It’s important to keep an eye on the costs of running your business, especially as they change. With the new year coming up, you can expect some changes to your shipping costs, which may factor into both your shipping strategy and pricing strategy for 2021.

Every year, shipping carriers review their pricing and make adjustments to their rates due to increased costs like fuel and labor. These updates are normally implemented every year in January, so now’s the time to prepare for upcoming rate changes.

Here’s an overview of the rate increases coming in 2021 to help you optimize your shipping and fulfillment strategy in light of these changes. 

Upcoming rate changes

All of the carriers supported by Shopify Shipping are set to change retail rates in 2021. Here’s an overview of the expected changes for USPS, UPS, and DHL Express in the US, and Canada Post in Canada and how much you’ll save off retail costs when you ship with Shopify. Changes in Australia are not expected in January but may happen later in the year.

If you’re shipping via Shopify Shipping, remember that you get access to negotiated rates with each carrier—so while you may see an increase in your shipping rates, you’ll still get lower rates on Shopify than you would at retail counters.

Note: If you use Shopify Fulfillment Network to ship orders your rates will change in February 2021 if you’re in the United States and in January 2021 if you’re in Canada.

USPS

Effective January 24, 2021

In 2021, retail prices for USPS services will increase by an average of 4.9%. Shopify continues to offer some of the lowest USPS rates available anywhere through Shopify Shipping:

• Use First Class Package Service on Shopify and save up to 64% off retail rates—the most common method for shipping packages up to 16 oz. through Shopify Shipping.

• Merchants who are on the Shopify, Advanced, and Plus plans and use Priority Mail Cubic pricing continue to get up to 88% off retail rates in 2021. Learn more about Cubic pricing.

• Though Priority Mail retail rates increase by an average of 3.6%, with Shopify Shipping you will save up to 40% off retail costs this year.

• Retail rates for Priority Mail Express increase by 2.5% overall, but you will save up to 17% off retail when you use Shopify Shipping.

• Packages with a combined length + girth over 130” will incur a Large Package surcharge of $100.

• USPS shipping rates for all international shipments are based on distinct groupings of destination countries. In 2021, those price group designations will change for all international mail classes. Find a particular country’s price group here. Learn more about this change.

You can use the Shopify Shipping calculator to estimate the current rates you’d pay using existing USPS mail classes offered in Shopify Shipping. Once 2021 rates go into effect on Jan 24, use the calculator to see exactly how much you’ll save this year.

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