hands wrapping holiday gift

FedEx Expects Record Deliveries This Holiday Season

FedEx Is Not Overwhelmed by Demand Ahead of the Holidays

Despite rising inflation and supply-chain difficulties, FedEx (FDX) expects to deliver a record number of packages this holiday season. The delivery company said it will deliver 100 million more packages this holiday season than it did in 2019. It is also forecasting deliveries to be up 10% compared to last year, which was a record year for the company.

The increase in deliveries is not expected to overwhelm FedEx. The company said retailers have been shipping from their stores to avoid the strain they have faced in the past. By having inventory in stores, logistics can be streamlined and shipping costs can be lower.

Consumers Get Their Shopping Done Early

Also reducing the demand on FedEx is the fact that consumers are getting their holiday shopping done early this year. Consumers have heard warnings for months about shipping delays and out-of-stock items. They have responded by hitting the stores and shopping online earlier than in years past. FedEx predicted yesterday will turn out to be its busiest day of the season.

For the 2021 holiday season, forecasts call for the number of ecommerce packages shipped to increase by 13% to 3.4 billion. At the same time, the number of delayed ecommerce shipments per day is expected to fall by 82%. In 2020 the number of delayed packages stood at 7.3 million. This year it’s expected to be 1.3 million.

Amazon to Benefit from Last-Minute Shopping

Consumers’ moves to shop early and in-store have weighed on Amazon (AMZN) so far this holiday season. The pandemic has also given the ecommerce giant’s rivals a chance to catch up. Instead of touting high numbers from the Black Friday weekend, Amazon kept it vague, only saying it was a record-setting period. Meanwhile Shopify (SHOP), which powers ecommerce for small merchants, said sales by its merchants increased 23% during Black Friday weekend to $6.3 billion.

But what Amazon has that its rivals do not is same-day and two-day shipping as well as a massive fulfillment network to support this. That enables it to ship orders right before Christmas, which could save Amazon’s holiday sales. After all, there are still many holiday shoppers out there who have procrastinated and will be turning to Amazon in their time of need.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT Meg Richardson Meg Richardson is a writer specializing in markets, technology, and personal finance. She loves breaking down seemingly complex ideas and making them readable and interesting for everyone. She holds an MFA in writing from Columbia University. When she is not writing about finance, she enjoys running in Central Park and drawing cartoons.

TLS 1.2 Encrypted
Equal Housing Lender