Amazon Has Blocked Sellers From Using This Shipping Service

Shares of FedEx were down as much as 1.1% on Monday after Wall Street learned that e-commerce giant Amazon is not allowing third party sellers to use FedEx’s ground-delivery shopping.

FedEx confirmed the move on Monday after The Wall Street Journal reported the news.

“While this decision affects a very small number of shippers, it limits the options 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,” a FedEx spokesperson said in a statement to CNBC.

“FedEx Ground stands ready to support our customers and will continue to deliver record-breaking volume this holiday season.”

Amazon had sent a message out to sellers on Sunday, telling them it is temporarily restricting FedEx’s ground and home delivery services for Prime orders. Sellers can still use FedEx’s Express shipping service for Prime orders, or FedEx’s ground and home delivery services for standard orders.

FedEx had announced in August that it would be ending its ground-delivery contract with Amazon.

Disclaimer: We have no position in any of the companies and have not been compensated for this article.