They're not putting anyone out of business through predatory pricing.
They are incredibly competent though. I ordered an iPad from Target, and it was like ordering from LL Bean in 1987. I think FedEx Ground dispatched it by horse, it took 11 days to travel from St Louis to NYS.
Source: I work for an online retailer.
In my particular case it was FedEx/Smartpost. In my area, the USPS leg has been very reliable, 100% next day delivery from drop off at their Springfield, MA center to my door in Albany NY.
The FedEx Ground leg took forever, my little box made like 4 stops in Ohio and PA before hitting the post office in MA.
UPS typically does that in 2-3 days, USPS typically 3.
They even delivered on sundays this year, which is pretty much unheard of in Austria.
Just about everything I purchase these days is cheaper at a local store. Ritter Sport chocolate bars are cheaper, bike tubes and tires, pots and pans... I can't think of a single thing that I have price-checked recently that has been even slightly cheaper on Amazon.