The seasonal surcharge at courier companies

A bogeyman or an opportunity? Every year at around this time we get asked (not only by our e-shop owners) whether those couriers are serious, how the e-shop is supposed to cope with the increased costs, and what customers will make of it – will they buy, or leave because of the higher shipping price? Our managing director Tomáš looked at the seasonal surcharge from various angles and wrote down a few observations on how best to deal with it.

The season is at the door and after this year's declines many are curious how it will turn out. Everyone's costs are rising and sales are uncertain. On top of all that, this is also the time when carriers add a seasonal surcharge. Although each of them approaches applying it individually, in different periods and in different amounts, it affects large and small e-shops alike.

What are the options?

1) Absorb the whole increase at your own expense.

2) Pass part of it into the shipping price and absorb the rest.

3) Hide the increase in the price of the goods.

4) Pass the increase on to the customer, either fully or partly, as a separate surcharge.

5) Switch to a carrier that does not charge a seasonal surcharge at all, or charges a smaller one.

In my experience the fourth option is the one used by the fewest e-shop owners. That is a shame, because this option has several advantages:

• You do not have to cut into your margin, or only partly.
• You do not have to deal with implementing a new carrier (which also costs money) and wait to see whether they handle the season as well as your current one. Shoppers are especially sensitive about the delivery of their orders at Christmas.

• If you explain to shoppers simply and clearly that this is a separate, temporary surcharge meant to ensure the quality, reliability and speed of their order's delivery, you can increase their trust and their motivation to complete the order despite the small extra charge.

• Plenty of e-shops already use this method, just in a different context. For instance a surcharge for extending the warranty, for the option to return goods later after purchase, a contribution to eco-friendly packaging, tree planting and so on.

Open communication wins you customers' trust, and even with the extra surcharge you are building a relationship with your carrier.

We are not going to claim we are thrilled about the surcharge. Nobody likes paying more, after all. On the other hand, if the higher price is justified and brings quality into the logistically demanding Christmas period, when everyone expects it as standard, then as far as we are concerned it is quite OK and acceptable.

How do you see the seasonal surcharge? Share your experience in the comments on our social media, whether as an e-shop owner wrestling with the seasonal surcharge or as a shopper who pays for the transport. Your experience can help others :)