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View Full Version : Amazon lifts Ground Ban


peepz
01-14-2020, 01:01 PM
https://www.google.com/amp/s/www.cnbc.com/amp/2020/01/14/amazon-lifts-fedex-ground-delivery-ban-for-sellers.html

Hopefully the good news continues. Amazon overplayed their hand


nitefr8dog
01-21-2020, 03:15 AM
https://www.google.com/amp/s/www.cnbc.com/amp/2020/01/14/amazon-lifts-fedex-ground-delivery-ban-for-sellers.html

Hopefully the good news continues. Amazon overplayed their hand
Sounded more like Amazon was worried FedEx would not be able to deliver on time. Now that peak is over that threat has decreased.

max8222
01-21-2020, 05:21 AM
More like Amazon punishing Fedex for canceling its contracts. They hurt third party sellers mostly by doing this. Just more PR bull by Amazon. Saying we are having trouble delivering, have not seen Amazon post their delivery results over peak? I bet they were not very good. Would make bad PR so they are not going to post it.

Another PR stunt like drone delivery.


Sluggo_63
01-21-2020, 06:04 AM
More like Amazon punishing Fedex for canceling its contracts. They hurt third party sellers mostly by doing this. Just more PR bull by Amazon. Saying we are having trouble delivering, have not seen Amazon post their delivery results over peak? I bet they were not very good. Would make bad PR so they are not going to post it.

Another PR stunt like drone delivery.

FedEx - 94.6%
UPS - 96.6%
Amazon - 98.9%

Source: Commercial Appeal (https://www.commercialappeal.com/story/money/industries/logistics/2020/01/06/fedex-amazon-up-holiday-shipping-on-time-deliveries/2804247001/)

opt0712
01-21-2020, 06:30 AM
FedEx - 94.6%
UPS - 96.6%
Amazon - 98.9%

Source: Commercial Appeal (https://www.commercialappeal.com/story/money/industries/logistics/2020/01/06/fedex-amazon-up-holiday-shipping-on-time-deliveries/2804247001/)

Key takeaway from your source regarding the Amazon percentage:

​​​​​"Jindel said not to compare Amazon’s performance to FedEx and UPS.

Amazon’s shipping operations are comparable to last-mile delivery for FedEx and UPS, since Amazon products are typically being shipped from somewhere much closer to the customer, Jindel said."

Further, in reference to Amazon's third party ban:

"Jindel said he thinks the move was connected more to FedEx and Amazon's existing tension than it was to FedEx Ground holiday service."

PolicyWonk
01-21-2020, 07:20 AM
I wonder if the time frame they chose was when both Memphis and Indy got wacked with snow. We would be most impacted by that due to our system form.

I would guess that if we peeked at the entire peak, our numbers were better overall and comparably. But if Amazon cherry picked a time frame, why hasn't FedEx answered in the court of public opinion?

To further that, Fred should buy the NY Times. That would put the wind up the jumpers of the analysts and Bezos of Amazon and Washington Post. We would have a friendly media outlet just like Bezos does.

And I think Fred would take the NY Times in a much better direction.

urinmyseat
01-22-2020, 03:43 AM
I would rather Fred buy bags of trash instead of the NY Times. At least people will look at bags of trash when they see them on the street corner, and most bags of trash have more truth in them than the NY Times does.

pinseeker
01-22-2020, 10:46 AM
This quote

have not seen Amazon post their delivery results over peak? I bet they were not very good.

Prompted this response.

FedEx - 94.6%
UPS - 96.6%
Amazon - 98.9%

Source: Commercial Appeal (https://www.commercialappeal.com/story/money/industries/logistics/2020/01/06/fedex-amazon-up-holiday-shipping-on-time-deliveries/2804247001/)

The problem is this response is very misleading.

First, it insinuates that the performance reports are from the companies, which they are not. If you read the article, these performances were determined by a firm that analysis shipping data.

