Special Delivery: What FedEx and UPS Plan to Bring Customers in 2020

As recently as a few years ago, brick-and-mortar retailers could still combat e-commerce services through the benefit of expedience. This margin as vanished over time and now shipping companies FedEx and UPS are helping sellers get products to consumers even faster.

Both companies will soon roll out Sunday delivery programs, set to launch in January.

The economics behind the move made this a difficult one to implement. Higher margins come from deliveries to office builders, where at one stop dozens of packages can be delivered. These are often bulk orders as well. However, Sunday deliveries are expected to go mostly to residential properties. These deliveries are both slower and smaller.

In order to turn a profit on Sundays, FedEx will utilize its Ground division. The fleet is paid based on metrics like total packages delivered, level of complaints and others. This tends to cut costs compared to the companies Express fleet workers.

UPS has a two-tiered wage structure and will leave some packages with the United States Postal Service in order to cut expenses. It will also use a drop off point system where multiple packages get dropped at a single location, and customers travel to retrieve them.

For the latest in all things transportation, head to our industry page! You can also follow us on Twitter at @TransportMKSL! Join the conversation today on our Market Leaders LinkedIn Group!

Follow us on social media for the latest updates in B2B!


Finishing Industry Trends and Challenges: Manufacturing A Stronger Standard
July 2, 2022
This episode of Manufacturing A Stronger Standard is live from FABTECH 2021. Host and President of LestaUSA and DeGeest Corp. Derek DeGeest, talked with Scott Francis, editor-in-chief of Products Finishing, the Read more
Manufacturing a Stronger Standard: Richard Wilcox and LestaUSA Increasing Customers’ Production with New Automation Systems
July 2, 2022
Achieving automation on the finishing side requires many pieces—two of the most important being the conveyor system and robotics. Host of Manufacturing a Stronger Standard Derek DeGeest spoke with Systems Sales Read more
Manufacturing a Stronger Standard: Nordson Customer Success with LestaUSA Technology
July 2, 2022
Derek DeGeest was back at FABTECH 2021 for another Manufacturing a Stronger Standard conversation. He spoke with Frank Mohar, Regional Sales Manager at Nordson, about the partnership between the companies and Read more