What's better than a delivery fleet spanning hundreds of aircraft, tens of thousands of vehicles, and hundreds of service centers? It depends on who you ask, but FedEx — which boasts the operational footprint just described — seems to think it might be the creation of an end-to-end commerce platform that helps businesses optimize their supply chains, sell to customers, and manage deliveries. If that sounds like a setup designed to compete with Amazon, well, that is kind of the point.
During Thursday’s (March 21) Q3 fiscal year 2024 earnings call, FedEx executives teased the upcoming launch of its “fdx” platform this fall, the latest progression of its merchant logistics play following the company’s 2020 acquisition of eCommerce platform ShopRunner.
“The fdx platform will enable us to enhance our longstanding relationships with merchants of all sizes. We’ve opened a private preview, and based on their feedback we are incredibly excited for the full launch this Fall,” executives told investors on Thursday’s call, highlighting their strategy of “democratizing” eCommerce.
The platform will offer businesses “digital capabilities and insights” to create a custom post-purchase experience, while merchants will remain in control of their customer experience. The platform will also include tools to integrate real-time FedEx network insights into order management systems, a capability that is new to FedEx.
“We are building the network of the future with digital and data-driven solutions, leveraging our scale and insights from moving 15 million packages per day,” said FedEx President and CEO Raj Subramaniam.
The new platform comes as the company increasingly looks to compete in logistics with Amazon amidst growing competition in the landscape.
As PYMNTS has reported, FedEx ended its delivery pact with Amazon in 2019, which has, for years, been crafting its own logistics network and has led FedEx in package delivery numbers to consumers in the U.S. since 2020 and last year surpassed UPS to become America’s largest delivery business.
With the upcoming launch of the "fdx" platform, FedEx is not only reshaping the landscape of e-commerce logistics but also solidifying its position as a key player in the industry. This move reflects FedEx's commitment to innovation and its dedication to empowering businesses of all sizes to thrive in the digital era.
As the fall launch approaches, businesses can anticipate a revolutionary platform that not only optimizes supply chains but also enhances the overall e-commerce experience for both merchants and customers alike. Stay tuned for more updates as FedEx continues to redefine the future of delivery and commerce.
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Source: https://www.pymnts.com/news/delivery/2024/can-fedexs-commerce-platform-challenge-amazon/
