FedEx is performing so poorly that Amazon is barring its sellers from using it for Prime deliveries
Holiday shipping can be unpredictable, but Amazon is trying to stabilize it a bit.
Look, holiday shopping is already stressful but there is nothing more nail-biting than an online purchase that is not going to make it until after Christmas. This is a mindset that Amazon is considering when it comes to third-party shippers, most notably, FedEx. In fact, as reported by The Wall Street Journal, the ecommerce giant is barring its merchants from using FedEx Ground for the crunch time portion of the holiday shopping season.
This stems from long-running problems with FedEx, most notably untimely deliveries. Amazon also started its own shipping department and in August, it severed ties with the Memphis-based courier. However, that is for first-party sellers and third-party sellers could still use them. Until now.
Amazon has said that they will lift this ban if FedEx’s performance on the road starts to improve.
Amazon is blocking its third-party sellers from using FedEx so folks can get their holiday presents in time
According to ShipMatrix, a company that creates software to analyze supply chain performances surveyed how some of the biggest shipping company’s performances for this year’s Black Friday. ShipMatrix reports that FedEx had a 90.4% accurate on-time rate. That sounds great, yes, but it pales in comparison to other shipping services with UPS scoring a 92.7% and Amazon’s own delivery service topping the charts with a 93.7% accuracy rate.
FedEx has stated that the recent weather conditions have been the cause of their lack of accuracy. However, all shippers are experiencing the same problems with snow and cold weather, Amazon and UPS included.
However, even with this ban and those numbers in mind, FedEx doesn’t seem to be phased by it at all. “The overall impact to our business is minuscule,” a yet to be named FedEx spokeswoman told the Journal.
What do you think? Surprised by The Journal’s report regarding Amazon and FedEx or have you had your own issues with FedEx? Let us know down below in the comments or carry the discussion over to our Twitter or Facebook.
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