If you are a seller on Amazon offering Prime shipping via FedEx this would affect you:
Amazon third-party sellers will not be able to ship Prime customers' orders using FedEx Ground and FedEx Home, as of Wednesday.
"We have seen a drop in the delivery performance of FedEx Ground and FedEx Home ship methods for Seller Fulfilled Prime shipments," Amazon told sellers in a note provided to the E-Commerce Times by corporate communications manager Patrick Graham.
The restriction is temporary, Amazon said, although no exact date has been set for resuming FedEx Ground and FedEx Home shipments for Prime orders...
For those who may want to follow this story here is a bit more detail
FedEx stopped carrying Amazon shipments as part of its express business in June, and Amazon ended its contract with FedEx Ground in August. FedEx Ground is the company's lower priced service, which delivers to homes and businesses
Seeing FedEx started as a same day letter delivery service (at a price) you would have thought they had things down pat as to how to efficiently deliver rush orders.
Amazon is already delivering themselves here. You see unlabeled MB white trucks around town all the time but maybe that is because we have a distribution center here.
I ordered a couple of things from Amazon and was willing to wait for the free shipping without using Prime. They came in separate deliveries. That wasn't terribly efficient on Amazon's part for their company considering they were relatively small items so they are going to have to work out a more efficient way to do things or they will be loosing money also.
If people want stuff delivered next day then they should pay the price for speedy delivery or get off their butts and go to the store.
We also have a large distribution here and another one 70 miles north. Next day 10 months out of the year is not uncommon. With Prime same day is available for some items.
I suspect that Fedex is not willing to give priority to Amazon 2 months out of the year.
I also suspect it is cheaper to use local contract workers for the last few miles than any for profit service. I've read several articles in the last few months about what it is like to a contract delivery operator for Amazon. Let's just leave with I'm not that hungry and don't plan to become that hungry.
In a previous job with a franchisee of a major pizza chain, I fought against rolling out delivery because when you have to make your money off the little guy it sorta taints in my opinion. These delivery people think they are making money but in reality after amortization and liability considerations they often make less than minimum wage and as a contract worker they get to pay double FICA.