Home / Tech / Amazon just barred third-party sellers from using FedEx Ground for Prime deliveries

Amazon just barred third-party sellers from using FedEx Ground for Prime deliveries

Fedex

  • Amazon has barred its third-party sellers from using FedEx’s ground delivery services for Prime shipments starting this week.
  • “While this decision affects a very small number of shippers, it limits the options for those small businesses on some of the highest demand shipping days in history, and may compromise their ability to meet customer demands and manage their businesses,” a FedEx spokesperson told Business Insider.
  • Molson Hart, who runs a third-party business selling toys through Amazon, said the change is an “enormous headache” and it will cost about 25% more for him to switch carriers.
  • Visit Business Insider’s homepage for more stories.

Amazon has barred its third-party sellers from using FedEx’s ground delivery services for Prime shipments, FedEx confirmed to Business Insider on Monday.

Third-party sellers, which are responsible for about half of the merchandise sold on Amazon’s website, are prohibited from using FedEx Ground and Home shipping services starting this week until the carrier’s performance improves, Amazon said in an email first reported by the Wall Street Journal.

“We have seen a drop in the delivery performance of FedEx Ground and FedEx Home ship methods for Seller Fulfilled Prime (SFP) shipments,” Amazon said in the email, which was sent to sellers on Sunday night. Amazon said it was implementing the temporary ban “to protect Prime customer experience.”

FedEx said the decision could negatively impact small businesses.

“While this decision affects a very small number of shippers, it limits the options for those small businesses on some of the highest demand shipping days in history, and may compromise their ability to meet customer demands and manage their businesses,” a FedEx spokesperson told Business Insider. “FedEx Ground stands ready to support our customers and will continue to deliver record-breaking volume this holiday season.”

Amazon and FedEx cut ties earlier this year. Amazon continues to use UPS, USPS, and its own delivery network to transport items to customers. 

Amazon’s email said third-party sellers can still use FedEx Express, another FedEx shipping method, until the ban is lifted. Sellers can also continue using FedEx ground or Home methods for non-Prime orders.

“Please select an alternative ship method to fulfill your Prime orders, or turn off your Prime badge if you are unable to ship with an alternate ship method,” the email states.

Molson Hart, who runs a third-party business selling toys through Amazon, said the change is an “enormous headache” and it will cost about 25% more for him to switch carriers.

“We have negotiated rates with FedEx and Amazon’s policy change essentially forces us to use UPS, which charges us a lot more than FedEx does to ship those very same goods,” he said. “In order for us to not lose money on our orders, we have to raise prices.”

Got a tip? Contact this reporter via encrypted messaging app Signal at +1 (646) 768-4757 using a non-work phone, email at hpeterson@businessinsider.com, or Twitter DM at @hcpeterson.

SEE ALSO: Disturbing video of a FedEx worker struggling under the weight of a 144-pound package reveals the human impact of online shopping

Join the conversation about this story »

NOW WATCH: We went to a Champagne vineyard in France to find out why it’s so expensive