ONLINE SHOPPING: FUEL FOR GROWTH

The largest driving force in the global economy is e-commerce, which is projected to reach $1 trillion in sales by 2016. The internet shopping boom is translating into significant growth at FedEx, and it's easy to see why. Our specialized e-commerce services and tools are helping transform the U.S. retail industry, where online sales are growing more than three times faster than offline sales.

Two notable changes are powering this trend, according to Forrester Research: Mobile devices, such as smartphones and tablets, make it easier for shoppers to access the web on the go (accounting for 11 percent of online transactions, says comScore). And rather than risk losing sales to competitors, traditional retailers are heavily investing in their web divisions.

For retailers — services that sell

What does this mean for FedEx? We know a sale isn't complete until the package is in the consumer's hands. Since delivering our first FedEx Express e-commerce package, we've been systematically building a suite of services and tools that meet retailers' and shoppers' needs for cost and service options.

  • In 2000 we launched FedEx Home Delivery, the first dedicated residential delivery service in our industry. The service, which offers Saturday delivery at no extra charge, set a one-day record for deliveries outside the peak shipping season by delivering 1.7 million residential packages this year on the Saturday before Mother's Day.
  • Since its introduction in 2004, FedEx SmartPost has changed the e-commerce delivery game and continues to grow rapidly. It's an economical option that's helped online retailers reduce costs for lightweight shipments, making it easier for them to promote free shipping as a marketing tool. In fact, about 50 percent of online purchases come with free shipping. Last year, FedEx SmartPost revenue soared more than 18 percent.
  • FedEx SameDay® City, dedicated to local delivery within hours, was first offered in 2007 and enhanced this year in 15 U.S. metro areas.
  • FedEx Express Saturday delivery service now covers more than 90 percent of the U.S. population so we can better serve e-commerce customers.
  • Our network of 1,800 FedEx Office locations and more than 600 FedEx Express service centers can securely hold packages for customers to pick up at their convenience. Plus, the service cuts our costs by reducing redelivery attempts.

Our e-commerce strategy serves FedEx as well as customers, because the right package in the right network makes us more efficient and profitable.

For recipients — FedEx Delivery Manager

We are confident that our new FedEx Delivery Manager service options will enhance the residential delivery experience as powerfully as our online tracking did decades ago. By signing up at fedex.com, customers can be notified when FedEx packages are en route to their homes. Recipients can then personalize their delivery experience by requesting a time, date or location that suits their needs.

Customers have responded well to the service. Large e-commerce shippers value the convenience, flexibility and options FedEx Delivery Manager provides. It helps them satisfy their customers and lower their customer service costs. Just as important, the service also streamlines our operations by reducing the number of times we attempt deliveries when recipients aren't home.

Now recipients can be part of the solution by requesting delivery tailored to their schedules:

Schedule your delivery
Hold at FedEx location
Provide delivery instructions
Deliver to another address
Sign for a package
Request
vacation hold

Watch how Katie Echeverry's online fashion business was transformed into a global showstopper.