How We’re Preparing for Another Unique Peak Season

At FedEx, we’ve been preparing for peak earlier than ever this year, as 2021 holiday e-commerce volume is expected to hit an all-time high. Yet, continued challenges lie ahead. Nonstop news about low product inventories, port disruptions, and supply chain slowdowns has us all wondering what this holiday shopping season will look like. If key goods are already hard to find, will holiday gifts be available if we wait to place our orders in December?

Online consumer demand remains high, and we’re headed for what could be another record holiday rush. A survey FedEx conducted in September found that eight in ten American consumers (80%) plan to do at least some holiday shopping online this year. That’s similar to last year’s share (79%). Of the 93% of Americans who plan to do any holiday shopping, 56% plan to do at least half of it online. Eight percent (8%) of holiday shoppers will do it all online.

We cannot overstate the importance of shopping and shipping early this year, which is why my family is already ordering items for Christmas. We aren’t alone. Our survey found that six in ten (60%) expect to start shopping before Thanksgiving week arrives and some 35% of women plan to start making purchases in October.

Retailers are already doing their part to move the needle in this direction. A recent Digital Commerce 360 survey of 100 retailers revealed that 59% of these companies started offering deals in October. I applaud these efforts and think they will help to alter some consumer behaviors and ensure that the entire supply chain can effectively manage the holiday surge.?

We at FedEx have been actively preparing our network to meet the increased early demand these changes set in motion. To keep pace with the rise in e-commerce volume, we are increasing our nationwide workforce by a whopping 90,000 team members across all of our operating companies. FedEx pays wages that are highly competitive and has been granting competitive offers on the spot, temporary bonus structures, and pay enhancements that vary from market to market.

We’re also growing our network and expanding services as merchants, particularly small- and medium-sized businesses, continue to adapt to evolving customer expectations. Seven-day delivery, enhanced tracking, and a much simpler returns process all help these small business customers meet the speed, convenience, and efficiency needs of their customers. In turn, they can stay focused on what matters most: growing their business.

Another way we’re helping small businesses grow is through our newly launched FedEx E-Commerce Learning Lab , developed in collaboration with leading nonprofit Accion Opportunity Fund (AOF). AOF provides small business owners, with a focus on women and entrepreneurs of color, access to capital, networks, and coaching. Together we’re helping diverse small business owners expand their e-commerce operations and adapt their business models as they continue to respond to the ongoing effects of the pandemic.

We understand that as businesses diversify and grow, so must our network capacity. Our network has expanded steadily in the past year, and we are investing in a number of exciting innovations that will drive further growth. These include the development of autonomous vehicles for last-mile deliveries, figuring out how to better handle very large items, and making the swift expansion of the retail network a top priority.

Tracking is also (always) on our minds, just as it is for many online shoppers. We learned from our recent survey that real-time tracking and updates are important to 58% of adults who responded. That’s why we’re encouraging people to sign up for services like FedEx Delivery Manager , which notifies registrants when packages are delivered to their homes. The technology also lets shoppers pick up and drop off packages at FedEx Office, Walgreens, and select Dollar General locations, where they can be held for up to seven days. With 93% of the U.S. population living within five miles of a FedEx staffed location, this option is a quick, simple and safe way to avoid perennial threats like porch piracy, misplaced goods, damage due to severe weather, and of course to keep unwrapped packages away from prying eyes.

There’s a final piece of data that I’m very excited to share: findings from a new report that analyzed the FedEx impact on the United States economy. The report made clear that our company delivers nearly $70 billion in direct impact on the national economy through revenue and related business activity. That includes $8 billion in U.S. economic activity created by operations with other companies within the transportation sector alone. The results confirmed the true “FedEx effect” that our people and our operations has on the U.S, and it gives me great pride to be part of an organization that supports millions of jobs across the country through direct employment and indirect economic activity.

We can’t predict how the ongoing problems with the supply chain will affect our gift buying choices this year. Most of us will have to adapt and get creative if “out of stock” becomes the dismal refrain. But through the many ways FedEx is addressing the uncertainties of an accelerated shopping and shipping season – from stimulating economic growth to growing our team and investing in innovation and small businesses – we’ll continue working hard to deliver for everyone who relies on us. Be safe, be kind, and be on the look-out – Santa’s starting early and working overtime this year!