FedEx Corp. targets Asian markets for its E-Commerce business

FedEx Corp. targets Asian markets for its E-Commerce business

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FedEx Corp. said on Monday, it plans advancement of its global e-commerce business as it aims to compete for the mounting number of parcels dispatched to consumers from China and Japan.

FedEx completed the takeover of Bongo International in 2014. Bongo International helps shoppers buying goods from foreign traders by automatically adjusting currencies, taxes and delivery costs, location-wise, is rebranding the business as FedEx CrossBorder. The company said it plans to offer its services to exporters in China and Japan by next June. The company at present offer its services to international e-commerce retailers in the U.S., Europe and Peru.

FedEx has stepped up in worldwide e-commerce efforts as other companies are spending to help traders with global online-shopping services.

Most of the International courier services are trying to make the international shipping process as simple as possible for merchants who find it hard track unpredictable tariffs, delivery times and other factors when posting their goods to different parts of the world.

According to the experts, an awkward and unclear procedure can turn shoppers off. Some bigger retailers hire dozens or in certain cases even hundreds of staff to organize and track packages, while smaller merchants complains about orders that simply disappear or are delayed for long periods can lead to unhappy customers demanding compensations and even refunds.

Payvision BV, is payments processing company based in Amsterdam. It says Cross-border buying was around 20% of all worldwide online business in 2014. Payvision expects those sales to keep growing 27% a year until 2020.

FedEx might find it hard to get a break through in the Chinese market, as traders are very much used to sell their goods on online markets, then send them on the cheap to the U.S. for final delivery by the U.S. Postal Service.

FedEx also said, in its newly international business, the company will also be offering the cross-border services to freight-forwarding customers for the first time. This blend will make it way easier for business-to-business consumers to estimate international shipping costs for larger shipments.

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I cover technology, utilities and biotechnology for Markets Morning, and I help out occasionally with other industry sectors. I've written about investment and personal finance topics for more than 20 years from a lowly copywriter to editor-in-chief, so I've done a little bit of everything. For what it's worth, I have a BA from Duke University and an MBA from Rollins College. I'm married with one daughter, and that's worth more than everything else put together.

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