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Amazon lifts ban on sellers using FedEx Ground for Prime shipments

Amazon.com Inc. said Jan. 14 that it is reinstating FedEx Corp.'s Ground delivery network for Prime shipments from third-party sellers as the FedEx service is "consistently" meeting the company's on-time delivery requirements.

The e-commerce retailer notified its sellers by email that FedEx's Ground and Home services will be available for Prime shipments from 2 p.m. PT on Jan. 14, according to the message viewed by S&P Global Market Intelligence.

In December 2019, Amazon banned its third-party sellers from using FedEx's Ground and Home services for its Prime shipments following a decline in the logistics provider's shipment performance during the holiday season.

However, FedEx Ground service was still available for Amazon's non-Prime shipments. The sellers were also able to use FedEx's speedier and more expensive Express services for Prime orders.

"This is good news for our mutual customers who have come to rely on the FedEx Ground offering," FedEx said in a Jan. 14 statement to Market Intelligence.

FedEx added that the average transit time for FedEx Ground packages during the peak season was 2.42 days and that 18% of the packages were delivered early. The company also noted that it saw a 42% increase in residential shipments during its peak season.