2022 Holiday Surcharges: How to Get Ready Now

Q4 is here, which means e-commerce sellers are working hard to prepare for the holidays, from increasing product and packaging stock to creating marketing strategies and more. Q4 is an exciting and challenging time that presents opportunities for eye-watering revenue dashboards and significant growth as a seller. Given the increased volume and shipping demand this time of year, shipping carriers begin implementing holiday surcharges to adjust for the overall cost of shipping packages.

Each shipping carrier implements different fees, which can be complicated if you’re looking at it for the first time. To help you navigate these changes, we’ll take a look at holiday surcharges by carriers, how they can impact your business, and tips for optimizing your fulfillment strategy in light of these temporary changes.

About Holiday Surcharges

Holiday surcharges are additional fees added to the cost of shipping packages. Also known as “peak surcharge,” these temporary fees exist during the holiday season to cover additional labor and service costs for shipping carriers. Some of the costs these fees cover include increases in fuel use, increased personnel hires, and additional supply chain costs.

It is important for sellers to keep in mind that, typically, these surcharges are implemented in addition to existing shipping fees rather than in place of them. Additionally, each carrier implements fees differently, so don’t assume that the rules of one carrier apply to another.

Due to COVID-19’s impact on e-commerce, peak surcharges have been implemented earlier and earlier in the past couple of years. This year, many carriers started implementing surcharges as early as the beginning of October. Additionally, Amazon-partnered carriers are implementing fees for the first time ever in 2022.

How Surcharges Can Impact Your E-Commerce Business

So, how can these surcharges impact your business? Well, it depends on a number of factors. While most packages will have a surcharge applied, certain packages will take an even larger hit, including:

• Heavy packages
• Large packages
• International Packages
• Packages Requiring Special Shipping and Handling

Each shipping carrier has announced their proposed peak surcharges. These vary based on the package destination, package type, package weight, and a number of other shipping factors.

Below, we deep-dive into each carrier’s holiday surcharge information.

2022 Holiday Surcharges by Carrier

USPS

USPS announced their temporary shipping rates will go into effect on Oct. 2nd, 2022, and remain in place until Jan. 22nd, 2023. According to USPS, this peak-season pricing affects Priority Mail Express (PME), Priority Mail (PM), First-Class Package Service (FCPS), Parcel Select, and USPS Retail Ground. However, international products will not be affected.

Below are USPS’ estimated surcharges:

Priority Mail and Priority Mail Express

Commercial

• $0.75 increase for PM and PME Flat Rate Boxes and Envelopes.
• $0.25 increase for Zones 1-4, 0-10 lbs.
• $0.80 increase for Zones 5-9, 0-10 lbs.
• $0.75 increase for Zones 1-4, 11-25 lbs.
• $2.80 increase for Zones 5-9, 11-25 lbs.
• $3.00 increase for Zones 1-4, 26-70 lbs.
• $6.50 increase for Zones 5-9, 26-70 lbs.

Retail

• $0.95 increase for PM and PME Flat Rate Boxes and Envelopes.
• $0.30 increase for Zones 1-4, 0-10 lbs.
• $1.00 increase for Zones 5-9, 0-10 lbs.
• $0.95 increase for Zones 1-4, 11-25 lbs.
• $3.20 increase for Zones 5-9, 11-25 lbs.
• $3.25 increase for Zones 1-4, 26-70 lbs.
• $6.45 increase for Zones 5-9, 26-70 lbs.

First-Class Package Service, Parcel Select Ground, and USPS Retail Ground

Commercial

• $0.25 increase for Zones 1-4, 0-10 lbs.
• $0.40 increase for Zones 5-9, 0-10 lbs.
• $0.75 increase for Zones 1-4, 11-25 lbs.
• $1.60 increase for Zones 5-9, 11-25 lbs.
• $3.00 increase for Zones 1-4, 26-70 lbs.
• $5.50 increase for Zones 5-9, 26-70 lbs.

Retail

• $0.30 increase for Zones 1-4, 0-10 lbs.
• $0.60 increase for Zones 5-9, 0-10 lbs.
• $0.95 increase for Zones 1-4, 11-25 lbs.
• $2.70 increase for Zones 5-9, 11-25 lbs.
• $3.25 increase for Zones 1-4, 26-70 lbs.
• $5.85 increase for Zones 5-9, 26-70 lbs.

A complete list of commercial and retail pricing can be found here. Price changes are also available on the USPS website.

