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Fri June 7 2019 23:19:47

Is Amazon Behind FedEx Deeper Push into Ecommerce?

By: Ina Steiner

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Everyone seems to assume FedEx's decision to end its Express air contract with Amazon is a sign of acrimony between the two companies. (See this story.) But the opposite may be true. 

Behind the scenes, Amazon could be the force that led FedEx to decide to focus more on ground delivery, which it announced last week when it revealed it is moving to 7-day residential ground delivery.

Having UPS and FedEx compete in ground would give Amazon negotiating leverage (lower prices).

FedEx's expansion in ground also gives Amazon greater stability as the US Postal Service, on which it heavily depends along with UPS, faces daunting challenges. Note that FedEx announced as part of last week's announcement that it would rely less on USPS. It will transition SmartPost packages that it had been giving to the Postal Service for last-mile delivery to is own FedEx Ground operations.

Amazon and FedEx talk together as customer and service provider. Amazon may have signaled to FedEx a hunger for more ground capacity and less need for air service. And Amazon may have opened FedEx's eyes to the potential of taking over some of the USPS's parcel business.

Sellers can only hope that greater competition between UPS and FedEx will result in lower prices for them too, while hoping the USPS remains a viable alternative.



Comments (5) | Permalink

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This user has validated their user name. by: toolguy

Sat Jun 8 12:46:11 2019

I wonder if the 2 are related?
I got this in my messages last night.

eBay

Beginning June 1, 2019, FedEx will charge a $350 fee for each incident of a package shipped through FedEx that contains Dangerous Goods or Hazardous Materials that is determined to be noncompliant by FedEx.

What is considered a noncompliant package?
A noncompliant package that contains Dangerous Goods or Hazardous Materials include:
• Insufficient or improper packaging
• Improper HazMat labeling or markings
• Undeclared Dangerous Goods (DG)
• Prohibited materials
• Packages abandoned or refused

What does this mean for you?
If FedEx determines that you have shipped a noncompliant package, this fee will be reflected on your monthly eBay invoice in the same way FedEx shipping charges are assessed today.

How to avoid the fee?
Refer to the Dangerous Goods or Hazardous Materials shipping guidelines from FedEx and the U.S. Department of Transportation (DOT) to make sure you are compliant with their regulations and shipping requirements. It is your responsibility to ensure packages are properly marked, labeled, packaged, and documented (if necessary), according to their hazardous materials shipping policies.

In addition to FedEx requirements, any shipment you prepare must comply with DOT Hazardous Materials Regulations (HMR) and any restrictions maintained by your preferred shipping carrier. Please refer to FedEx, UPS, USPS and eBay’s policy for more information.

As always, thank you for selling on eBay.

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by: ebizguy This user has validated their user name.

Sat Jun 8 20:10:30 2019

Has anybody shipped a heavier item via FedEx Express and have any idea how expensive it is? Whenever I order something that has to be shipped, I can wait. I'd never pay for express shipping to save a few days. The general populace seems to think if the shipping is free, that includes Express or expedited services. So, when they ask if it can be shipped ''overnight'' they think it's about a buck or two extra. When we used to give them an express quote, nobody was willing to pay for overnight so it was a waste of time. More than likely, I'd think Amazon shipped so few items via express, FedEx got tired of hearing all the crickets chirping in their warehouses between shipments. Not surprising at all FedEx discontinued handling FedEx Express for Amazon.

Why? The answer is simple and obvious - FedEx wasn't making any money off the deal.

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by: purpleiris This user has validated their user name.
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Sun Jun 9 19:50:35 2019

I certainly hope this doesn't make things more difficult for the USPS. I know UPS and Fedex would rather not have them to compete with. I only use them if a customer requests it because I've had delivery issues with them, which I've never had with the USPS.

The one problem I have had with the USPS is them following through on scheduled pickups of Priority packages. So I quit using that service and just hand deliver all packages to the postal worker at the PO in the next zip code (my code's PO has a very poor rating).

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by: Whatever This user has validated their user name.

Mon Jun 10 11:49:25 2019

Amazon - I don't give 2 hoots about amazon - my category is gated - if I fork over a $8,000 non-refundable application fee they might consider giving me the option to sell on their stinking site.  Can't sell there - don't buy there and patiently waiting for their demise.

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by: mcposty This user has validated their user name.

Mon Jun 10 19:29:07 2019

why any one would help amazon is beyond me. They are literally creating a monster of competition. If i were usps, fed ex and usps, id immediately refuse to give them any deals whatsoever



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