9/18/23 Parcel News Update

1. Details Emerge on Amazon Shipping

At their annual conference for sellers, Amazon execs shed light on a few previously unknown pricing details for Amazon Shipping, their new shipping service that offers pickup for the first time. According to Ripley MacDonald VP of Amazon Shipping, most of the service’s users pay roughly 30% less than the published base rates of other major carriers. MacDonald highlighted the lack of fees Amazon Shipping charges (no residential or weekend delivery fees), and shared they won’t add peak season fees this year.

Amazon Shipping is yet to perfectly rival FedEx or UPS, mainly because it’s seeing a slow rollout. Currently, warehouse pickup services are only offered in 15 major markets in the U.S. Amazon Shipping Director Michael Cox has shared they have plans to expand pickup services areas, saying “anywhere Amazon has a facility, we want to be there, so it’s just a matter of when.”

Article from Max Garland, Supply Chain Dive

2. OnTrac announces Demand surcharges

OnTrac is the latest carrier to join the trend of rebranding “Peak Season” surcharges as “Demand” surcharges, announcing their seasonal fees last week. OnTrac’s demand period will run from October 28 through January 12.

A Demand Residential Surcharge will be applied to any residential deliveries for shippers that are over a baseline volume, measured from their shipment volume in June 2023. The surcharge has six pricing tiers, ranging from $1.35 per package for shippers 105%-125% over baseline volume to $6.40 per package for those over 400% over baseline volume.

Surcharge list from OnTrac

3. Amazon Encourages Sellers to Ship Black Friday Inventory Early

Amazon has offered their third-party seller a recommendation to place their inventory in Amazon’s network by October 26 to ensure they’ll be ready for Black Friday volume spikes.

In a message to sellers, Amazon shared that their fulfillment centers will place a greater focus on receiving processes during October before shifting to a more fulfillment-focused approach in November and December.

Amazon’s FBA peak season fulfillment fees will be in place from October 15 to January 14. However, they’re eliminating peak season storage fees this year.

Article from Max Garland, Supply Chain Dive