UPS

UPS is also implementing peak season surcharges. According to UPS, “one or more [of these surcharges] will apply to packages shipped during the specified Peak/Demand Periods for the origins, destinations, and service levels and in the amounts set forth.”

For larger shipments and those requiring additional shipping and handling, surcharges will be implemented from Oct. 2nd, 2022 until Jan. 14th, 2023. For UPS Air Residential, UPS Ground Residential, and UPS SurePost Packages, these surcharges will begin on Oct. 30th, 2022, and end on Jan. 14th, 2023.

Below are UPS’ estimated surcharges:

Peak/Demand Surcharge – Applied to Additional Handling and Large Packages

Peak/Demand Surcharge – Applied to UPS® Air Residential, UPS® Ground Residential, and UPS SurePost® Packages

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A complete list of UPS’ country-specific surcharges and other information can be found here. UPS surcharges and the duration of these surcharges are subject to change. For this reason, e-commerce sellers should continue to check the UPS website for any updates.

Note: As a UPS Ready Partner, Soapbox can provide you with preferred access to UPS and exclusive benefits to help streamline your fulfillment process this holiday season.

FedEx

For the holiday season, FedEx is implementing a number of surcharges in order to keep operations running smoothly. These surcharges have a wide variety of start and end dates. For surcharge amounts, types of surcharges, and implementation and termination dates, refer to the chart below.

Below are FedEx’s estimated shipping prices:

More information on Peak–Residential Delivery Charge Calculation Weeks and Application Weeks can be found here. For more information on surcharge criteria and characteristics, read FedEx’s Service Guide.

DHL

DHL is implementing a number of holiday surcharges. These vary greatly based on a number of factors, including a package’s country of origin and the country receiving the package. For surcharge amounts, types of surcharges, and implementation and termination dates, refer to the chart below.

Below are DHL’s estimated shipping prices:

EFFECTIVE DATES: October 2, 2022, through November 12, 2022, AND December 18, 2022, through January 21, 2023.

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EFFECTIVE DATES: November 13, 2022, through December 17, 2022.

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SHIPMENTS TO AUSTRALIA & NEW ZEALAND

Effective Dates: January 9, 2022, until further notice.

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More information on DHL’s peak surcharges can be found here. For a complete list of DHL’s services and rates, check out the DHL Express Service and Rate Guide 2022.

Amazon FBA

This year marks the first that Amazon FBA will implement holiday surcharges. The e-commerce giant announced that it will enforce a Holiday Peak Fulfillment fee from Oct. 15, 2022, to January 14, 2023. On average, this fee will add an additional $0.35 charge per item sold for sellers using US and Canada Amazon FBA.

For more information, head to Amazon Services Seller Forums.

What You Can Do to Prepare Now

So what can you do now to prepare for peak surcharges? Below are a few tips for optimizing your fulfillment this holiday season.

Inform Customers of Longer Shipping Times

Suggest that your customers ship their packages with longer shipping times. One way to encourage this is to provide free shipping with longer shipping times. This also provides an opportunity to require a specific purchase amount for free shipping, creating an incentive for customers to spend more at your store. If a customer does request express shipping of any kind, make sure the surcharge cost for this is included in the final cost of their purchase.

Creatively Package Orders

Another way to find fulfillment savings this holiday season is by being mindful of how you’re packaging your orders. The larger and heavier a package is, the more expensive it is to ship. For this reason, we recommend using the smallest packaging possible. If an order is composed of multiple items, consider splitting the order into multiple shipping packages. Depending on the weight and size of the packages, this could save you more money in the long run. A fulfillment software can also help you determine how to split an order between multiple boxes in the most beneficial way.

Compare Shipping Providers

Ultimately, comparing shipping providers can be incredibly beneficial to saving money on holiday shipping. To do this, first determine a specific package’s weight, dimensions, destination, and any other shipping requirements. Next, research shipping providers to see which one has the best deal for the specific package you’re shipping. This process can also be simplified with the help of a fulfillment software to shop shipping rates at multiple shipping providers.

How Soapbox Can Help

The Soapbox software automatically shops and selects the most cost-effective shipping carrier for every order. Plus, with our smart shipping packaging selection, you can always choose the optimally sized package for your order, saving time and money on fulfillment this holiday season.

Our software has a number of additional features designed to simplify your fulfillment. This includes syncing your storefronts and marketplaces under a single dashboard, the option to create custom orders, and allowing you to print your pick list, pack list, and shipping labels all in one convenient place.

Curious about how our software can simplify your holiday fulfillment? Create a free account here. You can also reach out to us at support@soap-bx.com with any software questions.