FedEx is Launching a New eCommerce Platform Called FDX

Global shipping carrier FedEx is branching out from the logistics business to launch a new eCommerce platform, according to a company announcement. FedEx’s eCommerce platform will reportedly offer online businesses a full suite of services in addition to parcel delivery. FedEx states that these services will include marketing tools for generating demand and increasing conversions, as well as back-end logistics services to help businesses optimize fulfillment and streamline returns.

FedEx’s Planned eCommerce Platform Marks a First for Shipping Carriers in the U.S.

In its press release, the company said that its upcoming eCommerce platform will be called FDX and that it will be “the first data-driven commerce platform that connects the entire customer journey.” FedEx added that the launch of FDX will make it “the only logistics company to connect the entire customer journey by offering end-to-end eCommerce solutions for businesses of all sizes” in a single platform.

Per the company, online sellers who use the FDX platform can use FedEx’s services like ShopRunner (an eCommerce platform FedEx bought in 2020) to reach new and existing customers, show estimated delivery timeframes during checkout, track shipments, manage returns, and more.

The FDX Platform May Put FedEx in Direct Competition with Amazon

While shipping carriers like USPS and UPS offer discounted postage to online sellers, FedEx will be the first of the three major U.S. carriers to provide a full platform where businesses can create storefronts, market products, and sell to customers. As such, the FDX platform may put FedEx in greater competition with eCommerce platforms like Shopify, which allows online businesses to sell to customers but relies on outside shipping carriers for the delivery of parcels.

Specifically, the FDX eCommerce platform may allow FedEx to compete more directly with Amazon, which provides sellers with both an online marketplace for reaching customers and fulfillment services through its proprietary Fulfilled by Amazon (FBA) program.

The Dwindling Relationship Between FedEx & Amazon in Recent Years

Though FedEx historically delivered a significant amount of parcels for Amazon, the company has been taking on a lower volume of Amazon packages since 2019, when it declined to renew its contract to fly Amazon cargo through FedEx Express. In the years since then, Amazon has increasingly delivered more and more packages for goods sold on its platform, shifting volume away from other carriers like USPS and UPS in favor of the company’s own logistics network.

In November 2023, total Amazon deliveries in the United States eclipsed UPS and FedEx for the first time, surpassing 4.8 billion parcel deliveries before Thanksgiving, according to a report from the Wall Street Journal.

How Online Businesses Can Access FDX

According to FedEx leadership, the company plans to widely launch FDX in the fall of 2024. The platform is reportedly currently in a private preview. Online businesses interested in trying it can register on the FedEx website.