By Ruben Colffer
Contributing Writer for Telegraph Local
Third-party sellers on Amazon will no longer use Fedex ground delivery to ship Prime packages, as the e-commerce giant keeps on expanding its own delivery service just in time for the holiday season.
There is a possibility that this could have an effect on businesses, however a Fedex representative said that this is likely to affect only a small number of sellers “but limits the options for those small businesses on some of the highest-demand shipping days in history.”
The giant carrier also mentioned that they are still expecting to handle a large amount of deliveries during the holidays.
“The overall impact to our business is minuscule,” said a Fedex spokeswoman.
Amazon said that the ban starts this week and will only be for a limited period of time or “until the performance of these ship methods improve,” as stated in an email sent Sunday to merchants. According to The Wall Street Journal the email also pointed out a decrease in performance as the main reason for the temporary ban.
Amazon has stopped using Fedex for its own deliveries across the U.S, however it was mentioned in the email to merchants that they can still use Fedex’s more expensive Express Service for Prime orders or Fedex Ground for non-Prime shipments.
The conflict between Amazon and Fedex came out during the summer. As soon as Amazon announced that they will do a one-day Prime delivery eventually, Fedex opted to finish its agreement with the world’s biggest online retailer.
According to consultancy ShipMatrix (a software that analyses shipping data) during Cyber Monday delivery rates were 90.4% for Fedex, 92.3% for the U.S Postal Service and 92.7% for the United Parcel Service Inc.
That week Amazon delivered 93.7% of packages on time.
“These performances are not directly comparable because Amazon vans handle short-distance deliveries from fulfillment centers to doorsteps,” said ShipMatrix President Satish Jindel. “Major shippers like Fedex and UPS moves packages great distances, at times from factories on one U.S coast to customer doorsteps on another, and are more exposed to weather and other disruptions.”
In regards to these results, Fedex said that it has to do a lot with weather conditions and the fact that they are experiencing some of the highest-volume days in its history:
“Our networks are flexing as designed to accommodate the surge of packages.”
When a package is delayed, Fedex said that their priority is to focus on getting the item quickly delivered on time for the holidays.
Weather conditions also played a big role on UPS shipments due to winter storms in the Northeast and Midwest. This had resulted in longer schedules and overtime for workers. “A vast majority of UPS packages are meeting service-level commitments and the network overall is performing well,” said a UPS spokesman.
Amazon promises to deliver items on time and that eventually we will get our products in one day, rushing an pressuring other retailers to stay on the same page.