Amazon comes back to Fedex After falling with Tall.
According to an internal document obtained by Business Insider, Amazon Signed a new partnership agreement with FEDEX at the end of February to manage certain parts of its parcel deliveries.
The Fedex agreement gives Amazon a “cost of costs” compared to the UPS, according to the document, indicating that the retail giant should save money from the transition.
The document did not specify the extent of the agreement or which Amazon packages would be managed by Fedex.
“Fedex’s ability to secure is our main solution for these capacity constraints,” said the internal document.
Fedex’s actions appeared in exchanges after working hours on Monday, after exclusive BI reports.
Amazon comments
In an e-mail in BI, an Amazon spokesperson confirmed the new partnership.
“We have concluded an agreement with Fedex to be one of the many third-party partners to deliver packages to our customers,” the spokesman said in a messaging press release. “Fedex joins our other third -party partners such as UPS and the USPS, who work alongside our own delivery network of the last Mile to help us balance the capacity to serve customers.”
The Amazon spokesperson said that the company regularly worked with third-party delivery partners in “balance capacity” and that the Fedex agreement was not intended to fully replace UPS.
Fedex weighs
A spokesperson for Fedex told BI that the company had remained “focused on profitable growth driving” and that the two companies have been discussing this partnership for more than a year.
“Fedex has the global network, capacity and expertise to meet the shipping needs of thousands of retailers in the Electronic Commerce,” Fedex spokesman said in a statement. “We have reached a mutually beneficial and multi -year agreement to provide residential delivery of certain plans selected for Amazon.”
This new agreement will be “net positive” for the average yields of the Fedex system, added the company. It is a metric of the industry that measures the efficiency and profitability of an shipping network.
A torsion
The renewed alliance between Amazon and Fedex adds a notable turn to enlargement shipping industry.
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Fedex and Amazon reduced links in 2019, the two increasingly competing companies in the logistics and delivery space. At the time, Fedex said that he would rather focus on other electronic commercial customers. Dave Clark, Dave Clark, minimized the fallout, writing on X that Fedex was a “very small piece of our network and vice versa”.
The MWPVL logistics consulting company believes that Fedex does not manage any Amazon package in the United States. (Third -party sellers on the Amazon market are always able to use Fedex as a shipping option.)
The Fedex agreement follows UPS announcement Earlier this year, it would reduce its shipment volume for Amazon packages more than half by the end of 2026. Although Amazon is its greatest client, the company cited the concerns of profitability as the reason for the end of the commandity company.
The internal document obtained by Bi said that the amazon extra-la-la-la-la-la-la-lazing network, which sends bulky items such as televisions and furniture, should obtain FEDEX delivery support via this new agreement. During the second half of this year, Amazon’s extra-large delivery team plans to “take advantage of Fedex for 100%” of the risks of any capacity, he added.
The Amazon spokesperson said that the reference of the document to the extra-large delivery team plans was “premature at this stage”.
Meanwhile, Amazon’s internal logistics service has since exceeded Fedex and UPS in shipping volume.
According to Pitney Bowes, Amazon sent 6.3 billion packages in 2024, up 7.3% compared to the previous year, and 4.7 billion UPS and 3.7 billion Fedex. USPS was the only carrier ahead of Amazon with 6.9 billion packages.
Amazon previously revealed that more than Two -thirds of his packages were delivered via its own logistics network in the United States.
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