Gartner Research

Optimization Strategies to Address U.S. Peak Season Parcel Carrier Surcharge

Published: 17 July 2017

ID: G00337311

Analyst(s): Courtney Rogerson , Thomas O'Connor


UPS's planned 2017 peak season small parcel surcharge represents a new challenge to the financial success of consumer-focused businesses. This research sets out how supply chain leaders responsible for logistics and fulfillment can tackle this challenge while still meeting delivery expectations.

Table Of Contents
  • Impacts


Impacts and Recommendations

  • UPS's recent implementation of U.S. peak season surcharges will directly impact the unit economics of residential deliveries during most retailers' busiest time of the year
  • Increases in shipping costs may result in the need to alter product or free shipping promotions, e-commerce subscription fees, product retail costs, and/or free shipping purchase thresholds
  • Peak season shipping surcharges are expected to accelerate the click-and-collect/buy online, pick-up in store (BOPIS) trend as retailers react to minimize shipping costs

Gartner Recommended Reading

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.