Holiday Shipping Surcharges 2023
Which delivery providers are in the holiday spirit this shopping season?
The annual dance of holiday season surcharges is in full swing as the 2023 holidays approach.
This year, carriers are making headlines with varied methods. While some are increasing their fees, others are getting into the holiday spirit with a surcharge-free season.
UPS is charging a demand surcharge of up to $7.50 per package, with additional fees for large, oversized, and hard-to-handle packages. And FedEx is charging variable fees of up to $6.35 for ground and $7.40 for express shipments, with surcharges on oversized and hard-to-handle packages.
Not all carriers are following the price-hike path though. The U.S. Postal Service, DHL eCommerce, and OSM Worldwide are all riding out the holiday season surcharge-free.
“The holiday season is the most important time for many of our customers' bottom line. We are proud that we can avoid additional charges on shipments so they have a more profitable quarter." - Gaston Curk, CEO of OSM Worldwide
Navigating the holiday shipping landscape requires strategic planning. Luckily, paying peak season surcharges is not a requirement. There are many ways savvy companies can ensure they stay within their holiday budgets.
Utilize carrier marketplaces - Leverage carrier marketplaces with built-in "margin controls" for flexible pricing. Retailers can adjust shipping prices in different ways using these tools. For example, they can pass on shipping savings to customers or keep savings for their own profits.
Plan strategically - Anticipate peak season surcharges and plan shipments accordingly. Batch your shipments to create fewer pickups, and see if you can schedule pickups at consistent times.
Diversify your carrier portfolio - Explore alternatives without peak season surcharges, such as DHL eCommerce, or schedule with emerging providers winning contracts over UPS and FedEx, like Veho, AxleHire, and Hailify.
Navigating the holiday shipping landscape while keeping the budget and bosses happy is tricky, but there are many tools and strategies available to help.
What’s your plan for staying within your shipping budget this holiday season?