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Everything You Need to Know about 2022 Carrier Rate Increases

The start of the New Year is always an exciting time in the world of business. Business owners have the opportunity to make a good impression on potential customers and to continue to nurture existing customer relationships. If you’re coming off a strong year, 2022 gives you a chance to build on that momentum. If you’re not, you have a chance to start fresh and give your business a 180 in the next 12 months.

Of course, the New Year can also bring about some unwanted changes. We’re already seeing that in the recent rate increases that numerous carriers have implemented. If you happen to have missed those changes amidst the holiday hustle and bustle don’t sweat it; we’ll summarize the key points and help you get caught up.

The following is a summarization of the key rate increases in 2022 implemented by notable carriers. Take note so you’re well-informed and can make the best decisions possible regarding your shipping options. 

UPS Rates 

UPS is implementing widespread rate increases:

  • Additional handling now costs you $1 more, and you will also have to deal with rate increases if you want delivery confirmation or delivery intercept services for your parcels.
  • International rates are also increasing significantly for UPS. The rate for additional handling has gone from $15 to $16. 
  • The delivery area surcharge for import services has also bumped up from $2.40 to $3.25.

You can find more about the rate increases that UPS has implemented here

FedEx Rates 

FedEx is another international carrier that has increased its rates for this year. Similar to UPS, the rate increases from FedEx also affect multiple facets of their services:

  • Ground delivery saw a 6.43% increase
  • Economy delivery saw a 5.96% increase 
  • 2-Day delivery saw a 5.90% increase

This varies slightly by zone, so the specific rate increases are based on shipment zones can be found by following the link above.

  • You should also note that FedEx is implementing a new Delivery and Returns surcharge. The $1 surcharge will be assessed to packages that are delivered or returned via the Ground Economy service.
  • Surcharges are also being added to some of the company’s international services. Those surcharges will be part of a tiered system and they can tack on as much as $59 to a single shipment.

FedEx is also introducing some more rate increases later this month, so bookmark this article for updates or follow-up with our team to learn more!

United States Postal Service Rates 

The rate increases are not exclusive to private companies – all individuals will still have to deal with them even if you’re looking to send a package via the United States Postal Service.

As you can see in the chart below taken from the USPS website, a few increases include: 

  • A small flat-rate box will now cost you $1 more. 
  • For medium flat-rate boxes, the jump is from $15.50 to $16.10. 
  • Rate increases have also taken effect for flat-rate envelopes. The new rates for regular, legal, and padded flat-rate envelopes are $8.95, $9.25, $9.65 respectively. 

Fortunately, a few prices have gone down in 2022:

  • The rate for large flat-rate boxes is down slightly from $21.90 to $21.50.
  • The APO/FPO large flat-rate box is also cheaper now. It has gone from $20.40 to a flat $20 fee.

How You Can Keep Your Shipping Costs Low with Deliverr 

Carrier rate increases will inevitably impact your business. There is simply no getting away from that fact. Still, those rate increases don’t have to eat up a big chunk of your profits.

Keeping your costs down is still possible if you partner with the right company. Deliverr has committed to transparency and competitive pricing; with us, what you see is what you get. There’s a reason why we are one of the top third-party logistics companies out there!

More affordable fulfillment services 

It can be very expensive to ship goods to customers, and it’s easy for these costs to pile up quickly and eat into your profits if you’re not careful. Tack on the demands from customers who want cheap shipping faster, and that’s another potential blow to your finances.

Deliverr is proud to make the process of shipping products to your customers significantly more affordable. Shipping costs are higher when you have to work with numerous companies; you may be paying someone to pick up your parcel, another company to store it, and then another to deliver it to the customer.

Dealing with so many companies for your delivery transactions can cause your expenses to balloon out of control. Here at Deliverr, we handle every step of the process for you. We make the process of shipping more affordable and convenient for our business partners.

You can save up to 40% on your total shipping expenses if you decide to partner with us. Check out our free Cost Calculator to see how much you could potentially be saving.

Improved shopping experiences made possible with Fast Tags 

Deliverr can do even more than just save you money on shipping. We can improve the way your business operates and interacts with your customers.

Our Fast Tags are tools you can utilize to improve the way your business is run. On your end, the Fast Tags will prove beneficial because they help convert more leads. Expect to see up to 40% lift in conversion rates once you start attaching Fast Tags to your product listings.

As for your customers, they will benefit from getting their orders faster. They will be grateful to have the option of having specific items delivered faster. Keep them happy with Fast Tags and they’re more likely to come back for a repeat purchase. 

The Takeaway

The emergence of the online marketplace has allowed sellers across the globe to pursue their entrepreneurial dreams. Even so, selling online can be frustrating at times because factors out of your control can significantly affect your business. Just one example of that is the recent increase in carrier rates.

Just remember that there are ways for you to mitigate those rising charges. Work with us at Deliverr if you’re interested in sorting out your shipping-related concerns smartly and efficiently. Contact us today if you wish to learn more about the ways we can improve your online business.

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