Amazon and UPS roll out rate hikes for 2024 Holiday Season

As the 2024 holiday shopping season approaches, Amazon and UPS have both announced rate hikes to cover the increased costs associated with the peak season. These adjustments are set to impact businesses and consumers as they prepare for one of the busiest shopping periods of the year. As of Friday morning, FedEx had not released its 2024 peak season surcharges.

Amazon's Holiday Peak Fulfillment Fee

Amazon will implement its annual holiday peak fulfillment fee starting from October 15 through January 14. This fee will apply to all products sold through various Amazon services, including US Fulfillment by Amazon (FBA), Canada FBA, North America Remote Fulfillment, US Multi-Channel Fulfillment, and Buy with Prime. The average holiday peak fulfillment fee will remain the same as last year, except for a new fee on products priced under $10 in the US.

Amazon emphasized that this seasonal fee is necessary to cover the increased fulfillment and transportation costs during the holiday rush. Despite the additional fees, Amazon assures sellers that its FBA fulfillment fees are still significantly less expensive than comparable two-day shipping methods offered by other third-party logistics providers.

“Amazon’s average FBA fulfillment fees continue to be 70% less expensive than comparable two-day shipping methods offered by other major third-party logistics providers,” the company stated in its Amazon Seller Central announcement.

It's important to note that these fees will be charged based on when shipments leave fulfillment centers. Therefore, if a product is ordered before October 15 but shipped on or after that date, the new fees will apply.

UPS Increases Peak Season Surcharges

UPS is also adjusting its rates for the 2024 holiday season, with surcharges kicking in earlier and at higher rates compared to previous years. Starting September 29, bulky and hard-to-handle packages will face additional fees. On October 27, demand surcharges will be applied to UPS Ground Residential, Air, and SurePost packages, with these fees peaking between November 24 and December 28.

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