Monday, May 9, 2011

Shipping Costs Going Up Industry Wide

If you've been doing any shopping online recently, you probably noticed a growing trend where the shipping or freight costs are going up. While not everyone online merchant is taking this approach, many are simply trying not to lose money on shipping. The truth is, most online office supply companies don't make money on shipping anyway.

What's driving delivery costs up? The rising costs of fuel. The delivery business is paying more for fuel so they are forced to raise their delivery rates. When these rates go up, it creates a trickle down effect for many online merchants as they are forced to either raise their prices, raise shipping rates, or raise both. No one really likes to raise both, so most opt to increase the costs associated with delivery.

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