Week in Review: And the Rate Increases are Rolling In

The major package carriers’ general rate increases for 2016 are rolling in… just in time for the holidays!

UPS’s general rate increase will average between 4.9% and 5.2%, depending on the product and service. UPS’s rate increases will go into effect on Dec. 28. However, on Nov. 2, the surcharge will increase for Over Maximum Packages and the tables for Ground, Air and International fuel surcharges will be updated.

The United States Postal Service’s GRI will be a lot higher. USPS’s average Shipping Services price change is 9.5%, and the average price increase for Priority Mail is 9.8%. When calculated over the three-year period since the last increase, USPS says the overall Priority Mail price change averages less than 3.3% per year.

Last month, FedEx announced its general rate increase will be an average of 4.9% effective January 4 for U.S. domestic, import and export services, as well as for ground and home delivery services.

Here’s a look at this weeks’ news, commentary and events that shaped the direct-to-customer world… and more.

Marketing

share-this-icon-75X75Facebook adds “shop” tab to push ecommmerceGameStop announced it will remain closed on Thanksgiving Day to allow associates to enjoy the holiday with friends and family… Live chat vendor Olark is giving away 100 “Cyber Monday Survival Kits” filled with coffee, candy, a mini cowbell to ring when you close a sale on chat on Cyber Monday, and maybe even the rainbow mane of a unicorn… Birchbox launches its first in-house makeup brand…Macy’s released results from holiday shopping survey….New NRF and FitForCommerce report said email and loyalty programs must work in tandem…

Ecommerce

Add-To-Cart-Icon-75X75Hobby Lobby launched a new website with more inspirational creative content, new design and expanded online inventory…Newegg announces redesign of its mobile shopping experience…. IKEA announced plans to grow ecommerce business… Sheplers.com will live on, even though it is now owned by Boot Barn… Worldpay says 60% of Americans created or used an account to shop online in last 12 months…

Operations

shipping-delivery-75X75PayPal announced “Return Shipping on Us” to make online shopping easier this holiday season… Nordstrom announced it is hiring 11,800 seasonal employees in its fulfillment centers to support its online properties… UberRush went live in Chicago and San Francisco. It is also offering same-day delivery for a select number of Shopify merchants in New York, Chicago, and San Francisco, with other cities to be added; ditto for Bigcommerce. … UPS is busy on the investment front, putting money into a company that allows brands to set up direct-to-consumer operations, and a drone developer. The latter, UPS says, is for sending relief to disaster areas, not parcels to doorsteps a la Amazon’s Prime Air. … UPS Worldwide Express is also expanding to more than 41,000 new postal codes globally, including eight new origin and five new destination countries – its largest one-time expansion. … TNT shareholders recently voted unanimously in favor of a proposed takeover by FedEx, whose management remains confident the deal will sail through EU regulatory scrutiny, as the combined entity will give it only a 22% share in the region. FedEx also plans to build a 150,000 small-parcel distribution center in Horseheads, NY. … Singapore Post made two major moves recently, with plans to take a 71.1% stake in U.S.-based ecommerce logistics firm Jagged Peak for S$22.5 million, and to acquire ecommerce platform firm TradeGlobal. … Charlotte-based SunCap Property Group plans to build a 340,000-square-foot distribution center in Hamilton, NJ. … Packaging materials firm PaperWorks Inc. has named Brandon Clairmont senior vice president of packaging sales.

… And more

newsWalmart appointed Steve Bratspies as its new Chief Financial Officer   …Newell Rubbermaid announced several leadership changesStaples, Office Depot and the Federal Trade Commission agreed to extend the review period for the Office Depot acquisition….Burberry announced the hire of Fumbi Chima as its new CIO, she is currently the corporate vice president and CIO of Walmart Asia…. Nike announced partnership with manufacturer Flextronics International Ltd…. Blue Apron appoints Brad Dickerson as Chief Financial Officer.

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