Dive Brief:

• United Parcel Service Inc.’s CEO David Abney said that the shipper has been working hard to staff up and work with retailers to avoid delivery problems, but warned retailers against advertising last-minute orders for the holidays.

• UPS may charge a hefty premium or even refuse business if late holiday sales can’t be handled, Abney warned. FedEx has similarly said it may turn down business that is based on unrealistic retail fulfillment.

• A record number of holiday shoppers made online purchases last year that pushed the boundaries of “last minute,” in part based on retailers’ promises. Many, mortifyingly to all involved, didn’t make it to consumers’ doorsteps on time. 

Dive Insight:

Last year, retailers like Amazon and UPS found themselves offering refunds to dismayed and angry customers who didn’t get their packages in time for the holidays; Amazon and other retailers blamed shippers for the failures.

UPS would like to avoid that situation altogether, and is putting retailers on notice that they’ll pay, or even fail to get their packages delivered, if they cut it too close. Some retailers, however, are apparently willing to play with fire.