Amazon has reached a new package distribution agreement with FedEx.
According to a report from Business Insider, this deal was finalized in late February and is based on internal documents.
The arrangement allows FedEx to handle deliveries for Amazon customers directly at their doorsteps, as noted by the outlet.
Amazon spokesperson Steve Kelly mentioned that the company will partner with FedEx as part of its third-party delivery network, which also includes entities like UPS and USPS. He emphasized that this collaboration aims to enhance their distribution capabilities and improve service for customers.
Interestingly, over two-thirds of Amazon’s package deliveries in the U.S. are already managed through its logistics network.
FedEx, with its extensive global network and expertise, will support this effort by managing specific packages, including larger items. An internal document revealed that this partnership could offer cost advantages for Amazon compared to collaborating with UPS.
Historically, UPS has played a significant role in Amazon’s shipping strategy. Earlier this year, adjustments were made that led to a reduction of over 50% in the volume of parcels that UPS processes for Amazon.
FedEx had previously worked with Amazon under a contract that ended in 2019, before the renewal of this latest agreement.
Brie Carere, FedEx’s executive vice president and chief customer officer, discussed the new contract during a meeting, highlighting the company’s capability to handle various package sizes and weights. She mentioned that the focus would mainly be on heavier packages, which typically offers better yield.
In her remarks, Carere acknowledged that while Amazon is not FedEx’s largest customer, this new contract signifies a constructive relationship moving forward.
