Just when you thought that shipping fees can't go any higher, they actually do. And in 2013, the increase is preposterous. Big couriers like FedEx and UPS may not talk much about how they plan to increase their profits, but the shipping fee increase may be a strategy for that. As consumers, we can care less if the company needs to make more money. We just look at how the increase will affect our budget and finances.
In 2013, shipping fees will increase by 4.9 percent. The previous increases in the past years are not included in this percentage. Packages weighing 30 pounds or less will be the most expensive to ship out this year. Unfortunately, this is what most customers ship out. Shipping fees for these packages will increase 7-8 percent this year.
But aside from the increase in the base shipping rates, the real clincher here is the increase in the subcharges as well as the accessorial fees. This is the year that can be one for the books when it comes to high shipping costs. If you can check, the subcharge for UPS residential delivery has risen 10 percent since last year. It even increased 9.1 percent for wrong address subcharges. These are the perfect examples of what price hike you can expect from these two giant couriers. Fedex will be no different.
Businesses will be greatly affected by this increase especially those that rely on couriers to send products to consumers. Consumers may hesitate ordering from online retailers because of the expensive shipping rates. There is one thing you can do though, try negotiating. Negotiating for the base price will not do any good but you can try negotiating the subcharges and accessorial fees. Any cut from the fees will be helpful in managing your shipping expenses.
But before you try negotiating, you must educate yourself about what these fees and charges are about. What are they for and how does it impact your shipping routine? The price hike may appear like just a routine increase in rates but this can escalate in more pricing hikes in the coming years. Other things you can do is to adjust your shipping methods, packaging and strategies. This may help bring the shipping costs down.
It is a ridiculous thought to overspend on shipping fees alone. The economy is not in a great place right now and there's no reason why you add burden yourself further. Make an effort to negotiate or at least adjust your shipping methods from now on. Overspending on shipping fees alone is just downright ridiculous.
In 2013, shipping fees will increase by 4.9 percent. The previous increases in the past years are not included in this percentage. Packages weighing 30 pounds or less will be the most expensive to ship out this year. Unfortunately, this is what most customers ship out. Shipping fees for these packages will increase 7-8 percent this year.
But aside from the increase in the base shipping rates, the real clincher here is the increase in the subcharges as well as the accessorial fees. This is the year that can be one for the books when it comes to high shipping costs. If you can check, the subcharge for UPS residential delivery has risen 10 percent since last year. It even increased 9.1 percent for wrong address subcharges. These are the perfect examples of what price hike you can expect from these two giant couriers. Fedex will be no different.
Businesses will be greatly affected by this increase especially those that rely on couriers to send products to consumers. Consumers may hesitate ordering from online retailers because of the expensive shipping rates. There is one thing you can do though, try negotiating. Negotiating for the base price will not do any good but you can try negotiating the subcharges and accessorial fees. Any cut from the fees will be helpful in managing your shipping expenses.
But before you try negotiating, you must educate yourself about what these fees and charges are about. What are they for and how does it impact your shipping routine? The price hike may appear like just a routine increase in rates but this can escalate in more pricing hikes in the coming years. Other things you can do is to adjust your shipping methods, packaging and strategies. This may help bring the shipping costs down.
It is a ridiculous thought to overspend on shipping fees alone. The economy is not in a great place right now and there's no reason why you add burden yourself further. Make an effort to negotiate or at least adjust your shipping methods from now on. Overspending on shipping fees alone is just downright ridiculous.
About the Author:
Joseph B. Kappernick works with companies to help them reduce their logistics and shipping costs. Please visit NPI to learn more about shipping vendor cost reduction
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