FedEx CEO Blames Customers for Poor Holiday Delivery Performance

Fedex logoFedEx CEO Fred Smith blamed the company’s disappointing holiday performance on a combination of bad weather and sloppy customers yesterday.

From the Wall Street Journal:

FedEx Corp. Chief Executive Fred Smith took a tough line with e-commerce companies on Wednesday, saying they need to shape up sloppy shipping practices or risk losing customers.

A significant part of the industry’s Christmas-delivery mess, he said, stemmed from problems on the part of retailers.

Retailers, he said, claimed that packages had been tendered to FedEx and rival United Parcel Service Inc. for delivery to their customers before they actually were. In addition, labels were often affixed incorrectly or items weren’t properly packaged and subject to damage, the executive added, sounding like the Marine Corps veteran that he is, while speaking on an earnings conference call with analysts.

Retailers’ shortcomings on their side of the delivery equation “is a big part of the e-commerce business that really didn’t get enough publicity last year because they were an integral part of the problem even more than the weather and the carrier performance,” the FedEx chief said.

Read more: Wall Street Journal

FedEx Ground to Increase Rates by 4.9%

Fedex logoMEMPHIS, Tenn.–FedEx Corp. (NYSE: FDX) will increase shipping rates for FedEx Ground and FedEx Home Delivery by an average of 4.9% effective January 6, 2014. FedEx SmartPost rates also will change.

Details of surcharge changes and new rates for FedEx Ground will be available at on December 6, 2013.

FedEx previously announced on Sept. 18, 2013 that it will increase shipping rates for FedEx Express by an average of 3.9% for U.S. domestic, U.S. export and U.S. import services also effective January 6, 2014.

The free-shipping wars have begun

Halloween is still a week away, but retailers are already using free-shipping offers to compete for early holiday sales.

While most consumers expect free standard shipping, and 35 percent of retailers say they already offer year-round free shipping, up from 23 percent last year, many are sweetening the deal by offering free speedier delivery earlier in the season.

A survey of online retailers found that more than 16 percent will offer their first holiday free-shipping offer by the week of Oct. 28. World Market was one of the early birds, announcing free ground shipping on all of its holiday decor through Oct. 27. Pottery Barn has a similar offer for its Halloween, Thanksgiving and Christmas items.

Read more: The free-shipping wars have begun Page 1 of 2 |

FedEx Introduces FedEx One Rate

Fedex logoMEMPHIS, Tenn., Oct. 21, 2013—FedEx Express, an operating company of FedEx Corp. (NYSE: FDX), is introducing FedEx One RateSM which gives U.S. customers a simple, predictable, flat rate shipping option for their express packages.

FedEx One Rate shipping is backed by the reliability, world-class tracking, time-definite delivery and high levels of customer service of the FedEx Express network.  FedEx One Rate shipments also are covered by the FedEx Express money back guarantee.

“With its simple, predictable pricing, FedEx One Rate takes convenience and flexibility to the next level for our customers,” said Raj Subramaniam, executive vice president of Marketing at FedEx Services. “For consumers and small businesses alike, FedEx One Rate pricing allows customers to plan and control their express shipping costs more easily. They can add to the box without adding to the cost.”

To ship using FedEx One Rate, customers simply select their free FedEx Express packaging, an eligible FedEx Express domestic shipping service and the destination.  The FedEx One Rate price is then calculated based on the packaging type, service selected and distance.

FedEx Delivery Manager options also are available to residential recipients receiving shipments utilizing FedEx One Rate pricing such as request to hold at FedEx Office or FedEx ship centers, proactive notifications, sign for a delivery in advance, request vacation hold and more.

Starting Nov. 1, FedEx will kick off the “FedEx One Rate, Countless Possibilities Through Education” promotion, giving customers across the United States a simple way to give the gift of education. Through Dec. 23, $1 from every FedEx One Rate transaction will be donated to Teach For America, up to $200,000, helping to fund training for 11,000 teachers serving 750,000 students in underserved communities across the country.

FedEx One Rate – New Flat Rate Shipping Option

FedEx One Rate offers several advantages to FedEx Express customers, including:

  • More packaging options.  Five new FedEx Express boxes have been added to the current line of free packaging for the introduction of FedEx One Rate, along with a new Extra Large size category.  FedEx now offers a total of 12 packing options for all express shipping services.  Customers can also now choose from cube shaped boxes for their items.
  • No need to weigh qualifying shipments.  FedEx One Rate offers a great value for customers as weight (FedEx Envelopes 10 lbs. or less and FedEx Paks and Boxes 50 lbs. or less), fuel surcharges, residential and delivery area surcharge fees do not alter the base rate for FedEx One Rate shipments.
  • Simplified pricing.  Three zones allow customers to take advantage of a simply-priced option for the shipping distance.
  • Time-definite delivery.  FedEx One Rate shipping is available with one-, two- or three-day U.S. domestic FedEx Express time-definite shipping commitments.
  • Value-added services.  FedEx One Rate pricing includes the value-added services that FedEx Express shipping is known for, including world-class tracking capabilities, excellent customer service, money-back guarantee and no additional charge for declared value of up to $100.
  • Convenience.  FedEx One Rate shipping is convenient and easy to access.  It is available online through FedEx Ship Manager Lite, FedEx Ship Manager and FedEx mobile offerings and at more than 1,800 FedEx Office locations and 650 FedEx ship centers.  Customers can also drop off their FedEx One Rate shipments at more than 36,500 FedEx drop box locations.
  • Easy and fast online.  Customers can ship faster and easier than ever because they do not need to weigh FedEx Envelope shipments 10 lbs. or less and FedEx Express boxes 50 lbs. or less.  Customers also do not need to measure the dimension of the box.  FedEx Ship Manager Lite makes it easier and faster than ever for customers to ship online.  Customers also are able to now access FedEx Ship Manager Lite without a FedEx account through web-based and mobile applications as well as email a copy of shipping labels.

For more information on FedEx One Rate shipping, please visit


FedEx Hikes Prices: America Shrugs

Fedex logoWhile mailers, politicians and pundits have been falling over each other to express their shock and outrage at the possibility that the US Postal Service might implement a price increase higher than the Consumer Price Index (currently about 1.7%), FedEx yesterday did exactly that- and America shrugged:

MEMPHIS, Tenn., Sept. 18, 2013—FedEx Corp. (NYSE: FDX) will increase shipping rates for FedEx Express by an average of 3.9% for U.S. domestic, U.S. export and U.S. import services effective January 6, 2014.

The FedEx Ground and FedEx SmartPost pricing changes for calendar 2014 will be announced later this year.  FedEx Freight implemented a 4.5% general rate increase on July 1, 2013.

Details of changes that will be made to FedEx Express surcharges can be found at