Shipping to customers will be more costly for merchants in 2024 as parcel services increase the number of addresses qualifying for DAS surcharges.
The two largest delivery services—FedEx and UPS—annually adjust the ZIP codes subject to DAS surcharges, removing some addresses and adding new ones. So far, it looks like far more ZIP codes will be added than removed for 2024.
DAS stands for ‘Delivery Area Surcharge,’ a per-package fee charged based on the receiver’s location.
They are charged for deliveries beyond a courier’s standard shipping area and are typically reserved for rural or remote locations.
Estimates suggest that between 2.73 and 2.9 million people will be added to DAS surcharges by UPS, and approximately 15,000 will be removed. UPS explained that it has increased DAS surcharges to cover the additional costs it bears.
It is unknown what changes FedEx will make, though experts predict they will follow suit.
So, what does this mean for merchants? It means delivering products to many US customers will be more costly in 2024.
With Sellercloud, merchants can choose from a wide range of shipping partners to always get the best rate when shipping to customers.
Moreover, you can even create shipping rules to automate deliveries based on custom predefined criteria.
Check out Sellercloud’s shipping features and Shipbridge, Sellercloud’s shipping app, built to centralize your multi-channel orders into a single platform where they can be easily fulfilled.