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Sticker shock: E-commerce fulfillment costs rising
Recent rate increases for shipping services by UPS and FedEx and the pending Jan. 17 rate increase for U.S. Postal Service (USPS) shipping services, are challenging businesses -- especially small retailers and e-retailers -- to look for new and innovative solutions to optimize their shipping operations, according to Pitney Bowes.
Here is an update from Pitney Bowes on the latest increase by each major carrier:
UPS
• On December 28, 2015, the rates for UPS Ground services increased an average net 4.9%.
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FedEx expects 12% increase in holiday shipments
FedEx says a big boost in online shopping will propel its business between Black Friday and Christmas Eve at least 12.4% above 2014 levels.
FedEx expects the holiday period to include three shipment volume spikes: Cyber Monday and the first two Mondays in December.
The company said it was adding 55,000 employees for the holidays to handle the increased demand.

