Amazon-FedEx Split Sets Battle Lines in E-Commerce Delivery Feud - TT News
FedEx Corp.’s retreat from handling packages for Amazon.com Inc. signals that the lines are being drawn in the battle over surging e-commerce shipments.
The end of two delivery contracts with Amazon means FedEx will have to make up for the lost sales by extending a push to serve other customers such as Walmart Inc. Amazon will have to rely more on United Parcel Service Inc. and the U.S. Postal Service as it seeks to fulfill a pledge for next-day delivery to top customers — and build out its own shipping network.
The decision “represents the continued ‘drawing of a line’ in the sand between FedEx and arrangements/partnerships that do not fit its network,” Ben Hartford, an analyst with Robert W. Baird, said in a note to clients Wednesday. “FedEx will work to optimize and protect its network, while strengthening relationships with more strategically important customers.”
FedEx Corp.’s retreat from handling packages for Amazon.com Inc. signals that the lines are being drawn in the battle over surging e-commerce shipments.
The end of two delivery contracts with Amazon means FedEx will have to make up for the lost sales by extending a push to serve other customers such as Walmart Inc. Amazon will have to rely more on United Parcel Service Inc. and the U.S. Postal Service as it seeks to fulfill a pledge for next-day delivery to top customers — and build out its own shipping network.
The decision “represents the continued ‘drawing of a line’ in the sand between FedEx and arrangements/partnerships that do not fit its network,” Ben Hartford, an analyst with Robert W. Baird, said in a note to clients Wednesday. “FedEx will work to optimize and protect its network, while strengthening relationships with more strategically important customers.”
