Amazon and FedEx, together again, this time for e-commerce returns

Amazon and FedEx are expanding their partnership after starting to patch things up last year.

The companies announced Wednesday that more than 1,500 FedEx Office locations nationwide are now accepting Amazon returns as part of a network of more than 10,000 drop-off points across the U.S. where customers can return items without a shipping box, tape, or label.

It’s notable in part because of the history between the two companies. 

FedEx severed its logistics relationship with Amazon in 2019 as the e-commerce giant built out its own logistics network. But the two have started working together again over the past year, with FedEx reportedly helping to fill delivery gaps for Amazon left by UPS, which said last year that it would cut its Amazon package volume by more than half.

Amazon says four out of five U.S. customers now have a drop-off point within five miles of their home. Other locations in the network include Whole Foods Market, The UPS Store, Kohl’s, Staples, and regional partners such as Winn-Dixie, Save Mart, and Goodwill.

Returns have become a competitive battleground in e-commerce logistics because they boost shipping volume, lock in merchant relationships, and generate foot traffic for retail partners. 

UPS acquired Happy Returns in 2023 and offers box-free returns at 5,000 UPS Store locations as part of a broader network. FedEx has been rolling out its own Easy Returns service. 

Amazon benefits from the competition, gaining more drop-off density and better economics while also continuing to grow its own in-house network.

To make a return, customers start the process in their Amazon account, choose a nearby location, and receive a QR code. They bring the unpackaged item and QR code to the drop-off point, where it’s scanned and prepared for shipping.

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