FedEx has entered the e-commerce platform arena with the launch of FDX commerce platform, a move set to position it in competition with industry giant Amazon. The platform offers merchants an array of services, including demand generation, fulfillment, tracking, and post-purchase experiences, including returns. Although the details of how FDX will compete with existing platforms are somewhat limited, FedEx emphasized its commitment to being a “data-driven,” “digitally-led,” and “end-to-end e-commerce solution for businesses of all sizes.”
When It Will Be Widely Available..
FDX is currently undergoing a private preview, with a broader launch slated for the fall of 2024. While the company has not disclosed specific brands participating in the pilot program, interested businesses can register their intent to try out the platform through a dedicated form here.
The logistics company encourages merchants to leverage its services, including ShopRunner, acquired in 2020, to connect with customers, showcase estimated delivery times, manage carts, track packages, measure carbon emission impacts, and handle returns. Notably, FedEx clarified that it is not venturing into the consumer marketplace business, distinguishing its approach from Amazon’s Fulfillment by Amazon (FBA).
Christina Meek, a spokesperson for FedEx, stated, “We’re not in the business of the marketplace. We’re trying to help businesses build the best possible experience from demand to post-purchase. We provide them the digital capabilities and insights, and they own the experience with their consumer.”
Can FedEx Compete with Amazon?
Amazon has long provided FBA, enabling merchants to utilize its shipping and logistics infrastructure. In 2022, Amazon expanded its offering, allowing third-party merchants using FBA to list Prime-eligible items on their own sites. In January 2023, this feature was extended to all U.S. merchants, alongside the ability to display Amazon reviews on their sites. Last November, Amazon introduced additional perks for Buy with Prime, including easy returns and customer support.
What People Are Saying…
There is a mixed reaction, with more opinions leaning on the negative side. While a handful are hopeful for FedEx’s new plans, others are quite skeptical voicing their poor experience with the delivery giant.
“FedEx cant even deliver packages that well,” one Reddit user expressed.
“I worked for FedEx for 5 years, all through covid. I’m saying this as someone that’s vested in their pension plan, don’t give your business or money to FedEx,” another ex-employee voiced.
“I guess I’m the minority—FedEx & UPS are my saving grace, USPS is a nightmare to deal with if you don’t have home delivery,” another said.
“If I place an order with a company and they send me FedEx tracking, I sigh,” Reddit user complained.
“Four days late and counting on my current package. Pretty sad when Amazon delivery is more reliable,” another expressed.
Despite FedEx’s past termination of air express and ground delivery contracts with Amazon in 2019, its recent entry into the e-commerce platform arena demonstrates its commitment to staying competitive in the evolving landscape. In terms of package deliveries in the U.S., The Wall Street Journal reported that Amazon outpaced rivals FedEx and UPS in 2022.
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