Eye on Retail: FedEx acquiring e-commerce platform
FedEx continues bolstering its e-commerce capabilities as it competes with Amazon’s growing proprietary delivery capacity.
The shipping giant has agreed to purchase ShopRunner, an e-commerce platform that directly connects shoppers with more than 100 retailers and brands, for an undisclosed sum. ShopRunner members obtain benefits including free two-day shipping, free returns, exclusive discounts, and seamless checkout. The platform’s data-driven marketing and omnichannel enablement capabilities are also designed to help retailers acquire high-value customers and accelerate digital innovation.
Once the deal is closed, FedEx intends to combine ShopRunner’s pre-purchase offerings with its post-purchase logistics intelligence to enable retailers to attract and engage consumers at scale by providing innovative online shopping experiences. FedEx also anticipates that ShopRunner’s consumer experiences and omnichannel enablement capabilities will help it provide an end-to-end commerce experience.
In April 2020, FedEx partnered with e-commerce platform BigCommerce to give small-to-medium-sized businesses (SMBs) using BigCommerce access to the FedEx portfolio of e-commerce solutions. SMBs on BigCommerce can receive enterprise-like shipping capabilities to provide their customers with a more premium delivery experience.
“The acquisition, once closed, aligns with our continued efforts to create an open, collaborative e-commerce ecosystem that helps merchants deliver seamless experiences for their customers,” said Raj Subramaniam, president and CEO, FedEx Corp. “We are committed to growing the ShopRunner platform and combining it with our global digital and logistics intelligence to create new possibilities in e-commerce.”
“In pursuit of our purpose of creating the future of retail, we have built the foundation of a cross-brand ecosystem to create a simple shopping experience for consumers and to aggregate the scale of our network for our partners’ benefit,” said Sam Yagan, CEO of ShopRunner. “The unparalleled reach and assets of FedEx will accelerate our existing capabilities and align with our goal of creating new products and services that advance a more open, collaborative e-commerce ecosystem.”
Headquartered in Chicago, ShopRunner will operate as a subsidiary of FedEx Services. The companies anticipate the acquisition to close by the end of the calendar year, and it is subject to customary closing conditions, including regulatory approval.