1. Define research problem.
The research is about studying the reasons behind the recent United Parcel Service Inc. announcement of an increase in their shipping fees on oversized packages ahead of of holidays, between Black Friday and New Year’s Eve.
2. Conduct literature review.
The e-commerce market has been growing rabidly during the last years as the consumers tend to shift to order more products online than buying it from traditional retailers. While the retail sales have an annual growth rate of %1, the e-commerce sales in U.S grew by 14.1% in the second quarter only of this year according to the U.S Census Bureau. This growth has to be covered by the logistics company by developing their facilities and technologies side by side with …show more content…
While depending more on the last-minute hiring to handle the increase on operations size. UPS plans to hire 95,000 worker just two or three days before they are needed according to CFO Richard Peretz.
Second, they are going to change their discount policy by start charging for third –party billing in a move to “reining in the practice among many online marketplaces that allow merchants who sell goods through their sites to use their UPS discounts by printing shipping labels straight from their accounts” according to UPS. The 2.5% third-party surcharge is going to help UPS to help UPS to compensate for its services as it reached an appropriate point to start a fee on it.
Third, They are going to increase the shipping fee on the heavy packages like kayaks and patio furniture as it don’t fit on the conveyer belts and take more handling, in addition to using up more fuel. UPS said “as of Nov. 2 it will charge an additional $52.50 for those larger and heavier packages and raise fuel surcharges to 5.25%, from 4.75%, for ground shipping and to 4.50%, from 3%, for air and international
The research is about studying the reasons behind the recent United Parcel Service Inc. announcement of an increase in their shipping fees on oversized packages ahead of of holidays, between Black Friday and New Year’s Eve.
2. Conduct literature review.
The e-commerce market has been growing rabidly during the last years as the consumers tend to shift to order more products online than buying it from traditional retailers. While the retail sales have an annual growth rate of %1, the e-commerce sales in U.S grew by 14.1% in the second quarter only of this year according to the U.S Census Bureau. This growth has to be covered by the logistics company by developing their facilities and technologies side by side with …show more content…
While depending more on the last-minute hiring to handle the increase on operations size. UPS plans to hire 95,000 worker just two or three days before they are needed according to CFO Richard Peretz.
Second, they are going to change their discount policy by start charging for third –party billing in a move to “reining in the practice among many online marketplaces that allow merchants who sell goods through their sites to use their UPS discounts by printing shipping labels straight from their accounts” according to UPS. The 2.5% third-party surcharge is going to help UPS to help UPS to compensate for its services as it reached an appropriate point to start a fee on it.
Third, They are going to increase the shipping fee on the heavy packages like kayaks and patio furniture as it don’t fit on the conveyer belts and take more handling, in addition to using up more fuel. UPS said “as of Nov. 2 it will charge an additional $52.50 for those larger and heavier packages and raise fuel surcharges to 5.25%, from 4.75%, for ground shipping and to 4.50%, from 3%, for air and international