Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sun Apr 2 2017 15:00:58

FedEx Ad Puts the Magic Back in Ecommerce

By: Ina Steiner

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How does a global logistics firm (yawn) explain its role in ecommerce? FedEx is running an ad that creatively showcases its expertise while putting shipping and ecommerce in human terms.

If you haven't seen it on television, you can find it on the FedEx website. It's captivating - the scene where a robot toy shows its passport to a stern-looking airport customs agent is priceless.

It does a good job of branding FedEx in consumers' minds, but that's not all. As analysts and investors look at the threat Amazon poses to shipping carriers, FedEx is sending a message that its 40 years of experience can help retailers make magic happen for their customers, and it advertises its new fulfillment service on the ad campaign's landing page. 

"To connect people with the products they love, it takes networks that have been carefully crafted for more than 40 years."

It really is magical to think you can order an item online today and have it show up on your doorstep a few days later - even an item that's halfway around the world. What do you think of the ad? Have online marketplaces done as good a job captivating shoppers?




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Readers Comments

Perminate Link for FedEx Ad Puts the Magic Back in Ecommerce   FedEx Ad Puts the Magic Back in Ecommerce

This user has validated their user name. by: toolguy

Sun Apr 2 16:17:39 2017

eBay should've bought Fedex when they had the chance!

Fedex was way under valued 10 years ago and it was with in eBay's reach.

Now eBay has spun off Paypal and Fedex has a market way too big for eBay to digest.

I'm really surprised Amazon hasn't bought Fedex. . .

Great Commercial, thanks for sharing it.

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by: TomH This user has validated their user name.

Sun Apr 2 21:15:03 2017

Excellent commercial. But don't get too enthused until you check the price. Not to say they are not a good shipper -- they are. But not in the budget range of a good many thousands of eBay sellers for the low weight/cost seller.

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by: TomH This user has validated their user name.

Sun Apr 2 21:16:30 2017

PS: Ina?
Did you recently buy some of their stock? Sounded a bit like it....

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by: mcposty This user has validated their user name.

Sun Apr 2 21:34:10 2017

Fed ex is overpriced and horrI blew. They fight every claim when it's clearly their fault and they give their buddy big business cheap shipping.

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by: pace306 This user has validated their user name.

Sun Apr 2 22:38:05 2017

Fed Ex's prices are %50 too high.

Theres no magic portal to fix that. Gas and Diesel went down in price but rates did not - sorta like eBay selling rates.

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by: fifilapew This user has validated their user name.

Mon Apr 3 07:30:57 2017

Sold a $1000.00 large item. Had fedex 'professionally' pack and ship it. Charged $250 for shipping. Item arrived damaged...more like destroyed

Had to fight with claims agent for 2 months for reimbursement. Finally went to my local Fedex store, took a photo of Fedex sign stating their pack and ship guarantee. Emailed photo to the punk claims agent

Had insurance check 3 days later. Funny thing was the next time I went to local fedex store, that sign had been removed

Fluff is fluff...it just blows away. If these companies really want to attract attention then how about spend that money on quality service and staff training  

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by: GotToGetOut This user has validated their user name.

Mon Apr 3 08:03:59 2017

Fedex ground is much more than USPS however Smartest, a combination of Fedex and USPS is much less expensive for low weight items. I can send a 2 lb. package from CT to CA for $8+ when USPS alone would be $10 - $11. It is difficult to go through the claim process with smartest but I package carefully and don't really have many claims anyway.

Perminate Link for FedEx Ad Puts the Magic Back in Ecommerce   FedEx Ad Puts the Magic Back in Ecommerce

by: Volvo351 This user has validated their user name.

Mon Apr 3 08:12:11 2017

While feeBay's pathetic sell-thru has me shipping less and less frequently, I've become a fan of FedEx Ground! The nearest location is several miles farther away than UPS, but if the sold item is heavy, I make the trip 'cuz their rates beat UPS by at least 30%. The surcharges UPS slaps on really jack up their rates.

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by: Flying Childers This user has validated their user name.

Mon Apr 3 08:19:29 2017

This is an excellent ad.  Why can't Etsy or Ebay do something like this.

