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Sashank RavindranathThe holiday season is almost here, just T-23 days as we are writing this article away from things getting really hectic.
For e-commerce businesses, this means it’s time to prepare for the busiest time of the year. And remember, early preparation is key to ensuring a smooth holiday season.
So, in this blog, we’ve covered a comprehensive holiday schedule in the form of information on shipping deadlines and peak season surcharges for the 2024 season.
Why Early Preparation for the Holiday Season is Necessary
The holiday season is a time when shoppers are on a buying spree, looking to get the perfect gifts for their loved ones and deals for themselves. However, this great opportunity brings up a great challenge for businesses such as yours.
- The holiday shopping rush can turn out to be overwhelming, leading to issues like shipping delays, inventory shortages, customer service overload, and so much more.
- The holiday season is a time when shipping carriers are straining their capacity due to experiencing high volumes of packages, which often leads to delays. This means that you need to plan accordingly to get your products shipped out for timely delivery.
- Customers are more likely to make impulse purchases during the holidays, especially towards the last minute. For such customers, we understand carriers’ shipping deadlines to avoid delays and holiday disappointments.
This is why starting your plans for the holiday season early is crucial:
Now that we understand the importance of early preparation, let’s get started.
Before we get into the details, here’s a little heads-up: shipping carriers exceed their capacity to deliver on-time during the peak season. To help you evade delays successfully, we are planning a Q/A session, where our CEO Sri shares insights from the 7th annual edition of our e-commerce holiday shipping report, focusing on on-time carrier reliability and logistics challenges to support your holiday retail coverage.
Join our briefing session and get:
- FedEx and UPS On-time Performance Insights: A detailed on-time performance analysis covering Ground and Express services, key U.S. cities, states and retail categories
- 2024 Holiday Forecast: Get an expert outlook on carrier reliability, factors impacting on-time performance, shipping costs, and consumer expectations for the holiday season.
- Interactive Q&A Session: Engage with our host, ask questions, and gain an insider’s perspective on the 2024 peak season logistics; and its impact on retailers and holiday shoppers.
You can register for the session here.
Key Holiday Shipping Deadlines in 2024
Getting your customers to spend with you is just halfway to the finish line. Getting their products into customers’ hands is a bigger challenge for e-commerce businesses during this busy season.
On the one hand, carriers are straining their capacity to ship out huge volumes of packages during the holiday rush. So know what steps you must take to get on the right track this holiday season.
To make things simpler for you, we’ve noted important holiday-season dates for carriers in the US and Canada and have presented them to you.
US Shipping Deadlines
To help shippers plan their deliveries for the holidays accordingly, carriers such as FedEx, UPS, and USPS release their schedule, i.e., a calendar with information on when services will not be operated, special restrictions for certain services, and geographical locations, etc.
Staying updated on this schedule can help e-commerce businesses such as yours follow shipping deadlines and send out deliveries on time.
Here’s a breakdown of key shipping deadlines (the last shipping dates for select services to help ensure your package is scheduled to arrive by December 24, 2024 unless otherwise mentioned specifically) by major carriers in the U.S., including FedEx, UPS, and USPS:
FedEx
- FedEx SameDay – 12/24
- FedEx First Overnight, FedEx Priority Overnight, FedEx Standard Overnight, Extra Hours – 12/23
- FedEx 2Day & FedEx 2Day AM – 12/20 (With an optional Saturday pickup (a $16 per package surcharge), the last day to ship for FedEx 2Day and FedEx 2Day AM can be extended to Saturday, Dec. 21st)
- FedEx Express Saver – 12/19
- FedEx Home Delivery
- 12/17 (5-day shipping)
- 12/18 (4-day shipping)
- 12/19 (3-day shipping)
- 12/20 (2-day shipping)
- 12/23 (1-day shipping)
- FedEx Home Delivery
- 12/17 (5-day shipping)
- 12/18 (4-day shipping)
- 12/19 (3-day shipping)
- 12/20 (2-day shipping)
- 12/23 (1-day shipping)
- FedEx Ground Economy – 12/13
Read FedEx’s 2024 shipping deadlines for holiday packages in detail
UPS
- UPS Ground – Check ups.com/ctc for details
- UPS 3 Day Select – Dec. 19
- UPS 2nd Day Air – Dec. 20
- UPS Next Day Air – Dec. 23
USPS
USPS recommends the following mailing and shipping deadlines for expected delivery by Dec. 25 to domestic addresses
- USPS Ground Advantage Service – DEC 18
- First-Class Mail Service (including greeting cards) – DEC 18
- Priority Mail Service – DEC 19
- Priority Mail Express Service – DEC 21
Read USPS’ 2024 shipping deadlines for holiday packages in detail
Deadlines for Canadian Carriers
Similar to the US, carriers from Canada also announce their holiday service schedule YoY to help businesses that ship plan their dates accordingly and avoid shipping delays.
