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FedEx won’t renew Amazon contract

pWashington Post/ppFedEx said Friday it decided not to renew a key domestic contract with Amazon, a move that could pinch the online retail giant during peak shipping seasons when it’s sometimes struggled to get packages to customers on time./ppThe decision highlights tension between the long-time partners. Amazon has built its own logistics network over the past few years and is delivering more of its own customers’ packages, lessening its dependence on FedEx and other shipping partners. At the same time, the online retailer can’t deliver all of its own packages — especially as online shopping surges over the holidays./ppFedEx made the decision “as we focus on serving the broader e-commerce market,” the company said in a statement Friday. The decision applies to FedEx’s domestic Express contract with Amazon, which is the speediest option FedEx offers for shipping via air. It does not affect its international services./ppAmazon accounted for less than 1.3% of FedEx’s $65.6 billion revenue last year, the company said./ppAmazon spokeswoman Rena Lunak said in a statement the company respected Fed­Ex’s decision. (Amazon CEO Jeff Bezos owns The Washington Post.)/ppAmazon relies less heavily on FedEx as compared with most of its shipping partners, including the U.S. Postal Service and …read more

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