Due to the COVID-19 pandemic, the eCommerce industry continues to see both incredible growth and significant stress on the physical network that powers it.
Labor costs for warehouses have increased, while new COVID-19 measures have lowered per-warehouse productivity. All major carriers have increased their shipping rates to meet higher demand for capacity and increasing operating costs. The result is higher cost throughout both warehouse and shipping networks. Deliverr must adapt pricing to this new environment to ensure we continue to provide sellers with leading fulfillment services.
Furthermore, all major carriers are starting 2021 with indefinite peak surcharge policies charging up to $4.00 per package. Currently, we are choosing not to add any surcharge costs to our sellers.
We will always do our best to protect sellers from the effects of cost increases. To that end, we are launching several new services and limiting price increases wherever we can.
Changes effective March 3rd, 2021
Deliverr will introduce the following new services and price changes. Fulfillment and storage pricing changes will take effect on March 3rd, 2021.
We are organizing our existing services into two groups: “Fast Tag” and “Non Fast Tag”. Sellers will have complete visibility on these renamed services and their respective pricing in the Seller Portal and Cost Calculator.
Fast Tag services
Fulfillment for orders in Deliverr’s Fast Tag programs belongs in this group. Under a given Fast Tag program, orders for a given SKU will follow the same price structure regardless of SLA (e.g., 3-day versus 2-day). Our Fast Tag services and their respective SLAs are listed below:
- Walmart Fast Tag / Standard
- This service applies only to Walmart orders with Standard delivery and Walmart orders with 2-day or 3-day delivery set by Deliverr via the Walmart 2-Day fast tag program.
- SLAs: Standard, 3-day, 2-day
- eBay Fast Tag
- Deliverr is introducing this new service that provides eBay fast tags on your eBay listings.
- SLAs: 4-day, 3-day
- Wish Fast Tag
- This service applies to Wish orders with 2-day delivery set by Deliverr.
- SLAs: 2-day
- Google Fast Tag
- This service applies to Google orders with 2-day or 1-day delivery set by Deliverr.
- SLAs: 2-day, 1-day
- Website Fast Tag
- This service applies to orders from Shopify, BigCommerce, and all ad fast tags.
- SLAs: 2-day, 1-day
Non Fast Tag services
Fulfillment for orders outside of Deliverr’s Fast Tag programs belongs in this group. Each delivery SLA in this group will have its own price for a given SKU. Our Non Fast Tag services are listed below:
- Standard (Non Fast Tag)
- 3 Day (Non Fast Tag)
- 2 Day (Non Fast Tag)
- 1 Day (Non Fast Tag)
- AK/HI/Other (Non Fast Tag)
- These orders are always fulfilled under a Standard SLA.
Upcoming price changes
Website and Google Fast Tag pricing
More than 70% of volume going through these programs will see no change in price. Average prices across all SKUs will only increase by 0.58%.
eBay Fast Tag pricing
We are introducing a new eBay Fast Tag that is significantly cheaper for lighter SKUs. We are removing multi-unit discounts for eBay orders in order to offer this cheaper price, which is up to 25% lower for lighter SKUs (e.g., phone cases).
Walmart Fast Tag pricing
Our Walmart Fast Tag prices have been updated as of April 9th, 2021. Please find details here.
Wish Fast Tag pricing
Wish Fast Tag pricing will increase for the majority of SKUs.
Non Fast Tag pricing
Non Fast Tag 2-day and 3-day orders will have the largest percentage price increases among Non Fast Tag orders. On average, pricing will increase by 15% and 16% for Non Fast Tag 2-day and 3-day SLAs, respectively. This is because fulfillment costs are higher when Deliverr does not manage fast tag coverage. We recommend using Deliverr’s Fast Tag services to increase coverage and minimize costs.
Fulfillment for Non Fast Tag Standard and 1-day orders will have more modest price changes. Non Fast Tag 1-day orders’ prices will decline by less than 1% on average, and Non Fast Standard orders’ prices will increase by 5% on average.
We heard your feedback, and we are significantly reducing our AK/HI/Other pricing. Prices for this service will decrease by 18% on average.
While we are striving to rapidly increase capacity within the Deliverr network, we want to ensure that space remains available for all Deliverr merchants. The January – September short term storage rate will increase from $0.72 per cubic foot per 30 days to $0.75 per cubic foot per 30 days.
In the coming months, Deliverr will begin charging the forwarding cost associated with inbound forwarding (i.e., ship to 1) shipping plans. The cost will be displayed in the Seller Portal when sellers create an inbound forwarding plan.
Three ways to view new pricing
We want to make sure these pricing changes are transparent. Here are three ways to view a SKU’s upcoming 2021 fulfillment prices.
On the Cost Calculator
The Deliverr Cost Calculator now displays the 2021 pricing.
On the Inventory page
The Seller Portal’s Inventory Page has a toggle to set Cost Previews to display the new 2021 pricing.
On the Inventory Detail page
The Inventory Detail pages have toggles that switch Cost Previews for individual SKUs between current and 2021 pricing.
These fulfillment and storage pricing changes will take effect on March 3rd, 2021.