All’s fair in love, war and last-mile logistics. FedEx has launched SameDay Local in collaboration with last-mile orchestration platform OneRail to offer two-hour and end-of-day delivery services.
The move can be seen as a bid to compete with the increasingly fast delivery of retail giants like Walmart and Amazon; in fact, Amazon just launched its own one-hour and three-hour delivery service. But if FedEx is competing with Amazon, the two are frenemies at worst, particularly given that Amazon just added FedEx Office locations as its newest returns drop-off point.
Delivery speed has become a competitive differentiator among online retailers, driven in large part by the increasing efficiency of companies like Amazon and Walmart. Almost all (96%) of shoppers define “fast delivery” as same-day, and 80% want to see a same-day option at checkout, with nearly half more likely to complete a purchase when same-day delivery is available, according to research from Invesp.
While both Amazon and Walmart relied on traditional courier companies like FedEx for a long time, advancements in their own last-mile and delivery networks mean those services are in less demand, as evidenced by Amazon’s eroding partnership with USPS. FedEx already cut ties with Amazon back in 2019 as the ecommerce behemoth became more of a competitor in the logistics space. Now, FedEx is clearly working to enhance its own appeal to the broad swath of retailers and brands that can’t be found on Amazon or Walmart.
FedEx SameDay Local Includes Time-Definite Delivery Windows, Real-Time Tracking
The launch of FedEx SameDay Local expands the company’s ability to support customers across the full delivery lifecycle from long-haul transportation to local last-mile fulfillment. The service connects FedEx customers to a national network of more than 1,000 delivery providers, coordinated through OneRail’s intelligent orchestration.
Through an API connection, FedEx clients can let their customers choose two-hour or end-of-day delivery directly at checkout. Orders are then automatically matched to a vehicle and driver, dispatched and tracked with live updates from pickup to delivery. The service also can support large, oversized or specialized deliveries.
“At FedEx, we’re supporting our customers in pushing the boundaries of their value proposition around speed and convenience,” said Jason Brenner, SVP, Digital Portfolio at FedEx in a statement. “FedEx SameDay Local will provide our customers with a scaled solution to give the delivery options customers want, without adding complexity to their operations — all backed by the confidence of working with FedEx.”
FedEx Office to Begin Accepting Amazon Returns
At the same time, more than 1,500 FedEx Office locations nationwide have joined Amazon’s network of returns drop-off points, which also includes Whole Foods Market, The UPS Store, Kohl’s and Staples, as well as Save Mart, Winn-Dixie and Goodwill in select markets.
The addition of FedEx Office means that Amazon customers can now make free returns on eligible items with no shipping box or label required at more than 10,000 locations across the U.S. In fact, four out of five customers now have a drop-off point within five miles of their home.
“Convenience doesn’t end once you place your order,” said Gopal Pillai, VP of Returns and Recommerce at Amazon in a statement. “We work hard to help customers find products they’ll love and use, but like any retailer, sometimes a return is needed — and when that happens, we want the experience to be seamless. We’re constantly working to make returns simpler, and bringing FedEx Office locations into our nationwide network is one more way we’re building a return experience that fits naturally into customers’ everyday lives.”
