Ecommerce Blog - Fortune3

UPS and FedEx Increase Shipping Rates for 2013

fedex ups price change 2013 ecommerceAs internet retailers, shipping is a big part of our business. You have to stay competitive and that means either offering FREE shipping or offering the best possible competitive shipping rates to get your customers to purchase from you if you can give them a better deal on shipping than your competitor.

UPS and Fedex have announced an increase in shipping rates for ground shipping, which is the most popular shipping method used by internet retailers. The increase in rates is said to be about 4.9% – which if you are charging shipping, or not, it still hurts your bottom line.

What does this mean?

-Examine your current Free Shipping strategy and see if it still makes sense.

-Plan to increase your shipping rate by that much into next year.


The fedex change is said to take effect Jan 7, 2013 and cover shipments of parcels weighing up to 150 pounds through Fedex Home and Fedex Ground.


UPS price hike is said to actually start on DEC 31, 2012! This change is also for parcels weighing up to 150 pounds.

“Ken Wood, president of shipping advisory firm LJM Consulting, notes that the lighter the package, the higher the rate increase. And because most online retailers ship packages of 30 pounds or less, their average rate increase will run higher than 4.9%, he says. “Overall, most e-commerce retailers will have a rate increase of about 7% or 8%,” he says,” reports InternetRetailer.com.

Posted in eCommerce News