UPS & FedEx's Seasonal Surcharges for 2017

UPS and FedEx have both announced pricing changes for holiday season 2017. Typically, these two shipping providers adjust their pricing in tandem - when one announces a change to their shipping & handling rates, the other announces a similar strategy soon after. But this year, that's not the case.

Effective 11/20 through 12/24, FedEx's holiday season rates are pretty straightforward. Essentially, there will be no increased residential holiday season surcharges, except in the case of packages that are oversized (increased to $97.50 per package), unauthorized (increased to $415 per package), or that require additional handling (increased to $14 per package).

UPS on the other hand, is taking a very different approach by implementing peak season surge pricing for all packages. This pricing (+$0.27) goes into effect for Ground Residential packages from 11/19 to 12/2, stops for 2 weeks, then resumes from 12/17 to 12/23. Peak season pricing for Next-Day Air residential (+$0.81), 2nd Day Air residential (+$0.97), and 3-Day Select residential (+$0.97) will only be in effect from 12/17 to 12/23. On top of that, UPS plans to add peak surcharges to packages that exceed maximum size and weight limits.

The goal behind UPS' peak season pricing is to offset the costs of increasing their fleet's cargo capacity, opening temporary facilities, and hiring additional sorting and delivery staff. However, this strategy is not only different from FedEx - it's different from UPS' past tactics. Traditionally, UPS has handled seasonal cost overruns by negotiating the level of volume discounts with a limited number of major retail shippers. For 2017, UPS is basically passing these costs on to their clients by spreading general surge pricing across all shippers. We’ll be looking forward to hearing about the effectiveness of UPS’ pricing strategy once the holiday season ends.

Tips for a Successful Holiday Season in 2016

The holiday season is right around the corner, and when it comes, thousands of e-tailers will be clamoring for the orders of millions upon millions of consumers. Consider these tips to help your ecommerce site stand out from competitors and grab the attention (and the repeat business of) customers.
    

Customer Service

With so many ecommerce sites selling similar products, the way you handle the customer experience can be a key differentiator. Even though the holidays are high-volume, there are still easy ways to ensure that you’re providing customers with a good experience the first time (and every time) they purchase from you.

Value-added features

Coupons and contests are good ways to get attention – but during the holidays, every site is offering them. Think about ways a customer can find added value from choosing you over another ecommerce site. Some examples include membership or subscription programs, alternative payment options, customer-friendly returns, and other ideas.

Demonstrate your expertise

Customers that are interested in a particular category of products (e.g. tools, clothes, or nutritional supplements) seek sellers who are perceived as experts in the area. If your ecommerce site specializes in certain products, showcasing your passion and expertise via blog posts, newsletters, and social media posts demonstrates thought-leadership and trustworthiness – which can drive sales and enhance brand reputation.

Marketing Preparation for the Holiday Season

The holiday season may seem like it’s still far off, but now is the time to prepare for it to make sure your brand and products are at the forefront of customers’ minds when they start shopping. A major part of that planning is to develop your marketing and email plans for the season. What that entails will be unique to your company, but it’s a safe bet that you’ll want to tweak your targeting to be more effective. More...