UPS, FedEx raise fees on heavy packages

A price hike caused by the changing landscape of e-commerce

UPS and FedEx are both raising prices for the new year, including a new $24 fee on packages that weigh in at more than 50 pounds.

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The companies are lowering the threshold for additional handling fees from 70 pounds, The Wall Street Journal reported.

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The UPS price hike started on Dec. 29, while Fedex's will start on Jan. 6.

"These changes will ensure that we continue to provide the level of service that our customers expect while responsibly managing capacity through our network," a FedEx spokeswoman said according to The Journal.

FedEx and UPS did not immediately reply FOX Business' requests for comment.

A FedEx driver in Fort Collins, Colorado, making deliveries.

The fee change means that the companies will make more money when consumers order items like televisions and furniture. Online shopping for such big-ticket items is becoming the new normal.

UPS said its prices will rise 4.9 percent on average as of Sunday.

The fee increase comes as companies like FedEx fight against e-commerce giant Amazon. FedEx promised to lap Amazon in 2021 during its quarterly earnings call earlier in December.

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"If you think about all the positive things we've said and that we're seeing, as we get into 2021, we will start lapping Amazon," executive Alan Graf said. "We will have a lot more of the sixth and seventh day on our belt and we're going to be delivering millions of packages on Sunday for the rest of this fiscal year rolling into 2021."

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