Amazon.com Inc is indefinitely restricting third party retailers from using the ground distribution network of FedEx Corp to conduct prime orders, as it seeks to meet speedy delivery cutoff times this holiday season. A decline in FedEx performance led them take this decision. Amazon declined to state to what extent the move would last.
According to WSJ, On time conveyance rates during the record setting Cyber Monday deals week were 90.4% for FedEx Corp, UPS 92.7% while Amazon conveyed 93.7% bundles on time during that week.
This summer, tension has been public between Amazon and FedEx. Just months after Amazon announced plans to boost Prime deliveries from two days to one day on millions of items FedEx has ended its distribution deals with world leading online retailer.