News: Changes to Major Carrier Rates — What Small Shops Must Do Now
Breaking: Major carriers announced new zone-based pricing changes. Here's a practical checklist for small shops to mitigate cost increases.
News: Changes to Major Carrier Rates — What Small Shops Must Do Now
This week, several major carriers announced revised zone-based pricing and updated dimensional weight thresholds. For many small shops, these changes will increase average shipping costs and require operational adjustments. Here’s a clear, actionable checklist to respond quickly and keep margins intact.
"Small changes in shipping policy can have outsized financial impact on micro-shops."
Immediate actions (within 72 hours)
- Re-run current month’s shipping cost model against new carrier tables to estimate margin impact.
- Communicate with customers proactively if expected shipping windows might change.
- Evaluate product packaging: can you reduce dimensional weight by resizing boxes or using poly mailers?
Operational changes (1–2 weeks)
Negotiate rates: reach out to regional carriers or consolidators — many offer competitive flat-rate solutions. Consider a hybrid model: use a national carrier for heavy shipments and regional shippers for dense local deliveries.
Customer-facing strategies
If shipping costs rise noticeably, do not silently absorb the entire increase. Test these approaches:
- Introduce a small shipping surcharge with clear explanation.
- Raise the free-shipping threshold and test offers to maintain conversion.
- Promote local pickup options if feasible.
Longer-term considerations
Invest in forecasting and batching shipments. Combined or scheduled ship days reduce per-order labor and let you access better carrier discounts. Evaluate fulfillment partners and 3PL pricing if volume is rising — sometimes outsourcing reduces effective costs once you cross a threshold.
Final note
Rate changes are a reminder that shipping is a core part of product economics. Revisit your unit economics monthly during uncertain periods and maintain clear customer communication so price adjustments don't damage trust.