Amazon’s email address to merchants last Sunday, saying that due to the poor performance of FedEx during the year-end holiday shopping season, Amazon has banned third-party sellers from using FedEx land this week The delivery network services FedEx Ground and FedEx Home deliver goods to Amazon members Prime until delivery performance improves.
The Amazon email said it was a temporary ban to protect the Prime customer experience. Sellers can use the faster FedEx service or the more expensive Express service. For non-Prime shipping, they can also choose the FedEx ground service.
Third-party sellers account for more than half of Amazon website merchants. However, a FedEx spokesman later said that Amazon’s decision only affected a small number of buyers, but limited small merchants’ delivery options during the busiest delivery peak in history. FedEx still predicts that the number of packages processed this holiday shopping season will reach a record high, and the overall impact of the Amazon ban on the company’s business will be minimal.
Prior to this, Amazon’s self-operated business had cut off cooperation with FedEx. In June of this year, Amazon terminated its U.S. air contract with FedEx, and two months later announced that it would no longer use FedEx’s land delivery service and would continue to use UPS, USPS, and Amazon’s own distribution network.
The two major distribution contracts terminated by Amazon combined brought about $ 900 million in operating revenue to FedEx. FedEx is shifting its focus to retailers that compete with Amazon, such as Walmart and Target.
ShipMatrix Inc., a software service provider that analyzes delivery data, estimates that one week after Black Friday after Thanksgiving this year, the UPS delivery rate was 92.7%, FedEx was 90.4%, and Amazon’s own delivery was 93.7%.
After the news that Amazon banned third-party FedEx services, FedEx’s share price fell during the session on Monday, the largest decline in the day reached 2.5%, and finally closed down 0.95%, after the market fell further.