For prime shipment deliveries, Amazon has excluded its third party seller from using FedEx Ground service.
The company shared a message to merchant in the built-up to Christmas, and stated that the ban would last “until the delivery performance of these ship methods improves.”
The company has still allowed FedEx Ground for non-Prime shipments, while the merchants can still use FedEx Express for Prime shipments. As the name suggests, FedEx Ground is a road service, and is generally slower, but a more economical option, however, FedEx Express deliver shipments both locally and internationally via air.
Though, it seems that Amazon’s decision has come in the reference of a speedily deteriorating association between the two firms. In the past year, both Amazon and FedEx eventually acknowledged, either directly or indirectly, the rivalry between them in the parcel delivery segment.
FedEx lets go of its contracts (FedEx Ground) with Amazon, its Express contract for US domestic shipments.
Now, Amazon in the US, delivers about half of its own parcels, as per an estimate made by Morgan Stanley.