REPORT: Amazon cuts off FedEx ground for some holiday shipping

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Amazon is forbidding third-party sellers from using FedEx ground delivery for certain Prime delivery shipping this holiday season because it operates too slowly.

The company told sellers about the ban in a Sunday night message, obtained by Bloomberg. The notification came less than two weeks before Christmas, pushing some sellers to alternatives like the U.S. Parcel Service’s ground service.

The article goes on to state the following:

“It’s insane for them to do this on such short notice,” Molson Hart, whose company Viahart sells toys on Amazon, told Bloomberg. “Unless we raise prices, we’re going to lose money on every order we are forced to route away from FedEx.”

In a statement to the Hill, FedEx said:

“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.”

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