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Amazon Cuts Off FedEx Ground for Prime Holiday Shipments

  • Move highlights e-commerce giant’s power in shipping market
  • Logistics expert says FedEx struggles to meet seasonal demand
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Amazon Cites Speed in Cutting Off FedEx Ground for Holiday Shipping
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Amazon.com Inc. says third-party merchants can no longer use FedEx Corp.’s ground delivery network this holiday season because it’s too slow -- highlighting the e-commerce giant’s growing power over how products get to shoppers.

Amazon sent a message to sellers Sunday night instructing them of the change, according to notifications reviewed by Bloomberg. Some Amazon sellers complained about receiving the change less than two weeks before Christmas when holiday spending is peaking. Their alternatives include United Parcel Service Inc.’s ground service.