Two thing’s are certain about ecommerce: it’s non-stop growth and non-stop hikes in shipping costs. Gifts from Santa and a happy new year aren’t the only things you can expect at the end of the holiday season.
USPS, FedEx, and UPS are upping their rates on their services. Here’s what to expect.
USPS
USPS increased their rates last January and they’re slotted to do so again this coming January, but less substantially.
If you’re more of a First Class type of e-retailer, this shouldn’t impact you. But those using Priority Mail Flat Rate Boxes and Envelopes are going to see an uptick in costs that averages to 3.9%. According to USPS itself, here’s what the proposed changes mean for prices by Priority Mail product:
| Current | New | |
|---|---|---|
| Small flat-rate box | $6.80 | $7.15 |
| Medium flat-rate box | $13.45 | $13.60 |
| Large flat-rate box | $18.75 | $18.85 |
| Large APO/FPO flat-rate box | $16.75 | $17.35 |
| Regular flat-rate envelope | $6.45 | $6.65 |
| Legal flat-rate envelope | $6.45 | $6.95 |
| Padded flat-rate envelope | $6.80 | $7.20 |
Do note, these rate changes aren’t entirely for sure — they’ve yet to be approved by the Postal Regulatory Commission. But they’ll more than likely go through, and they’re slated to go live on January 22, 2017.
The good news is that our rates are some of the best in the industry, regardless of price hikes. Take a look here for more info on our discounts and how USPS shipping rates are calculated.
And USPS certainly isn’t the lone carrier upping its rates. Those other big boys, FedEx and UPS? The magic number for them is one point more at 4.9%.
FedEx
It isn’t too surprising that FedEx is following the same route; they’re already ramping up for some major order action over the next two months, investing in automation to avoid hiring in greater numbers.
And as their order volumes soar, they require more resources — resources that higher shipping costs will pay for. They’ve announced plans to raise rates, and here are the average increases:
Average increase for Ground and Home: 4.9%
Average increase for Express: 3.9%
FedEx’s increases will be greenlighted slightly earlier than USPS on January 2, 2017, right after New Year’s Day.
UPS
And whenever UPS or FedEx changes their rates, the other tends to follow suit. Like FedEx, UPS doesn’t intend to hire many more workers for the holidays. Instead, they’re investing in building out mobile delivery centers close to populous areas while also dropping some cash on automated technology.
A boost in rate costs is going to help pay for this, too. Here are the average increases of their products:
Average increase for packages via UPS Ground: 4.9%
Average increase for packages via UPS Air and International Services: 4.9%
Average increase for UPS Air Freight: 4.9%
UPS has yet to announce the new SurePost rates; they plan to announce them on November 18th. Their changes will take effect on the day after Christmas, December 26, 2016.
Shipping Cut-Off Calendar
But before those rates arrive, you’ll be cranking out orders for the holiday season. Here are the shipping cutoff dates by carrier that you need to pay attention to if you want them to arrive on time!
And here’s a link to the webpage — save it, print it, do what you want to it.
