In this file:
· Here's why FedEx ditched Amazon and is throwing itself into powering Walmart's e-commerce aspirations
· Amazon, Walmart Will Dominate E-Grocery Food Sales Through 2024
Here's why FedEx ditched Amazon and is throwing itself into powering Walmart's e-commerce aspirations
· FedEx ended its air and ground delivery contracts with Amazon this summer.
· Amazon claims 49% of the e-commerce market. Brie Carere, FedEx's chief marketing and communications officer, told Business Insider that the delivery giant will focus on the other 51% of e-commerce.
· FedEx has a particularly deep relationship with America's largest retailer — Walmart. The big box giant has been investing heavily into e-commerce.
· It's strategic for FedEx to move away from Amazon to Walmart, but analysts say the massive retailer's e-commerce arm could potentially have the same challenges Amazon did.
Rachel Premack, Insider
Sep 5, 2019
FedEx made waves this summer when it ended its US air and ground delivery contracts with Amazon.
In the background, FedEx has been powering the e-commerce aspirations of Amazon's biggest retail competitor — Walmart. Data from Rakuten Intelligence indicates that FedEx delivered some 55% of all of Walmart's packages in Q2 2019.
When FedEx dumped Amazon, which accounted for less than 1.3% of FedEx's 2018 revenue, the shipping giant underlined the opportunities available for online retailers outside of Amazon.
The Seattle-based retailer accounts for 49% of e-commerce. Outside of Amazon, the e-commerce industry in the US hosts No. 2 player eBay, big-box retailers like Walmart and Target, emerging platforms like Shopify and Wish, and others. That's where FedEx is focusing.
"E-commerce is driving the parcel volume in the US domestic market at a rate that we've never seen before, quite frankly," Brie Carere, FedEx's chief marketing and communications officer, told Business Insider. "We see a world in 2026 where the market will be 100 million pieces a day, driven by e-commerce. And it's really important to remember that that's driven by e-commerce as a broad market, not by any single player."
The non-Amazon e-commerce field is fragmented, but provides a massive growth opportunity — 12% CAGR from now to 2026, Carere said. Walmart, for its part, has also focused its e-commerce strategy on attracting a multitude of brands, as seen by its acquisitions of companies like Moosejaw, Bonobos, and Jet.com.
Within e-commerce, FedEx and Walmart have a particularly close relationship. Along with moving the majority of Walmart's online shipments, FedEx is rolling out Office locations in 500 Walmart stores nationwide where customers can print, ship, and pick up deliveries — a move that analysts said gives an edge to Walmart against Amazon.
"We've obviously got relationships with retailers of all sizes and, and that certainly includes Walmart," Carere said. "Our relationship with Walmart is very strong."
The threat of low margins are complicating FedEx's e-commerce push ...
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Amazon, Walmart Will Dominate E-Grocery Food Sales Through 2024
Mike O'Brien, Multichannel Merchant
September 5, 2019
Amazon and Walmart will continue to slug it out atop the world of global e-grocery food sales, with the ecommerce giant projected to pass the retailer by 2024 with revenues of $15 billion, compared to $14 billion, according to a new report from research firm Edge by Ascential.
Ecommerce now accounts for 3% of food and beverage sales worldwide, according to Edge by Ascential, and is projected to grow to 4.5% by 2024.
Walmart for now is the dominant global player in e-grocery overall, with estimated 2019 sales of $49 billion, projected to reach $110 billion by 2024. Its overall estimated grocery sales in 2019 of $552 billion is more than the next three players combined: Costco, Seven & I Holdings of Japan (7-11) and Kroger.
The report projects a of CAGR of 13% through 2024 for e-grocery food sales, currently at $91 billion and expected to hit $162 billion in five years. While store-based sales of course still represent the vast majority of grocery revenue, ecommerce – as in other areas of retail – is growing at a much faster clip.
Grocers are continuing to expand online assortments, build out their fulfillment capabilities with partners and invest in technology such as automation, robotics and micro fulfillment centers to meet current and projected demand.
“We’re going to see a major shift to online and omnichannel over the next few years with edible grocery,” said Violetta Volovich, Associate Analyst for Edge by Ascential and a report author, in a release. “The barriers to adoption and growth in this sector are coming down, and retailers are investing heavily in technology, supply chain and partnerships that will make for an easy, seamless customer experience.”
By 2024, a projected 82% of online food and beverage sales will come from grocers using an omnichannel model, according to the report, compared to 15% for pure-play retailers and 3% from third-party marketplaces.
Fulfillment and delivery players like Instacart in the U.S., Home Run in the UK and Glovo, Supermercato24 and Stuart in other areas of Europe are gaining prominence and snapping up partnerships with major grocers.
As in other areas of retail, companies are testing out “store of the future” concepts across the globe, including Amazon Go in the U.S., Carrefour in France, Belgium and Brazil, JD.com and Alibaba in China and Tesco in the UK. Walmart for its part is adding more pickup towers in stores for online orders, and recently added same-day delivery in Mexico via WhatsApp, while Aldi is testing curbside pickup with existing delivery partner Instacart.
Doug Koontz, Director, Product, Content Strategy and Analytics for Edge by Ascential, said...