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FedEx's Delivery Service Aimed at Extending Online Fulfillment Cut-Off Times

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FedEx's Delivery Service Aimed at Extending Online Fulfillment Cut-Off Times

FedEx Corp. (NYSE: FDX) said it has launched a service allowing participating retailers to fulfill online orders 5 to 8 hours later than usual while providing consumers with next-day deliveries in local markets and two-day deliveries across the continental US.

Through the service, dubbed "Extra Hours," retailers can extend order cut-off times to as late as midnight depending on their order fulfillment process. The service recently started with retailers AutoZone (NYSE: AZO) and BestBuy Co. (NYSE: BBY) in multiple U.S. markets, FedEx said. More retailers are expected to join, the company said.

The deliveries will be provided by FedEx Express, FedEx's air and international unit.

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The service is designed to respond to customers' desires to order late in the day and well into the evening because of the convenience of e-commerce, said Brie Carere, a FedEx senior vice president and the incoming chief marketing officer. Most online orders are placed after 4 p.m., and 64 percent of shippers expect to get next-day delivery as long as they place orders by 5 p.m., Carere said, citing FedEx data.

The service "aligns with the needs of online shoppers, while offering retailers a way to balance inventory and reduce transportation costs," Carere said in a statement yesterday announcing the service.

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