<header class="m-stardust-title-block " style="box-sizing: inherit; margin: 0px 0px 30px; padding: 0px 38.4px 0px 0px; border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; line-height: inherit; font-family: open_sans, Helvetica, Arial, "Lucida Grande", sans-serif; font-size: 14.5px; vertical-align: baseline; max-width: 100%; color: rgb(119, 119, 119); background-color: rgb(245, 245, 245);">[h=1]FedEx drops Amazon U.S. delivery contract. Here?s why you shouldn?t care[/h]</header><article id="m-content" class="m-content " itemprop="articleBody" itemid="post-content" style="box-sizing: inherit; margin: 0px; padding: 0px; border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; line-height: 1.875; font-family: open_sans, Helvetica, Arial, "Lucida Grande", sans-serif; font-size: 16px; vertical-align: baseline; max-width: 100%; color: rgb(40, 40, 40); background-color: rgb(245, 245, 245);">FedEx decided to bail on renewing its contract with Amazon for U.S. domestic express deliveries. There?s no change in the agreements between the two companies for international services, but FedEx chose to walk away from nearly $850 million in annual revenue.
Whether or not giving up close to a billion dollars of business is right for FedEx, what difference does the delivery company?s ?strategic decision? mean for your Amazon Prime orders?
Not much.
Here?s why U.S. consumers won?t suffer ? or likely notice ? when black-and-purple-shirt-wearing FedEx drivers no longer leave Amazon Prime boxes on doorsteps: UPS, USPS, and Amazon itself.
UPS already delivers a considerable percentage of Amazon?s Prime two-day and one-day orders. The United States Postal Service also delivers a growing share of Amazon?s brown boxes and packages. None of the involved parties, meaning FedEx, UPS, the USPS, and Amazon disclose specific delivery numbers, which makes citing precise counts or percentages impossible.
In the press release about the contract change, FedEx stated, ?As previously disclosed, Amazon.com is not FedEx?s largest customer. The percentage of total FedEx revenue attributable to Amazon.com represented less than 1.3% of total FedEx revenue for the 12-month period ended December 31, 2018.?
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Whether or not giving up close to a billion dollars of business is right for FedEx, what difference does the delivery company?s ?strategic decision? mean for your Amazon Prime orders?
Not much.
Here?s why U.S. consumers won?t suffer ? or likely notice ? when black-and-purple-shirt-wearing FedEx drivers no longer leave Amazon Prime boxes on doorsteps: UPS, USPS, and Amazon itself.
UPS already delivers a considerable percentage of Amazon?s Prime two-day and one-day orders. The United States Postal Service also delivers a growing share of Amazon?s brown boxes and packages. None of the involved parties, meaning FedEx, UPS, the USPS, and Amazon disclose specific delivery numbers, which makes citing precise counts or percentages impossible.
In the press release about the contract change, FedEx stated, ?As previously disclosed, Amazon.com is not FedEx?s largest customer. The percentage of total FedEx revenue attributable to Amazon.com represented less than 1.3% of total FedEx revenue for the 12-month period ended December 31, 2018.?
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