Politics At The Post Office Is Hiding A Problem For Retailers: Holiday Shipping Costs Are Going Way Up
Political turmoil at the US Postal Service about mailed-in ballots for the upcoming presidential election is getting a lot of attention. But the real issues that affect consumers and shipping aren’t being focused on. Both FedEx and UPS have told their customers that increases and surcharges are coming for holiday and the postal service deficits mean their rates will increase too. The implications of those increases for retailers and brands are big and painful. In the 2019 holiday season, both FedEx and UPS had significant declines in their on-time performance and their price increase announcements are undoubtedly how they plan to pay for the additional resources they need to handle the load. The upcoming holiday season will certainly have the highest e-commerce sales ever. That will strain the established shipping systems and that’s what’s driving the shipping cost increases. The question now is what how retailers and brands need to deal with the increased costs. Read more at Forbes.