Amazon taps FedEx for big-and-bulky residential deliveries

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((May 13, 2025, 3:25 pm))

After six years of separation, Amazon and Fedex returned together. The retail giant has reached a long -term agreement with FEDEX to provide a limited housing package.

Amazi said in a statement submitted by Steve Kelly that the Amazon (Nasdaq: Amzn) recently added FEDEX (NYSE: FDX) to the list of sellers who provide the goods that were purchased in its market in the market. The statement said: “FEDEX joins our other third -party partners, such as UPS and American mail service, which works alongside the last mile connection network to help us balance the ability to best serve customers.”

FEDEX said in a separate statement that the multi -year agreement covers “housing delivery of large packages of Amazon.”

Speaking in his speech on Monday evening at the investor’s Bank of America conference, the chief commercial employees of the FEDEX indicated that the Amazon contract will accumulate financially with returns and weights higher than the average system in the American terrestrial market, according to a copy of the event. She said that the deal benefits from FEDEX’s ability to move heavy beams that are difficult to deal with through all American ZIP symbols.

More than two -thirds of the beams that are shipped by Amazon are delivered through its own network of warehouses and delivery drivers, according to the company.

Some details have been revealed about the deal, including the expected folders of FedEX.

Amazon strongly denied the deal to replace the UPS service, which in January decided to reduce Amazon sizes by more than 50 % by mid -2016 because the work was not profitable. UPS recently said that the separation with Amazon, its largest agent in 2024, would eliminate 20,000 jobs.

Business Insider broke the story on Monday through a report, based on Amazon’s internal email, which said Fedex would undertake the Amazon package that was previously dealt with UPS (NYSE: UPS).

FEDEX provided better prices than UPS, according to publication.

The report also said that FEDEX will support the additional delivery network of Amazon and Amxl, which is responsible for fulfilling orders, delivery and installation for large, heavy and huge elements, such as furniture and devices.

“The reference to AMXL is premature at this stage,” Amazon said.

In 2019, FEDEX ended the local land delivery contract with Amazon due to what it considers difficult and low service requirements. Estimates at that time suggested that FEDEX 4 % of Earth traffic in Amazon. Before the division, Amazon has converted many of its business from the Smartpost service in FEDEX (since its removal), in which Fedex Ground provided packages to the American Postal delivery service.

“Given this new work [for heavy and large packages] “The return on the average revenue for each shipment should support the mixture of the new delivery of the new Amazon delivery operations for the FEDEX basic package networks,” said Brandon Oglski, Barclays transport analyst, said.

Oglenski said he believed that high prices from UPS explain at least an Amazon incentive to add another delivery partner.

FEDEX is likely to be able to take a second look at Amazon now because the campaign to improve the company’s business and efficiency, as well as integrate fast networks and land, significantly reduce the cost structure. As operating costs are low, FEDEX can offer more competitive prices, Oglenski said.

But John Kostanzo, president and CEO of LDK Global Logistics, said that Fedex still has a lot of excessive capacity in its parcel network and needs to fill it. Transport companies hate non -standard shipments because they usually do not fit their screening equipment and must pass through the manual wrapping center. “I am sure that everything FEDEX is doing here is short -term and opportunistic. They are not looking for a long -term relationship with a company you are trying to remove in the market, and employ their main operations in their main operations to do so.

Costanzo explained that the Amazon, for its part, needs to replace the UPS capacity in the short term, as UPS has greatly raised its rates of large large charging. He said: “, most likely, they will likely look at this as a short -term reform because their final goal is to provide everything on the Amazon truck.”

Oujlinski said that with the climbing of the local ability, unlike the departure of the Amazon sizes, it is likely that it increases the prices of parcels with the remaining customers to compensate for the low volume economies.

He added: “We expect the high prices of UPS to create gradual opportunities for FEDEX to capture the market share, given the cost of the cost that we see is developing between the competitors of binds.”

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2025-05-13 14:36:00

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