In a short memo to SFP customers, Amazon said that FedEx Ground was dropped from the program because of service reliability issues. FedEx has not commented on Amazon's move ahead of the release of its fiscal 2020 second-quarter results after the markets closed Dec. The animus has reached a point where FedEx employees have been asked not to order anything on Amazon, including goods for personal use, said the observer, who has spoken with several FedEx executives. Companies shipping through Amazon Logistics, the company's in-house arm, face no such pressure to hit targets. To do so, it looks at ways to convert SFP customers that now don't use Amazon for shipping into logistics customers who will.Īs previously reported onFreightWaves, Amazon has sometimes made it difficult for SFP customers to hit the delivery targets required to remain in the program. Amazon has made no secret of its desire to capture smaller customers' fulfillment business, of which it takes a portion of the customer's selling price. (The FedEx services are still available for Amazon's standard shipments, it said.)įor third-party sellers, a Prime classification can mean millions of dollars in additional sales. SFP customers will no doubt abide by Amazon's decision because they will lose their coveted Prime designation on the e-tailer's website. Under SFP, companies can select their fulfillment methods and still maintain their Prime selling designation as long as they meet delivery metrics set by Amazon. Of nine delivery options, FedEx Ground was by far the cheapest for a two-day delivery window. One SFP customer, who stopped using FedEx Ground more than a year ago because of service problems, e-mailed FreightWavesa rate chart for an 8-ounce shipment. 18, will force SFP customers to use other delivery services, some of which may be more expensive than FedEx Ground. (FedEx Home Delivery falls under the FedEx Ground business unit.) Nine days before Christmas Amazon said it would bar companies enrolled in its Seller Fulfilled Prime (SFP) program from using FedEx's Ground and Home Delivery services, saying the FedEx's unit's on-time delivery performance has resulted in unacceptable delays. And as happens in many divorces, those who stand to be hurt the most are the ones who did nothing to deserve it. (NYSE: FDX) has descended into pettiness and vindictiveness. As happens in many divorces, the breakup of, Inc.
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