Amazon Lifts Ban on FedEx Ground Delivery for its Third-Party Sellers
Amazon.com has lifted its ban on FedEx Ground delivery for its third-party sellers, resuming service on Tuesday, reports CNBC. The e-commerce giant temporarily suspended FedEx's Ground delivery for Prime shipments last month, citing poor delivery performance, which caught many of its sellers off guard during the busy holiday season. An Amazon spokesperson confirmed to CNBC that FedEx Ground and Home services have been consistently meeting Amazon’s on-time delivery requirements, and therefore it reinstated the shipping option for Prime orders.
Total Retail's Take: Amazon knows the power its shipping speed holds over consumers’ purchasing decisions, and therefore didn't hesitate to cut out a slow performer in the midst of the holiday rush. 2019 consumer data from Avionos shows that when product price and quality are equal, nearly half (49 percent) of online shoppers choose Amazon over other brands and retailers because Amazon has better shipping options. Now that FedEx has proved it can operate to Amazon's high standards again, the carrier is being brought back for sellers to utilize. However, one has to think that FedEx is on a short leash with Amazon. Furthermore, Amazon has been distancing itself from traditional carriers like FedEx and UPS as it grows its own internal delivery network. We'll see what carriers continue to service Amazon sellers through 2020 as the platform and its customers’ demands become more and more difficult to meet.
Kristina Stidham is the digital content manager at Total Retail and sister brand Women in Retail Leadership Circle. She is passionate about digital media and handles social media, video, and podcast production for both brands, as well as contributing articles and attending events. Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia.