With Black Friday and the holiday season just around the corner, businesses can expect a surge of shoppers eager to get in the gifting spirit and take advantage of seasonal deals. This influx brings a great opportunity for increased sales, but it also comes with the complexities of increased shipping demands.

To keep up with the growing volume of orders, carriers like USPS have announced temporary price adjustments for the 2024 peak holiday season. Effective from October 6, 2024, through January 19, 2025, these rate changes will impact Priority Mail Express, Priority Mail, and USPS Ground Advantage shipments.

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What Are Peak Season Surcharges?

These holiday surcharges help USPS cover additional costs associated with labor, fuel, and supplies during the peak shipping months to ensure they can maintain service standards while managing higher volumes. Staying informed about these changes is key to plan accordingly and maintain a seamless delivery experience for customers, so we’ve packaged them up for you below.

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Commercial Increases

Priority Mail and USPS Ground Advantage: Zones 1-4

• $0.30 increase for 0-3 lbs.
• $0.45 increase for 4-10 lbs.
• $0.75 increase for 11-25 lbs.
• $3.00 increase for 26-70 lbs. 

Priority Mail: Zones 5-9

• $0.70 increase for 0-3 lbs.
• $1.25 increase for 4-10 lbs.
• $2.75 increase for 11-25 lbs.
• $7.00 increase for 26-70 lbs.

USPS Ground Advantage: Zones 5-9

• $0.35 increase for 0-3 lbs.
• $0.75 increase for 4-10 lbs.
• $1.25 increase for 11-25 lbs.
• $5.50 increase for 26-70 lbs.

Priority Mail Express: Zones 1-4

• $1.00 increase for 0-3 lbs. 
• $1.50 increase for 4-10 lbs.
• $3.50 increase for 11-25 lbs.
• $8.95 increase for 26-70 lbs

Priority Mail Express: Zone 5-9

$1.75 increase for 0-3 lbs.

$3.95 increase for 4-10 lbs.

$7.50 increase for 11-25 lbs.

$13.00 increase for 26-70 lbs.

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Retail Increases

Priority Mail and USPS Ground Advantage: Zones 1-4

$0.40 increase for 0-3 lbs.

$0.55 increase for 4-10 lbs

$0.95 increase for 11-25 lbs. 

$4.00 increase for 26-70 lbs.

Priority Mail: Zones 5-9

$0.90 increase for 0-3 lbs.

$1.45 increase for 4-10 lbs.

$3.25 increase for 11-25 lbs.

$8.50 increase for 26-70 lbs.

USPS Ground Advantage: Zones 5-9

$0.50 increase for 0-3 lbs.

$1.00 increase for 4-10 lbs.

$2.00 increase for 11-25 lbs.

$5.85 increase for 26-70 lbs.

Priority Mail Express: Zones 1-4

$1.10 increase for 0-3 lbs.

$2.00 increase for 4-10 lbs.

$3.90 increase for 11-25 lbs.

$9.75 increase for 26-70 lbs.

Priority Mail Express: Zones 5-9

$2.00 increase for 0-3 lbs.

$4.85 increase for 4-10 lbs.

$9.00 increase for 11-25 lbs.

$16.00 increase for 26-70 lbs.

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How Can Businesses Still Save On Shipping?

Despite the USPS price increases during the holiday season, merchants still have opportunities to save on shipping costs. By using VESYL, brands can shop the best-in-class rates across multiple carriers, streamline operations, reduce labor costs, and minimize errors through automation, further maximizing efficiency and cutting down unnecessary expenses. By streamlining shipping operations, merchants can offset the impact of seasonal surcharges while still delivering an exceptional customer experience during the busiest time of the year.

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Schedule a quick 15-minute call with us and we’ll show you how!

The busy seasons are both a blessing and a challenge for e-commerce businesses. Whether it's the holiday rush, back-to-school season, Black Friday or any other peak period, increased demand brings with it the potential for significant revenue, but only if your shipping operations can keep up.

In this article, we'll explore key strategies for effectively scaling your shipping operations during busy seasons, ensuring your business can handle the increased volume without compromising on service quality.

Forecasting Demand Accurately

The foundation of scaling your shipping operations lies in demand forecasting. By analyzing historical sales data, market trends, and customer behavior, you can best predict the volume of orders and products you'll need to fulfill during peak periods. This information allows you to plan your inventory, staffing, and logistics accordingly.

Optimizing Inventory Management

Efficient inventory management is critical during busy seasons. Overstocking can lead to unnecessary storage costs, while understocking can result in missed sales opportunities, delayed shipments and unhappy customers. The key is to find the right balance. To stay ahead of inventory needs, work closely with suppliers to ensure timely restocking and leverage inventory management for clear and real-time insights to stock levels. With any management system, implement regular inventory checks to reduce the risk of any mistakes. 

