These Shipping Rate Changes Might Affect Your Ecommerce Store
In late 2019, several changes hit major shipping carriers like UPS and FedEx. And in early 2020, more changes hit USPS. If you run an ecommerce store, these shipping changes may or may not affect your shipping budget and shipping strategy.
We’ve pulled together a list of all the recent shipping changes broken down by carrier so you can stay in the know and prepare your shipping budget.
Effective December 29, 2019
UPS Ground, UPS Air and International services increased an average of 4.9%.
UPS brought down the cutoff weight for packages to be charged the Additional Handling surcharge of $24. Instead of a cutoff of 70 pounds, the new cutoff is now 50 pounds. This weight cutoff drop will mean more packages might require the Additional Handling charge.
Effective January 6, 2020
On January 6, 2020, FedEx Express, FedEx Ground and FedEx Home Delivery shipping rates increased by an average of 4.9% and FedEx Freight increased rates by an average of 5.9%. The additional handling charges weight cutoff also dropped from 70 pounds to 50 pounds.
These changes will likely affect shippers who ship large packages more than small business ecommerce stores. The shipping rates apply to additional handling charges for oversized packages.
- Additional handling charges for dimensions will increase to $15
- Additional handling charges for weight will increase to $24
- Oversize packages have now been broken out by service type. Express and Commercial Ground packages will increase by 11.1% to $100, but home delivery will increase by 33.3% to $120
Effective January 1, 2020
DHL Express retail prices increased by an average of 5.9% for the DHL Express Worldwide shipping service.
Effective January 26, 2020
Mailing Services prices increased by 1.9%. Shipping Services prices increased as well but varies by product. If you use Priority Mail products, expect to see an increase of 4.1%. These include Flat-Rate boxes and envelopes.
Review Your Shipping Strategy
With these changes in mind, it might be time to adjust your shipping strategy. Keep in mind that if you ship large packages in bulk that weigh 50 pounds or over, you’ll now have to pay additional handling charges.
If you currently use USPS Flat Rate boxes and envelopes, you’ll also experience an increase in price.
If these shipping changes affect your shipping budget too much, try searching for shipping discounts through your ecommerce platform like Shopify, WooCommerce or BigCommerce. If you need to move over to a different ecommerce platform like Shopify, we've got a guide to help.
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