Following the decision that Fedex made on June 30, 2019 to no longer provide air shipping coverage for Amazon, the logistics giant has announced today that they will not renew their contract for ground delivery for Amazon.
Amazon’s contract will continue until the end of the month, however the new changes will likely go into effect on September 1st. According to a FedEx spokesperson, this change allows FedEx to continue to \expanding their influence more broadly across the e-commerce landscape.
The fact that Amazon continues to develop their own logistics system is likely a key factor driving FedEx's decision to sever ties with Amazon. As of today, Amazon already handles roughly 26% of their own shipments. By 2021, Amazon Air will have at least…
Amazon’s changes to the Small & Light Program to go into effect on July 26th, 2019.
Amazon is updating their requirements and restrictions to the Small and Light program offered to sellers with FBA (Fulfillment by Amazon). To qualify for the Small and Light program, today items need to either a) weigh under 15oz, b) be sized under 16"X9"X4", or c) be priced less than $15. However, effective on July 26 2019, the new requirements for the program are that items need to be under 10 oz or be priced at $7 or less.
Originally started in 2015, the minimum pricing of items in the Small and Light program enabled Amazon to offer shipping and storage for little and lightweight items. Many shoppers…
Unlike a traditional retailer, Amazon isn't competing on the brands and sellers it can court; they dictate a seller's strategy. No matter how much Amazon makes sellers squirm, they’re not taking their business elsewhere, at least not as long as they’re still profiting through the marketplace. Amazon takes 15 percent commission for third-party sales, but that climbs to 30 percent if orders are shipped through the Fulfilled by Amazon program. The best bet, in fact, is to take a leap of faith and invest more.
“Every year, Amazon introduces changes that shift work onto the sellers’ shoulders. As a third-party seller, you always have to be thinking one step ahead: What do these changes mean to me? How do I compete?”…
