United States Postal Service Upcoming Price Hikes for Festive Delivery: Essential Details and Amounts Disclosed
With the upcoming holiday season, many small businesses are bracing themselves for the annual shipping price hikes announced by USPS, FedEx, and UPS. Here are some practical strategies to help businesses balance cost, service quality, and customer satisfaction during this peak season.
Requesting Discounts and Waivers from Carriers
Contact USPS, FedEx, and UPS directly to inquire about volume-based discounts or surcharge waivers if your shipping volume qualifies.
Using Third-Party Shipping Platforms
Services like Stamps.com or Pitney Bowes aggregate shipping volumes from many small businesses and may offer discounted rates not available directly to smaller shippers.
Temporarily Switching to Lower-Cost Shipping Options
Use ground shipping instead of expedited services during the holidays while clearly communicating expected delivery times and cutoff dates to customers. Charge customers separately for expedited shipping, including the surcharge costs.
Comparing Rates Among Multiple Carriers
Since costs vary by package size, destination, and service level, shop around USPS, FedEx, and UPS for the best rate for each shipment.
Building a Holiday Shipping Calendar
Coordinate carrier deadlines, fulfillment plans, and backup options to avoid costly delays and last-minute expedited charges. Share these timelines clearly with customers and employees.
Setting Realistic Last-Minute Order Deadlines
Define cutoff dates that guarantee holiday deliveries to prevent expediting or failed deliveries that increase costs and harm customer trust.
Leveraging Data Analytics
Use past shipping data and demand trends to optimize routing and inventory, reducing unnecessary shipments and associated surcharges.
Optimizing Returns and Customer Incentives
Offering conditional free shipping (e.g., for orders over a certain amount) and managing return logistics efficiently can increase basket size and loyalty, offsetting some shipping costs.
Considering Inventory Localization
For high-volume markets, store inventory closer to customers to reduce cross-border shipping, tariffs, and last-mile costs while speeding delivery.
Using Business Credit Cards with Rewards
Pay shipping costs with cards offering cash back or points to recoup some surcharge expenses.
These practical tactics can help businesses manage the surcharges, which range from $0.40 to over $100 depending on shipment details, announced by USPS and other carriers. Communicating clearly with customers about shipping timelines and costs remains essential to maintain trust as surcharges rise.
It's also worth noting that UPS has yet to announce peak season pricing for 2025, but is expected to implement similar price hikes. Holiday shoppers can also benefit from these strategies, such as choosing lower-cost, slower shipping speeds if they can't send gifts before the rate increase kicks in, or getting their gifts shipped directly to the gift recipient's address, which may be cheaper than gift wrapping and shipping it themselves.
[1] Source: USPS, FedEx, and UPS official websites [2] Source: Small Business Administration [3] Source: Forbes [4] Source: Inc. [5] Source: Business Insider
- To mitigate the impact of shipping price hikes, small businesses can contact USPS, FedEx, and UPS to negotiate volume-based discounts and surcharge waivers based on shipping volume.
- Using third-party shipping platforms like Stamps.com or Pitney Bowes could provide discounted rates for smaller shippers, as these services aggregate shipping volumes from multiple businesses.
- As an alternative, businesses can switch to lower-cost shipping options, such as ground shipping, during the holidays and communicate delivery times and cutoff dates to customers.
- Comparing rates among various carriers like USPS, FedEx, and UPS is essential for finding the best rates for each shipment due to cost variations based on package size, destination, and service level.
- Building a holiday shipping calendar that includes carrier deadlines, fulfillment plans, and backup options can help avoid costly delays and last-minute expedited charges.
- Setting realistic last-minute order deadlines that guarantee holiday deliveries prevents expediting or failed deliveries, saving costs and preserving customer trust.
- Utilizing data analytics with past shipping data and demand trends optimizes routing and inventory, reducing unnecessary shipments and associated surcharges.
- In addition, offering conditional free shipping (for orders over a certain amount) and managing return logistics efficiently can increase basket size and loyalty, offsetting some shipping costs.
- Storing inventory closer to high-volume markets reduces cross-border shipping, tariffs, and last-mile costs, speeding delivery times and minimizing expenses.
- Using business credit cards with rewards can help recoup some of the surcharge expenses by earning cashback or points.
- Holiday shoppers can choose lower-cost, slower shipping speeds if they can't send gifts before the rate increase kicks in, or have gifts shipped directly to the gift recipient's address.
[1] References: USPS, FedEx, and UPS official websites [2] References: Small Business Administration [3] References: Forbes [4] References: Inc. [5] References: Business Insider.
