International parcels and delivery giant FedEx is making an effort to attract eCommerce consumers and sellers following the termination of its high-profile contract with Amazon. This was a major contract for FedEx and the termination can affect the company greatly. This is why they have taken matters into their own hands and ensured that they jump right back up.
FedEx is now offering its customers the 2-Day Express Air Shipping at the price of ground shipping only. The price cut will allow FedEx to compete better with its competitor, UPS, as the eCommerce market is drastically growing. The delivery service market is in for a lot of business not only with personal deliveries but also with high street stores that are booming in popularity with online sales. The online shipping marketplace is trending rapidly as more and more people prefer to buy online rather than physically buying from shops. And in this scenario, this price cut will prove super beneficial for the company.
FedEx will continue to act as Amazon’s carrier despite their contract coming to an end. This will be as a last-mile ground shipping. In the meantime, Amazon is working on expanding its own fleet of cargo service. They now have 15 planes operating and are expected to be working with a total of 70 planes by the year 2021. The company has invested in its own delivery service and is now able to provide free two days or even next day delivery service to some of its customers.