Amazon Patches Things Up With FedEx, Lifts Shipping Ban

Amazon had banned third-party sellers from using FedEx Ground for Prime shipments during the holiday season.
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Amazon (AMZN) - Get Report on Tuesday reversed course, telling sellers on its platform that they can once again use FedEx (FDX) - Get Report Ground services to ship their products to subscribers of the retailer's Prime membership offering.

In an email viewed by CNBC, the company said it would lift its ban on FedEx’s Ground and Home services as of Tuesday at 5 p.m. ET.

The change in policy reflects improvements in Ground and Home’s on-time delivery requirements, the company said in a statement to the news service.

Back in December, the company stopped giving third-party sellers access to FedEx Ground and Home as a shipping option, though it did allow sellers to use FedEx Express shipping or FedEx Ground and Home for non-Prime purchases.

That move came after FedEx said in August that it was ending its ground delivery contract with Amazon after also stopping its U.S. shipping contract with the company in June.

Meanwhile, Amazon has been beefing up its own shipment platform, with the company investing $1.5 billion in an air shipping hub in Kentucky that is scheduled to open in 2021.

That facility will house 50 aircraft and allow Amazon to further make its shipping operations independent of outside companies like FedEx and UPS  (UNITED PARCEL SERVICE) .

Shares of FedEx at last check rose 2% to $162.46 while Amazon shares were off 1.4% around $1,865.

Amazon is a key holding in Jim Cramer’s Action Alerts PLUS charitable trust.