Ecommerce marketers weigh shipping hikes in 2022
Prices for many goods and services are on the rise, and this includes shipping costs by major carriers, Shopify tells us in their 2022 report. Marketers, especially those with an ecommerce focus, should factor these changes in their 2022 strategy to remain competitive and avoid turning off consumers when they’re finalizing their purchases.
Online shopping continues to expand. Adobe projects a 10% increase year-over-year from last year’s holiday buying season. With all of this momentum, increased shipping costs shouldn’t be a major deterrent to shoppers. But how you manage the increases could give your brand the edge.
USPS. Effective January 9, 2022, retail rates for First Class Package Service will go up by $.50 for packages that weigh one to four ounces, and they’ll go up $.30 for packages weighing five to 12 ounces. Packages over 12 ounces will climb $.80 to $1.70.
Retail rates for Priority Mail Express will also increase by 3.1%.
UPS. Published rates for UPS are going up by an average of 5.9%. This will be effective December 26, 2021.
For small business that sell through Shopify, the online marketplace’s Shopify Shipping rates are negotiated and won’t change. This means a savings of up to 86% through Shopify’s program.
For UPS, the ZIP codes for Delivery Area Surcharge and other location-based surcharges will also be changing, effective January 9, 2022.
DHL Express and Canada Post. On January 1, 2022, DHL Express retail rates will increase an average of 5.9%.
And Canada Post rates will go up an average of 3.5% domestically, and 2.8% to the U.S., effective January 10, 2022.
Why we care. For ecommerce heavy retailers, shipping costs affect brand messaging (Free Shipping!), loyalty, customer service, and, most of all, the bottom line. If you’re not a retailer through Shopify and leverage their special rates, your team might also try renegotiating with your preferred carriers directly.