Amazon - The Business Partner of FedEx is Aiming at the Logistics Market

FedEx has been cooperated with Amazon for many years. To attract businesses to Shipping with Amazon(SWA), Amazon plans on offering lower prices than FedEx.

To win this price war, SWA begins to add these deliveries to trucks handling Amazon's own orders. It is reported that Amazon is going to use empty space in its own trucks, which will be delivering its own orders, to take on other businesses' orders without adding much cost. If it's successful, lower rates would likely be a compelling sell for businesses to use SWA.

Logistics undoubtedly plays a vital role in increasing e-commerce market. Many e-commerce platforms would like to be in part of it. In China, Alibaba has its own shares in Cainiao Network - a logistics network connecting many logistics companies including SF Group. Though Alibaba owns the largest share in Cainiao Network, its executive chairman Ma Yun said Alibaba would not grab the business of the courier company.

The fact is that FedEx doesn’t need to be too worried about Amazon’s participation in logistics or beg Amazon to keep using it. What really matters is FedEx oughts to keep the company playing to its strength, which is delivering letters and packages next day and the day after that.