FedEx Program Expands Pickup Times to Enable Next-Day Delivery

FedEx has created a new service to address demand for faster fulfillment of online orders that allows for later driver pickups from stores so retailers can more easily offer next-day delivery and two-day delivery.

FedEx Extra Hours lets retailers expand their pickup cutoff by five to eight hours, sometime as late as midnight, allowing expansion of next-day delivery locally or two-day delivery anywhere in the continental U.S. via FedEx Express. The program launched in December with major retail clients including Best Buy and Auto Zone in multiple markets.

“Demand trends and consumer expectations in ecommerce are shifting, and the size, scale, reliability and flexibility of the FedEx networks uniquely position us to offer this new service that answers a clear consumer need: evening shopping with next-day local delivery and two-day shipping,” said Brie Carere, Senior Vice President and incoming CMO for FedEx in a release.

Carere noted the majority of online orders are placed after 4 p.m., and 64% of online shoppers expect orders placed by 5 p.m. to qualify for next-day shipping. FedEx doesn’t charge a separate fee for the program.

To address the growing popularity of consumer options like buy online pickup in store and pickup lockers, FedEx has a network of more than 12,000 alternate delivery locations including over 1,900 of its own retail outlets, more than 8,900 Walgreens stores and some Kroger and Albertsons locations. Shoppers can opt for delivery to these spots and pick up their orders within five business days.