Logistics company FedEx has announced plans to launch a new ecommerce venture, “fdx”, later this year, in a direct challenge to retail giant Amazon. Detailed as an end-to-end online shopping platform, it aims to provide sellers with all the necessary tools, ranging from client acquisition to order processing and returns.
The official launch is set for fall 2024.
Billed as a “data-driven” platform, fdx aims to capitalize on FedEx’s insights to boost every aspect of the purchasing and selling procedure.
Sellers will initially gain access to the existing customer base of FedEx’s ecommerce site, ShopRunner. Customers can view delivery estimates for products before checkout. In addition, sellers will be provided with carbon emissions reports, optimal shipping routes, and more related to their supply chain decisions.
Although FedEx implies it’s presenting an innovative platform, it remains to be seen if fdx can bring something unique to the table. For the platform to succeed, it will need to offer compelling features that can challenge the dominant presence of companies like Amazon.
FedEx has made it clear that it is not venturing into the consumer marketplace sector.
Christina Meek, a FedEx spokesperson, stated to TechCrunch, “We are not in the marketplace business. Our goal is to assist businesses in creating the best experience from attracting customers to post-purchase interactions. We equip them with digital capabilities and insights, and they maintain ownership of their customer experiences.”
For several years, Amazon has provided the Fulfillment by Amazon (FBA) service, which allows merchants to utilize Amazon’s shipping and logistics infrastructure.
In 2022, Amazon started allowing third-party merchants using its Fulfillment by Amazon (FBA) service to list Prime-eligible items on their own websites. In January 2023, this feature was expanded to all U.S. merchants, enabling them also to display Amazon reviews on their sites.
Additional perks such as easy returns and customer support were also introduced under the Buy With Prime program.
According to a Wall Street Journal report last year, Amazon has been surpassing FedEx and UPS in the volume of package deliveries in the U.S.
Back in 2019, FedEx terminated both air and ground delivery contracts with Amazon. However, FedEx claimed that Amazon only contributed to 1.3% of its revenue for the 12-month period ending in December 2018. Subsequently, in December 2019, Amazon stopped third-party merchants from utilizing FedEx’s ground service for Prime shipments, although this policy was reversed a year later.
