Uncertain Times, Skittish Consumers, and the Impact on Shipping Costs
Why It Matters
Understanding that hidden fees and delivery‑window expectations drive most shipping costs empowers businesses to cut expenses, protect margins, and meet consumer expectations in a volatile market.
Key Takeaways
- •Consumers prioritize delivery window and cost over ultra‑fast shipping.
- •Shipping costs rose 30‑40% since 2018, driven by hidden fees.
- •AI‑powered platforms like EasyPost optimize carrier selection and reduce expenses.
- •Demand is fragmented: shoppers shift spending to beauty, health, niche brands.
- •Last‑mile failures now account for 53% of total shipping costs.
Summary
The episode of Supply Chain Now tackled the volatile mix of uncertain macro‑economics, skittish consumer behavior, and soaring shipping expenses. Host Scott Luton and guest Lori Ber of EasyPost explored why today’s shoppers care more about receiving packages at the promised time and price than about ultra‑fast delivery, and how that reshapes logistics priorities. Key data points surfaced: carrier base rates rose about 5.9% in 2026, but total shipping costs have jumped 30‑40% since 2018, largely due to hidden accessorial fees such as fuel surcharges, residential handling, and dimensional weight charges. Consumer demand is uneven—about a third of shoppers are trading down, while spending on beauty, health and niche premium items remains resilient, creating a “barbell” effect that complicates forecasting. Lori highlighted EasyPost’s AI‑driven marketplace that aggregates over 100 carriers, enabling real‑time rate comparison, optimal routing, and automated label printing. She noted that 53% of shipping spend now sits in the last mile, up from 41% a decade ago, and that roughly 8% of first‑attempt deliveries fail, inflating costs further. Tevin added that network designs built for average volumes crumble under promotional surges, forcing expensive expedited shipments. The takeaway for shippers is clear: focus on delivery windows, improve packaging and zone decisions, and leverage AI platforms to cut hidden fees and boost margin. By treating the last mile as a cost center rather than a differentiator and aligning marketing promotions with operational capacity, companies can navigate today’s volatility without sacrificing profitability.
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