Streamlining Fulfillment Processes

As order volumes increase, your fulfillment processes need to be as efficient as possible. Streamlining and automating these processes helps reduce the time it takes to pick, pack, and ship orders, minimizing the risk of delays and errors. For example, batch processing orders significantly speeds up order fulfillment, allowing you to get more orders out of the warehouse, in less time. 

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Learn how VESYL automations are improving fulfillment efficiency for businesses.

Enhancing Warehouse Operations

Your warehouse is the heart of your shipping operations, and its efficiency can make or break your ability to scale. During busy seasons, optimizing your warehouse layout, staff training, and workflow processes is essential. For example, you can create a "Golden Zone," where the top 20% of SKUs that account for 80% of your orders are stored. This zone should be located near the packing and shipping stations to minimize the distance these items travel.

Leveraging Multiple Carriers

Relying on a single carrier during busy seasons can be risky. Carrier delays or capacity issues can disrupt your fulfillment. By working with multiple carriers, you can mitigate these risks, ensure timely deliveries and save on costs.

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With VESYL, we deliver the best-in-class shipping rates across multiple carriers in just a few clicks, allowing you to make the most informed decisions for your shipments, without sacrificing flexibility.

Implementing Flexible Shipping Options

Customers expect fast and reliable delivery, especially during busy seasons. By offering flexible shipping options such as expedited shipping, same-day delivery, or in-store pickup, you can meet customer’s expectations and improve their experience. It’s important to clearly communicate shipping options and cut-off dates for guaranteed delivery on your website. 

Outsourcing Fulfillment and Logistics

For many e-commerce businesses, outsourcing fulfillment and logistics to third-party providers (3PLs) is a scalable solution during peak seasons. 3PLs can offer additional storage space, advanced technology, and expertise in managing high volumes, allowing you to focus on other aspects of your business. However, 3PL’s can come with their own set of challenges such as a large initial investment and limited visibility. 

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Alternatively, businesses can leverage shipping software. At VESYL, brands can simply connect their stores, import orders, run shipping automations, such as assigning particular products to certain package sizes or shipping rates, batch purchase up to 500 shipping labels at once at the best rates, and print labels with their corresponding packing list. This allows businesses to manage their fulfillment internally while still saving time and money on shipping. 

Enhancing Customer Communication

During busy seasons, clear communication with customers is vital. Be sure to keep them informed about order status, shipping timelines, and any potential delays. This transparency can help manage expectations and reduce customer frustration. You can utilize automated email notifications and SMS alerts to keep customers updated throughout the fulfillment process.

Preparing for Returns and Exchanges

Both brands and customers would prefer to get it right the first time but as we know, it doesn’t always go that way. Busy seasons can often lead to increased returns and exchanges, especially during the gifting season. Preparing for this influx is crucial to maintaining customer satisfaction and minimizing operational disruptions.

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Streamline your returns process by providing clear instructions and offering easy-to-print return labels or QR codes. You can also consider using a returns management software that automates the process and provides customers with instant refunds or exchanges.

Conclusion

The key to a successful busy season is ensuring your fulfillment can keep up. By forecasting demand, optimizing inventory and warehouse management, leveraging multiple carriers, and enhancing customer communication, you can ensure a smooth and successful peak season. Finally, be sure to track, record and analyze for continuous improvement and business success.

Starting July 1st, 2024, USPS is implementing new shipping rates for various services and packages. Here’s a detailed look at what’s changing:

USPS Shipping Changes: What You Need to Know

Ground Advantage

• Price Increases for Packages Over 1 Pound: Rates will rise by up to $2.11, particularly affecting packages in the 1-5 pound range.
• Price Increases for Packages Under 1 Pound: Rates will increase by up to 33 cents for zones 6-8.
• Cubic Pricing: Ground Advantage Cubic rates are increasing by up to $1.67.

Priority Mail

• Weight-Based Rates: Prices will increase by up to $3.10.
• Cubic Rates: Expect an increase of up to $2.97.
• Flat Rate Prices: These will go up by as much as $1.18.

Discount Adjustments

• The maximum discounts available for USPS compared to Retail Pricing will drop from 89% to 88%.

Additional Changes Effective July 14th

• Media Mail Rates: These will increase by up to 56 cents.
• Signature Confirmation: The cost is going up by 20 cents, bringing the total to $3.70.

These changes are universal across all platforms where you can buy postage online.

Best-In-Class Rates with VESYL

‍Despite these increases, VESYL continues to offer the best-in-class shipping rates through its partnership with USPS and other carriers. Our goal is to streamline your shipping operations, providing discounted rates for a silky smooth fulfillment process.

