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UPS Expands Parcel Pickup Network BUT Will Charge More For the Coming Holidays

 

UPS Expands Parcel Pickup Network BUT Will Charge More if You Get Better Sales For the Coming Holidays

 

With the holiday season around the corner, United Parcel Service (UPS) is taking additional steps to expand its services, making it more convenient for shoppers to pick up orders. The shipping carrier plans to roll out its Access Point service to 2,400 new locations in 100 markets throughout the country. The unique service, which was unveiled last year, enables consumers to pick up their packages at secure third-party locations if home delivery isn’t possible. The service is designed to enhance the eCommerce delivery experience, offer unique solutions for customers, and maximize profitability.

Enrolling for the UPS My Choice program enables customers to reroute their packages to an Access Point and receive alerts via email and text, telling them about the delivery of a package.

UPS has also decided to charge online retailers that ship more than the expected number of parcels during the holiday season. Basically, if you have a great holiday season, you will have to pay more for shipping.

 

Ship more than expected, Pay a lot more!

Recently, UPS warned online retailers of imposing surcharges if volume levels exceed expectations during the holidays, thus resulting in more than the expected costs. This is a move to encourage retailers to smooth out their shipping volume and “right size” operations regularly as a result of short-term forecasts.

The company will apply surcharges for residential package delivery services, as home delivery involves three times the cost of delivering to a business, since it receives a greater number of packages in a single stop in the case of business deliveries.

Experts believe that the planned surcharges will make it even more difficult for eCommerce businesses to offer free shipping to customers, which may not get down well with consumers that are looking for free shipping offers on their orders.

 

UPS trying to make sure it can handle Sudden Shipping Spikes

UPS is trying hard to implement innovative solutions, such as peak-pricing policies, so that it does not have to deal with a situation of unexpected demand for its fulfillment services.

The company is working with its customers to ensure sudden spikes in demand during holidays do not catch it flat-footed, warning them that they will face surcharges for any spikes in volume demand beyond the projected volume. The peak pricing initiative is expected to increase revenue from customers that surge.

In doing so, UPS will continue to address “peak” on a customer-by-customer basis in order to understand their exact needs, market conditions, and value of solutions. All of these factors would be taken into consideration to charge customers accordingly during the holidays.

 

Bottom Line

UPS is not trying to overcharge it’s customer but it’s trying to get a handle on unexpected shipping increases during peak periods.

 

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