When working in the e-commerce industry, shipping costs are one of those unavoidable costs. Oftentimes, e-commerce businesses price the cost of shipping into their product prices to offer the Standard Free Shipping option, which consumers enjoy and expect in 2022.
While fulfillment companies are not entirely insulated from the Rate Increases, companies like Atomix have heavily discounted rates due to their shipping volume and negotiating power. Most of our Clients can access lower rates than they would when considering their own volume, which ranges from 20-65%.
2022 Rate Increases
The average rate increase across USPS services ranges between 3.1% and 7.5%, but there is a decrease in one category.
According to a released statement from USPS:
- 1- to 5-pound packages will increase an average of 5.5%
- 11- to 25-pound packages will decrease 16.1% on average
- 26- to 70-pound packages will increase an average of 11.1%
USPS adopted two new retail mail products focused on local communities. Plus One is intended for businesses to reach local customers utilizing mail. Connect Local Mail allows documents to be sent locally for same- or next-day delivery.
USPS added fees to packages exceeding certain dimension thresholds —
Dimension Noncompliance: $1.50 added to packages that exceed 22” in length or 1 cubic foot; Nonstandard Fees: between $4-$15 added to packages that exceed 22 inches or 2 cubic feet.
Priority Mail Flat Rate retail prices also changed. Price increases include: Small Flat-Rate box now $9.45; Medium Flat-Rate Box now $16.10; Regular Flat-Rate Envelope now $8.95; Legal Flat-Rate Envelope now $9.25; and Padded Flat-Rate Envelope now $9.65.
The average rate increase across all FedEx services is 5.9%.
According to the FedEx Standard List Rates, the average rates for ground services (including Ground Economy) will increase to 7.5% for small parcel 2-5 pounds, zones 2-8.
The minimum package charge will increase from $8.76 to $9.36 (1 pound, zone 2).
Are you selling direct to consumers? Expect large increases for Ground Economy (formerly SmartPost) services, which affect residential delivery.
Effective January 24, 2022, Additional Handling and Oversize packages will move to tiered pricing instead of flat-rate pricing.
A new $1.00 per package peak surcharge will apply to all Ground Economy packages, with no volume criteria.
The average rate increase across all UPS services is 5.9%.
According to the 2022 UPS Rates report, Zip codes included in Delivery Area Surcharge and Extended Delivery Area Surcharge have shifted.
UPS added a Remote Area Surcharge of $12 for some 2,700 Zip codes (added in conjunction with the Delivery Area Surcharge and the Extended Delivery Area Surcharge).
Additional Handling and Oversize packages will increase and continue as tiered pricing (as updated in April of 2021).