Are holiday shipping surcharges eating your profits alive?
The answer: Probably. And here’s why …
The peak shipping season runs from September 2025 to January 2026, and both FedEx and UPS are cranking up the pressure.
For small and medium-sized businesses, these extra fees don’t just sting, they also seriously put a dent into holiday profits when shipping volume hits its peak.
As someone who sees these impacts firsthand, I can certainly say that these seasonal increases impact businesses of every size – but it is the small and medium-sized businesses that feel the squeeze the most.
Luckily, in time for the jolly season, there is some good news. You don’t have just to grin and accept these higher costs. With the right shipping solution like Zenventory Shipping, you can keep more of your holiday revenue where it belongs … in your pocket. So, let’s dive into exactly how FedEx and UPS’ peak season pricing works and the smart strategies you can use to counter them.
Peak season shipping fees have gotten sneaky. The increasingly complex fee structures make understanding these costs no longer optional, but essential for protecting your bottom line.
Speaking of …
Shipping surcharges can be like silent assassins to your bottom line. According to the Bloomberg report, some retailers see extra charges making up as much as 50% of total shipping costs. Let that sink in for just a moment … half of what you’re paying to ship isn’t even the actual shipping cost.
These holiday shipping fees create unpredictable expenses that mess with budget forecasting and make accurate profit margin calculations nearly impossible.
Also, those surcharges that once appeared only during peak seasons? They have evolved into a year-round cost. Therefore, what used to be a temporary holiday fee is now a permanent fixture in the pricing structures throughout the year.
FedEx has announced that its peak season will run from September 29, 2025, through January 18, 2026. They are also using a phased approach this time around, meaning that the highest fees will hit during the “peak of peak” period from November 24 to December 28.
Here’s a look at some of the notable FedEx surcharges:
And now that UPS has dropped its 2025 peak season pricing, we can see that (as always) the two mirror each other’s holiday shipping playbook …
UPS’ peak season surcharges come into effect starting September 28, 2025, and run through January 17, 2026. Similarly to FedEx, expect UPS’s highest surcharges from November 23 to December 27 (right when holiday shipping madness hits its stride).
Also, here are the key UPS surcharges of note:
Both major carriers have switched to a three-period approach for surcharges instead of the old single-rate system they used before. What does this mean? It means that different rates kick in at different times between September and January.
Small and medium-sized businesses feel these holiday surcharges way more than large enterprises. With tighter profit margins and limited shipping volume, they often can’t negotiate the sweet discounts that large businesses enjoy.
Even worse? Small and medium businesses frequently can’t risk passing the full shipping cost to their customers without losing sales. This forces many to eat these costs during their busiest selling season (which is the worst timing possible).
You don’t have to accept these costs.
Here’s where Zenventory Shipping steps in … Zenventory Shipping helps businesses navigate these complex surcharges with the help of intelligent rate shopping and carrier selection, giving access to prices that are typically reserved for larger enterprises.
Okay, so here’s the thing about peak surcharges … Those fees add up fast, but you can fight back. Zenventory comes loaded with built-in features specifically designed to combat these seasonal price hikes. And trust me, you’re going to want to know about these …
No more guessing. No more overpaying.
Forget manually checking each carrier’s rates like it’s 2005. Zenventory automatically compares shipping options across multiple carriers in real-time. That way, you get the most cost-effective method for shipping each package instantly.
Zenventory connects with all major carriers, giving you the freedom to pivot whenever you need it. Also, since each carrier implements different peak season timelines and surcharge structures, this flexibility can be a huge help.
Also, with multi-carrier support, you’re never locked into a single carrier’s pricing model. That means that you can switch from FedEx to UPS (or vice versa) whenever a better rate appears.
Even better? Some shippers have seen upwards of 35% in cost savings when they ship to a multi-carrier approach. Not too shabby.
Time equals money. This is especially true during the holiday rush.
Zenventory’s batch processing lets you prepare and print hundreds of labels simultaneously instead of processing orders one by one.
What does this mean for you? You’ll spend less on labor, have more time to make smart shipping choices, and pack orders together better.
Unlike systems that charge per user (seriously, who thought that was a good idea?), Zenventory allows your entire team to access the platform without additional fees.
That means your entire team can collaborate to identify the most cost-effective shipping options while handling increased holiday volume.
Proactive planning makes all the difference when facing these holiday price hikes. So, what are we waiting for? Let’s get to planning!
Your shipping history tells a story. Start digging into your previous holiday shipping patterns and look at which carriers performed the best for specific delivery zones and package types. Shipping data should be even more current than order data as it provides valuable macroeconomic insights. And (pssst ...) here’s the real key …
Identify which carriers shifted to weight-based pricing and how that affected your costs. This intel will help you make smarter choices this season instead of repeating expensive mistakes.
Hot tip: Clear shipping deadlines prevent customer disappointment.
Add purchase-by dates prominently on your website and send email reminders about cutoff dates. With only 17 operational days between Black Friday and Christmas, setting proper expectations isn’t only optional, it’s critical in making sure your customers can set their delivery expectations.
Running out of shipping supplies during peak season? That’s a rookie mistake that creates unnecessary delays.
Order your labels, packaging materials, and carrier-specific supplies well before September hits, especially this year, with 2025 tariff changes driving up costs across the board.
New import taxes on packaging materials like paper, aluminum, and plastics also mean you’ll see fewer items in stock and higher prices sooner and more often. Some businesses are also reporting packaging expenses up 10–25% thanks to fresh tariffs on Chinese imports and a new round of universal duties.
Therefore, stocking up now isn’t just about beating the holiday rush, it’s needed to avoiding supply chain issues, unexpected delays, and higher prices. Stores have begun buying ahead to secure prices before tariffs kick in, but expect smaller stocks and fewer sales later on as the effects spread.
Here’s where smart planning pays off big time …
Get Zenventory up and running at least 30 days before peak season begins to give your team time to get comfortable with its rate shopping tools and multi-carrier options before peak season surcharges really kick in.
Ready to take control of your peak season shipping costs? Let Zenventory show you how much you could save. Book a free demo today!