
FedEx's new service takes aim at Amazon - hippich
http://money.cnn.com/2017/02/07/technology/fedex-fulfillment-amazon/index.html
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bsharitt
While we'll need to wait to seem how the implementation works out, I like the
basic idea of this basically being Fulfillment By Amazon, but without having
the rely on a potential competitor. It seems like you're an importer who uses
FBA(or even just lists on Amazon and self fulfills) you have a short window to
make money before Amazon eventually moves in on you to start selling the same
thing. Even if you're selling your own stuff, you might not be safe(there's
some kind of laptop accessory that I'm trying to remember that basically had
an Amazon Basics version come out after being on Amazon for a little while).

Don't take this as being against big evil Amazon(I buy tons of stuff from
them), but I'd rather them not be the Walmart of the internet that puts all
the small web shops out of business.

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Eridrus
FWIW It was a laptop stand:
[https://www.bloomberg.com/news/articles/2016-04-20/got-a-
hot...](https://www.bloomberg.com/news/articles/2016-04-20/got-a-hot-seller-
on-amazon-prepare-for-e-tailer-to-make-one-too)

Amazon certainly has it easier when they can see sales data on their platform,
but Amazon is a huge marketing channel too, and losing that is likely worse
than having Amazon compete with you.

The products amazon are making are not those which need a whole tonne of R&D,
they are as the brand says basics, they don't need to copy anyone to make one,
they just need to know that the product category is popular.

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chipperyman573
It was bound to happen eventually. It's not exactly a secret that Amazon is
trying to create their own shipping services.

One thing I'm confused about... I can't tell from the article - is this a way
of letting people list their products on fedex.com, or is this a way for
sellers to hold their products in a fedex warehouse, sell the items on their
own website, then tell fedex where to ship it?

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samtho
> is this a way of letting people list their products on fedex.com, or is this
> a way for sellers to hold their products in a fedex warehouse, sell the
> items on their own website, then tell fedex where to ship it?

This is the way I understood it. Sort of like a cross between Drop-shipping
and FBA but the shipper already has it, eliminating the need for the "first
mile" problem (getting the package from the warehouse to the shipper). This
enables a seller to do very quick delivers at low cost because they're not
running to a FedEx drop off point with a bunch of shipments incrementally.

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Animats
More like UPS, which has been doing that sort of thing for years as UPS Supply
Chain Solutions.[1]

[1] [http://www.ups-scs.com](http://www.ups-scs.com)

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petra
This service is based on Fedex's acquisition of Genco, in December 2014. Genco
is a 3rd party logistics services company, offering a of logistic
services:from the standard warehousing an fulfillment(including 130
warehouses), to being somewhat of an industry leader at handling returns(and
e-commerce has a relatively high rate of returns, especially in fashion), to
testing and repairing stuff, and than reselling those.

At that time, Fedex also bought a software company that helps other retailers
with complex stuff like customs handling.

Maybe a total framework to handle all the physical and regulatory stuff and
e-commerce play might need. The stuff that enables Amazon to have such a large
selection, and the stuff that enables it to be so good at customer service.
And that may have been what triggered Amazon to attack Fedex.

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mabbo
They're missing the entire advantage Amazon has in the situation: n items, one
box.

When you buy three items from Amazon, they have the opportunity to put both
items into a single box and have a much smaller last-mile cost[0]. With this
FedEx program, each item will have its own box and maintain the per-item last-
mile costs. Last Mile is the largest fraction of an e-commerce retailers costs
after actual products.

It's a neat program, but Amazon still has a cost advantage.

[0] (Now, they don't always _do_ that, but that's usually in order to make
sure the items get to the customer on time, or maybe they're coming from very
distant different warehouses)

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petra
Current , something like 60% of FBA orders aren't Amazon sales. So they don't
share a box

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mabbo
Wow, really? Do you have numbers on that? That seems really high.

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petra
Sorry, my mistake. It's the other way around - 60% of sales on Amazon's
marketplace aren't done through FBA.

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CodeSheikh
If FedEx can give better commission cuts than Amazon fulfillment and pretty
much same delivery speeds then it is definitely a winning situation for FedEx.
I envision a future where no one goes to brick-an-mortar stores anymore.
Online shopping experience needs to be made intuitive and personal enough that
goods get delivered at home. Two days shipping is good but not as good as same
as shipping with minimal shipping costs. Still needs work. We are getting
there.

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joemi
While this is great to have another fulfillment service available (though
there already are other choices than Amazon for fulfillment services), I'm not
so sure how much this will actually impact Amazon. Does anyone know what
percentage of Amazon's fulfillment services are used for things not sold on
Amazon marketplace?

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throwawaylalala
IIRC- >50%. Source- cant find it atm, but was something I read as part of my
business selling online (and most of that on Amazon).

This benefits _Walmart_ the most. Currently I don't want to expand my
Walmart/Jet/Sears/NewEggeBay business because I'd need to buy a warehouse.
Most 3PL's are small mom and pops or tailored to very large companies. If
Fedex can execute on this there is alot of mo ey to be made. But the. Again,
execution is everything, isnt it? :)

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placeybordeaux
Seems like a smart move for them, and a win for customers across the board.

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dogma1138
This is funny, if Amazon decides to use Amazon logistics for shipping FedEx
will go bankrupt within 6 months probably.

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james-skemp
Prime member here, for many years, and I can't recall the last time I got
something from Amazon via FedEx. For me, USPS and UPS are how my items end up
getting shipped to me, with USPS being the major method.

Granted, I think I'm near-ish (Madison WI) an Amazon warehouse of a sort, so
YMV.

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noer
Similar story, in Chicago near a few Amazon warehouses. The stuff I get is
pretty evenly split between UPS, USPS & Amazon Logistics. I don't think I've
ever had a FedEx prime delivery that I can remember. One thing to keep in mind
though is that Rockford, IL is equidistant from Madison & Chicago and a UPS
Air hub.

