Weekly Roundup: UPS Launches Small Business Discounts and USPS Announces Dimensional Rate Changes
AusPost Plans for Billion Dollar Investment
Australia Post has committed to spending nearly a billion dollars over the next three years, modifying its parcel delivery systems in the hopes that it will meet the customer demand for faster delivery. The money will go towards the automation of its sorting centers, as well as infrastructure for warehouses.
The annual e-commerce report estimated that there was a 24 percent rise in online shopping since 2017 with that number only growing. The only way to combat the rise in sales is by embracing change and making alterations to internal shipping operations.
The largest change that will occur will be the shift from standard routes to a point-to-point based model. Retailers will need to dispatch parcels shipments in waves rather than at the end of the day.
Companies Prepare for USPS Dimensional Rate Changes
Following the January price changes that USPS announced, one significant change was the dimensional weight charge that was postponed until late June. Now that the date is approaching, many companies that are offering free shipping (through USPS Priority Mail) could be in for an expensive shock.
The biggest change will be that on the pricing for packages, actual weight will be applied before the DIM weight is calculated. If the actual weight is more than the DIM weight, that will be the charge
For companies that usually ship small packages, make sure that you are looking at the additional surcharges that are being added on to your invoices. If USPS continues to profit off of this new rate, UPS and FedEx could follow suit, creating new surcharges that would increase the final number on your invoice.
UPS Launches Discounts for Small Businesses
On May 1st, UPS announced that it would be waiving its’ “Smart Pickup” fee which is usually a normal flat rate of $13.45 for businesses that sign up on the UPS website during the month of May. Along with UPS waiving the original fee, businesses would receive discounts off UPS’s published tariffs in which the discounts would range from 25 percent off of ground shipping, 45 percent off air and 50 percent off of international shipping.
UPS, in the past few months, has been aggressively targeting the small business segment in an attempt to gain market share from other shipping behemoths in the space. With the program coming to a close on May 31st, UPS will no doubt be looking to see the results of the program and if it’s worth attempting again.
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