Amazon announced some bad news for sellers this weekend. It is no longer allowing third-party sellers to use FedEx’s ground-delivery shipping for Prime orders. The change could affect small businesses and pricing for consumers.
An email sent out to partner merchants on Sunday noted performance declines as the reason for the decision to block FedEx Ground, according to the Wall Street Journal. The ban will reportedly take effect this week and last “until the delivery performance of these ship methods improves.”
Amazon no longer uses Fedex for deliveries since September, but it had allowed third-party sellers to use it. Amazon did not release a statement but will still allow merchants to use FedEx’s more expensive Express service for Prime orders and Ground for non-Prime shipments, according to Amazon.
The move comes after FedEx announced in August that it would end its ground-delivery contract with Amazon. It ended its express U.S. shipping contract with Amazon in June. Amazon on the other hand has been ramping up efforts to launch its own delivery network.
