Shipping Companies Could Refuse Packages This Holiday Season

Shipping companies could refuse packages

A slowly recovering economy and intense competition could prompt business to ramp up their sales promotions this holiday season. While this has the potential to increase spending by consumers tempted by irresistible deals, some might find that getting items delivered to their homes may have to wait until after the holiday rush.

FedEx and UPS both announced plans this year to work with major businesses to ensure a smooth, timely delivery flow. Last minute sales, however, could add unanticipated pressure to shipper delivery networks. This might have the potential to adversely impact operations and reduce delivery fluidity. If such a situation occurs, it could become necessary for the two shippers to increase the cost of their package services, and perhaps even prompt them to refuse the business if it threatens to overwhelm the network.

If their delivery networks suffer a repeat performance of last year’s delays, both shipping companies may find themselves with the tough decision of introducing higher shipping charges specifically for the holidays in 2015. This could cause online shoppers to abandon their shopping carts at checkout when faced with higher than expected shipping charges, and might even result in an unexpected revenue decline for businesses during their most profitable time of the year.

As the holiday season progresses, only time will tell if advanced preparation by UPS and FedEx is sufficient to handle actual volumes this year.

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2 Comments

  1. Grannybunny

     /  December 10, 2014

    If they use USPS, they won’t have to worry about their packages being refused or not being delivered on-time for the holidays. The packages will also be delivered at least as quickly — if not more so — and at a lower cost than with FedEx and UPS.

  1. Shipping Companies Could Refuse Packages This Holiday Season » Ruralinfo.net Postal News
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