FedEx takes on Amazon with new fulfilment service

FedEx Supply Chain, a subsidiary of international shipping company FedEx Corp. has announced ‘FedEx Fulfilment’ – a service catering to SMEs lacking in warehouse space and delivery know-how who want to appeal to online customers.
US companies using the service will be able to outsource the entire fulfilment process to FedEx. After receiving products from the companies, FedEx will handle warehousing, packaging, delivery and will also deal with returned orders. Sellers with have the option to use custom packaging featuring their logo rather than FedEx’s.
Using the service’s platform, sellers will be able to view and track their products, manage inventory and analyse trends.
“FedEx Fulfilment gives small and medium-sized businesses the potential to achieve profitable and scalable growth,” said Ryan Kelly, senior vice president, FedEx Supply Chain. “Online shoppers show deep-rooted loyalty to brands with fast shipments, easy returns, positive customer service experiences and flexible delivery options.”
The system works in a very similar fashion to that of Amazon: Fulfilment by Amazon (FBA), though without Prime membership benefits for buyers. According to Business Insider, FedEx’s offering could serve as a good alternative for sellers loathe to reveals their sales number to Amazon. “Amazon connects them with customers, but it also competes with these sellers” commented CNN Money‘s Matt McFarland. “Amazon can see which products are selling best, and start to sell those products itself.”

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