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FedEx Launches New E-Commerce Platform?

According to Webrazzi, FedEx is set to launch a new data-driven e-commerce platform called "fdx". Expected this Fall, the platform will provide end-to-end solutions to online sellers, helping businesses manage their supply chains, customer sales, and deliveries.

Fdx will grant access to members of the e-commerce marketplace ShopRunner, which FedEx acquired in 2020, and leverage FedEx's shipment network data to provide more accurate shipping information to brands. This move is seen as a significant step in FedEx's competition with Amazon, particularly following FedEx's refusal to renew its cargo delivery contract with Amazon in 2019 and Amazon's subsequent ban on using FedEx during holiday seasons.

FedEx CEO Raj Subramaniam highlighted that the fdx platform will offer businesses the opportunity to optimize and grow their operations through digital intelligence. Subramaniam's statements suggest that fdx will not only serve as a commerce platform but will also be positioned as a tool that enhances and adds value to business processes.

Bankruptcy Trend in the Furniture Supply Chain?

As reported by Supply Chine Dive, the furniture industry has faced significant challenges since the COVID-19 pandemic, exemplified by the bankruptcy of Noble House in September last year. The sector initially saw a sales boost between 2020 and 2021, with Noble House's sales jumping 48% and 11%, respectively--consumers bought furniture for home offices and redecorations during lockdowns. Soon after the lockdowns, the industry faced a downturn due to rising freight costs, port congestion, container shortages, and inflation, leading to financial distress.? ?

Companies like Mitchell Gold Co., Klaussner Home Furnishings, and Z Gallerie also filed for bankruptcy, indicating a broader industry crisis. A 15% decrease in the household goods industry's credit risk index and an 8.5% drop in average Core Health Scores in 2023 highlight the sector's struggles.?

Supply chain disruptions, particularly for bulky items, added to the woes, with companies like Mitchell Gold citing long lead times as a significant issue. Current challenges include managing excess inventory amidst declining sales—experts like Rick Jordon from FTI Consulting point to warehousing and high supply costs as ongoing problems. The industry's low margins create a cutthroat environment, with winners and losers emerging in this challenging market.?

Retail Sector Embraces AI and Omnichannel Innovations for 2024?

According to the survey published on Retail Dive, retailers will use AI for marketing and financial forecasting. A Carl Marks Advisors survey indicates a pivotal year for major retailers and consumer packaged goods companies, with many aiming to maintain or exceed last year's sales.??

With revenues between $25 million and $300 million, these firms heavily invest in artificial intelligence (AI) - 56% in marketing and 52% in financial forecasting, reflecting a significant shift towards tech-driven strategies.?

Key to enhancing customer experience are initiatives like buy now, pay later options (37.2%), modernizing storefronts (36.4%), and implementing same-day delivery services (35.6%). However, a Forrester report suggests that free shipping appeals more to U.S. online shoppers than same-day delivery.?

?In the race to integrate AI, online retail leaders like eBay and Amazon already use AI for product-related functionalities. Walmart is leveraging AI for in-store and online enhancements. According to Howard Meitiner of Carl Marks Advisors, 2024 presents a unique opportunity for the retail industry to succeed through innovative omnichannel approaches and AI integration.?

UPS Revives Money-Back Promise?

According to?Supply Chain Dive, UPS has reinstated its money-back guarantee for 2nd Day Air A.M. service, marking a significant shift from pandemic-era policies.?Initially suspended during the onset of COVID-19 in 2020 due to a surge in delivery demands, this change took effect Monday, as per UPS' website.?

The 2nd Day Air A.M. service promises deliveries by 10:30 a.m. within two days across the 48 contiguous states, including select areas of Hawaii and Alaska. Cynthia Latortue-Brooks, UPS' air product manager for the U.S., emphasized the importance of this service for time-sensitive deliveries, stating that the decision to reinstate the guarantee underscores the company's confidence in meeting morning delivery commitments.?

While several UPS services have suspended guarantees since 2020, the recent easing of delivery demands has prompted carriers to seek increased volume through various incentives, including discounts. The reinstated guarantee is particularly significant for businesses like dental offices that depend on timely morning deliveries for critical procedures. In contrast, FedEx, a key competitor, still lists its 2Day AM service as ineligible for a money-back guarantee, highlighting a strategic divergence in the industry's post-pandemic recovery phase.?

Retailers Focus on Enhancing the Checkout Experience?

According to the Retail Dive report, executives from Wayfair and SSENSE have recently highlighted the importance of providing a seamless digital checkout experience to improve customer satisfaction and increase sales conversions. SSENSE cut its checkout time by 70%, directly impacting its conversion rates. Ludovic Maire, the company's product management director, emphasized the significance of optimizing the checkout process, as it is a crucial step in the customer journey where any inconvenience can lead to cart abandonment.?

Curtis Crawford from Wayfair stressed the need for a hassle-free checkout after customers have selected their products.??

Ensuring reliability and speed in processing payments is essential, as even minor delays can deter customers. With up to 2,000 orders per minute during peak times, SSENSE maintains smooth operations with a dedicated team. Both companies underscore the growing necessity for retailers to provide diverse, convenient payment options and a personalized checkout experience to meet evolving consumer expectations.?