Concern over carrier surge pricing at Peak
A report from Mintsoft claims surge pricing could dampen the profits of thousands of warehousing and logistics firms across the UK.
ACCORDING TO the E-commerce Peak Season Benchmark Report 2024 from order fulfilment software provider, Mintsoft, a third of firms in the supply chain sector (32%) saw their carrier costs jump in November last year compared to the previous month.
A quarter reported that these costs grew by nearly 25% during Black Friday Week – from an average of £3.50 to £4.37 per item.
Carriers typically apply a peak season surcharge between mid-November and early January to manage the high demand over Black Friday, Christmas and the January sales. But with many consumers expecting free or low-cost shipping on purchases, retailers and fulfilment companies need to minimise these costs, otherwise they’ll have no choice but to absorb the price hike and take the hit on their margins.
Starlinks Global managing director Beth Chapman, says: “The bad behaviour of profiteering from some carriers that goes on during the peak season is frustrating. Retailers are struggling with price pressures and we should be working together to grow volume in a sustainable way. Not hiking prices as soon as it turns October 1st.”
The report is available here: https://www.mintsoft.com/e-commerce-peak-season-benchmark-report/
