Dive Brief:

• FedEx Corp. will take into account bulk as well as weight for its ground-package shipping services, which could translate into shipping increases for at least one third of its ground shipments in the United States.

• Before the change, only packages measuring three cubic feet or more triggered higher shipping fees. Actual increases will vary according to a retailer’s deal with the shipping company.

• UPS could seek a competitive edge by declining to join FedEx in the increase, but traditionally the two shippers have followed each other’s suit in these matters.

Dive Insight:

This increase will have a major impact on retailers, especially those moving toward the lower-cost and free shipping that consumers have demanded. In fact, any retailer working to expand its e-commerce operations will have to decide whether to charge more for shipping, or let the increase eat into the bottom line. This is a tale of woe for retailers, except, perhaps, for brick-and-mortar stores.