FedEx is helping retailers compete with online merchants through a new service called “FedEx Extra Hours.” It gives retailers like AutoZone and Best Buy the ability to offer next-day local delivery on orders that are made in the evening. Pickup is made by FedEx Express, and no mention was made of costs.
Retailers can extend evening order cutoff times by 5-8 hours, with some as late as midnight, depending on their current order fulfillment process.
Retailers can also offer two-day shipping nationwide on those late evening orders.
FedEx said the majority of online orders are placed after 4 pm, and 64 percent of online shoppers expect orders placed by 5 pm to qualify for next-day shipping.
“FedEx Extra Hours aligns with the needs of online shoppers, while offering retailers a way to balance inventory and reduce transportation costs,” FedEx executive Brie Carere said.
See the full details in this press release on the FedEx website.