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FEDEX REFUNDSUPS REFUNDS

2023 FedEx Rate Increase Part 2: General Rate Increase (GRI)

By Last updated on: November 30, 2022

The 2023 FedEx general rate increase goes into effect on January 2th, 2023. FedEx Express shipping rates will increase by an average of 6.9% for Domestic, Export, and Import services.  The 6.9% increase is the highest increase in years above the annual increase of 4.9%. FedEx SmartPost shipping rates will also increase; we will explore those increases in a future blog.

2023 FedEx General Rate Increase

The chart above illustrates the 2023 FedEx price increase over the 2022 published rates for each domestic service. The largest increases are 2-Day A.M. and Express Saver packages. The increase is over 8%, the same as in 2022.

Express Saver delivers businesses by 4:30 p.m. and residences by 8 p.m. in three business days. Many eCommerce sellers use Express Saver to meet the demands of today’s online buyers. The Amazonification of buyers’ decisions fuels the shift from Ground to Express. In summary, “Amazonification” is authentic, causing sellers to pay more on shipping to remain competitive.

FedEx Ground Price Increases

The chart above illustrates the price increase in 2023 for FedEx Ground packages according to weight and zone. The higher the zone, the higher the effective price increase.

Home Delivery Rate Increases

FedEx Home Delivery has identical rates as FedEx Ground packages. But, there is an additional charge since the final delivery is to a residence. Therefore, Home Delivery packages are billed as if they were Ground packages but will see an additional $5.15 residential surcharge.

Since the residential surcharge went up this year, we also analyzed the price increase with this fee applied. As you can see, the numbers do change, and Home Delivery packages have a higher rate increase than Ground packages.

FedEx Express Rate Increases

The chart below shows the average price increase for all zones and weights for each Express domestic service. As you can see, the Second Day and Express Saver package increases are the highest.

As it is evident by all the charts, FedEx 2-day A.M. and Express Saver have the highest 2023 FedEx Rate Increase. The increase mimics the higher zone increases as Ground and Home Delivery packages.

2023 FedEx Minimum Charges

2023 FedEx Minimum Charges

Other 2023 FedEx Changes

Additionally, look out for the following changes:

  • FedEx will increase the late payment fee to 8% for invoices not paid on time.
  • Oversize packages will incur an additional charge of $135 – $200.
  • FedEx Home Delivery residential surcharge will be $5.15 per package.
  • A Delivery Area Surcharge of $13.25 per package will be applied to domestic shipments for select ZIP codes within the contiguous U.S. that are designated as Remote.

Minimize the Impact of the 2023 FedEx General Rate Increase

Most companies will accept the 2023 FedEx General Rate Increase (GRI) without any hesitation. They simply shift the additional logistics expenses to the client. This prompts potential buyers to abandon a full shopping cart due to exorbitant shipping costs. Therefore, FedEx users need to address price increases head-on. In addition, contact us at Refund Retriever to assess your shipping needs and help with full contract negotiation.

Read more about the FedEx accessorial rate increases here.
Brian Gibbs

Author Brian Gibbs

More posts by Brian Gibbs

Brian Gibbs | President of Refund Retriever

Brian Gibbs founded Refund Retriever in 2006 while running his first eBay-based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur, and other publications discussing parcel auditing, shipping, e-commerce, and more. Learn more at www.refundretriever.com or call (800) 441-8085 for more information.

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