2017 Shipping Rate Increase - UPS and FedEX

Fedex and UPS announced that they will increase their rate in 2017. As a result most ecommerce sellers will need to reevaluate their shipping costs and packaging option.

Residential Surcharge will go up!

Fedex will increase their prices by $0.2 and new Fedex Ground residential surcharge will be $3.45. UPS will increase ground residential surcharge by $0.15 and new surcharge will be $3.50.

With this new increase, ecommerce sellers may consider shipping with USPS because there is not additional surcharge for residential deliveries.

Fedex makes changes for Dimensional Weight

Dimensional weight is still confusing for a lots of sellers. If you are not familiar with it, that means that once your package exceeds certain size then you are essentially charged for the size of box. For example if you are shipping a 5 lb package and the size of package is 10x10x10 you will be paying a shipping fee of 7 lb. And with the new increase that will go into effect in 2017 you will be charged for 8 lb.

The divisor is changing from 166 to 139.

UPS has not announced any increase for dimensional weight but they will probably do. I haven't seen one of them increased their rates and the other one didn't.

Let's wait to hear from USPS. Hope we don't see big increase from USPS.

Stay tuned and happy selling!

Sources :

FedEx 2017 Rates

UPS Rates and Surcharge Rate Change information