In 2019, Amazon declared war on FedEx.
With one brutal move, Amazon cut FedEx out of its entire delivery network.
FedEx tried to get revenge by targeting Amazon's customers.
What happened next changed e-commerce forever.
Here's the full story 🧵 x.com
With one brutal move, Amazon cut FedEx out of its entire delivery network.
FedEx tried to get revenge by targeting Amazon's customers.
What happened next changed e-commerce forever.
Here's the full story 🧵 x.com
Let's rewind to 2018.
Amazon dominated e-commerce with net sales of $232 billion.
They controlled the market, but had one critical weakness:
They relied on FedEx for deliveries.
And Bezos was about to change that... x.com
Amazon dominated e-commerce with net sales of $232 billion.
They controlled the market, but had one critical weakness:
They relied on FedEx for deliveries.
And Bezos was about to change that... x.com
Amazon's Prime 2-day shipping had completely transformed how people shop.
Millions now expected packages at their doorstep within 48 hours.
But there was a problem: Amazon couldn't guarantee this speed when depending on FedEx's network.
The tension was building...
Millions now expected packages at their doorstep within 48 hours.
But there was a problem: Amazon couldn't guarantee this speed when depending on FedEx's network.
The tension was building...
In May 2019, FedEx fired the first shot:
They terminated their Express air shipments contract with Amazon.
Three months later, they dropped the ground shipping contract too.
The message was clear: FedEx saw Amazon as a threat, not a partner.
Here's what most missed: x.com
They terminated their Express air shipments contract with Amazon.
Three months later, they dropped the ground shipping contract too.
The message was clear: FedEx saw Amazon as a threat, not a partner.
Here's what most missed: x.com
FedEx was only carrying 1.6% of Amazon's deliveries.
Amazon made up just 1.3% of FedEx's total sales.
FedEx CEO Fred Smith knew: Amazon wasn't just a customer - they were becoming a competitor.
Here's why:
Amazon made up just 1.3% of FedEx's total sales.
FedEx CEO Fred Smith knew: Amazon wasn't just a customer - they were becoming a competitor.
Here's why:
Amazon was building a massive logistics network:
• A growing fleet of cargo planes
• Distribution centers nationwide
• AI-powered fulfillment centers
• Experimental drone delivery programs
Amazon's counterpunch was decisive: x.com
• A growing fleet of cargo planes
• Distribution centers nationwide
• AI-powered fulfillment centers
• Experimental drone delivery programs
Amazon's counterpunch was decisive: x.com
They banned all third-party sellers from using FedEx Ground for Prime deliveries during the 2019 holiday season.
The official reason: Performance concerns.
The real reason?
Amazon was ready to stand alone.
FedEx's response was strategic:
The official reason: Performance concerns.
The real reason?
Amazon was ready to stand alone.
FedEx's response was strategic:
They approached major retailers - Walmart, Target, and others - with a compelling pitch:
"We'll help you compete with Amazon. And unlike them, we'll never become
your competitor."
Here's what they offered:
"We'll help you compete with Amazon. And unlike them, we'll never become
your competitor."
Here's what they offered:
FedEx rolled out 7-day ground delivery service starting in 2020.
They expanded their network of retail pickup locations.
Most importantly: They positioned themselves as the trusted logistics partner for everyone competing with Amazon.
The strategy was working. But FedEx wasn't done:
They expanded their network of retail pickup locations.
Most importantly: They positioned themselves as the trusted logistics partner for everyone competing with Amazon.
The strategy was working. But FedEx wasn't done:
In 2024, FedEx launched fdx - their answer to Amazon's logistics dominance.
This e-commerce platform integrated with Shopify, Etsy, and Salesforce.
Early adopter Z Supply saw a 6.33% revenue increase and 1.34% higher mobile conversions. x.com
This e-commerce platform integrated with Shopify, Etsy, and Salesforce.
Early adopter Z Supply saw a 6.33% revenue increase and 1.34% higher mobile conversions. x.com
Meanwhile, Amazon revolutionized their logistics:
They divided the US into 8 self-sufficient regions.
Amazon introduced "Sequoia" - their new robotics storage system: x.com
They divided the US into 8 self-sufficient regions.
Amazon introduced "Sequoia" - their new robotics storage system: x.com
It identifies and stores inventory 75% faster.
When combined with other tech, it cuts order processing time by 25%.
The logistics war had sparked an innovation arms race — and it revealed a crucial truth:
When combined with other tech, it cuts order processing time by 25%.
The logistics war had sparked an innovation arms race — and it revealed a crucial truth:
The future belongs to companies that own their entire value chain.
Amazon knew this. That's why they built their own logistics network.
And that's why I love this story so much.
We've spent the past 2 years helping founders take back control, too:
Amazon knew this. That's why they built their own logistics network.
And that's why I love this story so much.
We've spent the past 2 years helping founders take back control, too:
We help founders control their distribution through authentic personal brands.
When you own your distribution, you have:
• A way to stand out
• A way to build trust at scale
• A way to attract customers on autopilot
It's this generation's Amazon-esque strategic advantage. So:
When you own your distribution, you have:
• A way to stand out
• A way to build trust at scale
• A way to attract customers on autopilot
It's this generation's Amazon-esque strategic advantage. So:
Founders: We’ll build your personal/company brand on 𝕏 (and beyond) without you lifting a finger.
To date, we've already helped 60+ founders get 2+ Billion combined views.
Interested in how we can do this for you? Book your free discovery call here: form.typeform.com
To date, we've already helped 60+ founders get 2+ Billion combined views.
Interested in how we can do this for you? Book your free discovery call here: form.typeform.com
Thanks for reading! A bit about me:
In 2023, I was a banker in London when I found the opportunity of the decade: Personal Branding.
So, I dropped everything to build @ThoughtleadrX — a premium media agency designed to build personal and company brands.
Follow me for more content like this!
In 2023, I was a banker in London when I found the opportunity of the decade: Personal Branding.
So, I dropped everything to build @ThoughtleadrX — a premium media agency designed to build personal and company brands.
Follow me for more content like this!
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