FedEx is going to compete with Amazon. The carrier will now also provide fulfilment for small and medium-sized businesses under the name FedEx Fulfillment. The company announced this last week.
Retailers who outsource their fulfilment to FedEx can store their products in one of FedEx's 130 warehouses in the US and Canada. The carrier then makes sure the products get to consumers.
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Competing with Amazon
FedEx is following in Amazon's footsteps with its new service. The online shopping giant has been offering external parties the opportunity to sell through its website since 2000. These sellers can also choose to outsource the entire logistics process to Amazon. There is also a downside to this for retailers. Amazon is in fact a competitor as an online retailer. With the service, the US giant gains insight into which products are popular and can then choose to sell these products itself. FedEx is not a retailer, so online retailers need not fear competition. FedEx's new service thus seems like a godsend for retailers who already have a strong online presence and do not depend on another sales platform like Amazon's.
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