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Jan. 14, 2020, 3:19 p.m. EST

Amazon lifts ban on FedEx Ground for third-party Prime shipments

Weeks after Christmas rush, Amazon says FedEx service levels have improved; FedEx says its network performed well during peak season

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By Paul Ziobro

Bloomberg News/Landov

Amazon.com Inc.’s clampdown on FedEx Corp. is over.

The online retailer on Tuesday notified its third-party merchants that they could once again use FedEx’s Ground network to ship orders placed under Amazon’s Prime membership program, nearly a month after imposing a ban on the service.

The move ends a standoff between Amazon /zigman2/quotes/210331248/lastsale AMZN -2.16%  and onetime shipping partner /zigman2/quotes/203047719/lastsale FDX -6.42%  , whose lower-priced Ground network was blocked for the final rush before Christmas and several weeks thereafter.

An Amazon spokesman said FedEx Ground and Home have been reinstated for Prime shipments fulfilled by third-party sellers now that the services are consistently meeting the company’s on-time delivery requirements. Amazon said in mid-December the ban was due to slipping on-time marks for Prime orders, which generally are guaranteed to arrive in one or two days.

An expanded version of this report appears at WSJ.com .

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