Amazon is reportedly allowing third-party sellers to use FedEx ground delivery services once again.
According to CNBC, on Tuesday, Jan. 14, Amazon ended a ban it enacted on Amazon Marketplace sellers that prohibited them from using FedEx ground delivery. In December 2019, Amazon sent an email to third-party sellers that said they would not be allowed to make ground deliveries with FedEx until its performance improved. The ban did not apply to FedEx Express delivery for Amazon Prime orders.
An Amazon spokesperson told CNBC that FedEx Ground and Home services have been consistently meeting Amazon’s on-time delivery requirements, which led to the e-tail giant ending the ban. In addition, a FedEx spokesperson said the delivery service averaged a 2.4-day transit time for ground deliveries during the peak holiday season, with 18% of ground deliveries arriving early.
Amazon and FedEx were engaged in an escalating delivery feud during the second half of 2019. In August, FedEx decided not to renew its contract to deliver Amazon packages through its ground network. This followed a June announcement that FedEx would not renew its domestic air-shipping Express contract with Amazon. The company still has an agreement with Amazon for international deliveries.
Amazon may have had reasons of self-interest to lift the FedEx ban. According to 2019 consumer data from Avionos, when product price and quality are equal, nearly half (49%) of online shoppers choose Amazon over other brands and retailers because Amazon has better shipping options. And 62% of online shoppers say fast shipping speeds help define positive experiences with online brands and retailers.
Read the full CNBC article here.