Hi all,
I am Pranav Surendran, 2nd year MBA student. Recently, I came across an interesting article that I thought I should share. So here are few key takeaways from my reading.
Free shipping has been used as an attractive offer by many firms around the world but the situation is not the same today.
UPS Inc plans to impose big fees on large shippers sending more packages during holiday season amid the pandemic. UPS said the new fees will apply from mid-November until mid-January and are designed to apply only to customers who ship more than 25,000 packages a week.
FedEx will boost international surcharges on select routes beginning Aug 10. They also said that they are planning to apply holiday surcharges as well.
United States Postal Service(USPS) has planned a temporary price adjustment in response to increased expenses and heightened demand for online shopping package volume due to pandemic and expected holiday e-commerce.
For many companies, parcel has gone from being a niche transportation mode to a critical one representing a growing portion of their annual transportation spend. The ability to manage this spend effectively in light of growing volumes and more demanding customer expectations is what will separate the laeders from laggards moving forward.
This is why over past few years, transportation management systems vendors have added or enhanced their parcel shipping capabilities.
Hence, free shipping will keep getting more expensive and we will all pay for it one way or another
I agree with you - Free shipping is not free and does come with a cost. E-commerce giants make u order a particular amount so that the order will compensate the delivery charge. However the cost does also add to the efficiency and responsiveness of the delivery.
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