Teaming Up Of Wal-Mart Stores, Inc. (NYSE:WMT), FedEx (FDX) And United Parcel Service (UPS) Is Beneficial To Christmas Shoppers
Wal-Mart Stores, Inc. (NYSE:WMT) is among the major retailers working closely with shipping companies to avoid the problem of delayed Christmas deliveries. Delivery service providers such as FedEx Corporation (NYSE:FDX) and United Parcel Service, Inc. (NYSE:UPS) are pushing retailers to encourage shoppers to place their Christmas orders early to ensure smooth deliveries.
To encourage customers to order their Christmas shopping early, Wal-Mart Stores, Inc. (NYSE:WMT) and a number of large retailers are absorbing shipping fees for their online shoppers. If shoppers are able to make their final online orders early, they are more likely to get their deliveries on time and delivery companies are also spared the channel of dealing with overwhelming demand.
Benefits to shoppers
In the battle to streamline holiday shipping, shoppers are on the receiving end of positive things. They are not only assured of timely deliveries, but also get to escape shipping costs for their Christmas packages.
Amazon’s $20 apology
Lessons learnt two years ago appear to inform the increased delivery collaboration between retailers and shipping companies. In the holiday of 2013, UPS and FDX could not keep up with the surge in last minute orders, leading to delays in Christmas deliveries that impacted the reputation of many retailers and shipping providers. For example, Amazon.com, Inc. (NASDAQ:AMZN) had to offer $20 gift cards to cool disappointed shoppers who couldn’t get their Christmas orders delivered on time.
While Wal-Mart Stores, Inc. (NYSE:WMT) others are popularizing free shipping this holiday to avoid a repeat of the 2013 disaster, Amazon is working to build a vibrant in-house delivery system. The company is said to be acquiring several cargo aircrafts to help it break reliance on third-party delivery companies such as FedEx and UPS.
One of the major problems that have impacted past holiday package deliveries is bad weather. However, adverse weather conditions are not expected to impact this year’s holiday deliveries. But even if bad weather were to threaten road transportation, there is a strong chance Wal-Mart Stores, Inc. (NYSE:WMT)’s customers would be unaffected. The retailer’s delivery partners FedEx and UPS have put in place measures to ensure that they can instantaneously shift delivery methods if weather renders one of their many options unusable.
UPS expects to handle 630 million packages this holiday, which is about 10.3% higher than in 2014.
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