Amazon Warns of Higher Shipping Costs during Holidays

Amazon Warns of Higher Shipping Costs during Holidays

Amazon warned sellers about higher shipping costs during the holidays, pointing to the USPS temporary rate hike that takes effect in October, and sellers responded with their reactions.

“Amazon must increase the 3.99 per item or 6.99 to whatever new price is,” wrote one seller. That’s a reference to the $3.99 and $6.99 domestic shipping credit Amazon provides for Standard and Expedited shipping, respectively (tough luck on the seller if it costs more than that to ship the item).

Another seller said the temporary postage rate hike would cost them a couple of hundred dollars a week and said they would probably increase prices on low-margin items. “No reason for us to eat this if buyers can.”

Amazon issued the following announcement this morning:

USPS temporary price increase during peak season 2020
From October 18, 2020 to December 27, 2020, the U.S. Postal Service will be implementing a temporary commercial price increase. As a result, USPS rates on Buy Shipping will increase to coincide with this price increase. For information, please refer to the following announcement from the USPS.

FedEx and UPS are not raising general rates but are making changes to certain surcharges during the holidays, a practice started 6 years ago in response to the holiday-shipping fiasco of 2013.

Pitney Bowes announced pricing adjustments for its domestic and cross-border delivery and returns services for the peak holiday shipping season. “The pricing changes will be applied as flat, easy-to-understand, per-parcel adjustments, not to exceed $1.50 per parcel,” it stated.

If you’re a US-based seller, let us know if you’re expecting to pay higher shipping costs over the holiday shopping season by taking our quick survey (via SurveyMonkey).

Ina Steiner

Ina Steiner

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She’s a widely cited authority on marketplace selling and is author of “Turn eBay Data Into Dollars” (McGraw-Hill 2006). Her blog was featured in the book, “Blogging Heroes” (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.