FedEx, UPS and the USPS: Finding the Shipping Mix that Works for You

If you’ve ever taken the time to study a UPS or FedEx invoice closely, you’ve probably noticed several extra charges beyond the price that was quoted when you printed the shipping label.

These surcharges, or “hidden fees,” can be added for residential delivery, Saturday delivery, fuel, address correction and delivery to “hard-to-reach” rural destinations - and they can be a real budget-buster.

Whether you’re a small to medium-size online seller or a large omni-channel retailer, it’s in your best interest to keep shipping costs as low as possible for your business and for your customers. After all, most consumers say they would not make an online purchase if the shipping costs outweigh the cost of going into a local store to pick it up.

In fact, an astounding 93 percent of consumers have taken some sort of extra step while shopping online just to qualify for free shipping. Clearly, the cost of shipping is one of the major factors online shoppers consider before clicking through to finalize a purchase.

So, now you’re caught in a sticky situation: Do you increase the amount you charge customers to cover these hidden fees and risk negatively impacting sales? Or do you let your customers off the hook and cover the cost of these surcharges for them - taking a direct hit to your company’s bottom line?

Neither scenario sounds very appealing. Lucky for you, there’s a third option: avoid these hidden fees altogether.