1. USPS Won’t Impose Peak Season Surcharges This Year
The U.S. Postal Service has announced they won’t implement peak season surcharges this year, ending a practice they began in 2020. Network improvements and a stronger labor force have made the USPS efficient enough that they didn’t feel extra surcharges were necessary.
With FedEx, UPS, OnTrac and others implement Demand/Peak Season Surcharges, the USPS expects this to be a competitive advantage that helps them grow volume.
Article from Max Garland, Supply Chain Dive
2. Study Shows Consumers Expect Fast, Free Shipping
OnTrac commissioned Hanover Research to conduct a study with 5,000 consumers. The study concluded that shipping speed and price are simultaneously top priorities for consumers.
Key findings include:
- 86% of consumers define fast delivery as two days or less
- 74% said the availability of next-day delivery drives purchase decisions
- 71% would spend at least $3 for next-day delivery
Amid inflation, consumers are also prioritizing affordable shipping.
- Nearly 60% of consumers won’t shop with a retailer that doesn’t offer free shipping
- 63% have shopped with a different retailer due to high shipping costs
3. Amazon Scraps Fee for Sellers Using Outside Shipping Services
Amid the relaunch of Seller-Fulfilled Prime (SFP), Amazon has canceled plans for a 2% fee to SFP sellers who don’t use Amazon’s shipping services.
SFP grants Amazon sellers greater flexibility in how they ship products to customers, while still promising the fast delivery needed for “Prime” eligibility. The fee would have applied to thousands of merchants.
Amazon attributed the decision to cancel the fee to merchant feedback, but it comes amid the U.S. government working to file an antitrust lawsuit against them for allegedly coercing third-party sellers into using their logistics services.
