Logistics behemoth FedEx recently confirmed that it won’t be renewing its express air service contract with Amazon. The company was quick to point out that Amazon’s business accounted for a small portion of this business and that it will continue to work with the e-commerce giant for other forms of delivery. FedEx is now reportedly enticing online sellers with the very same two-day express air delivery service at the same rates that it charges for ground service that’s always cheaper.
FedEx’s decision to end its contract with Amazon for the Express service doesn’t mean that the company will no longer carry the e-commerce giant’s packages. It will continue to provide last-mile ground shipping for Amazon’s packages.
The Wall Street Journal reports that FedEx is offering its two-day express air shipping service directly to some online sellers for the same rates as its cheaper ground service. The company has decided to offer this price cut as it aims to better compete against UPS.
Not only that, this price cut will also help reposition its two-day express air shipping service with e-commerce sellers so that they always think of FedEx whenever they want to get a package out the door and delivered within two days. The customers to which it’s offering this service include large companies that compete with the likes of Amazon as well as smaller online sellers.
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