|Sat Sept 17 2016 21:55:27|
UPS Hiring a Reminder that Shipping Isn't Free
By: Ina Steiner
Big retailers have convinced online shoppers that there is something called "free shipping," but a UPS announcement is a reminder that that's not the case.
Packages do not get delivered by themselves, and UPS said it was expecting to hire about 95,000 seasonal employees to support the anticipated increase in package volume that will begin in November and continue through January 2017.
Naturally UPS (and other shipping carriers) pass along those costs to merchants - and it recently announced it would increase rates nearly 5% at the end of the year.
But small sellers are impacted more than large sellers - back in April, the Wall Street Journal
demonstrated the striking difference in the cost of shipping the same package depending on whether you were a mega-retailer, a small-medium retailer or an ecommerce startup - all due to the fact that large-volume shippers get big volume discounts.
As a merchant, you must decide how to handle higher shipping costs - raise your shipping charges, raise your product prices, or squeeze your margins.
For eBay, there's a silver lining: the annual rate hikes by shipping carriers generally mean a boost in revenue, since eBay charges commission on shipping costs (much to the ire of sellers).
Are you doing all you can to minimize your shipping costs as the holiday shopping season approaches?