Freight & Shipping Rates Are on the Rise

This year the United States Postal Service (USPS) increased rates for packages. This increase falls in line with UPS, FedEx, and other shipping companies.

These increases in rates puts pressure on small business owners who rely on shipping as a form of product delivery.

E-Commerce has served as a level playing field for small businesses that don’t want the expense or can not afford a retail storefront. But with the increasing shipping prices these small businesses have see increases in their operating expenses.

Many small businesses are passing the increased rates directly to their clients as increased shipping charges. Others are offering free shipping options, but overall increasing their product cost to compensate for the shipping charges.

Some businesses are falling somewhere in the middle of these two options by doing a little of both, but mostly costing the businesses profits.

The fact is, these costs are not going to decrease. It is the time now to make a projection for your business so you can weigh the options and come up with the best plan for your business model.