FedEx has entered a multi-year agreement to deliver large packages for Amazon’s residential customers, providing Amazon with cost advantages over UPS. This partnership revives their relationship after FedEx previously opted not to renew contracts with Amazon nearly six years ago. FedEx aims to enhance its e-commerce service efficiency, crucial for managing the substantial volumes Amazon offers. While UPS plans to cut its Amazon volume by over 50% due to profitability issues, FedEx’s involvement addresses a gap in large-package delivery options in the U.S. market, benefiting both companies.

Source: https://www.supplychaindive.com/news/fedex-amazon-new-shipping-contract-2025/747942/