E-commerce giant Amazon.com Inc. withdrew its restrictions on third-party merchants from using FedEx Corp.’s Ground and Home services for Prime shipments, reports said citing an email sent to these sellers.
The ban was issued in mid December during the peak holiday shopping season over concerns about performance and delivery time of the package delivery giant.
Amazon lifted the ban on FedEx Ground and FedEx Home as of Tuesday afternoon. The online retailer, which examines its delivery providers’ performance each year, reportedly revised its decision after noticing that FedEx was delivering orders on time.
While announcing the ban, Amazon had said that the restrictions would last until the delivery performance of these ship methods improves.
Responding to the news, FedEx reportedly said, “This is good news for our mutual customers who have come to rely on the FedEx Ground offering. Our service levels have been very strong throughout a historic peak season.”
Following the December ban, Amazon’s third-party sellers, who sell more than half of the items on Amazon, had to find alternative options for Prime deliveries.
However, FedEx Ground was available for non-Prime shipments during the ban. For Prime orders, Amazon allowed FedEx Express, a faster but pricier option.
FedEx in August had refused to renew its ground-delivery contract with Amazon noting that the change was consistent with its strategy to focus on the broader e-commerce market. Earlier in June, FedEx said it would stop transporting Amazon packages on FedEx planes in the U.S.
Following the end of the contract, Amazon in September stopped using FedEx for its own deliveries. The company earlier had launched its own delivery network for Prime customers.
Despite this, it was allowing third-party sellers to use FedEx service.
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