Blog Posts 4 Tips for Handling Higher Holiday Shipping Fees

Holiday 2020 promises to be a record season for ecommerce. In fact, 76% of consumers plan to purchase more than half their gifts online, a Voxware survey reports.

As they prepare for unprecedented parcel volume, retailers and ecommerce companies can expect to feel the squeeze from the latest surcharges imposed by major carriers. In a new article for Multichannel Merchant, Saddle Creek’s Senior Transportation Manager Jennifer Doles discusses what companies can do to help lessen their impact this holiday season.

Following is an excerpt…

Mitigating Hefty New Parcel Shipping Surcharges This Holiday Season

In August, FedEx, UPS and even the U.S. Postal Service unveiled new surcharges that could significantly impact companies that anticipate record ecommerce volume during the holiday season. Fees from FedEx and UPS target high-volume, enterprise shippers, while a first-time peak surcharge implemented by the USPS applies to all commercial shippers. The carriers will also charge additional fees for oversized packages during the holiday season.

To accommodate the seasonal surcharges in the short-term, you may need to adjust your shipping mode/speed, pass the cost increase along to your customers or find another way to recoup costs, such as increasing the cost of goods.

Exploring your transportation options is a smart first step. While increased fees are probably unavoidable if you rely on major carriers, there are creative ways to help mitigate their potential impact. Here are four tips to help get you started:

    1. Do Your Homework

Take time to study the new peak surcharges and estimate their potential cost impact for your operations. You’ll want to consider your average order profile, shipping patterns, and current carrier mix. A parcel analytics tool can help to determine where the changes will have the greatest impact on your operations based on these variables. Armed with this information, you’ll be better able to focus your mitigation efforts where the ROI will be greatest.

    1. Look for Opportunities to Downsize

With stiffer surcharges for oversized packages, be sure to consider the dimensional weight (DIM) of your packages if you ship large, lightweight items regularly. Confirm that you are using the smallest possible package size and packing the contents efficiently. There’s still time to make changes to improve packaging density before peak season, so you can avoid unnecessary charges.

For more tips, read the full article on Multichannel Merchant.