UPS imposes temporary shipping limits on some of its large retailers

UPS, the leading American multinational supply chain management and package delivery company, is reportedly imposing shipping restrictions on a number of its big retail customers owing to the increasing online shopping trend this holiday season.

According to the firm, the limitations would be effective from this week itself and would run all through the holiday season. Retailers had been informed of their shipping capacity in accordance to the novel shipping limits.

UPS is enforcing the limitations to make sure that it can effectively meet the needs of its customers, which includes medium and small-sized businesses that have been particularly hit hard by the COVID-19 pandemic. The shipping restrictions also come at a time where COVID-19 outbreak has impelled a greater number of customers to shop online, particularly for the holiday season.

As per Adobe Analytics, holiday gross sales for 2020 have broken all records. In fact, the gross sale of Thanksgiving Day soared up to approximately $5.1 billion, up nearly 22% in comparison to the previous year record. Meanwhile, Black Friday sales added up to $9 billion, with a 22% rise as well.

The shipping firm sated that it has agreed on some of the essential strategies with few of its retail customers, including completely utilizing weekend capacity, lining up vital promotional strategies with capacity, and moving package volume away from the heftiest demand shipping days.

Most of the package delivery services have struggled with the increase in shipment demands and have also started enforcing measures to deal with the rush. Some of the shipping services like USPS and FedEx have gradually increased their pricing premiums for the vacations and employed nearly thousands of temporary workers for managing shipments.

The shipping company stated that it has added 20 novel additional facilities as well as 14 extra airplanes for the peak season. The firm additionally expanded its weekend operations as well as the speed of its ground shipping.

Meanwhile, last weekend, Amazon reportedly brought in around $5 billion between Black Friday and Cyber Monday, with approximately 60% rise from previous year. The company used its own shipping service to deal with the surge.

Source credit: https://edition.cnn.com/2020/12/02/business/ups-shipping-ecommerce/index.html