Amazon.com Inc. is prohibiting its third-party sellers from using FedEx Corp.'s ground delivery network for Prime shipments, The Wall Street Journal reported Dec. 16, citing an email sent by the e-commerce company to merchants.
The ban on FedEx's Ground and Home service is reportedly due to a decline in the logistics service provider's shipment performance during the holiday season. The restriction will start this week and continue until the delivery performance improves, the report said.
Amazon sellers can still use FedEx Ground for non-Prime shipments, according to the Journal. They can also use FedEx's speedier and more expensive Express services for Prime orders.
An Amazon spokesperson confirmed the ban and said the move is to ensure customers receive their orders on time, the newspaper said.
The policy change comes months after FedEx ended its ground-delivery contract with Amazon. In June, it also said it would not renew its U.S. contract with Amazon to transport packages on its air cargo service FedEx Express.
Amazon and FedEx did not immediately respond to S&P Global Market Intelligence's request for comment.