Amazon Bans Third-Party Sellers From Using FedEx Ground for Prime Orders
Amazon blocks third-party merchants from using FedEx Ground for Prime shipments due to delivery performance concerns during the holiday rush. The restriction highlights Amazon's growing dominance in the logistics sector.
Amazon tells third-party merchants they can no longer use FedEx Ground for Prime shipments. The company states this ban stays in effect until FedEx improves its delivery performance. Sellers are still able to use FedEx Ground for standard, non-Prime orders and can utilize the faster FedEx Express option for Prime deliveries.
This restriction hits during the peak holiday shopping season, a time when third-party sellers account for over half of all products sold on Amazon. Both FedEx and UPS experience recent shipping delays caused by record volumes and severe weather. Amazon explains it is managing Christmas delivery cutoffs and wants to guarantee customers receive their packages on time.
This move deepens the ongoing business rift between Amazon and FedEx, as FedEx ended its express and ground delivery partnerships with Amazon over the summer. The decision also draws attention amid federal antitrust scrutiny regarding whether Amazon unfairly pushes sellers toward its own logistics network. Analysts estimate Amazon currently delivers 46% of its U.S. orders in-house and predict it will surpass FedEx, UPS, and the USPS in total shipment volume by 2022.