CEO Corie Barry stated that FedEx's Sunday delivery service gives Best Buy an edge, reducing delivery times. FedEx's real-time tracking system will also be integrated into customer notifications, providing more timely and accurate information. This is expected to reduce support calls, cancellation rates, and redelivery costs.
"Integrating live tracking data from FedEx will help us deliver a better customer experience," Barry said.
Before selecting FedEx, Best Buy distributed orders through various channels: the United States Postal Service (USPS), OnTrac, Shipt, DoorDash, and Roadie. UPS was previously included but is no longer a primary carrier, though some sellers on Best Buy's new marketplace can still use it.
FedEx has repeatedly emphasized its Sunday delivery service as a competitive advantage over UPS. In March, the company stated it had expanded this service to nearly two-thirds of the US population due to demand from large clients.
Best Buy is also enhancing its order fulfillment capabilities with a "data-driven sourcing" model, selecting optimal warehouses for online order processing. Last quarter, 40% of home deliveries were processed through this new model, saving costs and improving on-time delivery rates.
"Our goal is to have 70% of orders using this model before the holiday season and 100% by early 2026," Barry emphasized.
The Dan (*Supply Chain Dive*)