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A FedEx delivery driver at work in New York City. (GeekWire Photo / Taylor Soper)

Just a week before Christmas, third-party sellers on Amazon have been instructed by the tech giant to not use FedEx Ground and Home for Prime shipments. The Wall Street Journal reported that an Amazon email said the ban would remain in place until delivery performance improves for the package courier.

  • Amazon stopped using FedEx for its own deliveries, but third-party sellers — which account for more than half of what’s sold on Amazon — still rely on FedEx. While Ground and Home have been restricted for seller-fulfilled Prime shipments, the methods will still be available under “Buy Shipping” for standard shipments, according to Amazon. And FedEx Express can still be used to fulfill Prime shipments.
  • FedEx told the Journal that the decision only impacts a small number of shippers but is still limiting during one of the busiest shipping periods. “The overall impact to our business is minuscule,” a FedEx spokeswoman said.
  • The move comes as Amazon has become less reliant on third-party couriers such as FedEx and UPS as it builds out its own delivery network. Amazon is now delivering half of its own packages, according to a report last week.
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