{"id":2219,"date":"2017-09-21T14:52:22","date_gmt":"2017-09-21T18:52:22","guid":{"rendered":"https:\/\/www.worldwidebrands.com\/blog\/?p=2219"},"modified":"2024-08-01T12:18:12","modified_gmt":"2024-08-01T16:18:12","slug":"fedex-rate-increases-what-it-means-for-dropshipping","status":"publish","type":"post","link":"https:\/\/www.worldwidebrands.com\/blog\/fedex-rate-increases-what-it-means-for-dropshipping\/","title":{"rendered":"FedEx Rate Increases &#8211; What it Means for Dropshipping"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-2220\" src=\"https:\/\/www.worldwidebrands.com\/blog\/wp-content\/uploads\/2017\/09\/fedex_4blog-1-300x231.gif\" alt=\"\" width=\"300\" height=\"231\">FedEx recently announced that on January 1,&nbsp;2018,&nbsp;they will raise their shipping rates for various services including; FedEx Express, FedEx Ground &amp; FedEx Freight.<\/p>\n<p>These rate changes are as follows:<\/p>\n<ul>\n<li>FedEx Express, FedEx Home Delivery, FedEx Ground &amp; FedEx Express: 4.9% average increase<\/li>\n<li>FedEx One: 3.5% increase<\/li>\n<\/ul>\n<p>Then on January 22, 2018, there will be some additional fees:<\/p>\n<ul>\n<li>Third Party Billing Surcharge will apply to FedEx Express &amp; FedEx Ground shipments that are billed to a third party.<\/li>\n<li>Additional cost for packages that require extra handling, that are oversized, or unauthorized.<\/li>\n<li>FedEx SmartPost will add dimensional weight prices<\/li>\n<li>FedEx Freight will add an over length surcharge of $85.00 per shipment for packages that are 8ft or greater&nbsp;and&nbsp;less than&nbsp;12ft in dimension.<\/li>\n<\/ul>\n<p>You can see more information about this on FedEx&#8217;s site here: <a href=\"http:\/\/www.fedex.com\/us\/shipping-rates\/\" target=\"_blank\" rel=\"noopener noreferrer\">http:\/\/www.fedex.com\/us\/shipping-rates\/<\/a><\/p>\n<p>FedEx hasn&#8217;t indicated WHY they have &nbsp;added these pricing increases, but from research, it&#8217;s&nbsp;to stay in competition with UPS who also did these types of increases in 2016.<\/p>\n<p>The increases to take note of for dropshipping retailers, is the third party billing&nbsp;surcharge of 2.5% that takes effect 1\/22\/2018.&nbsp; Due to the increase in&nbsp;third party billed transactions because of dropshipping, this is a fee that UPS has been collecting for a few years now so FedEx is just staying in stride with UPS.<\/p>\n<p>Third party billing is when a shipping fee is paid by someone other than the sender or the receiver of the delivery.&nbsp;So a&nbsp;dropshipping supplier&nbsp;that is using your FedEx account information to charge shipping fees to, that&#8217;s third party billing and you can expect to see the 2.5% fee.<\/p>\n<p>So make sure to make note of these extra shipping fees &amp; plan for them starting January 1st because they will impact your business!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FedEx recently announced that on January 1,&nbsp;2018,&nbsp;they will raise their shipping rates for various services including; FedEx Express, FedEx Ground &amp; FedEx Freight. These rate changes are as follows: FedEx Express, FedEx Home Delivery, FedEx Ground &amp; FedEx Express: 4.9% average increase FedEx One: 3.5% increase Then on January 22, 2018, there will be some [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[284],"tags":[19,719,718,495,720,721,716,715,714,717],"class_list":["post-2219","post","type-post","status-publish","format-standard","hentry","category-packing-and-shipping-tips","tag-drop-shipping","tag-drop-shipping-fees","tag-drop-shipping-rates","tag-dropshipping","tag-dropshipping-shipping-rates","tag-fedex-rate-changes","tag-fedex-shipping-rates","tag-online-business-shipping-rates","tag-shipping-fees","tag-third-party-billing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>FedEx Rate Increases - What it Means for Dropshipping<\/title>\r\n<meta name=\"description\" content=\"Understand the impact of FedEx rate increases on dropshipping. 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