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November 25, 2008 ( PowerHomeBiz ) -
Palo Alto, CA --
In the midst of a receding economy with increasing commodity prices and high
fuel costs—and the holiday shipping season right around the corner—many
businesses are seeing rising shipping costs. A recent Endicia® survey of
more than 500 small businesses that sell goods online reports that 84
percent have seen their annual shipping costs increase this year.
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The survey also reveals that more than 40 percent of these companies have
incurred a fuel surcharge from their shipping carrier. At the same time,
more than one third (34 percent) of the surveyed businesses did not know if
their shipping provider had instituted a fuel surcharge.
Fuel surcharges of
private carriers range from 8.25 percent of shipping costs (for ground
service) up to 28.5 percent of shipping costs (for air service). Unlike
private carriers, the USPS attaches no fuel surcharge to any of its
shipments. Additionally, through approved online postage vendors like
Endicia, the Postal Service offers competitive shipping services to private
carriers.
“The shipping service a business uses can have a profound impact
on the bottom line and should be a high priority on the expense review,”
said Harry Whitehouse, Endicia’s chief development officer. “Now, with DHL
announcing its retreat from the domestic U.S. market, shippers have fewer
choices, making the cost savings offered by the USPS and Endicia even more
critical to a company’s shipping mix.”
For example, according to the U.S.
Postal Service online postage price calculator, a 2-pound package shipped
overnight 600 miles to a residential address on a Saturday will cost the
shipper $24.65. With a typical private carrier, the higher base rate and
surcharges would bring the cost to over $72.00--residential delivery
($2.35), Saturday delivery ($14.50) and fuel surcharge ($16.52). The Postal
Service does not charge extra for residential or Saturday delivery. Nor does
the USPS charge an address correction fee—another common private carrier
surcharge that can tack on as much as $6.00 per address.
“As you can see,
the surcharge costs alone may be more then the actual price of shipping the
package,” explained Whitehouse. “By shipping with the U.S. Postal Service
through online providers like Endicia, businesses have a great way to cut
their costs.”
The lower base cost is only one of the ways the U.S. Postal
Service helps companies save money on shipping. The Postal Service offers
exclusive discounts to customers purchasing their postage through an
approved online vendor like Endicia, saving shippers up to an additional 3-8
percent on certain classes of postage over retail prices. These special
online discounts, coupled with Endicia’s easy-to-use software, create a
winning business proposition that allows shippers to further reduce their
shipping costs with the USPS compared to retail.
Endicia boosts the USPS
online shipping and pricing options by adding significant enhancements, such
as database integration, batch processing, and reporting tools – all
comparable to services offered by private carriers. Endicia is ideal for
e-commerce, including online sellers, fulfillment providers and retailers
with lightweight shipping needs--for instance, eBay sellers, jewelry dealers
and resellers, clothing retailers, toy retailers and more.
According to Endicia’s survey, companies that spend more on shipping tend to pass that
fuel surcharge on to their customers. Nearly 60 percent of surveyed
companies that spend under $500 each year on shipping absorb the fuel
surcharge themselves. For companies spending more than $10,000 annually on
shipping, it’s the opposite—approximately 60 percent pass the fuel surcharge
on to customers.
“We all want to reduce costs so we can keep our prices low
in this economy,” said Whitehouse. “We’re happy to offer businesses a means
to ship at significantly lower costs--especially during the holiday season.”
For more information on Endicia and cost savings for businesses, go to
www.endicia.com . Fuel surcharge
percentages based on November 3-November 30 published rates on www.fedex.com
and www.ups.com. Private carrier rate figures based on cost calculator rates
on www.ups.com.
About Newell Rubbermaid Technology
In a world that demands greater productivity and measures it at every
opportunity, Newell Rubbermaid’s global technology solutions provide
businesses, educational institutions, and consumers with innovative and easy
ways to share, manage and organize information with improved efficiency and
satisfaction.
Our global technology brands are organized into four platforms:
• The
Specialty Printing and Labeling Platform is comprised of DYMO® labeling,
postage printing and CD/DVD printing solutions
www.dymo.com
• The Analog
to Digital Platform is comprised of CardScan® business card scanners and
contact management software featuring CardScan At Your Service™ (www.cardscan.com),
and DYMO File™ software that turns paper documents into digital files (www.dymofile.com).
• The Internet Postage Platform is comprised of Endicia® online shipping and
mailing solutions, (www.endicia.com) as well as its customized postage
solutions (www.pictureitpostage.com).
• The Classroom Technology Platform is
comprised of mimio® interactive whiteboards and digital ink recorders
www.mimio.com .
These global technology brands complement the growing family of leading
Newell Rubbermaid brands including Calphalon®, EXPO®, Goody®, Graco®,
Irwin®, Lenox®, Paper Mate®, Parker®, Rolodex®, Rubbermaid®, Sharpie® and
Waterman®.
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