Amazon Ends FedEx Ground Shipping Ban

Amazon Jan. 14 announced it has resumed using FedEx Ground shipping for e-commerce deliveries. The retail giant made news last month when it informed third-party sellers it had halted using FedEx Ground for Prime shipments, citing poor delivery performance.

The renewal upped FedEx shares, while enabling Amazon to offset in-house shipments via branded Mercedes Sprinter vans. The company made news last year when it announced an order for 20,000 Sprinter vans — the largest commercial vehicle contract for Mercedes.

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In a media statement, Amazon said FedEx Ground and Home services had been meeting the e-commerce giant’s delivery requirements since the winter holidays.

Amazon reportedly shipped 275 million packages over the winter holidays through more than 50 fulfillment centers, Sprinter vans, leased cargo planes, the United Postal Service and UPS (180 million combined packages).

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Walmart Teases One-Day Shipping

The shipping delivery war took another turn after Walmart went to social media to hint it would match Amazon’s decision to switch from free two-day shipping for Prime members to one-day deliveries.

“One-day free shipping … without a membership fee. Now THAT would be groundbreaking. Stay tuned,” Walmart tweeted April 26 the day after Amazon disclosed it would spend upwards of $800 million upgrading internal and external shipping capacity for one-day shipments.

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Amazon charges $119 annually for its Prime membership, which includes free access to movies and TV shows on Amazon Prime Video, music on Prime Music and two-hour delivery (for a fee) for Prime Now store deliveries, among other features.

Amazon’s announcement had a ripple effect on retail stocks, sending Walmart and Target shares down 1.9% and 5.7%, respectively, in April 26 trading.

The switch is expected to put added pressure on big box retailers such as Best Buy, Office Depot and Dick’s Sporting Goods, among others.

Target Offers Free Two-Day Shipping, Other Conveniences on Eve of Holiday Season

In a shot across the bow at online behemoth Amazon, Target Corp. announced it will offer free two-day shipping on hundreds of thousands of items with no minimum purchase and no membership requirement beginning Nov. 1.

Free two-day shipping had previously only been available to customers who spent $35 or used a REDcard.

The chain also announced it will be the first retailer to offer same-day delivery and drive up service coast to coast.

“We want to make the busy holiday season easier for our guests so they can spend more time with their family and friends,” said Target CEO Brian Cornell in a statement. “From same-day delivery with Shipt, drive up, free two-day Shipping and more, no other retailer can match the convenient delivery options that Target will offer this season. When you combine these services with our incredible assortment of exclusive brands, everyday low prices and skilled team, I’m confident Target will be America’s easiest and most enjoyable place to shop for the holidays and beyond.”

During peak periods, if free two-day shipping is not available, Target will offer guests free standard shipping, the company announced. The retailer will offer guests free shipping through Dec. 22.

Consumers in markets across 46 states can have items delivered to their doorstep in as little as one hour with Shipt, Target announced. Guests place an order through the Shipt app or Shipt.com and choose from more than 55,000 Target products. Then, Shipt shoppers can head to a local Target store to complete the order and deliver it to the guest’s door.

The retailer also announced the expansion of its drive-up service to nearly 1,000 stores by the end of October. Customers can place an order in the Target app and have their purchases brought to their car by a team member. Orders are ready within an hour, according to Target, and are delivered to guests’ cars within two minutes of their arrival in the parking lot. Target is making more than 250,000 items available through the service.

Other services, according to Target, include:

  • order pickup, allowing customers to buy online and pick orders up in store on the same day for free;
  • Target restock, allowing customers to place orders for basics such as diapers, paper towels and pantry staples by 7 p.m. Monday through Friday and have them delivered the next day for a fee of $2.99 or at no charge for REDcard holders;
  • and delivery from store, allowing customers to shop in store at select urban locations and have their purchases delivered to their homes that day for a flat fee of $7 (available in Boston, Chicago, New York, San Francisco and Washington, D.C.).

 

Also for the holiday season, low-cost gifts will be highlighted at up to 30 displays throughout each Target store with canopies and signs, such as “Under $5, $10 or $15.”

In the wake of the Toys ‘R’ Us liquidation, Target is also expanding its toy section for the holidays.