|Mon June 24 2019 23:34:13|
Amazon Reacts to Reports of FedEx Price Slashing
By: Ina Steiner
Amazon played it cool when word leaked out 2 weeks ago that FedEx would not be renewing its contract for Express air delivery. "We respect FedEx's decision and thank them for their role serving Amazon customers over the years," Amazon told us at the time.
But today, an Amazon executive was more expressive upon reading reports that FedEx was slashing prices on Express air service to certain large customers.
In "FedEx Slashes Prices to Fill Its Planes," the Wall Street Journal (via Marketwatch
) said FedEx was offering two-day air for the same price as ground service, "hoping to lure customers from UPS and boost flagging Express network," citing unnamed sources.
In response, Amazon Senior Vice President of Worldwide Operations Dave Clark responded on Twitter
with head-slap and shoulder-shrug emojis. Could the snarky tweet indicate Amazon was not as happy with the contract termination than it had initially led on?
Either way, online sellers will probably be doing some head-slapping of their own. If larger merchants get reduced prices for 2-day air delivery, it makes a tougher competitive environment for small sellers.