FedEx plans to build a new online store to take on Amazon.com
According to the company, its new platform would enable companies to provide a "custom post-purchase experience" to customers.
FedEx recently unveiled its upcoming “fdx” platform, set to launch this fall, designed as a comprehensive “data-driven commerce platform” to offer end-to-end e-commerce solutions for online merchants. This initiative aims to assist businesses in effectively managing their supply chains, streamlining customer sales, and optimizing delivery processes.
The fdx platform is a strategic amalgamation of existing FedEx commerce tools, including access to ShopRunner, an e-commerce marketplace acquired by FedEx in 2020. Additionally, the platform introduces new features, such as the capability to craft a tailored post-purchase experience. This will empower brands to provide customers with more accurate shipment information and leverage insights from FedEx’s extensive shipment network data for efficient order management.
Christina Meek, FedEx’s Global Relations Manager, clarified in a statement to The Verge that FedEx is not entering the marketplace business. Instead, the company aims to provide businesses with valuable “digital capabilities and insights” while allowing them to retain control over their customer experiences.
The backdrop of this development involves FedEx’s ongoing competition with Amazon in the logistics sector. Over the years, FedEx has perceived Amazon as a potential threat to its business. In 2019, FedEx chose not to renew a contract for flying Amazon cargo through FedEx Express. Subsequently, there was a temporary ban imposed by Amazon on its sellers using FedEx for Prime deliveries during the holidays, citing performance concerns. This ban was lifted the following year.
FedEx has been facing challenges in maintaining its market share against Amazon and UPS. Notably, in 2022, Amazon surpassed both FedEx and UPS in terms of home package deliveries in the United States. This shift occurred just a few years after Amazon built up its logistics operation, primarily relying on tightly controlled third-party contractors, which the company insists are not its employees.
In light of these dynamics, FedEx’s introduction of the fdx platform represents a strategic move to enhance its competitiveness in the evolving landscape of e-commerce and logistics, offering businesses a comprehensive toolset to navigate the complexities of the digital marketplace.
