Amazon puts an end to FedEx Ground ban for third-party Prime shipments
Category: #retail  By Pankaj Singh  Date: 2020-01-17
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Amazon puts an end to FedEx Ground ban for third-party Prime shipments

Amazon, a leading company in the e-Commerce sector, has recently decided to lift its shipping ban on FedEx Ground deliveries for third-party Prime deliveries. Under the new agreement, third-party sellers will have access to FedEx services for faster delivery of products. Since more than half of the products sold on Amazon are from third-party sellers, the deal could boost the growth of both companies (Amazon and FedEx).

In August 2019, FedEx Ground announced the ending of its delivery partnership with Amazon. Both companies believed that the move would provide better chance for them in the logistics space with Amazon developing its own delivery platform and FedEx looking to connect with other retailers. The move also highlighted Amazon’s  dedication to fulfilling one- or two-day delivery options.

Amazon is willing to spend billions of dollars to ensure items are delivered on time, which will eventually reduce costs incurred by relying upon third-party companies. The initial FedEx ban was put into place due to the carrier’s slow delivery speeds. During the ban period, sellers were forced to use UPS or Amazon’s own delivery network.

Studies suggest that nearly 62% of online shoppers reported that fast shipping speeds can define a positive brand experience. Most customers expressed that it did not matter which carrier delivered the order, as long as the package arrived quickly and safely.

From the recent lift of shipping ban by Amazon, customers can gain various benefits. Many Prime members can get their third-party products delivered at fast speeds.

Prior to the lift of the ban, only a few products were eligible for fast delivery. However, with the  renewed option for third-party sellers to use FedEx platform, many other Amazon products can get delivered quicker and at low shipping costs. Despite internal conflicts, the companies have managed to overcome their differences and regard customers’ needs to be always as their top priority.

Source credit:

https://www.forbes.com/sites/blakemorgan/2020/01/15/amazon-lifts-fedex-ground-ban-for-deliveries/#743169ca1eba



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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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