FedEx Rate Increase for 2021: What You Should Know

When planning your budget, it helps to know the estimated cost of shipping. After all, if not planned for adequately, shipping can really eat into your budget. With 2021 around the corner, merchants will have to factor in new FedEx rate increases. Announced earlier this fall, FedEx Express (Domestic, US Export and US Import), FedEx Ground and FedEx Home Delivery rates will see an increase of an average of 4.9%.

Below is a breakdown of the rate increases you’ll see in the market beginning in the new year.

Starting in January 2021

There will be a new 6% late fee charge to US FedEx Express and FedEx Ground customers when they don't pay their invoice within the agreed upon payment terms.

Effective Jan. 4, 2021

FedEx Express, FedEx Ground, FedEx Home Delivery® rates will increase an average of 4.9% for U.S., U.S. export and U.S. import services. View the full rate list here.

FedEx SmartPost® and FedEx Freight rates will increase.

There will be changes to shipping surcharges and fees that may apply to your shipment and affect your total shipping rate.

Effective Jan. 18, 2021

There will be new surcharges for FedEx Express, FedEx Ground and FedEx Freight.

The way the Additional Handling Surcharge is assessed for FedEx Express and FedEx Ground packages will change.

FedEx Freight will introduce a High Cost Service Area Surcharge that applies to certain shipments.

Certain U.S. locations will be assessed an International Out-of-Delivery-Area Surcharge or an International Out-of-Pickup-Area Surcharge for FedEx International Express Freight® services.

Find more details on these changes here.

Effective Feb. 1, 2021

For U.S. FedEx Express Freight shipments there will be changes to how fuel is assessed .

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What Does This Mean For Me as a Merchant?

Merchants need to continually update their shipping profile to understand their current needs and if this will be an impact. It’s a two-pronged consideration. First, think of how this will impact your bottom line. Then, consider if this change in cost will make or break your customer base.

As always, merchants should take this as an opportunity to provide choice. Providing customers with options gives customers agency a larger stake in the merchant-customer relationship — which is an important part of the post-purchase experience.

This is an additional opportunity where shipping policy transparency is so important. No one likes to be surprised — especially when that surprise pertains to their hard-earned money. When making changes to your policy that involves dates and rates, don’t leave your customers in the dark!

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