Updated on March 10, 2022
Over the past year, we’ve invested in expanding the Deliverr fulfillment network—unlocking more regions for fast delivery and protecting our merchants from increasing labor and shipping costs. During that same time, both warehouse labor costs and shipping rates have been increasing in today’s inflationary environment, and we must adapt pricing to continue providing quality fulfillment services.
USPS’s 2022 rate changes include a 7.4% increase in First Class Package Service, a 2.7% increase in Priority Mail, and a 4.3% increase in Priority Mail Express. Additionally, major carriers are increasing rates by 5.9% and starting 2022 with indefinite peak surcharge policies charging $0.30 to $0.60 per package. Currently, we are choosing not to add any of the aforementioned surcharge costs to our prices.
Deliverr fulfillment pricing continues to be simple and transparent. It is all-inclusive of receive, pick, pack, packaging and shipping cost. There are no additional surcharges. The prices are nationwide (contiguous US) and do not depend on zone.
We always do our best to protect merchants from the effects of cost increases. To that end, storage prices will not increase, oversize SKUs complying with our ship-in-own-container requirement will see a reduction in price, and Fast Tag program orders will see limited increases and some reductions.
Changes Effective February 24th, 2022
Deliverr will charge using the following services and respective price changes.
Standard and Website Fast Tag services
For Standard orders outside of channels with channel-specific pricing (i.e., Walmart, eBay, Wish, Google, Target), prices increase by 4.6% on average. For Website Fast Tag orders (e.g., Shopify, BigCommerce), prices increase by 0.5% on average.
Wish, Walmart, Google, and eBay orders that previously ingested as “Standard (Non-Fast Tag)” now ingest as the combined “Fast Tag/Standard” rate to reflect our new, simpler flat shipping rate across all orders with or without Fast Tags (e.g., All orders from eBay are now assigned the ‘eBay Fast Tag/Standard’ rate). The shipping speed will still vary, depending on whether Fast Tags are applied.
Please note: Orders with the combined Fast Tag/Standard rate no longer qualify for the multi-unit discount.
For Fast Tag/Standard orders in specific channels (i.e., Walmart, eBay, Wish, Google), prices increase by 5.8% on average. For Target Standard orders, single-unit prices for small SKUs under a pound will decrease by 7.0%, but prices elsewhere will increase by 22.6%. These increases are to accommodate the limited shipping options allowed for shipping Target orders.
For non-Standard orders without a Deliverr fast tag, prices increase by 7.9% on average. For orders with a US destination outside of the contiguous US, prices will increase by 4.7% on average.
Introducing lower prices and revised fragile protection surcharges for oversized SKUs
What counts as an oversized SKU?
A SKU is oversized if:
• its weight exceeds 20 lbs, or
• its dimensions exceed 8” (length) x 14” (width) x 18” (height)
What is changing for oversized SKUs?
Since 2021, we’ve required oversized SKUs entering our network to be “Ready to Ship” (i.e., ship-in-own-container) without requiring additional overboxing. Previously, published prices in the Cost Calculator and Seller Portal cost previews did not assume oversize SKUs to be compliant with our “Ready to Ship” requirement. Now, these published prices assume oversized SKUs comply with this requirement. As a result, you’ll see a 12.0% average decrease in fulfillment pricing for oversized SKUs in the Cost Calculator and Seller Portal cost previews.
If we determine an oversized SKU requires boxing, we will box shipments containing the SKU, charge a surcharge to cover the boxing cost, and notify the merchant. Merchants can and should contact us if they believe there’s a mistake. In the future, we will provide prep services precisely to help merchants make their oversized SKUs ship-in-own-container.
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 2022 fulfillment prices.
On the Cost Calculator
The Deliverr Cost Calculator now displays the 2022 pricing.
On the Inventory page
The Seller Portal’s Inventory Page has a toggle to set cost previews to display the new 2022 pricing.
On the Inventory Detail page
The Inventory Detail pages have toggles that switch cost previews for individual SKUs between current and 2022 pricing.
The fulfillment pricing changes will take effect on February 24th, 2022.
Want to learn more about how these pricing changes might affect your business?
Our team of experts are here to answer any questions you may have. Contact us today at firstname.lastname@example.org.