Holiday Shopping May Be Pricier This Year… Thanks to UPS
Posted: 2:01 pm Wednesday, June 21st, 2017
By Danny Serrano
As if we weren’t paying a bunch for gifts already, Shoppers might see an increase in prices and shipping fees when the holiday rush comes around.
UPS announced this week that it will increase shipping costs for retailers during select weeks before Christmas, including on Black Friday and Cyber Monday and some think FedEx may do the same.
That means stores could be forced to increase prices or shipping fees.
From Nov. 19 to Dec. 2, UPS will add a 27-cent charge to ground packages for residential deliveries. That’s an increase of about 3.4% over last year. That fee will also apply from Dec. 17 to Dec. 23, along with an extra 81-cent charge for next-day air delivery and a 97-cent charge for two- or three-day delivery.
UPS says the fees will offset the costs of thousands of seasonal workers, plus the extra planes and trucks they need to deliver over 30 million packages a day during those weeks.
According to Citi Research, UPS stands to add $50 million in revenue and profit with the change.