Shipping

Online shoe and apparel retailer Zappos.com gained popularity with online consumers in part because of its generous shipping policies. How does the company do it while keeping costs manageable? Here's a look at the inner workings of Zappos’ shipping program:

UPS announced 6.5 percent air increases partially offset by a 2 percent fuel surcharge reduction, and 5.9 percent average ground increase offset by a 1 percent fuel surcharge reduction. Rate increases will take effect Dec. 31, 2012. Similarly, FedEx announced average rate increases of 5.9 percent for express and international services, offset by a 2 percent reduction in fuel surcharges. FedEx hasn't yet announced 2013 increases for FedEx Ground, FedEx Home Delivery or FedEx SmartPost, although it's expected to match the UPS ground increases highlighted above. FedEx's rate increases take effect Jan. 6, 2013. For most shippers the impact is much higher than the "average" increases announced by the carriers, however

Metro Post, a new service from the U.S. Post Office, takes its first steps in November, as the USPS enters territory currently being explored by Wal-Mart and Amazon.com in offering same-day delivery. Bloomberg News said this test will begin in San Francisco, according to a Post Office representative. Unlike those gigantic retailers, who are testing same-day delivery for their own offerings, the USPS will offer its Metro Post service to e-commerce businesses that meet certain qualifications.

According to a recent article in eCommerceBytes, online merchants are increasingly feeling the pressure to offer free shipping. But will they, given the fact that last week the U.S. Postal Service announced it would raise postage rates on Jan. 27, 2013, pending review by the Postal Regulatory Commission. The popular Priority Mail service will increase overall an average of 6.3 percent. Retail prices will increase an average of 9 percent, but approximately 3 percent of the increase is for free tracking visibility which will now be included at no charge.

Online merchants are increasingly feeling the pressure to offer free shipping, but, as they're fond of saying, there's no such thing as free shipping. That point is being driven home this week after the U.S. Postal Service announced it would raise postage rates on Jan. 27, 2013, pending review by the Postal Regulatory Commission. The popular Priority Mail service will increase overall an average of 6.3 percent. Retail prices will increase an average of 9 percent, but approximately 3 percent of the increase is for free tracking visibility which will now be included at no charge.

Customers love in-store pickup, and there are lots of benefits to the retailers who deploy it, but there are still many who are afraid of it for fear of complicating in-store processes.

Macy's Inc. is expanding its pilot program that used 23 store locations as backup sites for its online distribution centers. By fall, that number will grow to 292, according to a story from The Press-Enterprise. The "search & send" program allows customers to buy out-of-stock merchandise from a brick-and-mortar location and get it shipped from another store to their home or office. Each of the 292 back-up stores will house a space behind the scenes to receive orders and pack and ship merchandise from the sales floor.

Import cargo volume at the nation's major retail container ports is expected to increase 10 percent in March compared with the same month last year, and year-over-year gains should continue through midsummer, according to the monthly Global Port Tracker report released by the National Retail Federation and Hackett Associates.

Nordstrom will offer free shipping permanently on all purchases at its more than 100 namesake department stores starting this week, increasing competitive pressure on its rivals. The move comes about six months after the retailer became the first department store chain to add standard free shipping and returns on online orders.

At eBay's Town Hall Meeting last night, sellers called in with various concerns. But eBay staff who fielded sellers' questions seemed unprepared for the onslaught of questions about new shipping requirements.