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Pitney Bowes announced on Friday that it will introduce an across-the-board rate increase of 6.5% for its e-commerce services, adding to the list of delivery service providers making bigger increases than in previous years.
The tariff increase will come into effect on January 1, 2023 and will apply to:
- Standard delivery of packages weighing 1 pound or more via the Pitney Bowes domestic network in the United States
- Standard returns via Pitney Bowes US domestic network
- Cross-border delivery services to more than 100 countries
The increase is larger than the overall 5.9% rate increase that Pitney Bowes rolled out for its e-commerce services in 2022. Pricing next year will allow the shipping and postal company to maintain capacity and performance levels while continuing to invest in technology, Patrick Allard, chief revenue officer for global e-commerce at Pitney Bowes, said in a statement.
“Pitney Bowes is offering a lower price [general rate increase] than other major airlines, while continuing to offer designed services with nationwide reach, highly responsive customer teams and transparent, more predictable pricing,” said Allard.
Parcel delivery giants UPS and FedEx will soon increase their rates by an average of 6.9%, a bigger jump than last year that executives blame in part on inflation. UPS’s rate hike will go into effect on December 27, while FedEx’s will go into effect on January 3, 2023.
Domestic parcel volume fell YoY in Q3 for Pitney Bowes, due in part to weaker e-commerce activity. The company expects YoY Parcel volume growth in Q4, driven by new customers and growth from existing customers.