- Most online orders are placed after 4 p.m.
- FedEx‘s months-old Extra Hours service delivers goods ordered online as late as 2 a.m. for next-day local delivery and two-day shipping to any address in the continental US.
- The service shows that Amazon Prime‘s two-day shipping promise is no longer unique.
Online orders placed after sundown typically can’t arrive the next day in most metro areas — even if you pay extra for speedy delivery. That’s in contrast to the fact that most people online shop between the hours of 6 p.m. and midnight.
FedEx is adapting to consumers’ night owl shopping habits with Extra Hours. The months-old service pushes the evening order cutoff times by five to eight hours. Online orders placed as late as 2 a.m. can deliver the next day in certain metro areas, or within two days to addresses in the continental US.
Kevin Sterling, managing director of Seaport Global Securities, told Business Insider that FedEx Extra Hours allows traditional retailers to compete with Amazon Prime’s two-day shipping pledge.
“Retailers love it,” Sterling said. “They used Extra Hours during peak season, and they were able to sell it as, ‘Hey, look, we’re better than Amazon Prime.'”