Types of Shipping Surcharges and How to Avoid Them

Shipping costs can be unpredictable, and one of the biggest reasons is shipping surcharges—extra fees added by carriers based on package size, weight, delivery location, and more. Understanding these charges can help e-commerce businesses better manage costs and avoid surprises.

In this guide, we’ll break down the most common shipping surcharges and share tips on how to minimize these extra fees.

1. Fuel Surcharges

What it is:
Carriers like UPS, FedEx, and DHL apply fuel surcharges to account for fluctuating fuel prices. These fees vary based on current fuel costs and shipping zones.

How to reduce it:
✔ Use regional carriers that may have lower or no fuel surcharges.
✔ Optimize shipping routes to reduce distance and costs.

2. Residential Delivery Surcharge

What it is:
Shipping to a residential address (instead of a commercial location) often incurs a residential delivery fee, as it requires extra handling.

How to reduce it:
✔ Offer customers pickup locations (e.g., Amazon lockers, FedEx stores).
✔ Use USPS, which doesn’t charge extra for residential deliveries.

3. Oversize and Large Package Surcharges

What it is:
If your package exceeds certain dimensions or weight limits, carriers will charge extra for taking up more space.

How to reduce it:
✔ Use custom packaging to avoid unnecessary bulk.
✔ Work with carriers to negotiate rates for larger shipments.

4. Address Correction Fee

What it is:
If a customer provides an incorrect address, the carrier may charge a fee to update it during transit.

How to reduce it:
✔ Use address validation software to check for errors before shipping.
✔ Have a clear shipping policy that encourages customers to double-check addresses.

5. Delivery Area Surcharge (DAS)

What it is:
Shipments to remote or rural areas often come with extra fees due to the added transportation cost.

How to reduce it:
✔ Use alternative carriers like USPS for rural deliveries.
✔ Offer shipping incentives for customers to choose pickup locations in urban areas.

6. Saturday Delivery Surcharge

What it is:
Carriers charge extra for deliveries scheduled on Saturdays, as weekend operations require additional resources.

How to reduce it:
✔ Encourage customers to choose weekday deliveries.
✔ Use USPS Priority Mail, which often delivers on Saturdays at no extra charge.

7. Signature Requirement Fee

What it is:
Some shipments, like high-value orders, require a signature upon delivery, which comes with an extra fee.

How to reduce it:
✔ Offer customers the option to opt out of signature delivery unless necessary.
✔ Work with carriers to include signature confirmation only for high-risk orders.

8. Peak Season Surcharge

What it is:
During holiday seasons or high-demand periods, carriers increase rates due to higher shipping volume.

How to reduce it:
✔ Plan ahead and ship early to avoid peak pricing.
✔ Offer early holiday promotions to spread out order volume.

Cut Down on Surcharges with ShipCarte

Shipping surcharges can add up quickly, but choosing the right shipping strategy can help reduce unnecessary fees.

🚀 Let ShipCarte help you find the most cost-effective shipping options. Contact us today to optimize your fulfillment and keep shipping costs low!