After abandoning air express deliveries, FedEx will also stop ground deliveries for Amazon

FedEx is bringing its ground shipping contract with Amazon to an end. Despite working together for years on ground and air deliveries, Amazon is now building its own delivery network.  Amazon’s go-it-alone strategy is the main reason why partners such as FedEx are moving away. Over the years, Amazon has shown its intention to compete with the leading players in the logistics industry. This means that it will become a direct competitor to FedEx in the coming days. In fact, Amazon is now building its infrastructure which includes cargo planes, trucks and is also investing in local delivery drivers. The move by Amazon to compete directly with its former business partner is evidence of tension that has been building up between the two long-time partners.

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Amazon Small Business Opportunity

Amazon has been quietly gearing up to make a play in the “last-mile” delivery space. Previously, the e-commerce giant relied heavily on the United States Postal Service (USPS), United Parcel Service (UPS), and FedEx for delivery.  As their needs grow, Amazon has begun to test the waters as to what local delivery would mean for the company. So much so that they have recently announced that they will be hiring Amazon Delivery Service Partners (DSP) to meet their demands.

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The End of Amazon and FedEx

It was the break up heard all over the Supply Chain community. FedEx Express and Amazon have officially called it quits when it comes to U.S. domestic deliveries. The news was confirmed when FedEx decided not to renew their express shipping service contract with the e-commerce giant which is set to expire on June 30th. Amazon responded by diplomatically explaining to The Verge, ““We respect FedEx’s decision and thank them for their role serving Amazon customers over the years.” Express shipping tends to be the fastest way a package gets from point A to point B. Examples of express shipping includes same day, overnight, and next day shipping.

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Priming Your Business

Amazon has all but cornered the e-commerce market and now it hopes to do the same with B2B. Amazon introduced Amazon Business quietly back in 2015. Since then, they have slowly ramped up their business in the B2B sect with Business Prime. Business Prime is comparable to the popular Amazon Prime in the sense that organizations will have the ability to receive free delivery and purchase a plethora of products. That is where the similarities end.

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