Amazon Bans 3rd Party Sellers from Using FedEx Ground to Ship Prime Orders

December 19, 2019

Amazon ceased shipping orders with FedEx Express and FedEx Ground after FedEx declined to renew the retailer’s contract this summer. At the time, FedEx was carrying roughly 1.6% of Amazon’s total package volume, representing 1.3% of the carrier’s overall revenue. Executives said the cost-intensive nature of the retailer’s shipments meant dropping them could open resources for FedEx to expand its customer base in the broader e-commerce market.

Since then, all eyes have been on both companies as they work their way through peak season.

As Cyber Monday hit, reports began to surface that Amazon was not living up to its Prime delivery promises. According to data from ShipMatrix, a consulting firm, Amazon vans delivered 93.7% of packages ordered during the week ending in Dec. 7 on time, down from 98.2% in 2018.

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SourceSupply Chain Dive