US post increase threat to eCommerce

By Paul Kelly in News Posted: 29th, June, 2020

Following changes to the Universal Postal Union (UPU) international postal rates UK eCommerce merchants and online retailers face big increases in shipping costs to the US next week.

Last year, President Trump threatened to withdraw from the UPU, a move that was averted after agreement that it would be able to set its own terminal dues for imported parcel shipments.

From Wednesday, Royal Mail says it will have to pay 100% more for the United State Postal Service (USPS) to perform last-mile delivery services to consumers buying UK e-commerce goods, and will have to pass on the higher costs to shippers.

Transatlantic parcel shipment rates have also been under pressure from the dramatic decline in passenger flight bellyhold capacity since the onset of the coronavirus pandemic.

“Global Forwarding provide fast, low-cost, bulk and global solutions for eCommerce deliveries”

Global Forwarding provide fast, low-cost, bulk and global solutions for eCommerce deliveries, including the consolidation and shipment of bulk orders, which we process and label individual packets, consolidated for express air freight and then fed into the US postal service within hours.

By fulfilling orders from the US, businesses could avoid these additional costs, have shorter delivery times, lower shipping costs and easier returns for US consumers, which will positively impact the customer experience and increase repeat business.

Many of our UK clients looking to grow their US business are recognising this as a more attractive option and growing sales, thanks to better access to the US market.

While some retailers may decide to pass the increased cost on to US consumers, this does increase the risk of losing those customers to more local, cheaper alternatives, and could threaten the long-term viability of exporting to this market.

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