes by more than half by the end of 2026 to focus on more profitable business packages.

It was in May 2026 that Amazon announced its big expansion of Supply Chain Services — which, of course, caused UPS shares to drop 8–12% since then.

We thought we had sold all our UPS shares earlier in the spring… but apparently we had missed about ten shares hidden in two of our 17 investment insurance policies.

Today we finally got our act together and sold the last of our holdings in UPS.