Easyship Solutions & Updates

Amazon, FedEx End Ground Delivery Contract & Brexit Causes Holiday Shipping Concern

James Plume

by James Plume

On 2019 M08 16

by James Plume

Welcome to the latest edition of our logistics and eCommerce news roundup!

This week, we’re taking a look at a number of major stories impacting the world of global eCommerce, including the end of FedEx and Amazon’s ground delivery contract, a new report highlighting the potential complications that Brexit poses to holiday shipping and the recent Poshmark data breach.

Let’s dive right in!

Amazon, FedEx Sever Ground Delivery Contract

FedEx has recently severed its ground delivery relationship with Amazon, a move that comes just weeks after the two companies ended their air delivery contract in June.

The August 7 announcement comes as FedEx looks to carry out eCommerce deliveries from a more diverse array of companies and Amazon continues to put in motion its strategy to greatly enhance its own delivery fleet.

A statement from Amazon regarding the end of the company’s ground delivery relationship with FedEx noted that “FedEx has been a great partner over the years and we appreciate all their work delivering packages to our customers.”

According to FedEx, Amazon made up about 1.3 percent of its total revenue for 2018, or approximately $850 million.

Easyship’s Take: This development has key implications in the world of logistics and global eCommerce. With the ending of both FedEx’s air and ground delivery contracts with Amazon, the eCommerce giant is one step closer to becoming a courier in its own right. Given its strong growth and the success of Amazon Prime Day 2019, look for the company to pour more resources and workforce power into building out its own delivery fleet in the near future.

eCommerce businesses should watch Amazon’s next moves closely. Online merchants who sell on Amazon can leverage the company’s transformation into its own courier to their advantage by benefiting from seamless fulfillment, shipping and delivery offered by the company, especially if they’re using FBA.

Report: Brexit Deadline Will Greatly Disrupt Holiday Shipping

A new report has cautioned that the upcoming Brexit deadline will result in significant holiday shipping delays and other issues.

The new analysis from the Confederation of British Industry (CBI) states that a no-deal Brexit scenario on October 31, 2019 will greatly disrupt holiday shipping and generate confusion for retailers, manufacturers and couriers alike.

The crux of the problem, according to the report, lies in Brexit’s tentative date, which the UK’s new Prime Minister, Boris Johnson, has vowed to adhere to even if no Brexit deal with the EU is reached and a no-deal Brexit happens. During that time, warehousing inventory is typically lowest while demand is highest in anticipation of the holiday season.

The uncertainty around the Brexit deal details and the prospect of a no-deal Brexit scenario at this point in time has sparked great concerns about inventory availability mere weeks before the holiday shipping rush.

According to Robert Keen, the director general of the British International Freight Association (BIFA), that lack of certainty with what the Brexit deal details may look like and the rising possibility of a no-deal Brexit scenario has made it extremely difficult to plan for trade between the United Kingdom and the European Union in the near future.

“In the last few days, we have seen a completely new government installed, which is intent on the UK leaving the EU with or without a deal.

“With less than 100 days to the Brexit deadline, departments in that new government must urgently step up their preparations, engage with and listen to trade associations such as BIFA, and deliver clear advice on how trade will be conducted after October 31, deal or no deal. Talk is all well and good; but what we now need is clear information and instructions,” Keen said

Easyship’s Take: There’s no question at this point in time that the uncertainty that Brexit has caused has subsequently impacted eCommerce companies throughout the world, not just in the UK.

To cope with this ongoing uncertainty and the possibility of a no-deal Brexit scenario as the holiday season steadily approaches, online merchants should pay close attention to any Brexit-related developments, update their shipping policies for both the UK and the EU, identify additional suppliers and offer multiple currency and checkout options on their sites.

Data Breach Hits Poshmark

Clothing resale platform Poshmark has been hit by a data breach.

Hackers have reportedly penetrated the platform’s security and accessed sensitive data and personal information for U.S. users, including full names, usernames, email addresses and social media information.

In response, Poshmark has launched an internal investigation and urged users to change their passwords as a security precaution.

The company also issued an apology in a statement, saying “Poshmark is a platform built on love and transparency, and we're committed to serving you, and our entire community, every step of the way. You are the core of our business, and without you, we wouldn't be the community we are today. We sincerely regret any concern this may cause you, and we're here to answer any questions you may have."

Easyship’s Take: Online merchants who sell on Poshmark should act quickly, pay close attention to further developments and heed the company’s advice closely. Double check to see if your online store has been compromised and take any reports of data breaches from your customers seriously, relaying the information to Poshmark’s security team immediately.