Etsy claims to be spending all our money on marketing and trying to improve search and they have done neither.

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by: spooky This user has validated their user name.

Mon Apr 3 10:07:19 2017

PLEASE READ:
FedEx and UPS use exact same ground shipping prices to the penny - why not a collusion anti-trust violation? Plus these carriers back in January 2015 hit us with single biggest price increase in history by changing their pricing to 100% Din Weight (based on size not actual weight). I could send a medium size box cross country for say $24 and after increase price doubled to near $50. I realize most sellers on eBay use postal and sell smaller items but for those of us who shipped medium to large size item this increase was a killer!

Perminate Link for FedEx Ad Puts the Magic Back in Ecommerce   FedEx Ad Puts the Magic Back in Ecommerce

This user has validated their user name. by: toolguy

Mon Apr 3 10:31:05 2017

15 lbs from 92307 to 15066

Fedex Ground $34.29

UPS Ground $36.10

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by: TomH This user has validated their user name.

Mon Apr 3 10:37:46 2017

@GotToGetOut

You mean SmartPost I believe.

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by: Volvo351 This user has validated their user name.

Mon Apr 3 11:40:35 2017

@mcposty @pace306

FedEx too high? On several occasions I've brought my parcel down to the local UPS Store and I've had to walk out 'cuz the quote is way more than the eBay shipping calculator. When I go over to FedEx they box and pack stuff for me pretty cheap and they're not overly fussy about contents or package size/shape.

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by: Toledo Maude This user has validated their user name.

Mon Apr 3 12:26:16 2017

FedEx's and UPS's minimum charge to me for a small package is about $16.00.  That is with a 10% small customer discount unlike the 70% big customers receive.

The Post Office's minimum charge for Priority Mail is around 6 bucks.

FedEx and UPS make money, a lot of money.  The Post Office loses money, a lot of money.

Micro small online sellers are SUBSIDIZED by the Feds who bailout the Post Office annually.  We should all count our lucky stars, daily.

If the Post Office wakes up and raises rates to competitive levels with FedEx and UPS and start making money, micro small sellers are cooked......

Perminate Link for FedEx Ad Puts the Magic Back in Ecommerce   FedEx Ad Puts the Magic Back in Ecommerce

This user has validated their user name. by: Ming the Merciless

Mon Apr 3 18:15:02 2017

@Toledo Maude

USPS isn't and never has been introuble because their rates are too low.

They are and have been for several years in trouble because the Congress during the Bush administration mandated they fund their retirement program more than 60 years into the future which is absurd!

Purpose of this was to indeed bankrupt the Post Service so the Congress could sell and privatize mail delivery.

UPS and FedX are "privatized."

It's really annoying to read these inaccurate statements about USPS in this venue that also include blaming the postal employees unions for operating losses.

The operating losses were intentionally created by Congress so that they could sell off USPS services to greedy private corporations in exchange for generous campaign contributions.

Perminate Link for FedEx Ad Puts the Magic Back in Ecommerce   FedEx Ad Puts the Magic Back in Ecommerce

by: pace306 This user has validated their user name.

Mon Apr 3 18:19:29 2017

Volvo - when I use eBays shipping matrix (and that may be where the problem lies), Fed Ex (ground + home delivery charges) are ALWAYS more then USPS.

The other above poster is correct - Fed Ex and UPS "base charges" are the same - down to the penny.

Perminate Link for FedEx Ad Puts the Magic Back in Ecommerce   FedEx Ad Puts the Magic Back in Ecommerce

by: Snapped This user has validated their user name.

Mon Apr 3 22:28:56 2017

The 'Feds' do not 'bail out' the USPS.  Certainly not for 'operational losses'.  In fact, last quarter the USPS profited 'operationally', but of course, (noted Pace), that unprecented and questionably motivated 'retirement mandate' means the accounting total was in the red.  And will be, as long as the USPS product and service line - the ONLY source of their revenue; NOT a dime from taxes - remains competitive.  That's on congress to fix.  And congress depends on you.  The users of this service.  

Meanwhile, the USPS bascally 'defaults' their 'payments', but it's basically an accounting issue - a can kicked down the road.  Much like too much of our FED budget does these days.

