UPS reportedly asks retailers to share delivery fees

Who is responsible for fees related to unexpected, yet low shipping volume? According to UPS, it should be its retailer partners.



The delivery service is putting retailers on the hook to share costs related to labor and surplus space on trucks if the merchant fails to ship its forecasted packages during peak periods, according to MarketWatch. Fees could also apply if there is a discrepancy among the sizes of boxes expected to ship.



In the report, UPS’ chief executive David Abney said, “If there are variations to the plan, let’s see what we can do, but we should be compensated accordingly.”



He added the charge isn’t meant to be punitive, but one element of broader negotiation with retailers over pricing during peak times.



The move is meant to offset the “billions” UPS is investing to add network capacity related to a surge in online shopping. Rival FedEx has instituted similar increases, and even dropped retail partners that refused to pay, according to MarketWatch.



Discussions with retailers — and a solid pricing plan — is still in the early stages. To read more, click here.