USPS announces shipping costs will rise by 2.4 percent
In the world of ecommerce, delivery is one of the most critical aspects of the business. Without free shipping offered at the point of sale, some customers might abandon their carts and find another merchant to fulfill their online shopping needs. The feature does not need to be offered for any purchase, but after a certain spending threshold, many consumers expect that they can forgo the charge.
Because of this, retail industry professionals should be aware that the United States Postal Service recently announced that shipping prices may increase by 2.4 percent starting on Jan. 26, 2014. Notably, the announcement is not yet official. First the change must be reviewed and approved by the Postal Regulatory Commission. However, merchants may want to look over their current free delivery thresholds and prepare for the change.
Fortunately, even ecommerce giant Amazon has recognized the need to revise its shipping policy, and its spending minimum for free delivery rose from $25 to $35 in October, according to CNN. Balancing the cost of transporting goods against the benefits of online sales can be difficult, but with versatile retail software in place, merchants can get a better overview of their companies and have an understanding of when free delivery becomes viable.