Why Is FedEx So Expensive?

FedEx is an American multinational conglomerate that holds a company that focuses on transportation, e-commerce, and services based in Memphis, Tennessee. Formally the FedEx corporation is a federal express corporation and later it becomes an FDX corporation. Let us know the reason ‘Why Is FedEx So Expensive?’.

Why Is FedEx So Expensive?

Why Is FedEx So Expensive?

To transport goods FedEx uses trucks and to transport them and those trucks run on gas. So, when there will be a rise in gas prices the cost of transportation in business greatly increases. This is the reason why FedEx decided to surcharge depending on the distance required to transport a particular item as it costs a lot of money to transport products from one place to another. These all costs add up and make it a little expensive, so that’s why when a person uses FedEx it looks like the costs may be going up. Also, FedEx increases its price due to up and down in the current market prices, international agreements, and availability. 

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Reasons why the delivery of FedEx is low:

1. Living outside the contiguous states like the united states – 

Mostly FedEx requires 1 to 5 days business days in delivery within the lower 48 hours. In the places like Alaska and Hawaii, it takes an average of 3 to 7 business days in delivery as they are the places that are harder to find for FedEx because of their location. The FedEx waits for a plane to fill up before dispatching up as the air transportation is more expensive than ground transportation. Tapping into the network ground which is well developed the company FedEx has remained to rely on air transportation for the bulk of the journey.

2. Living in the rural areas – 

The other geographic reason why FedEx delivers slowly is living in the rural areas. Although these centers are far from urban areas and it is making it more difficult in spreading out making them serve at a proper time. Because of the low availability of shipping options, rural areas with the area FedEx delivery network will likely experience the slower delivery times. Moreover, those who live in rural areas will face more delivery issues than those who are living in more densely populated areas. 

3. The season of a holiday – 

The e – commerce has become a booming industry for several years and now its growth does not seem to be slowing down. This especially happens during the new year and black Friday. There is a massive increase in the volume of delivery so FedEx succeeded in its delivery. 

4. During the bad weather – 

Natural things like tornadoes, hurricanes, and blizzards can massively slow the FedEx delivery. Moreover, there are so many things that help the company to minimize the effect of bad weather and keep doing their job. 

For example, there is a global operations control center under the FedEx company that allows drivers to make operational changes and routing within minutes of changing spotting the bad weather. Also, the company heir 15 meteorologists, who help them predict accurately the changes in weather and suggest accordingly. The weather may be a difficult obstacle to overcome, but with there is hope. 

5. When the recipient was not there to accept their package – 

Some the FedEx delivery requires the signature of the recipient on their delivery. When there is no one to accept that package, FedEx either redelivers it on another day or holds onto it, and the recipient comes to pick up the package. This will make the delivery sloe at least by a day and could be a major inconvenience for those who are not available during the FedEx’s delivery window. 

6. Mistake in a delivery address – 

It is the major reason behind the FedEx delayed deliveries that may be the incorrect or incomplete addresses are written, this is hard to believe. This may happen because of the buyer’s error. A buyer may instant forget the suite letter or apartment number and may type the wrong address into the shipping address field. This will lead to delivering the package to the wrong address or getting in the FedEx office. 

It may also happen that the FedEx driver may misread the address due to damage to the label or carelessness. In these cases, delivery will lead to slower as the company work with the customer to correct the problem. 

7. The sender selects the slower delivery service – 

There are most people associate FedEx with fast delivery but only some of them promise the next day, overnight, or 2 day delivery. Others like FedEx ground economy or FedEx ground, have more deliveries than other companies. Mostly it requires 1 to 5 days to deliver anywhere. 

Some of the more reasons why the delivery is expensive:

  1. Increase in the fuel surcharge
  2. Having the best record in overnight delivery
  3. Instability in market
  4. Difficulty in international shipping
  5. Also increase in the price by competitors
  6. Tracking features are excellent
  7. Support in the workforce
  8. Taxes
  9. High demand in the corporation
  10. Philanthropic efforts

Conclusion:

For transportation of products, FedEx uses trucks and these trucks run on gas. As the cost of gas rises then there will occur a great change in business and transportation prices as FedEx decided to surcharge depending on the distance required to transport a particular item as it costs a lot of money to transport products from one place to another.

Frequently asked questions:

Q1: Does FedEx deliver products on Sunday?

Ans: Yes, FedEx does home delivery every day, which includes Sundays and Saturdays with weekend delivery to provide most of the residential locations. A person may also visit home delivery and FedEx ground to check the availability. 

Q2: How does FedEx do the delivery?

Ans: FedEx has remained to rely on their air transportation for the bulk of the journey, by tapping into the network ground which is well developed. The FedEx waits for a plane to fill up before dispatching up because it is more expensive than ground transportation. However, this means slower delivery times. 

Why Is FedEx So Expensive?

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