UPS Announces Rate Increase
UPS announced last week it would increase U.S. air and ground shipping and international shipping by 4.9 percent starting Dec. 26. The hike starts even earlier (Sept. 9) for consumers and businesses shipping items over 150 pounds in the U.S., Canada and Puerto Rico. UPS has continually raised its rates 3 percent to 5 percent over the last few years. Fortune reports the price of shipping packages has skyrocketed over the past decade, with the cost of ground shipping for both UPS and FedEx having grown 72.9 percent. However, even with the rate increase, UPS remains one of the best shipping options, and recently introduced next-day shipping to 117 companies across the globe.
Total Retail's Take: Enterprise retailers, including Amazon.com, usually are able to negotiate deals to get out of paying steep shipping fees. However, for individuals and small businesses, this latest rate increase could be a nightmare, especially with the busy holiday season coming up. Not to mention, SMBs are under more pressure to compete with retailers by offering free shipping or next-day shipping.