2016 Annual Report
E-Commerce
E-commerce: Investing in Growth
The holiday season of 2015 made it clear that e-commerce has enabled a full-scale retail revolution.
The value proposition, however, remains the same — the ability to order a product online and have it reliably delivered to the consumer. FedEx is one of only three enterprises that together deliver 95 percent of all e-commerce orders in the United States. We are at the center of e-commerce and one of the most profitable e-commerce companies in the world.
It’s imperative that we continue investing for profitable growth by expanding our network capacity to match the predicted increase in e-commerce shipments. FedEx Ground invested $1.6 billion in FY16, including automated hubs in Tracy, California, and Ocala, Florida, and 19 additional automated stations. This will bring the number of automated hubs to 35 and the number of automated stations to 68. These operations are designed to sort packages at a high rate, minimize handling and lower costs. Since 2005, network enhancements have accelerated service by at least one day to more than 70 percent of the U.S.
Read insights about the connection between online shopping and shipping by Rajesh Subramaniam, executive vice president, Marketing and Communications at FedEx Services. Read the story
Watch how the Rendezvous restaurant delivers an authentic Memphis barbecue experience to a hungry family. To add a personal touch, FedEx customized the e-commerce shipping label to reflect the proud Rendezvous story and brand.
