FedEx is introducing a fresh e-commerce platform in its pursuit of competitive positioning against Amazon

 

FedEx today announced that it will be introducing fdx, a new “data-driven commerce platform” that will offer complete e-commerce solutions to online retailers, this autumn. The software is intended to help companies manage deliveries more effectively, facilitate client transactions, and keep an eye on their supply chain. FedEx stated in the official release that fdx will combine the current instruments in FedEx’s commerce arsenal, including members’ access to ShopRunner—a strategic acquisition that FedEx completed in 2020. One of the new features that will be available in the autumn is the opportunity to create a “custom post-purchase experience.” With the help of this capability, businesses may provide customers with more accurate shipment information and use insights from FedEx’s shipment network data to enhance order management.

FedEx’s global relations manager, Christina Meek, made it clear in an email to The Verge that the company has no plans to go into the marketplace. Rather, the organization aims to provide companies with “digital capabilities and insights” while letting them keep command of their client experience. The launch of this new platform comes at the same time that FedEx and Amazon, a company that has long been seen as a threat to FedEx’s operations, are continuing to compete in the logistics industry. FedEx declined to extend a contract for FedEx Express to carry Amazon freight in 2019. The next year, the embargo was reversed by Amazon, which had previously forbidden its merchants from using FedEx for Prime delivery during the holiday season. The company attributed this decision to a perceived decline in performance. Compared to Amazon, FedEx and UPS have seen a decrease in their market shares.

Surprisingly, Amazon outperformed UPS and FedEx in the US when it came to home package deliveries by 2022. This change happened not too long after the massive online retailer launched a logistics division that was mostly dependent on closely supervised outside contractors—a system that Amazon claims does not count as hiring its own workers.

 

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