I'm not sure if this is a bug or not, but I cannot get FedEx Ground to appear on user checkout unless the Company field is enabled and a name is entered. It then displays a FedEx Ground Business rate. It will not show a Home Delivery rate.
There is a strange workaround that I found however. If the "Automatically offer new shipping services when they become available" checkbox is enabled in the Shipping settings, FedEx Ground (home delivery) now shows up for user checkout, without requiring the Company Name (which would show a lower business delivery rate).
Seems like a weird solution people aren't likely to figure out.
This is expected behaviour with the Fedex calculated rates in the checkout because of the way that Fedex intends for the rates to be used. Fedex Ground is designed for Business to Business deliveries while Fedex Home Delivery is designed for Business to Customer which is why the Company field in the checkout needs to be filled in for a Fedex Ground rate to be displayed on the shipping page of the checkout.
Right now, you're absolutely right that the "Automatically offer new shipping services when they become available" option will enable Fedex Home Delivery for applicable orders - it's the only way around it right now with the Fedex integration.
Chantal | Shopify Guru
May I know whether the issue is solved or not? If not, I have the answer to this question.
FedEx Ground and FedEx Home Delivery are completely different services which you can enable/disable dedicatedly using FedEx Rates, Labels and Tracking app.
When your customer goes to the checkout page and gives an address, the FedEx Rates, Labels and Tracking app uses the FedEx address validation process to confirm whether the address is commercial or a residential address. Based on this validation, accurate rates are displayed at checkout, ie.
Providing the company name to show Ground service is a work around that Shopify has used to segregate the services. By logic this does make sense as Company name is usually provide by businesses, hence they are commercial address. However, assuming that all businesses have company names associated may not be true. Let me give brief about the actual process followed by FedEx :
FedEx API by default segregates the address as 'Residential' or 'Commercial'. This happens if you have enable 'Address Validation' in your FedEx account. Once this is done, FedEx will characterise the address and based on that, a solution should be able to charge residential or commercial rates and show Ground or Ground Home delivery for it. So, if you are using your own account for rates, it is better to approach the FedEx team, get it enabled and then use an app that segregates the service based on the address validation.