RPT-Shippers, online retailers seek way around rising delivery costs

[cheryl]

RPT-Shippers, online retailers seek way around rising delivery costs - Reuters

Online retail sales are expected to reach $392.5 billion this year, according to research firm eMarketer, but with U.S. consumers now demanding free shipping on most packages, shippers and retailers are facing a squeeze.

Shippers' margins are falling or stagnating, despite steady price increases, because homes are roughly three times as expensive to deliver to as business addresses. And retailers cannot pass along the cost, because they must offer free shipping in order to compete.

The shared solution: design new, space-saving packages that can help improve package density on delivery trucks. This cuts costs for retailers and raises margins for shippers.

 

[ski or die]

I ordered an item online recently. Turns out it was shipped by a company called United Delivery Service. Needless to say, it did not arrive by the scheduled delivery date. It arrived in the local facility on the 13th at 3 a.m. It did not go out for delivery until the next day on the 14th. Stayed home all day as it was electronics and did not want to leave on porch with all the porch pirates out there. Never delivered, on the 15th no updates where pkg is. Contacted UDS and they have no idea where pkg is currently. Just happens to be a gift for granddaughter. Went on online to Yelp and also Google search, this company has a 98% one-star rating from reviews. I am sure these large companies that use this company services are going to lose a lot of customers as many voiced they would never purchase from them again as long as this company handles their deliveries. Will cancel my order and purchase at a retailer. I'm sure when this happens enough, these companies will take notice. UPS should be proud of the reputation of the delivery drivers and customer service representatives that the customers deal with. UDS is a nightmare. Can't see them being in business very long.