Amazon notifies third-party vendors of ban on FedEx delivery service


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Canonicalized

Amazon introduces the program ' Amazon Logistics ' for building its own delivery network, so that it can deliver goods at a lower price using its own delivery service rather than using other companies' delivery services. Aims to do. As part of this, Amazon has terminated its delivery contract with FedEx, but it has become clear that new third-party vendors have been notified not to use some of FedEx 'delivery services.

Amazon Blocks Sellers From Using FedEx Ground for Prime Shipments-WSJ
https://www.wsj.com/articles/amazon-blocks-sellers-from-using-fedex-ground-for-prime-shipments-11576525190

Amazon bans third-party merchants from shipping with FedEx | Ars Technica
https://cms.arstechnica.com/tech-policy/2019/12/amazon-bans-third-party-merchants-from-shipping-with-fedex/

The Wall Street Journal independently obtained information about the prohibitions that Amazon notified third parties. According to this, Amazon is Prime member for the vendor to provide the products for, FedEx is a delivery service provided by FedEx Ground and FedEx Home Delivery has been forbidden to use the. According to MarketWatch , Amazon banned the use of some FedEx delivery services for third-party vendors because the holiday season 's delivery performance declined, Amazon said `` these delivery methods (FedEx Until the performance of Ground and FedEx Home Delivery) is improved, 'the use of the service is prohibited.


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Liam Kevan

Amazon has banned the use of FedEx partial delivery services this time for third-party vendors selling products on the Amazon marketplace that deal with products for Prime members. Note that third-party vendors sell many products on Amazon, as third-party vendors account for 18% of Amazon's total sales .

Amazon itself ended the US domestic delivery contract with FedEx in August 2019. This is to deliver products using Amazon's original delivery network, FedEx is in the document for investors `` Amazon has developed and implemented its own delivery function for mass shipping As a result, we now use contractors (Amazon Logistics), so Amazon could be a competitor to FedEx. '

In addition, Amazon has banned not only its own, but also third-party vendors from using FedEx delivery services, which FedEx explains, 'the impact on our entire business is negligible.'

In addition, Amazon provides any of the following services to third-party vendors that sell products for Prime members: UPS service, FedEx Express (an expensive service among FedEx delivery services), and Amazon Logistics. Is recommended, especially Amazon Logistics.



Morgan Stanley predicts that 'Amazon Logistics has grown to account for about 50% of all Amazon-related delivery operations in urban areas in the United States.' We also estimate that by 2022, Amazon Logistics will be responsible for the delivery of 6.5 billion items per year, which is the number of UPS deliveries per year (5 billion) and FedEx annual deliveries (3.4 billion). The number is much higher than

Analyst: Amazon delivering nearly half its packages instead of UPS, FedEx



in Web Service, Posted by logu_ii