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Amazon has barred 3rd-party vendors — who account for more than ½ of the merchandise sold on its website — from using FedEx to ship their items due to concerns about FedEx’s reliability.
The decision strains the relationship between the e-commerce giant and FedEx from separation to a nearly complete divorce:
- Amazon had already stopped using FedEx for its own shipments in the US and has been building its own delivery infrastructure.
The move couldn’t come at a busier time.
- Delivery volume this time of year is double the average. And the short holiday season (because of a late Thanksgiving) has added more pressure for shippers.
But statistics show FedEx has maintained a strong on-time delivery rate.
- FedEx had a 90.4% on-time rate the week after Black Friday, compared to 92.7% for UPS and 93.7% for Amazon’s own delivery service, according to an analysis by ShipMatrix Inc. via the WSJ.
So what gives?
A guy by the name of Dave Clark, Amazon’s global logistics chief. He made the call to further sever ties with FedEx.
- At a company known for its strenuous work conditions, Clark is known as “The Sniper” for his demanding approach.
- Clark used to hide in the shadows of Amazon warehouses and look for “slacking” workers to fire.
Now he’s absolutely, positively made sure that your next-day Amazon delivery won’t come in a purple-and-orange package.