Amazon is jumping on the peak surcharge bandwagon for the first time, asking sellers using its Fulfillment By Amazon service to pay 35 cents more per item for goods sold in the U.S. and Canada, running from Oct. 15 to Jan. 14, according to CNBC. This follows peak fee announcements from both FedEx and the U.S. Postal Service.
The U.S. Postal Service plans to hikes rates in January as a hedge against a projected $1 billion inflationary hit on 2022 operating costs. The USPS reported a $459 million third-quarter loss, which excluded a $2.15 billion impact from reform legislation addressing prefunded retiree healthcare. A peak surcharge is also being imposed.
The head of a renegade association of FedEx Ground contractors said those businesses have a strong case to be reclassified as franchisees, which would challenge the very contractor model the unit is built upon. Spencer Patton said many contractors could meet the reclassification test, giving them more legal rights and benefits.
With worldwide cross-border ecommerce sales reaching as high as $2 trillion by 2030, the opportunity is hard to ignore, but there are logistical hurdles to overcome. The good news: provider networks have made it easier than ever for even SMBs to jump in. This MCM report taps cross-border experts to explore both the risks and rewards of cross-border ecommerce in 2022 and beyond.
UPS exceeded its Q2 revenue and earnings projections, but lower volume due to consolidation steps, including reducing Amazon packages by contractual agreement, plus the challenged macro picture didn’t resonate well on Wall Street. UPS is also piloting a delivery density program for major retailers through an OMS partnership.