Amazon.com Inc. will be suspending its delivery service for third-party sellers on its platform as it re-evaluates the nascent offering that competes directly with FedEx Corp. and United Parcel Service Inc.
According to the online retailer, starting in June "Amazon Shipping" service will be paused because it needs people and capacity to handle a surge in its own customers’ orders.
The company is grappling with a demand surge in the United States, where most residents are under stay-at-home orders to stop the spread of the novel coronavirus that is sweeping around the globe. Amazon has been unable to get many packages to customers in one or two days, as it had promised prior to the epidemic.
The suspension of Amazon Shipping will allow the company to focus on its core delivery operation, said Trevor Outman, founder of consultancy Shipware.