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.
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
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.
