Amazon stopped allowing sellers to use FedEx for Amazon Prime deliveries earlier in the week, but did not say what prompted the decision. Forbes reported Dec. 19 that the decision was due to FedEx's decline in on-time delivery performance.
The Wall Street Journal reported Dec. 16 that Amazon's decision to cut FedEx off was due to a "decline in performance heading into the final stretch of the holiday shopping season," but Amazon hadn't given more details.
According to Forbes, a supply chain software company, Convey, analyzed 2.5 billion shipping events of tens of millions of packages from more than 500,000 locations since Thanksgiving and found that FedEx's on-time delivery performance dropped from 77.5 percent in 2018 to 68.3 percent this year.
Since Amazon is expanding its own delivery service, cutting off FedEx could give itself room to grow its delivery revenue. Amazon already delivers half of its own packages, according to Forbes.
Other delivery services, such as UPS, also fared worse in on-time delivery stats this year, down to 80 percent, compared to 86 percent in 2018.
Read the full article here.