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09/14/2021

FedEx bolsters Amazon competition with Salesforce partnership

Dan Berthiaume
Senior Editor, Technology
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New integration between FedEx, ShopRunner and Salesforce Commerce Cloud is designed to speed up and simplify shipping, supply chain and fulfillment.

FedEx is integrating two Salesforce cloud solutions into its ShopRunner e-commerce platform.

The shipping giant purchased ShopRunner, which directly connects shoppers with more than 100 retailers and brands, in December 2020. Following a similar Adobe Commerce integration launched in April 2021, FedEx’s new multi-year partnership with Salesforce integrates the Salesforce Commerce Cloud and Salesforce Order Management platforms with Shoprunner.

Through this partnership, FedEx says it will be able to provide companies with access to millions of high-value shoppers actively purchasing through ShopRunner’s platform. FedEx will also leverage Salesforce CRM functionality to enable companies to provide more precise information to customers on when purchases will arrive. In addition, FedEx will provide corporate customers access to supply chain tools that optimize transportation and fulfillment, deepen supply chain intelligence, simplify shipping, manage costs, and enable greater operational supply chain control.

When FedEx purchased ShopRunner, the company said it hoped to create an “open, collaborative e-commerce ecosystem that helps merchants deliver seamless experiences for their customers.” While Amazon was not mentioned by name, there is little doubt FedEx seeks to create an e-commerce environment that can compete with the e-tail giant. 

FedEx and Amazon have been engaged in a slowly growing rivalry for the past few years, as Amazon has been building up its proprietary delivery capabilities in an effort to minimize its reliance on third-party delivery providers such as FedEx. In April 2020, FedEx partnered with e-commerce platform BigCommerce to give small-to-medium-sized businesses using BigCommerce access to its portfolio of e-commerce solutions.

On the consumer side, the FedEx-Salesforce partnership will enable the delivery of supply chain services such as two-day shipping, label-less returns, and access to return-packaging and drop-off at FedEx locations. In addition, consumers will obtain enhanced insights into delivery dates and times on the product detail page, in the shopping cart, and throughout the delivery process.

The first joint solution from FedEx and Salesforce is expected to be available in the U.S. in spring 2022. Pricing will be announced at the time of general availability.

“Brands and merchants have to move quicker than ever to meet their customers’ expectations,” said Claude Russ, COO of FedEx Dataworks and CEO of ShopRunner. “With the combined power of Salesforce and FedEx, we will provide them the speed, control and economics they need to help them exceed those expectations. From optimizing their inventory management and fulfillment operations, to faster delivery and attracting new buyers, together we’re helping change the game so brands and merchants can have greater control over the links of their supply chain and increase their competitiveness.”

“We are in a world of commerce anytime and anywhere,” said Lidiane Jones, executive VP & GM, Salesforce Commerce Cloud. “Commerce Cloud and Order Management let companies sell wherever their customers shop and fulfill on any channel. Pairing that with FedEx’s logistics capabilities lets us deliver an even faster, easier, and cost-efficient experience for our customers. Now, retailers can better meet shoppers’ two-day shipping expectations without accumulating extensive costs, or sacrificing their time or brand.”