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As we move to the peak holiday season, parcel shipping services will be in high demand, especially because more consumers are shopping online. Already the pandemic is causing untold mishaps in shipping and delivery. Still, the new wave of peak surcharges from major carriers are also creating tons of issues on ecommerce brands and retailers.

With the higher demand, there is also a matter of delivery delays and operational changes to deal with, which can threaten profit margins and customer satisfaction. To emerge victorious from the myriad of chaos, your brand must rethink its strategy to mitigate the impacts of the peak season surcharges. Therefore, you need to consider adjusting your shipping speed/mode, find ways to recoup costs or pass the cost on to your customers and lots more.

However, the first step you must take is to explore your transportation options. Although all major carriers have increased fees, calculating the true cost of using each of them for your business is the right way to figure ways to mitigate their impact. To help you, we have studied the new peak surcharges and estimate their cost impact on specific shipping packages. This will help you compare FedEx, USPS, and UPS pricing to figure out the best for you to reduce costs and maximize ROI.

While shipping charges are something we all need to prepared for, don't forget to consider the

2020 Holiday Shipping Deadlines from the three major carriers (FedEx, UPS, USPS). 

Holiday Shipping Deadlines

Know when to ship to guarantee deliveries to your customers.

FedEx, USPS and UPS Peak Surcharges At a Glance

FedEx Peak Surcharges

Do bear in mind that FedEx has halted money-back guarantees because of delays in ground services due to the pandemic. 2020 Peak Surcharges for FedEx apply to Residential and SmartPost shipments. They in-turn affect unauthorized oversize, oversize, and additional handling. This year, FedEx peak charges will be in effect until January 12, 2021.

USPS Peak Surcharges

USPS has filed for temporary price change from October 18 to December 27 citing increased demand and expenses. The present increment applies only to commercial rates so, people shipping presents to their loved ones will not be affected. Overall, the present rates apply to all commercial domestic parcels including Parcel Return Service, First-Class Package Service, Priority Mail Express, Priority Mail, and Parcel Select.

UPS Peak Surcharges

Do bear in mind that the UPS has suspended all service guarantees and made extensions on deliveries due to the pandemic. This year, peak surcharges apply all residential packages, UPS SurePost and packages that require additional handling. These surcharges began in October and will run until January 16, 2021.

Price Comparison: Fedex, USPS, and UPS Shipping Rates

Bear in mind that prices are based on 2020 peak surcharges and not overall pricing.

5 Day Delivery Option: USPS vs. UPS vs FedEx

Example:

Countryside, CA to Miami, Ohio (6" X 8" X 8" package weighing 2 pounds)

Small Flat Rate Box Option: FedEx versus USPS

In this case, we compare FedEx and USPS because UPS has no flat-rate service. Flat-rate boxes are excellent. USPS gives these boxes for free plus the flat rate fee applies up to 20 pounds anywhere in the US within 1 – 3 business days. FedEx One Rate also provides free boxes, but you do not need to weigh packages under 50 pounds with definite between 1, 2 and 3 days.

Example: 

Illinois, Chicago to Miami Beach, Florida ( 8” X 5” X 1” package weighing 10 pounds)

Small, Lightweight Packages: FedEx vs. USPS vs. UPS

Small, lightweight packages tend to be the bread and butter of e-commerce businesses. If you’re looking to ship a package under one pound, you’ll likely want to consider the USPS First Class Package Service (FCPS). It caters to packages less than 1 pound, and has an average delivery of 1-5 business days.

Example: 

Los Angeles, CA to New York, NY (6" X 6" X 4" package weighing 10 pounds) 

Large & Heavy Packages: FedEx vs. USPS vs. UPS

Example: 

Los Angeles, CA to Boston, MA (12" X 12" X 10" package weighing 65 pounds) 

3-Day Delivery Option: FedEx vs. USPS. vs. UPS

Example: 

Los Angeles, CA to New York, NY (10" X 10" X 10" package weighing 5 pounds) 

Overnight Express Rate Comparison

Example: 

Los Angeles, CA to New York, NY (10" X 10" X 10" package weighing 5 pounds) 

How To Determine The Best Shipping For You?

Understanding peak surcharges is the first step. But then again, you need to consider your shipping distance, appropriate packaging, handling packages, and actual delivery

As you imagine, shipping items is different for small ecommerce shops. Trying to handle the shipping, tracking and inventory storage may be cumbersome and costly. For many ecommerce shops trying to scale, the right choice is a third-party retail fulfillment company.

The right third-party logistics company can help you scale, ship faster and even lower your shipping cost. They can negotiate cheaper rates with shipping carriers, help you take advantage of multiple fulfillment centers, and handle your inventory. All together, you can enjoy the best delivery service tailored to your needs which further boosts your profits and reputation.

Need a third-party retail fulfillment solution? Talk with one our team members today about solving your delivery needs. 

Be sure to check out DeliverOLs solutions and learn how we can help your business ensure delivery and customer satisfaction this holiday season. Talk with one of our team members today.