Happy Q3, Nice Folks!
Peak season is about to crank into full swing, which means rising carrier costs and shipping cutoffs are right behind.
We’ve been digging into carrier changes and Q4 trends to give you a clearer picture of how costs may shake out and what levers you can pull to protect your margins.
Below's what’s new, what to watch for, plus a new tool we're developing to help you better manage label costs:
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Holiday Carrier Surcharges 📪
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UPS, FedEx, and USPS all roll out their holiday shipping surcharges in October (Heads up, USPS kicks in this week.)
These universal fees are layered on top of regular processing, shipping, and handling costs to account for peak-season volume.
The actual surcharge depends on a few factors, like ship date, destination zone, and package weight, but on average, you can expect domestic rate increases between 5–6.5%.
We cover 2025 surcharges in more depth here, but below is a quick look at what each carrier is implementing this year:
USPS: October 5, 2025 - January 18, 2026 - Increases vary by weight, cubic tier, and zone. Packages under 10 lbs will see base increases of about $0.30–$0.75 for Ground Advantage and $0.30–$1.25 for Priority.
UPS: October 26, 2025 - January 17, 2026 FedEx: October 27, 2025 - January 18, 2026 - Increases vary by date range, with the steepest hikes between November 24–December 28. Ground packages will rise $0.40–$0.65, while Priority and Overnight services will see $1.05–$2.10 increases.
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Over the last few months, our accounts team has been building a new reporting resource to give you clearer insight into your average monthly label costs, helping to ensure you're charging (and saving) based on the most up-to-date data.
Starting in 2026, these reports will automatically be shared as part of your monthly invoice overview.
In the meantime, if you’d like to see what adjustments can be made now before the Q4 shipping frenzy really takes off, schedule a review with your Account Manager. They'll walk through current numbers and help you determine what carrier mixes, automation rules, or checkout pricing best protect your margins and customer experience.
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Over the last few months, our accounts team has been building a new reporting resource to give you clearer insight into your average monthly label costs, helping to ensure you're charging (and saving) based on the most up-to-date data.
Starting in 2026, these reports will be automatically shared as part of your monthly invoice overview.
In the meantime, if you’d like to see what adjustments can be made now before the Q4 shipping frenzy really takes off, schedule a review with your Account Manager. They'll walk through current numbers and help you determine what carrier mixes, automation rules, or checkout pricing best protect your margins and customer experience.
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Making Free Shipping Work 💸
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In the past few years, carrier costs have climbed steadily. Since 2024, USPS alone has made three permanent rate increases. FedEx has made two.
Despite these increases, we've seen many brands still working off retail pricing models built years ago, when shipping was much cheaper. AKA, if you haven’t recalculated what you’re baking into your product costs lately, you're likely losing more profit to shipping than you realize.
Small intentional tweaks can go a long way in protecting your bottom line without disrupting your customer experience. Here are some of our tips: Adjust your free-shipping threshold. Don’t just consider AOV - factor in today’s full product costs too. Even a small increase in your threshold can help offset carrier hikes. Rethink your carrier mix. Most consumers still prefer “free” over “fast,” so consider tying your free shipping offer to the lowest-cost service, even if delivery takes a few extra days. You can also automate which service level applies based on cart totals. Test realistic paid options. Trends are showing more and more customers are willing to cover shipping, especially when they’re shopping last-minute and need the order quickly. Test different expedited pricing options in Q4 so you know what works best going into 2026.
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Click to photo to enlarge
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USPS, FedEx, and UPS have officially announced their 2025 shipping cutoffs by service to help ensure packages arrive at customers by Christmas Day. All deadlines can be found here.
Nice Tip: Think of these cut-offs as “best case” scenarios, but plan for delays. To protect your customers (and your sanity), bump back your “order by” date by at least one extra business day to give packages the best shot at arriving on time.
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That's all for now, folks!
As always, your Account Manager is here to help you make sense of current rate changes and fine-tune a Q4 shipping strategy before November sales take off. Don't hesitate to reach out or set up a call!
Grateful to be your fulfillment partner,
- The Nice Team
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© Nice Commerce. All Rights Reserved. 7791 Palmetto Commerce Pkwy Suite A, North Charleston, United States, 29420 No longer want to receive these emails? Unsubscribe here.
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