UPS recently announced they will be rolling out a new surcharge on residential packages being delivered during the 2017 Holiday Season. For the week leading up to December 25th (and the days around Black Friday for ground shipping), UPS will be tacking on an additional fee to subsidize the increase in delivery demand.
UPS Ground shipments will see a 27-cent increase, with the surcharge on 2nd and 3rd day air being as much as 1 dollar. A further breakdown can be found here.
The rise in shipping costs comes at a time when retailers are already struggling to compete with the rapidly increasing speed of delivery. 80% of consumers have come to view free shipping and/or fast shipping as top incentives for purchasing online, and an additional surcharge makes that more difficult for companies to offer. The latest research on shipping behaviors found the number of consumers that use same-day delivery increased 77% year over year.
The expectations for rapid shipping speed at affordable prices have largely been set by one company: Amazon.
The e-commerce giant’s growing market share has been directly correlated with a decrease in shipping time, as their free 2-day shipping has become ubiquitous for a generation of shoppers searching for choice and convenience.
In the week before Christmas last year, the average delivery time was 2.5 days, a dramatic decrease from the 5.5 days it was at the same time the year before. It’s no surprise that Amazon led the pack in this time period, making up over 46% of online purchases.
The numbers clearly speak for themselves: rapid, affordable delivery is important and is only becoming more so.
With this increase in demand, it’s important for retailers to find alternative delivery solutions to keep pace with evolving consumer expectations. Offering standard shipping alone simply won’t cut it in today’s shopping experience, particularly as these standard shipping fees are increasing.
The key is offering choice
Luckily, Deliv’s same-day delivery solution allows retailers to simply and effectively offer customers what they want: Choice. By allowing businesses to easily plug into the dynamic delivery network, Deliv gives businesses the ability to offer the very best in convenience.
Not only does same day delivery improve customer experience, Deliv’s flat rate pricing model helps businesses save money on dimensional shipping costs. Whereas postage services charge more for delivering a TV than they do a coffee pot, Deliv eliminates the hassle and expenses by charging a flat rate.
By streamlining the shipping from stores to customers, companies can drastically decrease delivery time. The afternoon cut-off that postal services have for next day shipping can be extended to an hour before the delivery needs to be made. Talk about convenience!
It’s never been easier to move items around town. Schedule a Deliv today to see for yourself or contact us to learn more about our enterprise API integration.