FedEx's Ultimate Goal After 2020 (Keep On Topic Please)

[It will be fine]

You expect FedEx to raise Ground rates so contractors can get that business?

The fedex contract for smartpost deliveries ends in 2020. The expectation is that postal rates will increase enough that it will make sense to keep most if not all smartpost delivery volume in the Ground network. Fedex can pay contractors less for all deliveries because the increased stop density will make our routes more efficient (this doesn’t really work, but that’s the theory). With the lower pay for contractors, FedEx can maintain their low rates for smartpost customers and make strong pushes for surepost customers.

 

[Fred's Myth]

The fedex contract for smartpost deliveries ends in 2020. The expectation is that postal rates will increase enough that it will make sense to keep most if not all smartpost delivery volume in the Ground network. Fedex can pay contractors less for all deliveries because the increased stop density will make our routes more efficient (this doesn’t really work, but that’s the theory). With the lower pay for contractors, FedEx can maintain their low rates for smartpost customers and make strong pushes for surepost customers.

Okay, but then it would no longer be SmartPost, since the Post will be eliminated. And SmartGround is an oxymoron.

 

[bbsam]

Okay, but then it would no longer be SmartPost, since the Post will be eliminated. And SmartGround is an oxymoron.

It may still be sorted in the smartpost system and then moved to the Ground system.

 

[It will be fine]

Okay, but then it would no longer be SmartPost, since the Post will be eliminated. And SmartGround is an oxymoron.

They’ll rename it e-commerce Ground or something so they can maintain the slower transit time. They want to use the current Ground stations during the day to do more sorts and make better use of the real estate. Currently they pay us less for smartpost deliveries, some contractors believe it works because they still get current rates for regular Ground deliveries. I expect them to lower all rates to the smartpost rates when we get the volume. It’s going to be bad.

 

[dmac1]

Saying that Amazon won't hurt much could be shortsighted. I can see where Amazon agressively becomes the online sales tool for many small businesses who currently ship through Fedex. Fedex can take orders, collect payment, pickup and deliver all on line sales, and even sales made directly by the seller once they get fully set up with their delivery service. I already see more long-haul trucks with Amazon signage than even a year ago. I don't know when they started using their own drivers/trucks instead of contracting that out, but it is obviously growing fast.

So even though Amazon is a small percent of shippers, it could take many more shippers if Bezos want it. For a small business, having their internet sales, payment collection, and shipping all in one place allowing them a smaller sales force, collections, etc could be a big money saver, especially if Amazon can offer lower shipping rates too. Amazon could do to shippers what Walmart did to small business. One stop shopping is attractive. Amazon is already promoting their web services. Walmart is getting into online sales and fast delivery too. It won't be too long before Walmart starts shipping directly to consumers without the middlemen like UPS and Fedex in select areas to start with.

 

[It will be fine]

Saying that Amazon won't hurt much could be shortsighted. I can see where Amazon agressively becomes the online sales tool for many small businesses who currently ship through Fedex. Fedex can take orders, collect payment, pickup and deliver all on line sales, and even sales made directly by the seller once they get fully set up with their delivery service. I already see more long-haul trucks with Amazon signage than even a year ago. I don't know when they started using their own drivers/trucks instead of contracting that out, but it is obviously growing fast.

So even though Amazon is a small percent of shippers, it could take many more shippers if Bezos want it. For a small business, having their internet sales, payment collection, and shipping all in one place allowing them a smaller sales force, collections, etc could be a big money saver, especially if Amazon can offer lower shipping rates too. Amazon could do to shippers what Walmart did to small business. One stop shopping is attractive. Amazon is already promoting their web services. Walmart is getting into online sales and fast delivery too. It won't be too long before Walmart starts shipping directly to consumers without the middlemen like UPS and Fedex in select areas to start with.

Any small business that turns over their sales, shipping and fulfillment to Amazon won’t exist very long. Amazon will just sell their product for slightly less and have it appear first in searches. The ease of selling on Amazon comes at a steep cost.

 

[dezguy]

As I said before, Amazon will learn a hard lesson, should it decide to directly compete with FedEx, ups, etc. The whole point to them delivering their own stuff is to avoid the disaster of peak 2014 (or whenever that was). They wouldn't be able to prioritize their deliveries over those of their customers.

 

[dmac1]

Any small business that turns over their sales, shipping and fulfillment to Amazon won’t exist very long. Amazon will just sell their product for slightly less and have it appear first in searches. The ease of selling on Amazon comes at a steep cost.

I should have limited it to internet sales. It is what I meant. And Amazon wouldn't be warehousing their product A lot of what Amazon sells comes directly from outside companies. And with Amazon starting delivery service, it will just as easy for them to do pickups from these sellers in boxes already labelled and ready to go out on Amazon's national distribution network.

 

[It will be fine]

I should have limited it to internet sales. It is what I meant. And Amazon wouldn't be warehousing their product A lot of what Amazon sells comes directly from outside companies. And with Amazon starting delivery service, it will just as easy for them to do pickups from these sellers in boxes already labelled and ready to go out on Amazon's national distribution network.

The problem still exists. Any seller that has success on Amazon risks being undercut by Amazon. Amazon collects all the data and will take your business if there’s a penny to be made.

 

[floridays]

So which is it?

Damn you're a tough guy.....
It's none of your business, trade secret buddy.