Amazon finally lifted the ban on Home shipping services and FedEx Ground. In the past days, Amazon prohibited third-party Marketplace sellers from using FedEx shipping during the holiday season. According to Amazon, starting from 14th January, Marketplace sellers are able to use FedEx over UPS and Amazon’s shipping platform. Later, Amazon officially announced the lifting of the ban.
Considering the quality control and package delivery of FedEx and Home services during the holiday season, Amazon imposed a ban on them over the holiday season.
Reaction of Amazon Sellers
Many small business owners used FedEx’s cheaper options to qualify for Prime. This label is highly essential for improving placement in Amazon search results and product visibility. Therefore, most small business owners who relied on FedEx are unhappy with the ban. This ban was a real issue for cost-conscious sellers.
Amazon announced the ban on FedEx would not be permanent. But the ban was pushing the sellers to use either UPS or another shipping method. If sellers would like to remove the prime label from their products, they could use FedEx as an optional shipping option. CNBC said that Amazon is again happy with the delivery performance of FedEx. As a result, they lifted the ban.
Before this incident, Amazon and FedEx stopped working together because FedEx declined to renew its FedEx Express contract in June. Two months later, it terminated its ground shipping contract. Now, Amazon uses its own Flex delivery platform and also uses series UPS. Amazon Marketplace sellers were able to benefit from FedEx services till Amazon banned it. Again, the sellers are having a good time.
Over the last decade, Amazon spent a lot of money to create delivery infrastructure because using third party companies dry up their profit. In the present, Amazon is advancing towards the total package volume of both UPS and FedEx in the USA. Soon, it will be able to surpass both of them.
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