FedEx Expands Into E-Comm With Acquisition of ShopRunner

ShopRunner will exist as a subsidiary of FedEx's services and streamline shipping and returns.

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Need to Know 

  • In a move to expand its e-comm capabilities, FedEx has acquired ShopRunner.
  • FedEx will absorb ShopRunner’s millions of members and use its shipping and returns capabilities as a subsidiary of its many services.
  • ShopRunner has over 100 participating merchants that provide free two-day shipping and returns through its service.

Analysis

FedEx has announced the acquisition of ShopRunner, signaling the transportation company’s expansion into the e-commerce industry. FedEx will tap into ShopRunner’s shipping and returns capabilities, while also absorbing its millions of members. 

ShopRunner is an online shipping website that provides members with free two-day shipping and free returns from any of the participating merchants (of which there are over 100 so far). Members shop normally at any of the retailer’s websites, look for the ShopRunner logo, and select ShopRunner as their shipping option, providing a “seamless shopping experience”.  

ShopRunner will now operate as a subsidiary of FedEx’s business services, which include IT, communications, billing, marketing, and more.  

FedEx plans to use the acquisition as an opportunity to “create an open, collaborative e-commerce ecosystem that helps merchants deliver seamless experiences for their customers,” said FedEx President and COO Raj Subramaniam in a press release. 

“We are committed to growing the ShopRunner platform and combining it with our global digital and logistics intelligence to create new possibilities in eCommerce.” 

FedEx has been focusing on optimizing the returns process within e-commerce throughout 2020. The supply chain giant recently partnered with another e-commerce brand, Happy Returns, this year. Using just a QR code, shoppers can make easy returns from their favorite retailers by dropping the items off at any participating FedEx location.  

In another move to digitize and streamline operations, FedEx launched real-time tracking with its SenseAware platform, which will place tracking sensors on time-sensitive shipments, such as vaccines and other medical items. FedEx will expand the tracking capabilities to other retailers in early 2021. 

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