FedEx is acquiring ShopRunner in a move to expand its ecommerce capabilities. ShopRunner is a little bit like “Amazon Prime for the rest of us,” a membership program that offers free 2-day shipping, free returns, and other benefits when buying from participating brands and retailers.
The program is designed to offer shoppers who want free shipping a reason to look beyond Amazon while offering participating retailers benefits as well. In its announcement, FedEx wrote, “ShopRunner’s data-driven marketing and omnichannel enablement capabilities also help merchants acquire high-value customers and accelerate their digital innovation by using ShopRunner’s e-commerce platform.”
The complementary nature of ShopRunner’s pre-purchase offerings combined with FedEx post-purchase logistics intelligence will enable merchants to attract and engage consumers at scale by providing innovative online shopping experiences, it continued.
“ShopRunner’s consumer experiences and omnichannel enablement capabilities are also anticipated to help unlock potential for FedEx as it continues to use data and technology to transform the end-to-end commerce experience.”
ShopRunner’s 100+ network partners include Hudson’s Bay Company, Kate Spade & Company, Under Armour, CB2, Cole Haan, and American Eagle Outfitters. Some readers may recall that former PayPal president Scott Thompson was CEO of ShopRunner from 2012 to 2016.
ShopRunner will operate as a subsidiary of FedEx Services. Chief Operating Officer Raj Subramaniam said FedEx was “committed to growing the ShopRunner platform and combining it with our global digital and logistics intelligence to create new possibilities in e-commerce.”
The acquisition is expected to close by the end of the year and is subject to customary closing conditions and regulatory approval.