E-COMMERCE

FedEx to raise shipping rates in January 2023

FedEx will raise shipping rates in January and provided details on Thursday. FedEx Express, FedEx Ground and FedEx Home Delivery rates will increase by an average of 6.9%. However, online sellers should look into the details of the fees, as the rates for some of the services they use may be higher than the averages listed.

Sellers in some marketplaces will also pay higher fees as a result of higher shipping rates, as eBay and Etsy charge a commission on shipping.

FedEx will implement higher rates January 2, 2023. It will also increase FedEx Freight rates by an average of 6.9%-7.9%, depending on the customer’s rate scale.

The carrier announced the new fares in its financial earnings report for the latest quarter. How CNBC noted, “The shipping giant struggled with light volumes in the quarter, citing headwinds in European and Asian markets. The poor results shocked the market as investors tried to distinguish the market’s problems from FedEx’s own internal weaknesses.”

FedEx said it was implementing cost-cutting measures “to bring costs in fiscal 2023 in line with demand due to a weaker-than-expected business environment.”

FedEx CEO Raj Subramaniam said: “We are moving with speed and agility to navigate a challenging operating environment, leveraging cost, commerce and capacity to adapt to the effects of lower demand. While our team continues to work hard to address short-term headwinds, we are significantly strengthening our business and customer experience, including delivering an outstanding peak performance.”

Business Insider’s Emma Cosgrove said that in addition to the average 6.9% rate increase, FedEx is raising its rural package surcharge — and noted that UPS did the same last year.

You can find the full press release at FedEx website.

Ina Steiner

Ina Steiner
Ina Steiner is the co-founder and editor of EcommerceBytes and has been reporting on e-commerce since 1999. She is a widely cited authority on marketplace sales and is the author of Turn eBay Data into Dollars (McGraw-Hill 2006). Her blog was featured in the book Blogging Heroes (Wiley 2008). She is a member of the Association of Internet News (September 2005 – present) and Investigative Journalists and Editors (March 2006 – present). Follow her on Twitter at @ecommercebytes and send your news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.



https://www.ecommercebytes.com/2022/09/23/fedex-to-raise-shipping-rates-in-january-2023/ FedEx to raise shipping rates in January 2023

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