January 14, 2020 8:45 PM, EST

Amazon Lifts Restriction on Sellers Using FedEx to Ship Packages

FedEx workers unload packageFedEx workers unload packages from a truck in New York City in December. (Michael Nagle/Bloomberg News)

[Stay on top of transportation news: Get TTNews in your inbox.] Inc. lifted restrictions established during the holiday shopping season that had prevented third-party merchants selling goods on the site from shipping packages with FedEx Corp.’s ground service.

Amazon banned merchants from using FedEx less than two weeks before Christmas due to concerns about speed of delivery — highlighting the e-commerce giant’s growing power over how products get to shoppers.

Amazon has now informed sellers the ban was lifted effective 5 p.m. EST Jan. 14, according to an email reviewed by Bloomberg. FedEx shares jumped as much as 3.3% on the news.

“This is good news for our mutual customers who have come to rely on the FedEx Ground offering,” FedEx said in an emailed statement. “Our service levels have been very strong throughout a historic peak season.”

After Amazon abruptly banned FedEx, merchants had to find alternative ways to make deliveries at the busiest time of year, including through United Parcel Service Inc.’s ground service.

Amazon declined to comment.

The Seattle-based company’s ban on third-party shippers using FedEx followed a dispute between the two companies, after which a delivery contract between them was not renewed.

Amazon examines its delivery providers’ performance each year to determine order cutoff times for the holidays.

Fed Ex ranks No. 2 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.

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