Amazon Bans 3rd-Party Sellers From Using FedEx Ground For Prime Shipping

According to an email Amazon sent merchants on Sunday, first reviewed by The Wall Street Journal, Amazon has blocked all third-party sellers on its e-commerce platform from using FedEx for Prime shipments.

The ban on FedEx shipments started Monday and will last “until the delivery performance of these ship methods improves,” read the email.

Amazon has been rapidly growing its logistics operations over the last decade, and it now delivers at least half of its own packages.

Earlier this year, Amazon and FedEx ended their contract for ground shipping and air freight. Amazon still uses UPS but has steadily grown its in-house delivery service.

Shares of FedEx have slid by more than 2% on the news.