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FedEx exposes the cracks in Amazon’s logistics empire

Posted on by SellerBites

When Jeff Bezos’s mom lent him $300K to start Amazon, she asked him to keep his day job. He didn’t, and that choice turned his mom into a billionaire, with enough wealth to fund NASA for over a year. Proof that sometimes, ignoring mom pays off.

Here’s what he shouldn’t ignore:

  • FedEx exposes cracks in Amazon’s logistics 🛠️
  • Walmart’s New-Seller Savings boosts sellers 📈
  • Amazon cuts Nike resellers 🚫
  • AI takeover of search begins 🤖

AMAZON NEWS

Amazon is pushing its in-house delivery arm, Amazon Shipping, to become a player beyond its own storefront. But don’t expect FedEx to lose sleep over it just yet.

In fact, Supply Chain Dive reported that FedEx CCO Brie Carere said it still has a long road ahead before becoming a real threat.

🗨️ No shade, just facts

Carere insisted it wasn’t shade, but let’s be real, the gaps she pointed out hit hard:

  • Limited pickups: Amazon only offers warehouse pickups in 16 U.S. metro areas. That’s barely scratching the surface.
  • Rural reach issues: Scaling last-mile delivery in rural zones? Still a major pain point.
  • Still leaning on the OGs: Amazon continues to rely on UPS, USPS, and yep—FedEx—for part of its fulfillment.

Ironically, the two recently inked a deal—FedEx will handle large and heavy residential deliveries for Amazon. But as Carere put it: “This will not be our largest customer. Period.” 🤐

Meanwhile, UPS is scaling down its Amazon volume by 50%. The contrast? Loud and clear.

🧰 Amazon’s still building

To its credit, Amazon is working on it. The company is expanding its rural network, hiring more logistics workers, and automating its sorting centers to speed up deliveries. 

So while it’s not dethroning FedEx anytime soon, it’s still a valuable tool for sellers looking to diversify shipping options.

TOGETHER WITH WALMART MARKETPLACE

Walmart’s New-Seller Savings helped Senville grow their bottom line

SOne of the goals for top-performing HVAC company Senville was to boost trust in their brand, and since Walmart is one of the world’s most trusted brands, their next step was clear. “You have to be on Walmart Marketplace if you want to be considered an eCommerce brand that’s successful,” said Fawzi Karout, a digital marketing consultant at Senville.  

Senville joined Walmart Marketplace during New-Seller Savings, an incentive program that offers new sellers discounts on base referral fees, ads and fulfillment. The discounts on base referral fees were a particular help in achieving their growth milestones, since VentiMarket kept a larger percentage of their net profits from each sale.  

This year’s New-Seller Savings is happening now and bigger than ever. New sellers can get up to $75K in incentives, including up to 75% off on base referral fees*.  

*Offer subject to eligibility criteria, promotional savings will vary by seller. See full terms and conditions for offer details. 

Join Walmart Marketplace Today.

BITES OF THE WEEK

TRENDING TOPIC

Amazon’s bold move kicks Nike resellers off the platform

After a six-year split, Amazon and Nike are rekindling their wholesale relationship. According to Modern Retail, sellers received emails saying some Nike items will no longer be allowed on the U.S. marketplace. 

The clock’s ticking: sellers have until July 19, 2025, to clear out their existing stock.

💥 That’s a serious hit 

  • Sales lost. Different sellers shared how they were negatively impacted.
    • One seller has 49 Nike products stuck—31% of his Nike catalog—totaling about $6,100 in inventory.
    • Another seller has 22 products impacted, worth roughly $8,500.
  • Not all doom and gloom. One reseller noted that 99% of his Nike inventory—mostly shoes from outlet stores —remains unaffected. Only 23 out of 2,000 products are impacted.

🧠 What does this mean?

Amazon is doubling down on partnerships with big-name brands, which could squeeze out third-party sellers and retail arbitrage businesses. 

If you’re holding Nike inventory, now’s the time to move fast. Run promos, slash prices—whatever it takes to sell through before the deadline. 📅

TACTIC TALKS

The AI takeover of search has already begun

According to a LinkedIn post, Apple announced it’s integrating OpenAI, Perplexity, and Anthropic directly into Safari. That means over 1.5 billion Apple users could start discovering products without ever visiting Google.

AI search is becoming the default—and your traffic strategy is hanging by a thread.

🔍 Here’s what’s already happening:

  • Safari searches just dropped for the first time ever
  • Google lost $150 billion in market value overnight
  • 400+ million people use AI search weekly
  • iOS 19 could lock AI search in by September 2025

What’s more, people aren’t searching the old way anymore.

  • Before: They’re typing “hiking backpack waterproof laptop.”
  • Now: They’re asking, “What’s a good waterproof backpack for hiking that can fit my laptop?”

That subtle shift? It nukes traditional SEO.

✅ The game now depends on:

So, if you’re still optimizing for Google like it’s 2015… it might be time to sit down and rethink your strategy.