Amazon and FedEx feud to impact third-party sellers this Christmas
Category: #retail  By Pankaj Singh  Date: 2019-12-17
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Amazon and FedEx feud to impact third-party sellers this Christmas

E-commerce giant Amazon Inc. has reportedly blocked third-party sellers from using FedEx’s ground delivery network, marking the latest escalation in the two firm’s rivalry. According to a FedEx representative, this move is likely to affect only a small number of sellers but would limit the option for such businesses on some of the highest-demand shipping days in history.

The two companies have not yet disclosed how many shipments would be affected because of this move. Basically, the ban was imposed due to FedEx’s poor on-time performance which is expected to continue until the delivery performance of its shipment methods improves.

Despite these restrictions, Amazon said that sellers can still use FedEx’s faster and pricier Express services including air transport for Prime membership shipments. The FedEx home and ground delivery option that are momentarily blocked for sellers’ Prime shipments, will however remain open for non-Prime deliveries.

The company further informed that it has blocked the service to make sure that FedEx can manage cutoffs for delivery by Christmas and consumers can receive their shipments on time.

As per reports, the move comes after FedEx declared that it would halt its ground-delivery contract with Amazon, after discontinuing its express U.S. shipping contract with the e-commerce giant in June. FedEx claims that the move was part of the company’s effort to emphasize the broader e-commerce market.

Meanwhile, Amazon has been ramping up efforts to introduce its own delivery network. In May, CEO Jeff Bezos announced USD 1.5 billion air hub in Kentucky that is expected to open in 2021. The air hub, which would house 50 aircraft, is expected to reduce Amazon’s reliance on UPS, U.S. Postal Service, and FedEx.

In June, Amazon also announced a Delivery Service Partners Program that enable entrepreneurs to create local delivery networks and transport packages from warehouses to their destination.

Source Credit  - https://www.cnbc.com/2019/12/16/amazon-blocks-sellers-from-using-fedex-ground-delivery-shipping.html



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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