FedEx Launches FedEx Fulfillment for Small Business to Compete with Amazon
FedEx has launched a new service named FedEx Fulfillment for small and medium business owners. The service will first serve customers in the United States and Canada and business owners will be able to store their goods at FedEx warehouses. The logistics service will also offer custom delivery boxes with branding options for small and medium business owners.
The service would compete with Amazon for ecommerce based clients and small business owners. Amazon has registered strong growth in its similar program under which the company offers third-party sellers to store their goods at Amazon warehouse. Amazon directly ships the products and this reduces hassle for seller and delivery time for products.
Amazon has registered growth in its fulfillment business but many sellers are concerned about Amazon competing with them for their best-selling products. This won’t be the case with FedEx as the company is only into logistics and not into retailing.
In a report published on CNN, Ryan Kelly, senior vice president of FedEx Supply Chain informed, "We're focused on the retailer, and doing what's right for the retailer, in helping them grow their business. I think that is differentiated in the marketplace. It's why we're getting such great feedback."
Amazon has been working hard on improving delivery of goods on its network. The company has invested a lot of money in improving its logistics network. FedEx and UPS are now trying to compete by offering flexibility to small and medium business owners.
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