Amazon fires FedEx at the peak of the holiday rush

Amazon tells vendors they cannot deliver products this holiday season via FedEx because the shipping company is unreliable.

December 18, 2019

Photo by Joe Raedle/Getty Images

Amazon has barred 3rd-party vendors — who account for more than ½ of the merchandise sold on its website — from using FedEx to ship their items due to concerns about FedEx’s reliability.

The decision strains the relationship between the e-commerce giant and FedEx from separation to a nearly complete divorce:

  • Amazon had already stopped using FedEx for its own shipments in the US and has been building its own delivery infrastructure. 

The move couldn’t come at a busier time.

  • Delivery volume this time of year is double the average. And the short holiday season (because of a late Thanksgiving) has added more pressure for shippers.

But statistics show FedEx has maintained a strong on-time delivery rate.

  • FedEx had a 90.4% on-time rate the week after Black Friday, compared to 92.7% for UPS and 93.7% for Amazon’s own delivery service, according to an analysis by ShipMatrix Inc. via the WSJ.    

So what gives?

A guy by the name of Dave Clark, Amazon’s global logistics chief. He made the call to further sever ties with FedEx.

  • At a company known for its strenuous work conditions, Clark is known as “The Sniper” for his demanding approach.
  • Clark used to hide in the shadows of Amazon warehouses and look for “slacking” workers to fire.

Now he’s absolutely, positively made sure that your next-day Amazon delivery won’t come in a purple-and-orange package.

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