Tonight Amazon is making a sudden change to your holiday shipping during the busiest time of the year. The company is no longer allowing third-party sellers to ship Amazon Prime orders with fedex Ground this season, citing "a drop in delivery performance". Third-party sellers make up 58% of Amazon's offerings. This change could impact their customers now. It's likely that package will not arrive in maybe that one or two-day prime timeframe. Toy seller Molson Hart is furious. It causes us to pay more per shipment and it actually forces us to raise prices for consumers.
The swift change comes as Amazon ramps up its own delivery system. CEO Jeff Bezos broke ground on a new one and a half billion dollar air hub in Kentucky. The company already delivers about half of its own packages in the US. Fedex tells NBC News Amazon's decision limits the option for those small businesses on some of the highest demand shipping days in history and may compromise their ability to meet customer demands and manage their businesses. The shipping wars leveling up with just nine days to Christmas.