Amazon is preparing to dispatch a shipping service to compete with shipping heavyweights FedEx & UPS.

The service will pick up the packages from the sellers and deliver them to the customers, people having knowledge about it revealed to The Wall Street Journal.

While the service will be tested with third-party sellers in Los Angeles, the e-commerce mammoth will expand the service to other cities and will open the service to other businesses beyond third-party sellers.

The Wall Street Journal additionally reported that Amazon is intending to undercut FedEx & UPS on costs.

Amazon has tested a few shipping services including “Prime Air,” which is set up to deliver the packages to the consumers within half an hour (30 minutes) or less, with the help of drones.

Amazon already ships its own particular packages in some of the cities and is hiring shipping people to work through “Amazon Flex”.

Amazon delivered more than 5 billion items around the world with Prime in 2017.