Amazon is undoubtedly one of the largest ecommerce companies which are ruling over the retailing industry. However, for delivery, the company has relied more on others, and FedEx has always supported it in every way. But, now FedEx has decided to cut ties with Amazon who is trying to build its delivery system. Amazon, which requires a tremendous amount of transportation system, is trying to develop the same for its own. They are hugely investing in various resources for creating amazon delivery services, and that thing has forced fedEx to cut ties with it. FedEx is now going to focus more on providing delivery services to other e-commerce companies which are offering them the right amount of profit.
FedEx will be delivering the packages of Walmart and Target, which are the biggest competitors of Amazon. Many experts are already speculated such type of things because they knew FedEx was trying to move away with amazon. Now the company will be able to focus more on other companies which are competing against Amazon and might get a good deal from them.
FedEx earlier had released a report in which they mentioned that Amazon’s package delivery is impacting severely on company’s business. Financial profits which they wanted from this deal was not happening and thus decided to revoke it a long time ago. Walmart is trying to bring more changes to its core business, and that’s why they are hugely investing in acquiring or using e-commerce platforms. For the delivery purpose, they are going to need FedEx similar companies and might offer even a good trade deal too. After cutting tied with Amazon, FedEx will try to attract other ecommerce companies which usually didn’t get that much preferences earlier. Amazon knew it more prior, and that’s why it started to build their delivery system investing a considerable amount of money into it.