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  • UPS Rate increase

    Yes, Happy new year from UPS. UPS is having some significant rate increases effective 01/04/2010. As well, the daily pickup weekly fee has nearly doubled! :eek:

    http://www.ups.com/rates/

    We are really having to rethink our shipping partnership. And, it's a shame too, becuase, Fed Ex will HAVE to model the same increase as the two carriers CANNOT have different rates. They have been essentially penny for penny - rate for rate identical for years and years. (Not sure why they have to have the same rates, but, they do. The only reason to choose between the two is service).

    See here: http://fedex.com/us/rates2010/ratechanges.html

    Just curious what this rate increase means to other ecommerce retailers here?
    Last edited by concession-supply.com; 01-02-2010, 08:09 PM.
    www.concession-supply.com

  • #2
    Usps

    Have you considered it?

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    • #3
      Oh, I have thoughts alright.

      A year ago, and the year before that, we heard about rate increases because of high fuel prices.

      Another year? Well, UPS and FedEx have to make the shareholders happy.

      What business, when faced with declining business, RAISES their prices significantly? Did you see some of those fee hikes? It means we're probably facing increases closer to 10%!

      I don't know about your customers, but ours look at shipping costs. They want to know why we can't give free shipping like Amazon. They want to know why it costs $9 to ship a hat to California. What will happen when those rates come up? It's off to Amazon.com, or Target, or any other large chain/website. THOSE merchants have negotiated cheap rates because of their size. So, in the end, UPS and Fedex might just lose from this strategy- because more customers go to Amazon, meaning lower rates paid.

      Really, we should act as a voice via 3DCart. 3D should take a stance that these hikes jeopardize their customers, which in turn do the same to them. They may not be Amazon, but they DO have thousands of merchants.

      I hope UPS and Fed don't see another carrier come along and knock them off.

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      • #4
        Yes, we have considered USPS with their new small. medium, large medium and large flat rate boxes, but, that doesn't really apply to us as we ship appliances, machines, and bulk goods.
        These shipping rate increases are significant and will have to be passed on to the consumer to their not being too inviting.....
        www.concession-supply.com

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        • #5
          Yea, makes sense. USPS first class mail is a nice alternative with it's delivery confirmation but only makes sense for smaller/lighter items

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