Adobe and FedEx Partner to Drive E-commerce Innovation

Rhea-AI Summary

Adobe and FedEx have announced a multi-year collaboration to integrate ShopRunner with Adobe Commerce. This partnership aims to enhance e-commerce capabilities as online shopping surged 42% in the U.S. Brands can offer free two-day shipping and easy returns, leveraging FedEx logistics intelligence to improve customer insights and reduce costs. The integration supports a projected trillion-dollar e-commerce year in 2022. Merchants can download the FedEx extension from Magento Marketplace in late 2021, aiming to boost customer loyalty and operational efficiency.

Positive

• Collaboration enhances e-commerce capabilities, tapping into a growing market with a 42% increase in online shopping.
• Brands gain access to FedEx logistics intelligence, aiding in cost reduction and improved customer insights.
• Free two-day shipping option promotes customer retention and loyalty.
• The anticipated e-commerce market growth to a trillion dollars in 2022 reinforces the strategic importance of this partnership.

Negative

• None.

Adobe (Nasdaq:ADBE) and FedEx (NYSE:FDX) today announced a new, multi-year collaboration starting with the integration of ShopRunner, a leading e-commerce platform and subsidiary of FedEx Services, with Adobe Commerce. In a year when online shopping in the U.S. grew 42% according to the recent Adobe Digital Economy Index, e-commerce became a make-or-break capability for every company regardless of size or industry.

Brands and merchants can better tackle the strong increase in package volume by offering free two-day shipping and seamless checkout and returns. The integration will give Adobe merchants access to FedEx post-purchase logistics intelligence, which will help them drive demand, reduce cost and gain customer insights.

“We’re proud to partner with FedEx to unlock a new era of e-commerce experiences built on innovation, speed and convenience that enable our joint customers to compete and win in the digital-first economy,” said Shantanu Narayen, chairman, president and chief executive officer at Adobe.

“The opportunity to partner with Adobe is another step forward in the FedEx journey to create an open, collaborative e-commerce ecosystem that will help brands and merchants deliver seamless experiences for their customers,” said Raj Subramaniam, president and chief operating officer at FedEx. “With Adobe’s leadership in customer experiences, the ShopRunner platform and our digital and logistics intelligence, we can increase the competitiveness of brands and merchants and create new possibilities in e-commerce.”

The economy has fundamentally changed in light of COVID-19, moving from a world with digital to a digital economy. During this time, e-commerce has played a vital role by enabling brands and merchants to sustain their businesses and continue serving consumers. The latest Adobe Digital Economy Index shows that 2022 is expected to be the first trillion-dollar year for e-commerce in the U.S. as more consumers flock online to meet their daily shopping needs. Adobe’s collaboration with FedEx and ShopRunner will help brands and merchants better manage their shipping and logistics and allow them to offer a great last-mile delivery experience as a way to retain customers and build loyalty. Brands and merchants shipping with FedEx will also benefit from FedEx post-purchase logistics intelligence to help create a more efficient and reliable experience for brands, merchants and their customers.

Anticipated Benefits for Brands, Merchants and Consumers:

• Two-Day Shipping: Brands and merchants will have the option to enable and promote free two-day shipping to their consumers.
• Easy Returns: Brands and merchants can provide shoppers with a free and easy return process backed by FedEx with services like label-less returns, access to return-packaging at FedEx locations, easy drop-off and more.
• Increased Loyalty and Customer Lifetime Value: With millions of shoppers actively purchasing through ShopRunner’s platform, Adobe merchants will have access to a pool of loyal consumers.
• Seamless Checkout: Through ShopRunner, consumers will be able to store their payment, billing and shipping information to complete purchases with ease.

“As an increasing share of all commerce shifts to online channels, brands of all sizes are facing competitive pressure to deliver engaging, relevant, and frictionless commerce experiences to their customers. What’s more, customers have ever-increasing expectations when interacting with brands,” said Jordan Jewell, research manager, digital commerce and enterprise applications at IDC. “Adobe Commerce is well-suited for growing brands to differentiate on experience. The latest partnership with FedEx should assist merchants to better meet, and exceed, these lofty customer expectations by enabling more frictionless commerce.”

Timing and Availability

Plans are that Adobe Commerce and Magento Open Source merchants in the U.S. will be able to download the FedEx extension from the Magento Marketplace in late 2021.

Helpful Links

• For more information about the Adobe and FedEx collaboration, visit here.

About Adobe

Adobe is changing the world through digital experiences. For more information, visit www.adobe.com.

About FedEx

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. With annual revenue of $79 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively and innovating digitally under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 570,000 team members to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. To learn more about how FedEx connects people and possibilities around the world, please visit about.fedex.com.

About ShopRunner

ShopRunner, a FedEx subsidiary, connects its millions of high value members with Free 2-Day Shipping and Free Returns as well as exclusive, member-only offers and benefits from their favorite stores. For retailers, ShopRunner helps to drive frictionless e-commerce through a comprehensive product suite backed by rich consumer insights and data science.

© 2021 Adobe. All rights reserved. Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe in the United States and/or other countries. All other trademarks are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210427005418/en/

FAQ

What is the significance of the Adobe and FedEx collaboration?

The collaboration enhances e-commerce capabilities, allowing brands to provide free two-day shipping and better logistics intelligence.

When will the FedEx extension be available for Adobe Commerce and Magento Open Source merchants?

The FedEx extension is expected to be available for download in late 2021.

How much did online shopping grow in the U.S. recently?

Online shopping in the U.S. grew by 42% according to the Adobe Digital Economy Index.

What are the anticipated benefits for brands partnering with Adobe and FedEx?

Brands will benefit from free shipping, easy returns, enhanced loyalty, and improved customer experiences.

What market potential is projected for e-commerce in 2022?

2022 is expected to be the first trillion-dollar year for e-commerce in the U.S.