(AMZN) Prime shipments, saying it was concerned about reliability. (AMZN) told its third-party sellers to stop using FedEx (FDX) Ground is the company’s lower priced service, which delivers to homes and businesses. (AMZN) shipments as part of its express business in June, and Amazon “When I started following FedEx 30 years ago, it was definitely the disruptor. But with the Postal Service now making Sunday deliveries, FedEx had to respond in kind, said Helane Becker, transportation analyst at Cowen. And analysts believe Amazon depends far more on other services, including the US Postal Service and UPS.Īs it moves away from Amazon, FedEx is ramping up its residential delivery service, adding weekend delivery – an expensive change to make while losing such a high volume customer. In fact, Amazon has never accounted for a large enough share of FedEx’s revenue to be listed as one of its major customers. Because of its free delivery policy for Prime members, Amazon demands very low-priced delivery service from carriers who want to get a piece of its massive and ever-growing volume of shipments. The Amazon business that FedEx recently lost was some of the least profitable business the company handles. And they’re generally not willing to pay for it. The problem for FedEx and other delivery services is that the consumers who are making more online purchases expect to receive their items quicker than ever. But that’s not the biggest problem for the iconic delivery company. FedEx and Amazon just went through a very public divorce.
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