Amazon Will Not Allow Its Third-Party Sellers to Use FedEx’s Ground Delivery To Ship Prime Packages
Amazon will not enable its third-party sellers to make use of FedEx’s ground delivery to ship Prime packages, marking a change that might have an effect on small businesses and pricing for consumers.
The move was highlighted in an e-mail, obtained by The Wall Street Journal, reportedly sent to Amazon’s merchant companions on Sunday.
As of September, Amazon (AMZN) no longer uses FedEx for its own deliveries; however, it had allowed third-party sellers to make use of it. Amazon didn’t release a statement; however, it will still enable merchants to make use of FedEx’s costlier Express service for Prime orders and Ground for non-Prime shipments in accordance with Amazon.
The move comes as the holiday season — a time when more packages are shipped than at another level of the year — hits its peak. It is also a time when carriers face inclement weather, which might have an effect on shipping times, and this year there are fewer days between Thanksgiving and Christmas, which means more volume over a shorter time span.
FedEx and Amazon have launched rival initiatives in recent times. For example, when Amazon debuted single-day delivery, FedEx announced Sunday delivery. And when Amazon started testing a delivery robot, FedEx launched the SameDay bot.
The companies have had a tumultuous relationship of late. In June, FedEx selected not to renew a contract with Amazon to move packages on FedEx planes.
FedEx has denied that parting methods with Amazon are bad for its business, citing its capability to deal with different e-commerce partnerships. FedEx has dealt with Walmart (WMT) and Walgreens (WBA) for next-day shipping and a partnership with Target (TGT) that permits it to make use of stores as local shipping hubs.