Heading in the home stretch of the holiday peak season in an extraordinary year, and past the cutoffs for Christmas delivery by ground at major parcel carriers, transit time performance is holding up well even though expected delays reports are popping up. Vaccine delivery and heavy weather are compounding matters.
FedEx is acquiring ecommerce platform ShopRunner, which offers subscribers guaranteed two-day delivery for $79 a year, looking to bolster its ecommerce offerings and bulk up in the battle against ex-partner Amazon, which is expected to restart 3P fulfillment in 2021. ShopRunner, based in Chicago, will be operated as a subsidiary.
A decline in delivery performance in certain lanes has led Amazon to restrict use of FedEx Ground and Home Delivery for Seller Fulfilled Prime orders, according to the Memphis Commercial Appeal. Overall on-time performance of carriers is already being challenged even ahead of the traditional start of peak season.
As ecommerce sales ramp up, especially heading into the holidays, merchants face growing pressure to deliver the perfect order. To meet customer expectations, you need to get the right product to the right customer at the right place and the right time. To do so, you need to establish meaningful key performance indicators (KPIs).
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A massive shift to ecommerce has already created peak-like conditions for shippers and carriers in 2020. Now comes the actual holiday season, a huge unknown but still expected to generate staggering volumes. This report taps ecommerce logistics experts who discuss the extraordinary challenges facing shippers this Q4.
Like UPS before it, FedEx reported a blowout first quarter fueled by pandemic-era ecommerce demand, with revenue and profits exceeding estimates and average daily volume in its ground parcel network increasing by 31%. Executives said they are ready for a massive peak holiday season with personnel, facilities and technology.