FedEx Takes On Amazon With fdx Commerce Platform
FedEx has announced a new data-driven commerce platform that offers merchants the ability to handle goods fulfilment independently of Amazon.
The new “fdx” service doesn’t purport to offer the scope of services provided by Amazon, but it is a response to Amazon eating away at FedEx’s market in the goods delivery business.
FedEx, in a statement, says fdx is “the first data-driven commerce platform that connects the entire customer journey — making it easier for companies to grow demand, increase conversion, optimize fulfilment, and streamline returns”.
“FedEx is the only logistics company to connect the entire customer journey by offering end-to-end e-commerce solutions for businesses of all sizes – all in one platform,” it says.
FedEx Corp president and CEO Raj Subramaniam says the company is transforming into a digitally-led business “powered by our extensive physical transportation network, leveraging our scale and insights from moving 15 million packages per day”.
“Through fdx, we will enhance our longstanding relationships with merchants of all sizes to help them optimize and grow their businesses through digital intelligence.”
The new service means merchants can provide capabilities similar to an Amazon delivery, such as managing demand, optimising fulfilment, offering delivery options and managing returns using fdx as the delivery service backend.
FedEx says fdx will help merchants make more strategic logistics decisions from point of demand to delivery and returns.
FedEX once worked in partnership with Amazon but in 2019 changed its tune, instead seeing it as a competitor with the potential to erode its delivery market share.
Then FedEx CFEO Fred Smith said Amazon was a player in a logistics space of five and a company that he thinks about every day.
“We basically compete in an ecosphere that’s got five entities in it. There’s UPS, there’s DHL, there’s the U.S. Postal Service, and now increasingly, there’s Amazon. That’s who we wake up every day trying to think about how we compete against and give the best services to our sales force,” he told CNBC.