What once appeared to be a match made in e-commerce heaven is now the official breakup in the world of e-commerce shipping – it’s safe to say that it’s a mutual agreement.
FedEx announced it has ended their ground-deliver contract with Amazon and won’t be in need of renewal. No hard feelings here, as Amazon states that FedEx was a great partner over the years but essentially, Amazon is heading down the path of innovation. The decision to move away from their current carrier partners bares no question at all. It’s time for Amazon to get its groove back and embark upon newer carrier options. Not to bring up the past, but let’s not forget that this is not the first time FedEx has swiped left on one of their carrier contracts with Amazon. Two months ago, FedEx announced the termination of their air delivery contract with Amazon.
How does FedEx feel?
FedEx won’t be hurting from their recent choices. Possibly due to the fact that their eyes might have fixated on the delivery opportunities provided by other omnichannel companies. Retailers such as Walmart and Target are embracing these non-traditional ways of selling products, ultimately opening the playing field for needed carriers such as FedEx. This puts FedEx in a position that allows for moves to be made away from Amazon, fortunately leaving them without the burden of a competitive struggle.
Is Amazon okay?
Naturally, it could seem as though Amazon might be losing out on something, but this couldn’t be further from the truth. In Amazon’s case, this is a positive step in the direction of transporting goods. While Amazon continues to ramp up its own fleet of ground and air delivery, combined with the innovation in drone technology, departures from shipping companies like FedEx, UPS, and U.S. Postal Service are bittersweet but a wise move to make room for this, desired, inner growth as a company.