FedEx is leveraging Dollar General store locations as it pushes more aggressively into ecommerce. The shipping carrier announced on Monday it will add over 8,000 Dollar General stores to its network of package drop-off, return, and hold-for-pickup options.
FedEx has signaled it’s getting more aggressive in serving online merchants, announcing it was dropping its contract with Amazon for Express air deliveries and expanding residential delivery to 7-day service.
One key benefit it pitched to merchants: offering customers easier returns. “While a physical store is not required to play in the e-commerce game, there are certainly benefits,” it wrote, citing research from Internet Retailer that found 47% of customers prefer to make returns in-store. “With the addition of more than 8,000 Dollar General stores – bringing our network to more than 62,000 FedEx retail locations – online merchants can enjoy the perks of a physical store without having to invest in building one.”
FedEx is planning to expand that network: it anticipates that by the end of 2020, the percentage of US customers within five miles of a FedEx dropoff and pickup location will increase from 80% to over 90%, calling that a “game change” for sellers of all sizes.
In its release on Monday, it wrote: “This announcement comes on the heels of the news of launching FedEx Ground 7-day service in 2020 – making every day a delivery day – and testing the new SameDay Bot in select markets this summer. While these are great growth opportunities for FedEx, the real winners are e-commerce merchants – of all sizes – and the shoppers who enjoy their products.”
SOURCE: FedEx Press Release