Diesel surcharges and holiday peak fees are cutting into small online sellers' profits, and Inc. says raising prices before the fourth quarter ends is the fix.
If you sell products online, some of your shipping costs may not be where you are looking. Inc. reports that diesel surcharges and holiday peak fees are quietly eating into the profits of independent online sellers. The advice is to raise prices now, before the fourth quarter slips away.
Two extra costs are the focus. A diesel surcharge is an added charge tied to fuel costs. A holiday peak fee is an added charge during the busy holiday shipping season. Both often sit outside the base shipping rate, which is the main price a carrier quotes for moving a package. That makes them easy to miss.
A sale can look healthy on paper and still lose money once these fees are added. Because the charges are separate from the quoted rate, a seller may not notice the damage until the bills pile up.
The warning is aimed at small and independent online brands that ship products to customers, especially heading into the holidays. Shoppers are not the target of the story, though price changes by sellers could reach them.
The steps in the alert box above cover the basics: review your carrier invoices, find your true profit per order, and adjust prices or shipping charges where the margin is thin.
The material does not say how large the surcharges are, which carriers are adding them, or when they take effect. Check your own invoices for the exact amounts, and look again when carriers update their fees.
Check your carrier bills now, because surcharges can turn a sale into a loss, and adjust prices before the holiday rush.
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