Canada Post
- Priority – December 23
- Xpresspost – December 23
- Expedited Parcel or flat rate box – December 20
- Regular Parcel – December 19
Read Canada Post’s 2024 shipping deadlines for holiday packages in detail
FedEx Canada
- FedEx First Overnight – Monday, December 23
- FedEx Priority Overnight – Monday, December 23
- FedEx Standard Overnight – Monday, December 23
- FedEx 2Day – Friday, December 20
- FedEx Economy – Thursday, December 19
Read FedEx Canada 2024 shipping deadlines for holiday packages in detail
UPS Canada
- December 16th – Last day to ship by Ground for delivery to US & Extended Areas.
- December 16th – Last day to ship by Ground for delivery across Canada (domestic).
- December 20th – Last day to ship by Air for International delivery.
- December 23rd – Last day to ship by Air for delivery across Canada and the US.
Peak Season Surcharges and How They Affect Holiday Shipping Costs
Carriers strain their capacity during the peak season to meet the increasing delivery demand. They’re hiring additional temporary resources, ensuring all things go well, yes. To manage these operational challenges and additional costs, carriers implement peak season/demand surcharges (applied to specific services and vary based on package weight, size, and destination).
These charges can significantly impact e-commerce shipping budgets, particularly for large or bulky items.
FedEx
FedEx delivery commitment times will be extended by 90 minutes starting Dec 19-24
- Domestic surcharges – FedEx will charge a $1–$2 fee per package for express services and $0.30–$0.55 per package for ground residential shipments during the peak season. Large-scale shippers who see a spike in volume during the peak season will also be charged a fee.
- International surcharges – For exports, FedEx will charge $0.10–$0.35 per pound for parcels and freight, with a minimum charge of $1–$20 per shipment. For imports, FedEx will charge $0.25 per pound for parcels and freight in Zones F and N, with a minimum charge of $1 per shipment for parcels and $0.50 for freight.
- Additional handling and oversize charges – FedEx will charge $3.45 per package for additional handling and $39.50 per package for oversize from February 5–September 29, 2024.
UPS (from November 24–December 28, 2024)
- Additional handling – $9.95 per package
- Large package – $99.00 per package
- Over maximum limits – $495.00 per package
- Demand surcharge (for UPS Ground Residential, Air, and SurePost packages) – $0.25–$2 per package
In the list of services that are eligible for the UPS Service Guarantee, the guaranteed delivery time for UPS Next Day Air Saver deliveries has been extended to end-of-day (11:59 p.m. on the guaranteed day of delivery).
USPS
- Priority Mail – For packages weighing 0–3 lbs, there is a $0.90 increase in Zones 5–9. For packages weighing 4–10 lbs, there is a $1.45 increase in Zones 5–9. For packages weighing 11–25 lbs, there is a $3.25 increase in Zones 5–9. For packages weighing 26–70 lbs, there is an $8.50 increase in Zones 5–9.
- USPS Ground Advantage – For packages weighing 0–3 lbs, there is a $0.50 increase in Zones 5–9. For packages weighing 4–10 lbs, there is a $1.00 increase in Zones 5–9. For packages weighing 11–25 lbs, there is a $2.00 increase in Zones 5–9. For packages weighing 26–70 lbs, there is a $5.85 increase in Zones 5–9.
- Priority Mail Express- For packages weighing 0–3 lbs, there is a $1.10 increase in Zones 1–4. For packages weighing 4–10 lbs, there is a $2.00 increase in Zones 1–4. For packages weighing 11–25 lbs, there is a $3.90 increase in Zones 1–4. For packages weighing 26–70 lbs, there is a $9.75 increase in Zones 1–4.
UPS (Canada)
The following surcharges are applicable between September 8, 2024, to January 18, 2025 unless mentioned otherwise.
- Additional Handling – CAD $7.70 per package (all service levels)
- Large Package – CAD $77.00 per package (all service levels)
- Over Maximum Limits – CAD $495.00 per package (all service levels)
- UPS Canada Domestic Air and Ground Services – CAD $0.55 per package (applicable from September 15, 2024, to January 18, 2025)
Canada Post
- Oversize and unpackaged items: $30, up from $21 in 2023
- Out-of-spec items: $400, up from $300 in 2023
Also, for items mailed between November 24, 2024 (Monday) till January 12, 2025 (Sunday), Canada Post will only honor late delivery claims if the item is delivered two or more days after the delivery standard.
Read Canada Post’s peak season surcharges for 2024 in detail
Impact of Carrier Delays on E-commerce Businesses and Customer Satisfaction
The holiday season brings not only high volumes of orders but also increased pressure on shipping carriers to deliver on time. Despite all best efforts, the surge in holiday shipments can lead to delays that disrupt delivery timelines and create ripple effects for e-commerce businesses. Delayed shipments are more than an operational inconvenience; they come with hidden costs that affect customer retention and brand reputation.
Late deliveries can result in an average customer churn rate increase of up to 15%
- Customer Dissatisfaction and Lost Loyalty: Late deliveries lead to dissatisfied customers, with many choosing to abandon the brand after just one poor delivery experience. This is especially true during the holiday season, when customers are anxiously awaiting their orders for time-sensitive gifting.
