Is UPS Making Big Money on All Those Amazon Packages? Not Quite

Amazon’s sales volume and its dependence on UPS have grown so great that packages from the e-commerce giant account for as much as one-third of the delivery company’s residential loads, says the Wall Street Journal. But don’t assume that UPS is getting rich on all this business: To provide free shipping to Prime members, Amazon has driven hard bargains with deliverers, and UPS’s average revenue on each internet-related package is dropping. One former industry executive doubts UPS’s margins are as high as 5%, the Journal says.