Want to privatize it?  Be careful what you ask for.  It won't be a matter of simply 'inheriting' an infrastructure bult over 200+ years.

Some other notes to ponder.

The USPS contracts with FEDEX to handle much of their 'airborne' portion of the delivery, as applicable.  It's cheaper than maintaining an air fleet, which FEDEX already has established.

Also, UPS 'hands off' much of their deliveries (e.g. Smart Post) to the USPS for delivery.  They may charge $16 to the shipper, keep 6, and pay USPS 10 (general example) to execute a delivery, because the USPS has the entirety of domestic addresses already serviced, and that efficiency can not be duplicated without UPS expending an inordinate (read unaffordable) amount to achieve it.  Incidentally, about one in ten parcels has a UPS Smart Post lable carelessly (porposefully?) pasted right over the USPS bar code, sometimes obliterating it, effectively rendering a delivery scan...shall we say...much more challenging and time consuming in an average already overly busy delivery day, than it needs to be.  

I also agree the private carrier surcharges - especially fuel related - need to be reassessed.  But what 'corporation' has ever LOWERED what they charge, 'sales' aside?  The USPS did, when their stamp costs dropped 4% in recent past, albiet also 'mandated'.

And that, of course, hurt their 'profits' all around.  But you still got your mail, right?  AND an unprecedented double digit increase in parcel delivery volume, especially over the holidays.  But even 'normally' now too.  Perhaps you've seen THEIR recent TV ads, featuring their eCommerce focus?

Incidentally, ever see a UPS truck deliver on a SAT.?  Meanwhile, USPS delivers (Amazon) on SUN in many markets now.

As for DW pricing, for most parcels, especially ground (which makes up a majority), weight isn't what challenges operations.  It's size.  Delivery vehicles have a finite cargo capacity.  If the box-mart R us down to Ma and Pa's widgets can't take the time to pack efficiently (I recently received two pair pants in a 3 x 3 x 3 box, mostly empty otherwise), it SHOULD cost them.  And will cost the buyer in the end.  Pack wisely, or pay for lazy.

Finally, as to which service is 'cheaper' that depends on what s shipped.  (BTW, DIM Wgt has been part of normal UPS and FEDEX for years now...).  Small, under 7-8 lbs; USPS is cheapest, FLAT Rate may allow even more.  Over 75lbs, UPS is hard to beat.  FedEx in the middle.  All rule of thumb, exceptions can be found, but a good place to start your own planning.

Sidebar....when I was selling, FedEx drver told me they actually budget for a bit over a 2% loss and damage payout.  And yes, one has to 'prove' their claim, but they paid every one within 2-3 weeks.  

Your milage may vary.  

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This user has validated their user name. by: eXtinctBay

Tue Apr 4 11:01:15 2017

@fifilapew

I have heard many other FedEx stories just like yours. They seem not to take responsibility for damage.

A colleague of mine mailed an expensive electronic item such as yours. It was packed by the FedEx store. The package was damaged in transit, and they refused to pay the claim.

The real kicker here is that they also refused to ship back the item. So he not only lost the sale, packing fees, and shipping cost, he didn't even have the merchandise back in his hands to perhaps resell for parts.

You get what you pay for. Remember this when trying to save a few bucks on shipping.

Perminate Link for FedEx Ad Puts the Magic Back in Ecommerce   FedEx Ad Puts the Magic Back in Ecommerce

This user has validated their user name. by: toolguy

Tue Apr 4 13:00:05 2017

Bit by the Fedex Overcharging bug!

Shipped 2 pair of snowshoes that weighed a total of 11.8 lbs.

Fedex & eBay are saying on my invoice that it weighed 28.0 lbs.

Fedex tracking shows item weight as 11.8 lbs!

Let's see how long it takes eBay & Fedex to correct the improper billing amount. . .

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by: salesrep1 This user has validated their user name.

Wed Apr 5 18:55:06 2017

Tool guy you obviously missed the DIM I have a pair of snow shoes mine are 36x12 by 8 so I would have to box it in a box bigger than that. They probabbly won't be correcting your bill.



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