The introduction of its own commerce platform, dubbed FDX, was announced today by logistics giant FedEx, signaling a potential challenge to Amazon by providing merchants with an array of services, including demand generation, fulfillment, tracking, and post-purchase experiences, including return services. Currently undergoing a private preview, FDX is anticipated to launch more broadly in the fall of 2024, with businesses having the option to express their interest in participating through a provided form. The initial pilot program participants were not disclosed by the company.
In its announcement, FedEx employed marketing buzzwords like “data-driven,” “digitally led,” and touted FDX as an “end-to-end e-commerce solution for businesses of all sizes.” However, specific details regarding how it intends to compete with existing platforms remain scarce.
Merchants engaging with FDX can leverage FedEx’s suite of services, including those from ShopRunner, an e-commerce platform acquired by FedEx in 2020. These services encompass customer outreach, displaying estimated delivery times on websites, managing shopping carts, package tracking, emission impact tracking, and handling returns.
Amazon, a major player in the e-commerce sector, has long offered Fulfillment by Amazon (FBA), allowing merchants to utilize Amazon’s shipping and logistics infrastructure. The e-commerce giant extended its services, permitting third-party merchants utilizing FBA to list Prime-eligible items on their own sites in 2022. By January 2023, this feature was extended to all U.S. merchants, accompanied by the ability to display Amazon reviews on their respective platforms. Amazon further enhanced its Buy with Prime offering in November, introducing perks such as streamlined returns and customer support.
In terms of package deliveries in the U.S., Amazon has reportedly outpaced competitors FedEx and UPS, as reported by the Wall Street Journal in the previous year. FedEx severed both air express and ground delivery contracts with Amazon in 2019, citing Amazon’s contribution to a mere 1.3% of its revenue for the 12 months ending in December 2018. Additionally, Amazon briefly restricted third-party merchants from using FedEx’s ground delivery service for Prime shipments in December 2019, only to reverse the decision a year later.
News Source : Techcrunch
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