Amazon resumes FedEx Prime shipment for third party sellers

As of Tuesday at 5:00 p.m. ET, third party sellers can resume using FedEx's Prime shipment now that Amazon has lifted its temporary ban. It's good news for FedEx, it seems, as its shares went up 1.7 percent after the news broke.

In comments given to CNBC, an Amazon representative said the company resumed the service as FedEx Ground and Home services had met Amazon's delivery requisites.

A tense holiday season — In December, right in the middle of the busiest time of the year, Amazon slapped FedEx with a temporary ban. Specifically, FedEx would not be allowed to move Amazon products for Prime shipments. The company cited poor performance as its reason. Instead, at the time, Amazon directed third party sellers to use FedEx's expedited shipping option, which is more expensive, or use FedEx without the Prime feature.

A FedEx representative lamented to The Wall Street Journal that Amazon's decision "limits the options for those small businesses on some of the highest shipping days in history” but added that “the overall impact to our business is minuscule." In other words, the little guys took the big hit.

Now, third party sellers, including smaller businesses, will be able to use the shipment service again. A FedEx representative confirmed to CNBC, “This is good news for our mutual customers who have come to rely on the FedEx Ground offering.”

“We look forward to working with Seller Fulfilled Prime merchants and providing outstanding service,” they added. Maybe the next thing Amazon can do is seriously evaluate the reported torment, pain, and humiliation involved in its “Free” shipping feature.