Pitney Bowes announced Friday it will implement a 6.5% general rate increase for its e-commerce services, adding to the list of delivery service providers rolling out larger hikes than in years past.
The rate increase is effective Jan. 1, 2023, and applies to:
- Standard Delivery of parcels weighing 1 pound or more through Pitney Bowes' U.S. domestic network
- Standard Returns through Pitney Bowes' U.S. domestic network
- Cross-Border Delivery Services to more than 100 countries
The increase is larger than the 5.9% general rate increase Pitney Bowes implemented in 2022 for its e-commerce services. Next year's pricing will allow the shipping and mailing company to maintain capacity and performance levels while continuing to make technology investments, said Patrick Allard, chief revenue officer for Global Ecommerce at Pitney Bowes, in a statement.
“Pitney Bowes is offering a lower [general rate increase] than other major carriers, while continuing to deliver designed services with a nationwide scope, highly responsive client teams, and transparent, easier-to-forecast pricing," Allard said.
Parcel delivery giants UPS and FedEx will soon be increasing their rates by an average of 6.9%, a larger jump than last year that executives attribute in part to inflation. UPS' rate hike will take effect Dec. 27, while FedEx's will take effect Jan. 3, 2023.
Domestic parcel volumes declined YoY in Q3 for Pitney Bowes, which it attributed in part to softer e-commerce activity. The company expects YoY growth in Q4 parcel volumes, driven by new clients and growth from existing customers.