FedEx and UPS are targeting smaller customers with lower prices
Bulk buyers get discounts, that’s a pretty universal rule of thumb. But, UPS and FedEx are bucking the trend, offering a range of discounts to smaller individual sellers, according to a new report from the Wall Street Journal. Those types of concession were previously reserved for bulk shippers — a sign of the times as companies target smaller customers to help boost delivery volumes going into the busiest shopping season of the year.
UPS and FedEx have long been some of the biggest names in America’s expansive and ongoing parcel wars, having been founded in 1907 and 1971, respectively. However, they’ve lost some ground in recent years as the industry of getting-stuff-where-it-needs-to-go has become increasingly competitive, thanks primarily to online giant Amazon. That’s forced them to turn to discounts and deals for big and smaller shippers alike.
As recently as a decade ago, UPS took a bigger share of US parcel volume than any other single company, with a 39% chunk in 2014. Since then, however, as Amazon’s parcel force keeps building stronger than ever, both UPS and FedEx have seen dropoffs in their share of the market.
Discounts across the delivery industry last quarter, in conjunction with senders shipping lower weight packages, contributed to the cost of shipping a ground parcel to fall 2.5% in Q3. Many vendors will be hoping that those fees might keep heading in the same direction, especially ahead of the truncated Black Friday to December 31st period.
UPS and FedEx have long been some of the biggest names in America’s expansive and ongoing parcel wars, having been founded in 1907 and 1971, respectively. However, they’ve lost some ground in recent years as the industry of getting-stuff-where-it-needs-to-go has become increasingly competitive, thanks primarily to online giant Amazon. That’s forced them to turn to discounts and deals for big and smaller shippers alike.
As recently as a decade ago, UPS took a bigger share of US parcel volume than any other single company, with a 39% chunk in 2014. Since then, however, as Amazon’s parcel force keeps building stronger than ever, both UPS and FedEx have seen dropoffs in their share of the market.
Discounts across the delivery industry last quarter, in conjunction with senders shipping lower weight packages, contributed to the cost of shipping a ground parcel to fall 2.5% in Q3. Many vendors will be hoping that those fees might keep heading in the same direction, especially ahead of the truncated Black Friday to December 31st period.
