What do you know? Fedex announced a 4.9% rate increase for 2010. And, then, shockingly, UPS matched it exactly. As I recall, last year, it was UPS who announced a 5% increase, which was matched by Fedex the next day. (Whatever happened to the old Sherman Anti-Trust Act, by the way?)
Anyway, what's funny is that energy prices dropped precipitously in Fall, 2008. And the recession has given companies increased purchasing power in other categories as well. In other words, I seriously question a 5% increase in costs.
At Made In New Mexico, we didn't raise our shipping rates for 2009, eating that 5% rise. I'm not sure we can do it again for 2010, although shoppers sure would like to have $0 shipping.
Remember: When you include the cost of the box, biodegradeable packing peanuts, and the labor to pick, pack, and ship the order, most online retailers don't even break-even on the shipping they charge you for.
We'll check it out after the Xmas rush is over.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment