Executive Briefings

Latest Hike in USPS Shipping Rates Burdens Smaller Retailers

Last week, the U.S. Postal Service announced an increase on several shipping products used by online retailers, including Flat-Rate Priority boxes. On average, rates increased 9.5 percent in the first price hike on commercial Priority Mail in three years.

Latest Hike in USPS Shipping Rates Burdens Smaller Retailers

Already retailers are feeling the crunch and could turn that burden over to consumers. For example, ScanMyPhotos.com, which relies heavily on priority flat-rate boxes and offers its customers free shipping, saw its bill go up 9.8 percent.

"Our crazy low prices and free shipping are huge for us," ScanMyPhotos.com founder Mitch Goldstone said. "I really didn't want to change that." While USPS shipping rates are still far cheaper than any commercial carrier, the hike in prices will most likely affect smaller retailers that don't have the power to negotiate discounted contracts.

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Already retailers are feeling the crunch and could turn that burden over to consumers. For example, ScanMyPhotos.com, which relies heavily on priority flat-rate boxes and offers its customers free shipping, saw its bill go up 9.8 percent.

"Our crazy low prices and free shipping are huge for us," ScanMyPhotos.com founder Mitch Goldstone said. "I really didn't want to change that." While USPS shipping rates are still far cheaper than any commercial carrier, the hike in prices will most likely affect smaller retailers that don't have the power to negotiate discounted contracts.

Read Full Article

Latest Hike in USPS Shipping Rates Burdens Smaller Retailers