For many years, UPS and FedEx were in virtual lockstep on pricing and service offerings. That is until the past couple years, when they’ve begun to diverge as they seek to differentiate and carve out different market strategies. Mark Taylor of enVista discusses these changes as part of an MCM CommerceChat podcast.
With shipping and delivery such a critical piece of the customer experience in ecommerce, you need to choose the right carrier partner – or partners – that meet your business needs and fit your budget. Hear from shippers about how they determine the best fit and mix of service level and cost, and how they work with their carrier partners.
More than 6% of 508,000 FedEx and UPS parcels shipped by 100 small-to-medium-sized retailers between January and March 2019 were delayed, nearly 72% of them by a full day, according to a report from LateShipment.com. The numbers were worse for 3PLs: 7.6% of their UPS and FedEx parcel shipments arrived late.
Five months after it was initially scheduled to go into effect, the U.S. Postal Service will change how it calculates dimensional weight pricing while expanding DIM pricing to all zones across its Priority Mail Express, Priority Mail and Parcel Select products. The USPS is also lowering its DIM divisor from 194 to 166, increasing the cost.
In a bold and unexpected move, Stamps.com, which built its business through an exclusive shipping partnership with the U.S. Postal Service, is now severing that relationship as it seeks to offer its ecommerce customers more options, while keeping a sharp eye on Amazon logistics. See what the CEO had to say and how analysts reacted.
The USPS is proposing a number of rate changes that would be effective on Jan. 27 including an average 9.3% increase in its Parcel Select service for packages weighing more than 1 lb., as it looks to recover rising costs and deals with stiff competition from major carriers.
Because of all the changes with UPS and FedEx and the complexity in today’s carrier contracts, you need to do your due diligence in terms of shipping volumes, the value of your freight to the carriers and contract terms. These steps will help you better manage the negotiation and contract process to get the best terms possible.
Stamps.com plans to acquire UK-based Metapack, adding SaaS-based, multi-carrier management software to its online postage solution, expanding its global footprint and giving it more of an enterprise focus. The $230 million deal is expected to close in August.
While many carrier tactics can be detrimental and costly for shippers, there are certain things shippers can do to offset the bottom-line effect.