However, the new fees won’t affect customers shipping small items at the UPS Store or other places. The fees are intended for what the company calls “large volume customers,” and it’s unclear whether retailers like Amazon, Target and others will pass the added costs onto customers. For some companies, those hefty fees could be hard to absorb, and they might end up in your shipping bill.
“UPS routinely adjusts its pricing to align with the cost to serve our customers, enabling the company to be appropriately compensated for the service and value we provide,” a company spokesperson told CNN Business, adding that the new surcharges “reflect current market conditions caused by the pandemic.”
UPS reported better-than-expected earnings last week because of the surge in online shopping. Demand for residential deliveries surged 65% and its average daily volume increased 23% in the second quarter.