FedEx has introduced a new reusable packaging system for B2B shippers aimed at helping retailers reduce costs and streamline store operations in a form factor compatible with automated conveyor systems and vans in the delivery network, the company announced on Thursday.
The collapsible FedEx (NYSE: FDX) box is engineered to survive up to 50 ship cycles and allows retailers to switch from using corrugated boxes, saving money on handling fees and potentially reducing carbon emissions by two-third, or more, compared to single-use packaging.
It is suited for closed-loop environments, such as in-house fulfillment centers, store restocking or field service support, where returns and reuse are controlled and predictable.
FedEx said it developed the reusable system with Returnity, a packaging provider that specializes in circular logistics. The box can be leased or purchased from Returnity, a representative for FedEx said via email.
The automation-friendly box offering, which can hold up to 50 pounds of goods, is designed to smoothly integrate into existing FedEx workflows and doesn’t add handling complexity for retailers, FedEx said in a news release. In contrast to traditional reusable packaging options that come in unique shapes or are made of softer material, the Returnity boxes are not subject to non-standard shipment fees because they flow through the FedEx network without extra handling.
The collapsible box has been successfully piloted with multiple businesses across North America, supporting use cases like fulfillment-to-store replenishment, internal transfers, and reverse logistics. Testers reported faster unpacking and restocking, increased labor efficiency, improved backroom organization, and lower product damage rates. It is currently available in the U.S., with international expansion to Australia and Europe planned in the near future.
“In collaboration with Returnity, we have created the first scalable, reusable box solution for B2B customers, which is especially useful for our soft-goods shippers,” said Neil Gibson, senior vice president, global customer experience, FedEx. “By pairing Returnity’s durable, easy-to-integrate packaging with our global network, we’re helping retailers unlock meaningful cost savings while reducing environmental impact, all without sacrificing speed or reliability. This new solution supports our vision to make supply chains smarter for everyone.”
Reusable packaging isn’t new, but integrating it into traditional parcel networks has proven difficult because of cost, complexity and fit within existing logistics operations. FedEx says the Returnity container seamlessly works within its current infrastructure.
FedEx said the modern packaging cuts packaging spend by up to 30% per cycle.
Management has made clear that it is focusing more on B2B logistics, including returns, because it is more profitable than generic last-mile delivery.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at ekulisch@freightwaves.com.
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