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FedEx Reportedly Slashing Prices on Express Service | MultiChannelMerchant

Close on the heels of its decision earlier this month to cut ties between Amazon and its Express air delivery unit, FedEx is reportedly offering big discounts on the service to draw in more ecommerce business and take it away from rival UPS, according to the Wall Street Journal.

At the same time, FedEx is looking to replace the volume it will lose when Amazon’s Express contract expires on June 30, representing about 1.3% of its 2018 business.

The Journal reports that FedEx is offering two-day Express service for the same price as ground for some of its larger customers as an incentive to move some ecommerce volume over to the higher margin business. Two-day delivery has become a table-stakes standard based on Amazon’s Prime promise – which is being shortened to next-day delivery.

A FedEx spokeswoman told the Journal the company hasn’t changed its pricing strategy, also saying the two-day Express service “has been very successful and continues to deliver tremendous value to small and medium businesses competing in the e-commerce market.”

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FedEx Reportedly Slashing Prices on Express Service.

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