Amazon.com, Inc (NASDAQ:AMZN) has had second thoughts regarding the activities of the third-party sellers and their inclination to the use of FedEx Corporation (NYSE:FDX) Ground. These businesses will from now henceforth utilize the services of the courier in their prime deliveries.
Amazon opens up on the reason behind the move
It was a month ago that Amazon made a statement outlining that it had done away with courier services. When asked by news reporters, the reason behind the move, the business guru was quick to point to poor service delivery.
Reports show that FedEx has taken its service delivery a notch higher, and Amazon is aware of that. The retail giant says that it is a good thing that FedEx Ground is at the moment performing remarkably in its on-time delivery requirements. Amazon has, with immediate effect, lifted the ban, a move that will see sellers once gain star using the services.
Effects of striking out FedEx
The cancellation of FedEx ground shipping by the business guru has paralyzed businesses, and sellers say that they have had a difficult time. They say that the matter put them in a bid, and thus they did not take full advantage of the busy holiday period.
Sources indicate that several merchants were compelled to go for some other options, which ended up costing them much higher. This was more so for the prime orders, but they are now happy about the change.
It was not all in vain because the merchants admit that they were not restrained from using FedEx Ground. This served their needs when it came to conducting the non-Prime packages. The other way for them had been the FedEx Express, which they say comforted them immensely during the holiday.
Analysts say that people shouldn’t raise their hopes regarding FedEx. According to them, this strategy isn’t one of those that one could consider permanent for ground shipping.
On the other hand, the courier had in August made it known that it would be renewing its contract with Amazon. It specified that the renewal would be for the ground delivery contract.
Amazon seems quite determined in business lately. It was sometime back that it took to the expansion of its delivery network. Drones were some of the major additions.