Reuters :
Amazon.com Inc is temporarily blocking third-party sellers from using FedEx Corp’s ground delivery network to handle Prime shipments as it strives to hit accelerated delivery deadlines this holiday season.
This is likely to affect only a small number of sellers but “limits the options for those small businesses on some of the highest-demand shipping days in history,” a FedEx representative said. Amazon and FedEx did not say how many packages would be affected by the restriction. Amazon declined to say how long the move would last. The Wall Street Journal earlier reported that the ban was due to FedEx’s on-time performance.
Amazon said sellers can still use FedEx’s pricier and faster Express services, including air transport, for Prime deliveries. The FedEx Ground and Home delivery options that are temporarily restricted for sellers’ Prime shipments remain available for non-Prime shipments. Third-party sellers offer more than 50 per cent of the goods on Amazon’s site.
Amazon Prime members pay $119 per year for fast, “free” delivery. Tensions between Amazon and FedEx became public this summer. FedEx canceled its delivery agreements with the world’s leading online retailer just months after Amazon announced plans to speed up Prime shipping to one day from two days on millions of items.
On-time delivery rates during the record-setting Cyber Monday sales week were 90.4 per cent for FedEx Corp, 92.3 per cent for the US Postal Service and 92.7 per cent for United Parcel Service Inc, according to consultancy Ship Matrix.
Amazon.com Inc is temporarily blocking third-party sellers from using FedEx Corp’s ground delivery network to handle Prime shipments as it strives to hit accelerated delivery deadlines this holiday season.
This is likely to affect only a small number of sellers but “limits the options for those small businesses on some of the highest-demand shipping days in history,” a FedEx representative said. Amazon and FedEx did not say how many packages would be affected by the restriction. Amazon declined to say how long the move would last. The Wall Street Journal earlier reported that the ban was due to FedEx’s on-time performance.
Amazon said sellers can still use FedEx’s pricier and faster Express services, including air transport, for Prime deliveries. The FedEx Ground and Home delivery options that are temporarily restricted for sellers’ Prime shipments remain available for non-Prime shipments. Third-party sellers offer more than 50 per cent of the goods on Amazon’s site.
Amazon Prime members pay $119 per year for fast, “free” delivery. Tensions between Amazon and FedEx became public this summer. FedEx canceled its delivery agreements with the world’s leading online retailer just months after Amazon announced plans to speed up Prime shipping to one day from two days on millions of items.
On-time delivery rates during the record-setting Cyber Monday sales week were 90.4 per cent for FedEx Corp, 92.3 per cent for the US Postal Service and 92.7 per cent for United Parcel Service Inc, according to consultancy Ship Matrix.
