FedEx is Changing Thanks to eCommerce Boom

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ECommerce is responsible for changing the shipping strategies for FedEx and other couriers.

FedEx expects the normal U.S. daily volume for small packages to double by 2026, and the Memphis logistics giant wants to capitalize on that opportunity. In the past year, FedEx has introduced a range of new and advanced offerings it credits into the shopping boom.

Revenue per package for ground-delivery rose 2.2% in the quarter ending May 31 as volume growth accelerated to 8.8%, FedEx said in a statement late Tuesday. That signaled progress in the courier’s push to extract higher profits from the surge in home deliveries by internet shopping, driven.

The company also shows its aim to hire 55,000 seasonal employees for the holiday shopping rush, the peak season for shippers. This was up from 50,000 hires the year before. Peak season shipments have surged in recent years.

“Demand trends and consumer expectations in eCommerce are changing, and the size, scale, reliability and flexibility of the FedEx networks uniquely position us to provide this new service that answers a clear consumer need: evening shopping with next-day regional shipping and expedited transport within the continental United States,” Brie Carere, FedEx chief marketing and communications officer, said in a statement.

FedEx is stepping up attempts to become the low-cost provider of eCommerce deliveries, paring jobs and partnering with companies such as Dollar General Corp. to add pickup and drop-off sites. But FedEx is struggling to shore up its Express air-delivery division–the unit threatened by escalating trade tensions, especially between the U.S. and China.