From drop-off to sorting to delivery, most FedEx packages are handled exclusively by FedEx employees. However, one FedEx service, Ground Economy, leaves the last mile of delivery to an authorized agent.
In most cases, the authorized agent is the United States Postal Service. This may sound like an odd setup, but after reading this article, you’ll better understand what authorized agents are and how they benefit FedEx!
FedEx Tendered To Authorized Agent For Final Delivery
When a package is tendered to an authorized agent for final delivery, FedEx has given your item to another company (usually the United States Postal Service) that will complete the delivery in 2023. This system allows FedEx to save money on the most expensive part of the shipping process and pass the savings on to its customers.
To learn more about how this service works and what you can expect from using it, make sure to keep reading!
What Does It Mean When A FedEx Package Is Tendered?
If your tracking information says “tendered to delivery service provider” or “tendered to authorized agent for final delivery,” FedEx has handed your package to another agency for delivery.
In almost all cases, the agency responsible for final delivery is the United States Postal Service (USPS).
That said, occasionally, a private postal service will complete the delivery, which happens most often with Ground shipments that are tendered to a local delivery company.
Handing off packages is a simple process. That said, FedEx passes the parcel to USPS, and the parcel is sorted at a nearby post office, scanned, and delivered to the customer’s doorstep.
Why Does FedEx Tender Packages To Authorized Agents?
This process of tendering packages from FedEx to USPS can seem confusing, especially if you don’t understand why it’s happening.
With that, FedEx started Ground Economy (formerly known as SmartPost) to offer cost-efficient shipping for small and medium businesses.
By handing over packages to USPS for the last mile of delivery, FedEx can save money on the most expensive part of the delivery process and pass these savings on to customers.
In fact, shipping through Ground Economy is about 20% cheaper than other home delivery services.
What’s more, having USPS complete deliveries also allows FedEx to provide delivery to more addresses.
That’s because Ground Economy includes all the addresses served by USPS, some of which aren’t part of FedEx’s network.
How Long Does It Take To Deliver A Package After FedEx Tenders It?
If FedEx tenders your package to an authorized agent, that usually means the item has been dropped off at the post office closest to you.
After this happens, it usually takes USPS two to three days to complete the final delivery.
Can You Track A Package After FedEx Tenders It To An Authorized Agent?
Even though tendering a package to an authorized agent means that your item is handed over to another company, your tracking abilities are unchanged.
With that, when shipping through a service that tends packages, you’ll receive a single tracking number from FedEx.
Then, you can use this number to monitor your package’s journey throughout the shipping process, even after FedEx hands it over to USPS.
Still, knowing exactly what’s going on with your package during the hand-off period can be a bit confusing.
That’s because your tracking information might say “delivered” after FedEx gives the package to USPS.
Then, within 24 hours, you might see the tracking information update to say “out for delivery” while USPS prepares to make the delivery.
Understandably, this can create some confusion during the 24-hour window following the tendering process.
To add even more to the confusion, you might also receive a separate USPS tracking number that can be used to find your package once USPS has possession of it.
FedEx shipping can be expensive, especially for small and medium-sized businesses, which is why many companies opt for cost-saving services like FedEx Ground Economy.
With this service, FedEx entrusts USPS with completing the final mile of delivery.
By having an authorized agent complete the delivery, FedEx saves money and passes the savings on to its customers.