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FEDEX REFUNDSUPS REFUNDS

2021 FedEx Price Increase Part 2: General Rate Increase (GRI)

By Last updated on: October 20, 2020

The 2021 FedEx Price Increase that will go into effect on January 4th, 2021. FedEx Express shipping rates will increase by an average of 4.9% for Domestic, Export, and Import services just as they did in 2020. In addition, FedEx Ground and Home Delivery rates will increase by an average of 4.9%. FedEx SmartPost shipping rates will also increase.

FedEx Freight shipping rates will increase by an average of 4.9% for customers who use FXF PZONE and FXF EZONE. Customers who use FXF 1000 and FXF 501 for shipments within the U.S. will see a 5.9% increase in rates.

2021 FedEx Price Increase

The chart above illustrates the 2021 FedEx price increase over the 2020 published rates for each domestic service. The largest increases are 2-Day and Express Saver packages. The increase is over 5% and these are the most common services for FedEx One-Rate.

Express Saver provides delivery to businesses by 4:30 p.m., and to residences by 8 p.m. in 3 business days. Many eCommerce sellers use this option to meet the demands of today’s online buyers. The Amazonification of buyers’ preferences fuels this shift from Ground to Express. In summary, “Amazonification” is real and it is causing sellers to spend more on shipping to remain competitive.

FedEx Ground Price Increases

The chart above illustrates the price increase in 2021 for FedEx Ground packages according to weight. The lowest average increase will be on packages weighing 100 to 150 pounds, just like 2020. Incidentally, these are not very common among our clients. In conclusion, the greatest increase is in one to ten-pound shipments.

Home Delivery Rate Increases

FedEx Home Delivery has the same rates applied as FedEx Ground packages. However, there is an additional charge involved since it is being delivered to a residence. Therefore, Home Delivery packages are billed as if they were Ground packages but will see a $4.35 residential surcharge on each package.

Since the residential surcharge went up this year, we also decided to analyze 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. will have the highest 2021 FedEx price increase. The increase mimics the higher zone increases as Ground and Home Delivery packages.

Other 2021 FedEx Changes

Effective January 18, 2021, there will also be additional changes.

  • Additional Handling Surcharge assessment criteria will change
  • FedEx Freight new fee: High-Cost Service Area Surcharge
  • International Out-of-Delivery-Area Surcharge
  • International Out-of-Pickup-Area Surcharge
  • FedEx will implement a late fee for invoices not paid according to approved payment terms

Minimize the Impact of 2021 FedEx Price Increase

Most companies will accept the 2021 FedEx price increase (GRI) without any hesitation. They simply transfer the additional logistics expenses to the client. This causes potential buyers to abandon a full shopping cart due to expensive shipping costs. Therefore, FedEx users need to approach price increases head-on. In addition, you can contact us at Refund Retriever to evaluate 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 then 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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