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UPS.N and FDX.N Are Rolling out New Pricing Systems to Curb Online Retailers' Packag Sizes

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Core Tip: United Parcel Service Inc (UPS.N) and FedEx Corp (FDX.N) are rolling out new pricing systems to curb online retailers' large package sizes, but

United Parcel Service Inc (UPS.N) and FedEx Corp (FDX.N) are rolling out new pricing systems to curb online retailers' large package sizes, but industry experts warn many small firms are unprepared and could pay up to 50 percent more for shipping.

This year, 7 percent of packages ordered online did not arrive by their promised delivery date, compared with 12 percent in 2013, according to a survey of 160 orders placed by retail-intelligence firm StellaService.

Really it started almost at the level of cold-calling, talking to people who really hadn't spoken to us in a long time," said Nagisa Manabe, who joined the USPS in May 2012 as chief marketing and sales officer from Coca-Cola Co after a career in the private sector. "And really trying to persuade them to consider us as a very viable alternative in the shipping market."

A late spike in demand last year caused by last-minute online promotions plagued express delivery companies. Some 2 million express packages were left stranded by delivery companies on Christmas Eve, according to shipment-tracking software developer ShipMatrix Inc.

 
 
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