Understanding your business’s cost structure and choosing the right strategy are crucial steps toward achieving your profit goals. Many pricing plans exist, which is why it may be wise to experiment until you find a strategy that is the most effective for your repair business. In the year 2021, you can expect many things to change in the cellphone repair industry. With COVID-19, many repair businesses have started practicing product shipping. So, there’ll be some shipping rate changes, which may factor into both your shipping strategy and pricing strategy for 2021.
One main reason is that every year shipping carriers review their pricing and adjust 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.
USPS (United States Postal Service)
Effective from the date January 24, 2021, rates for the following USPS shipping services will increase:
- Priority Mail—approximately 3.5% increase
- Priority Mail Express—1.2% increase
- First-Class Package—6.5% increase
- Parcel Select—4.9% increase
In 2021, retail prices for USPS services will increase by an average of 4.9%. The increases came two months after FedEx’s announcement of its upcoming rate increases. Nothing unusual here as both carriers have routinely announced increased rates and rolled out new surcharges despite posting record earnings at the end of the year.
Citing the impact of COVID-19 and the surge in residential deliveries, carriers are stating the pandemic as the major cause of overall increased rates. They mention the extremely high demand for capacity as they experience increased operating costs across their networks to justify the rate increases. It would seem obvious that both carriers will use surcharges to ensure that they can maintain profits and continue these profits into the next year as they have in past yearly increase announcements.
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. To find a particular country’s price group, click here.
UPS (United Parcel Service)
Effective from the date December 27, 2020, UPS published rates will increase by an average of 4.9%. Shipping surcharges and fees changes may apply to your shipment and affect your total shipping rate.
The ZIP Codes for which Area Surcharges apply will change. These include Delivery Area Surcharge, Extended Area Surcharge, and Remote Area Surcharge.
When things get busy or you don’t have enough time, you may need various options to get packages out the door. UPS continues to expand on a wide range of pickup options and convenient drop-off locations.
Effective from the date January 1, 2021, DHL will implement its shipping rate changes. In 2021, DHL Express retail prices will increase by an average of 4.9% for their DHL Express Worldwide shipping service.
Effective from January 11, 2021, Canada Post retail prices will increase by an average of 3.9% domestically and 1% to the USA and internationally. With Shopify Shipping, save up to 52% off retail prices for Canada Post shipping rates.
Review your repair store’s shipping strategy and adjust accordingly
While your existing shipping strategy can be adjusted to account for the rate changes taking effect in 2021, this may also present an opportunity to rethink your shipping strategy from the ground up. If none of the above-mentioned modifications fit with your conversion rates, it may be time to consider testing a new strategy.
We, at RepairDesk, care about you and your repair business. Standing with you in every difficulty, we are offering our repair POS software to help you in your repair business. You can always contact us and use our services in a free 14-days trial. We are in this together, folks!