Amazon Lifts FedEx Ground Shipping Ban Post-Holiday Season


Amazon recently returned to utilizing FedEx’s ground shipping services for its Prime orders.

During the holiday season, Amazon instituted a ban on FedEx ground shipping as an option for third-party vendors using Amazon to ship orders to customers. The ban was placed because Amazon believed that delivery times were lagging below the 2-day delivery time they promise to Prime members.

Throughout the ban, third-party vendors were able to use air shipping services from FedEx and services provided by the United States Parcel Service. Amazon had been monitoring the different delivery times from packages delivered by FedEx before lifting the ban.

It is thought that the ban was lifted after the holiday season once shipping demands became more manageable, making it easier for FedEx to maintain a two-day delivery window.

“This is good news for our mutual customers who have come to rely on the FedEx Ground offering,” a FedEx spokeswoman said.

During the ban, FedEx’s ground shipped packages had an average transit time of 2.4 days. Additionally, 18% of packages were delivered early. Ties between FedEx and Amazon are weaker than they were before. Amazon used to contract FedEx to ship all products that Amazon sold directly, instead of through third-party vendors.

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Economics, Finance and Investing