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Amazon Bars Sellers From Using FedEx Ground

Amazon is telling third-party sellers they can no longer use FedEx Ground for Prime shipments, The Wall Street Journal reports.

Amazon cites declining performance from FedEx as the reason for the temporary ban, according to the article. A spokesperson for Amazon says the goal of the change in policy is to ensure customers receive their packages on time during the holiday season.

A spokesperson for Amazon says sellers will be allowed to use FedEx when its service improves.

FedEx says in the article that the decision affects a small number of shippers, but “limits the options for those small businesses on some of the highest shipping days in history.”

ShipMatrix, a company that analyzes shipping trends, reports that in the week after Black Friday, FedEx deliveries were 90.4 percent on time and deliveries made by Amazon were 93.7 percent on time.

In an email to sellers, Amazon says they can continue using FedEx Express service for Prime orders or continue using FedEx Ground for shipments not eligible for Prime.

Third-party sellers on Prime, the e-commerce site’s subscription service which offers media content and expedited delivery, now sell more than half of the merchandise sold on Amazon, according to the The Wall Street Journal.

In August, FedEx announced it would not renew its ground delivery contract with Amazon.

About Todd Taber

Todd Taber
Todd is trends editor for Hardware Retailing magazine. He graduated from Indiana University where he majored in journalism and French. Throughout his career, he has aimed to highlight small businesses and their community value. He joined NRHA in 2017.

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