Sunday , November 29 2020

Amazon lifts ban on FedEx for third-party marketplace sellers, Ars Technica


      you can come back now –

             

Amazon is making nice for now, but competition between them will only grow.

      

      Jan (**********************************************************, (5:) **************************************************** PM UTC

  

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The company lifted its ban as of 5pm eastern time yesterday,Reports Bloomberg, which obtained a copy of the email Amazon sent to sellers.

Amazon in December abruptly prohibitedthird-party vendors on its website from using FedEx ground delivery services. In a communication to third-party merchants sent at the time, Amazon said the ban on FedEx Ground and Home services would persist “until the delivery performance of these ship methods improves.”

Whether FedEx has gotten better or Amazon simply does care anymore now that the busy holiday season is over is an open question. “The number of items delivered with Prime free one-day and Prime free same-day delivery nearly quadrupled” in the 01575879 holiday shopping season, Amazon bragged in a December 50 press release, adding that its in-house logistics business delivered more than 3.5 billion packages in .

What Amazon did not mention in its seasonal round-up was that vendors have accused the company of strong-arming them into using its in-house logistics service, sometimes to their own detriment. At least one merchant using the Amazon platform complained to Congressthat Amazon’s behavior is anticompetitive.

“Merchants using Amazon logistics services aren’t penalized when customer orders arrive late, even though they frequently do, since that’s Amazon’s responsibility Those who handle their own logistics face stiff penalties for even minor delivery mishaps, including being suspended from selling on the platform, “the vendor alleged. Meanwhile, the merchant said, fees for using Amazon logistics have increased by (*********************************************************% over the past four years and now cost as much as (***********************************************% more than competing services. Vendors are forced into paying the higher fees and using Amazon anyway, the complaint said, because Amazon promotes discovery for products it can mark as “fulfilled by Amazon” and demotes those that are not.

The relationship between FedEx and Amazon was soured long before the Christmas ban. FedEx did not renew its air shipping contract with Amazon when that agreement expired in June, and itended its ground shipping agreementwith Amazon in August.

Since Amazon launched its Prime-branded delivery service in (********************************************, the operation has grown at a staggering pace. Analytics firm Rakuten Intelligencereported in JulyThat Amazon handles about half of all last-mile shipments on its own. By Rakuten’s reckoning, Amazon’s 534, (logistics employees have************************************ (planes, freight trucks, and 26, 06 local delivery vans at their disposal — an estimate that may not even include all the rented vans and personnel working for thesprawling networkof third-party contractors that handle the bulk of Prime deliveries.

                                                    

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