Needham & Company senior media and internet analyst Laura Martin forecasts earnings expectations for Alphabet, Google, and Amazon on 'Making Money.'
Amazon and FedEx reportedly weighed teaming up on returns last year.
The companies engaged in talks early last year but didn’t ultimately emerge with a partnership in place, The Wall Street Journal reported Monday, citing a person familiar with the matter.
The companies talked about FedEx retail locations taking Amazon returns, according to the outlet.
The companies talked about FedEx retail locations taking Amazon returns, according to The Wall Street Journal. (Pascal Rossignol/File Photo / Reuters Photos)
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"We are always open to having commercial conversations when approached with an opportunity by current or potential customers," a FedEx spokesperson told FOX Business, noting that the talks are a normal course of business. "As a reminder, we still do business through Seller Fulfilled Prime and Marketplace."
Amazon did not respond to FOX Business' request for comment.
A FedEx shipping truck in San Ramon, California, on March 3, 2022. (Smith Collection/Gado / Getty Images)
FedEx previously had a relationship with Amazon that included a deal to make U.S. ground deliveries. That contract ended in 2019, as previously reported by FOX Business.
Amazon ships billions of packages every year and also receives millions of returns, according to the Journal.
The Amazon fulfillment center in Amagasaki, Japan, on July 4, 2022. (Kazuhiro Nogi/AFP via / Getty Images)
The e-commerce giant uses UPS and other companies to help deal with the packages from orders that customers want to send back, the outlet reported. As part of its efforts with returns, Amazon also lets customers take their returns to participating Kohl’s and Staples locations.
CERTAIN AMAZON RETURNS AT UPS STORES COME WITH FEE
UPS moved in late October to further capitalize on returns by acquiring Happy Returns in October. The company works with merchants on "frictionless, no-box, no-label returns."
| Ticker | Security | Last | Change | Change % |
|---|
| AMZN | AMAZON.COM INC. | 186.49 | -0.51 | -0.27% |
| FDX | FEDEX CORP. | 286.38 | +0.38 | +0.13% |
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In 2023, U.S. retailers experienced a 17.6% rate of return for online merchandise, the National Retail Federation and Appriss Retail found in a survey. That equated to roughly $247 billion.
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FAQs
' Amazon and FedEx reportedly weighed teaming up on returns last year. The companies engaged in talks early last year but didn't ultimately emerge with a partnership in place, The Wall Street Journal reported Monday, citing a person familiar with the matter.
Is FedEx merging with Amazon? ›
But a recent Wall Street Journal report observed that in 2023 the companies held some discussions, regarding “FedEx accepting returns of Amazon packages at its retail locations, bringing [Amazon] a share of the business.” And the report added that the talks did not result in a deal, while noting that the timing of the ...
Is Amazon a threat to FedEx? ›
With the increasing growth in the e-commerce delivery space, many potential FedEx Ground investors often ask if Amazon is a threat to their success. The answer? No. Our team has received many questions about the differences between being an Amazon DSP and a FedEx Ground contractor.
Why did Amazon stop shipping with FedEx? ›
Amazon has been increasing the number of packages it delivers itself, and has already reached the point where it delivers half its own packages. By cutting off FedEx, Amazon is giving itself room to grow its own delivery revenue.
Is Amazon buying FedEx freight? ›
Amazon Won't Buy UPS or FedEx.
Who is bigger FedEx or Amazon? ›
Amazon, the e-commerce titan, has ascended to become the largest package delivery carrier in the United States, outpacing industry giants FedEx and UPS. This seismic shift, reported by the Wall Street Journal, highlights Amazon's dominance, delivering over 4.8 billion packages in the US in 2023.
Did FedEx lose Amazon account? ›
FedEx (FDX) stopped carrying Amazon (AMZN) shipments as part of its express business in June, and Amazon (AMZN) endedits contract with FedEx (FDX) Ground in August.
What is the biggest threat to the Amazon now? ›
This vast untamed wilderness is under increasing threat from huge-scale farming and ranching, infrastructure and urban development, unsustainable logging, mining and climate change.
Who is FedEx's largest customer? ›
The USPS continues to be the largest customer of FedEx Express.
Why doesn't Amazon use UPS anymore? ›
Amazon is shifting away from UPS and other carriers as it works to build its own logistics empire, in part to gain greater control over transit times and the end-customer's delivery experience. Meanwhile, UPS has chased growth in segments outside of e-commerce in order to boost its profit margins.
1. Cost: USPS may offer lower shipping rates compared to UPS, especially for smaller packages and for deliveries to rural areas. 2. Coverage: USPS has a larger network of post offices and delivery routes, which allows Amazon to reach more customers in remote areas.
Did Amazon stop using UPS for returns? ›
Amazon spokesperson Lauren Samaha said in a statement to Money that the company will continue to offer at least one free option for customers to return items without a box or a label, but the company acknowledged that customers may face a fee using the UPS option.
Is Amazon competing with FedEx and UPS? ›
The logistics industry, valued at $1.5 trillion, has traditionally been dominated by a select few major players such as USPS, FedEx, and UPS. However, over these last few years, Amazon has emerged as the frontrunner, surpassing both UPS and FedEx in parcel volume for 2022.
Is Amazon using FedEx again? ›
FedEx and Amazon ended their ground delivery partnership back in 2019, but a recent report from the Wall Street Journal indicates that the logistics networks entertained the idea of a reunion.
Are FedEx and Amazon merging? ›
FedEx and Amazon reportedly engaged in discussions last year about a potential partnership to handle the increasing volume of eCommerce returns. Although no deal was reached, the talks underscore the shifting dynamics in the parcel delivery industry, The Wall Street Journal (WSJ) reported Monday (March 18).
Is UPS taking over FedEx? ›
UPS will take over FedEx's previous role with the USPS, although the terms of that deal have not been released, described only by UPS as "significant." Meanwhile, FedEx says that it will work to adjust its network to account for the loss of this contract in the months to come.
Who is FedEx merging with? ›
Pros of the Impending Merger FedEx Ground with FedEx Express
Efficiency: Combining the ground and air operations created synergies in terms of logistics, route optimization, and overall efficiency.
Does Amazon have a contract with FedEx? ›
FedEx previously had a relationship with Amazon that included a deal to make U.S. ground deliveries. That contract ended in 2019, as previously reported by FOX Business. Amazon ships billions of packages every year and also receives millions of returns, according to the Journal.
Is FedEx an Amazon partnered carrier? ›
The Amazon Partnered Carrier Program (APCP) is a shipping service provided by Amazon that allows sellers to ship their inventory to Amazon fulfillment centers at discounted rates. With this program, you can leverage discounted shipping rates from carriers such as UPS, FedEx, and DHL, which are partners with Amazon.
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