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The AuctionBytes Blog has been giving a voice to online merchants since its launch in 2005. Named one of the world's top 30 blogs in 2008 by "Blogging Heroes." Weigh in with your thoughts on the joys and pitfalls of selling online.

Wed Dec 20 2017 09:03:46

Don't Get Caught Off Guard by UPS Christmas Rate Hike

By: Ina Steiner

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Today is the last recommended send-by day to ship USPS Priority Mail for delivery by Christmas Day, and Friday is the last recommended send-by day for USPS Priority Mail Express service - see more information on the USPS website.

However, online sellers won't get a chance to catch their breath from the Christmas rush before having to deal with higher shipping costs. UPS is implementing its new 2018 rates on Christmas Eve this year rather than waiting until January.

There's another reason to remain on your guard. As ShipStation's Krish Iyer reminded us, this can impact returns. "Keep in mind that if you printed a return label before this date, you likely expected a certain price/rate," he said. But with rates going up on December 24th, "If you didn't account for it, then it can have a significant cost that you simply were not prepared for."

FedEx and USPS are also raising 2018 rates. The cost of USPS Priority Mail rates will go up by an average of 3.9% on January 21st, and sellers who use online postage to print shipping labels (commercial) could see rates increase about 6% on average.

FedEx is raising rates an average of 4.9% beginning January 1, 2018 and is also raising rates for surcharges, including for Address Correction and Residential Delivery. And as we reported in September, FedEx is adding dim-weight pricing to FedEx SmartPost effective January 22nd, when it will also change criteria and pricing for packages that require additional handling, are oversized, or are unauthorized.

Readers who sell on eBay should also be mindful of the hidden cost of higher shipping rates: eBay takes a commission on shipping costs in addition to the value of the item sold, generating more revenue for its bottom line every time sellers (or buyers) pay more to ship.

Have you adjusted your prices and shipping charges to prepare for higher rates? And as we pass from the holiday shopping season to the season of returns, we're collecting tips on how to deal with returns - do you have advice (or gripes) on dealing with returns?

Comments (6) | Permalink

Readers Comments

Don't Get Caught Off Guard by UPS Christmas Rate Hike

by: FeelingFroggy

Wed Dec 20 11:33:48 2017

Raised everything a flat 2% just before Thanksgiving.

Thinking that Fleecebag will get on the raise rates bandwagon with the spring updates. They are due as everyone else has raised or will be raising rates by then,

Don't Get Caught Off Guard by UPS Christmas Rate Hike

by: UB

Wed Dec 20 18:53:19 2017

USPS is having 20% of my local carriers working on Sunday and Monday to deliver Packages and Express Mail. I would imagine this is occurring in most areas as my City is around 25k ppl.

Don't Get Caught Off Guard by UPS Christmas Rate Hike

by: angryllama

Thu Dec 21 04:09:35 2017

TWO take-aways from this update.
1.) Best way to minimize your EXPOSURE to Surprise BackCharges from Shipping Carriers is to USE the eBay Calculated Shipping "service". Be EXTRA sure to enter the ANTICIPATED shipping SIZE accurately, too. See point 2.
2.) Sorry to hear that FedEx policy has Over-ridden USPS on whether FedEx SMARTPOST will be subjected to DIMENSIONAL WEIGHT. I have had 100 percent POSITIVE EXPERIENCE on over 40 SmartPost shipments so far in 2017. I do and DO NOT sympathize with GOOFS who think it inconsequential to ACCURATELY Measure and Report the TRUE size of ALL outbound packages ... ACCURATELY includes knowing and REPORTING that any of the 3 dimensions that is even 1/8" OVER has to report as the NEXT FULL INCH, e.g. 9.125 inches HIGH / Long / Wide has to REPORT as 10 inches. This is especially a problem as FAILURE to accurately report the dimensions can result in BACKCHARGES from ALL three carriers. USPS does it by delivering the OFFENDING package to the recipient, but with POSTAGE DUE that must be PAID before handing over the package.... Wanna Bet how well THAT would go over with eBay Precious Princess buyers? Even PRIORITY MAIL by zip code / weight is now subject to DIMENSIONAL WEIGHT if the Destination zip code is Zone 5 or FURTHER away from the shipper. Zone 5 is for example NJ to Colorado OR any point FURTHER WEST. This means that a 4 pound TWO CUBIC FOOT package would be Re-Rated as something like TWELVE pounds Dim. Wt. Whoopsie !

Don't Get Caught Off Guard by UPS Christmas Rate Hike

by: DeathFromAbove

Thu Dec 21 07:04:54 2017

We're sorry the cost of everything is going up. Please continue to offer the lowest price, offer free shipping, and free returns, with free return shipping, or we might hide your listing. Sell under cost if you must. Your top-rated discount will be set at 5%. We will give you great benefits, such as a couple of boxes that are free advertising for us in return. Insertion fees are now $1.00 across all store levels.

-eBay Spring Seller Update (if the current CEO doesn't get canned after January for tinkering with and screwing up the site literally weeks before prime shopping season and tanking the numbers)

Don't Get Caught Off Guard by UPS Christmas Rate Hike

by: mcposty

Thu Dec 21 14:27:40 2017

Im moving to china for free usps shipping

Don't Get Caught Off Guard by UPS Christmas Rate Hike

by: The End

Sat Dec 23 04:09:43 2017

UPS absolutely SUCKS. I won't use them anymore. My second job won't use them anymore. They have the drivers / trucks wired for GPS and movement which is dehumanizing. They have STUPID driving directions and penalize the drivers for doing the routes CORRECTLY. I won't buy any UPS stock (buy FedEx).

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