Navigating the Changes

By staying ahead, you can make the best informed decisions for your shipping needs. Utilize VESYL’s simple rate shopping feature to compare rates and make informed decisions on the best options for your shipping needs, whether you're shipping 1 or 1000's of packages a day.

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Want to learn more about VESYL's smooth shipping software? Book a demo with us or read more.

With an estimated 356 billion packages shipped worldwide in 2023, it’s no surprise that with this increase in online shopping, there has also been a rise in damaged, lost and stolen packages. However, it’s not the be all end all as there are a variety of steps brands can take to protect their packages and ensure they reach their customers in one piece. We’ve packaged these up with some real-life examples for you below.

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Common Challenges with Shipping Damages

Shipping damages are a challenge for e-commerce businesses, manifesting in various forms such as physical damage to products, broken seals, and moisture-related issues. These damages can arise from inadequate packaging, mishandling during transit, or environmental factors. It all sounds straightforward however, when it comes to deciphering who is liable for the damages, that is when the headache can start. For damages associated with insufficient packaging, it often falls on the business, leading to financial losses, increased return rates, and the necessity for refunds or replacements. For damages due to mishandling, the liability can fall into the carriers hands, but it’s important to note this can be timely and not always successful. Moreover, shipping damages can severely impact a brand’s reputation, reducing customer trust and satisfaction. Frequent occurrences of damaged goods not only escalate operational costs but also diminish customer loyalty, making it crucial for businesses to adopt the tips outlined below.

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Tips for Brands to Protect Packages and Minimize Damage

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Invest in High-Quality Packaging Materials

There’s many areas where businesses cut costs, however, effective and robust packaging should not be one of them. Brands should invest in high-quality materials that provide adequate protection. This includes:

• Sturdy Boxes: Use corrugated cardboard boxes that are correctly sized for the items being shipped. Oversized boxes can lead to shifting and damage, while undersized boxes may burst open.
• Protective Padding: Incorporate bubble wrap, packing peanuts, or air pillows to cushion products and absorb shocks.
• Durable Tape: Secure boxes with strong, adhesive tape designed for shipping. Reinforce edges and seams to prevent accidental openings.

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Properly Cushion and Pack Items

Effective cushioning and packing techniques are crucial to preventing damage. Follow these steps to ensure your products are well-protected:

• Wrap Each Item Individually: For fragile or breakable items, wrap each piece separately with bubble wrap, foam sheets or tissue paper.
• Fill Void Spaces: Use packing materials to fill any empty spaces in the box, preventing movement during transit.
• Double-Boxing: For highly fragile items, consider double-boxing. Place the item in a smaller box with padding, then place that box inside a larger, well-cushioned box.

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Label Packages Correctly

Clear and accurate labeling can significantly reduce the risk of damage. Ensure your packages are labeled with the following information:

• Fragile Stickers: Use “Fragile” or “Handle with Care” stickers for delicate items.
• Up Arrows: Indicate the correct orientation of the package with “This Side Up” arrows.
• Shipping Information: Clearly display the recipient’s address and contact information. Include a return address as well.

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Choose Reliable Shipping Partners

The choice of a shipping carrier can influence the safety of your packages. Choose carriers known for their reliability and careful handling of parcels in addition to:

• Insurance: Opt for shipping insurance to cover the cost of potential damages.
• Tracking: Use carriers that provide tracking information to monitor the shipment’s progress and address issues promptly.

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Leverage Package Protection

Leveraging extra package protection allows brands to protect their revenue and reduce the load for the CX team. Customers are able to add or remove the package protection from their cart at the checkout. If purchased and a package is stolen, lost or damaged in transit, the customer can contact the protection provider directly who will process the claim and issue a reorder or refund, without any extra cost to the brand or customer. This not only protects revenue, but also enhances customer trust and confidence, knowing if any issues arise, it will be resolved quickly and hassle-free.

For example, our friends over at Corso have a simple to use claims portal for customers and pride themselves on resolving shipping issues within 24 hours. 

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Collect and Analyze Data

It’s tough to improve if you’re not measuring. By gathering data on damages such as certain items are damaged more than others or certain package sizes are being frequently damaged, brands can effectively adjust packaging methods. Not to mention, for new products or packaging, you can conduct test runs or even drop tests in house, to ensure they will reach your customer in one piece. 

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In Summary

Securing shipments and minimizing damage requires attention to detail, investment in quality materials, and collaboration with reliable shipping carriers. By implementing these strategies above, brands can enhance customer satisfaction, reduce financial losses, and build a reputation for reliability and care. Not to mention, the key to successful shipping lies in the preparation and continuous improvement of your packaging and shipping practices.

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