Second, if you read the article, it specifically states that you can't compare the Amazon performance data to FedEx or UPS because Amazons data is mostly last mile delivery. The article goes on to say that "In terms of last-mile performance during peak season, FedEx and UPS are as good as or better than Amazon, Jindel said."

So this is a perfect example of how the numbers stated did come from the article, but you have to actually read what is said to get the facts.

dynap09
01-23-2020, 11:24 AM
Fedex Ground had problems over peak. Are folks actually disputing that?

It's a contracted workforce - these independent contractors have their own staff who don't always stick around during miserable peak when they could be hanging out with their families.

Plenty of stories leading up to peak about this so wasn't that surprised.

----FedEx sent a statement:

“FedEx continues to experience high package volumes as holiday shipping deadlines are upon us. We appreciate our customers’ patience as we work closely with our local service providers to implement contingencies, such as securing additional resources, to ensure holiday deliveries are made as soon as possible.”

I find the claim that Fedex Ground was beating Amazon delivery timelines hard to believe but if someone had some data for that happy to get it. Fedex ground has nothing to do with Fedex or air reliability. Does Amazon even do slow delivery options - I can see ground deliveries taking 5+ days but I've never had an amazon delivered package take that long (I get same, next and 2 day delivery usually).

Sluggo_63
01-23-2020, 11:57 AM
This quote



Prompted this response.



The problem is this response is very misleading.

First, it insinuates that the performance reports are from the companies, which they are not. If you read the article, these performances were determined by a firm that analysis shipping data.

Second, if you read the article, it specifically states that you can't compare the Amazon performance data to FedEx or UPS because Amazons data is mostly last mile delivery. The article goes on to say that "In terms of last-mile performance during peak season, FedEx and UPS are as good as or better than Amazon, Jindel said."

So this is a perfect example of how the numbers stated did come from the article, but you have to actually read what is said to get the facts.
Customers don’t care if Amazon’s delivery process is comparable to FedEx/UPS’s or not. That may be an important distinction for us, or a guy like Jindel who is a logistics analyst, but not to the customer.

They just care how many of their packages arrived on time. And we did worse than our two competitors.

FedEx Pilot
01-23-2020, 04:16 PM
Fedex Ground had problems over peak. Are folks actually disputing that?

It's a contracted workforce - these independent contractors have their own staff who don't always stick around during miserable peak when they could be hanging out with their families.



Amazon has the same model for their final mile deliveries...and they pay worse than FedEx does from what I’ve gathered. Ground has definitely been causing corporate headaches, but IMO, their delivery performance couldn’t have been so terrible that it required them to be banned from being utilized as an option. This was definitely an FU move by Bezos

C17B74
02-03-2020, 10:26 PM
Nothing new with these 2 jokers, they’ve been at for years. Fred gives no deal to Jeff on shipping price. Jeff makes deal with USPS thereby swinging behind the FedEx front. Fred has the USPS contract; therefore, no choice but to ship Amazon product at lower cost. Claims are that less than 3% of Amazon goods carried by FedEx, kinda true on paper, but highly probable that it’s not. Carriers are contracted to carry for FedEx and UPS outright each year during peak. If they could handle it they would, or would they - probably better/cheaper to swell for a few months with hired help than have parked aircraft/walking crews for most of the year (lower utilization rates). Gray vans becoming more and more numerous. Last July or thereabouts FedEx no longer supports overnight delivery for Jeff’s products/items. As mentioned, Jeff pushed back this December. Retaliation perhaps, doesn’t matter - it will go on indefinitely.

Horizontal Shipping companies are starting to feel the pressure of Vertical companies getting in their game. Once a vertical company bleeds into the horizontal arena the dilution begins. If you cater to something like e-commerce and produce/provide product, your next step is distributors and then distribution itself. Perhaps being horizontal only will lead to losses bit by bit, maybe we’re seeing it now. If Walmart, Target, etc would tie into/encapsulate a FedEx/UPS type group then it gets viable and interesting. One World, Star Alliance, Sky Team - heck Nike does it, why not! Just a thought.