Amazon once again allows its sellers to use FedEx services

  • The American multinational Amazon FedEx told companies that sell through its portal using parcel service again to send orders to “Prime” customers after banning them during the Christmas campaign.
  • On December 16 just before Christmas is the time of year when Amazon sells the most of it.
  • The firm led by Jeff Bezos vetoed FedEx, claiming that the parcel company’s service had lost performance efficiency of their work.
  • After the Christmas dates, the Seattle company (Washington state, USA) now ensures that FedEx has been “consistently meeting”.
  • Its standards for punctuality in deliveries, and therefore is accepting it again for customer shipments “Prime”.

Mutual Customers

  • “This is good news for the mutual customers who trust FedEx’s service offering.
  • We look forward to working with Prime sellers and offering them our extraordinary service,” they assured from FedEx.
  • Despite official justifications, the December move went beyond an alleged Amazon dissatisfaction with FedEx services.
  • It was part of the open war between both companies for leadership in the home delivery sector.
  • Until then and again from today third parties who sold their products online through Amazon.
  • We can choose which parcel company to use to get the order to the consumer.

Amazon FedEx Delivery Services

  • Among them were FedEx, UPS, USPS, and Amazon’s delivery services.
  • This fact brings a part of Amazon’s business into direct competition with FedEx.
  • It considers that the parcel company is “taking advantage” of the platform.
  • They have created to increase their business volume at the expense of services also offered by Amazon.
  • The Christmas season is the busiest time of year for Amazon and, therefore, also one of the busiest for FedEx and other companies in the industry, so the timing was no accident.
  • Amazon said Monday that FedEx delivery efficiencies are declining, so it will no longer allow third-party merchants.
  • To use FedEx’s ground delivery network for express Prime shipments during the December holidays.
  • Amazon sent a message to sellers Sunday night informing them of the change.

Amazon Merchants with FedEx

  • According to notifications from Jeff Bezos’ company sent to merchants consulted by Bloomberg.
  • More than half and more of all products sold on Amazon come from third-party merchants who pay commissions to Bezos’s company for each sale.
  • Many merchants also pay Amazon for logistics services like warehousing and delivery, making Amazon compete with FedEx.
  • Third-party sellers can monitor deliveries on their own, and many use FedEx Ground to deliver on Amazon’s one- or two-day delivery promise for millions of products.
  • Merchants can still use FedEx express service for Prime packages, but that’s an expensive option.
  • Amazon looks at the performance of its delivery providers each year to determine their holiday order deadlines.
  • FedEx, in an emailed statement, says, “the overall impact to our business is minuscule.”
  • The company’s shares fell 2.4 percent as of 2:12 p.m. Mexico City time.

Increasingly tense relationship

  • On August 7, FedEx announced that it would no longer make ground deliveries for Amazon.
  • The announcement came two months after FedEx ended its air deliveries with Amazon.
  • The shipping company said that moving away from Amazon as part of its plan to have more deliveries with other e-commerce-related companies.
  • Traditional stores like Walmart and Target want to sell more of their products online.
  • Allowing FedEx to distance itself from Amazon without suffering the damage it might have suffered a while ago.

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