- Increased Support Costs: Each late delivery typically results in additional customer support inquiries. For instance, a delayed package leads to “Where Is My Order?” (WISMO) questions, increasing customer support volume. This can lead to longer wait times, strained support teams, and higher overall operational costs.
- Potential Revenue Losses: Customers who experience delayed shipments are more likely to abandon their carts or cancel future purchases. For an e-commerce business, this translates to direct revenue losses as well as the cost associated with trying to re-acquire lost customers.
During the holiday season, increased demand often results in higher shipping surcharges and more frequent delays, both of which can disrupt a business’s operations and impact the customer experience. For e-commerce businesses, minimizing these additional costs and ensuring on-time delivery are key to maintaining customer trust and satisfaction. But how can businesses avoid the pitfalls of peak-season shipping while still providing a seamless experience?
Here are some effective strategies.
1. Plan and Ship Early
Encourage customers to shop early by running holiday promotions well ahead of time. This gives your business ample time to process and ship orders before the peak season rush. Shipping early not only helps you avoid the higher surcharges that carriers may impose closer to the holidays, but it also allows for a buffer period in case of unexpected delays.
2. Set Clear Expectations
Consider creating early-bird sales or “holiday countdown” campaigns, offering slight discounts or free shipping incentives to encourage early purchases. Display shipping deadlines prominently on product pages, checkout pages, and in email confirmations. You can also implement a shipping countdown timer to increase a sense of urgency and motivate shoppers to complete their purchases ASAP if they want an earlier delivery slot.
3. Use Regional and Hybrid Shipping Solutions
Partnering with regional carriers or hybrid solutions can be a smart alternative to traditional carriers during the holiday season. Regional carriers may offer lower rates for certain delivery zones, while hybrid solutions, such as UPS SurePost or FedEx SmartPost, utilize major carriers in tandem with local delivery networks to reduce costs.
4. Optimize Shipping Zones with Distributed Fulfillment Centers
Distributed fulfillment enables orders to stay within specific shipping zones, avoiding the higher fees associated with long-distance deliveries.
For instance, if your e-commerce business has a high volume of orders from the East Coast, partnering with a fulfillment center in that region.
You can also offer a local pickup option that can be a valuable alternative during the holiday season in reducing shipping costs and avoiding surcharges but also gives customers a reliable option for securing their items quickly.
5. Consolidate Orders and Encourage Bulk Buying
Encourage customers to buy more in a single transaction by offering bundled products or “buy more, save more” incentives. Consolidating multiple orders into one shipment reduces per-package costs, decreases the frequency of surcharge fees, and can improve efficiency on the operational side.
While these strategies work out for areas in your control, they also lay the foundation for a more positive post-purchase experience.This is where LateShipment.com comes in to ensure that even during the busiest times, customers feel valued and well-informed, creating lasting loyalty and reducing the risk of post-purchase dissonance.
How LateShipment.com can Help E-commerce Businesses During the Peak Season
A key driver of customer dissatisfaction during the holiday season is feeling uninformed or blindsided by delays and extra fees. Proactive communication can mitigate this dissonance by keeping customers informed every step of the way. Here’s how:
- Send Real-Time Updates: Use real-time tracking notifications to keep customers in the loop about any potential delays or changes in delivery times. This prevents WISMO (Where Is My Order?) inquiries, reducing the burden on customer support teams.
- Communicate Potential Delays and Delivery Options: Regularly update customers on order status, especially if there’s a delay,. Consider using SMS or push notifications for critical updates close to delivery dates. Use clear messaging that conveys empathy and proactive support, improving the customer experience despite delays
- Leverage Predictive Alerts for High-Volume Days: Proactively prepare for peak holiday days, such as Black Friday and Cyber Monday, by using predictive analytics to anticipate surges in delivery times and customer inquiries. LateShipment.com’s predictive insights can help you notify customers in advance, ensuring they have realistic expectations and reducing post-purchase dissonance.
By implementing these strategies, e-commerce businesses can effectively navigate the holiday season’s unique challenges. Reduced surcharges and delays mean fewer surprises for customers, and proactive communication helps prevent the negative impact of post-purchase dissonance, creating a smoother, more enjoyable shopping experience during the busiest time of year.
Get Started With Your Holiday Season Plans
Following the schedule of services and operations and understanding the surcharges from shipping carriers like FedEx and UPS can help you plan your shipping game in advance and not succumb to sky-rocketing surcharges.
That’s not all! Planning for the holiday season is a huge task that requires you to tick all the boxes and have everything ready in place to manage the upcoming rush and whatnot.
One area that most businesses unwillingly ignore is the post-purchase phase, which holds incredible value in boosting retention rates and revenue. To help you tick that box as well, we’ve come up with our annual shipping report that highlights delivery trends, operational challenges, and consumer expectations for speed and reliability for the upcoming 2024 holiday season.
Download the report to gain unbiased insights on UPS and FedEx on-time performance.
