Rate Changes

Overview

EFS pricing may change periodically due to carrier rate adjustments, operational costs, material prices, and other factors. This guide explains how rate changes work, how you’ll be notified, and what options you have when rates change.

How Rate Changes Work

EFS’s Right to Adjust Rates

Per the Master Services Agreement:

EFS may change pricing at any time with 30 days prior written notice.

Rate changes may occur due to:

• Carrier rate increases (USPS, FedEx, UPS typically adjust annually)
• Fuel surcharge fluctuations (monthly changes by carriers)
• Peak Season rates
• Material cost increases (packaging, supplies)
• Operational cost adjustments
• Labor cost changes
• Market conditions

Types of Rate Changes

Carrier-Driven Changes

• Shipping rate increases from USPS, FedEx, UPS
• Fuel surcharge adjustments
• New carrier surcharges or fees
• These are pass-through costs EFS cannot control

Material Cost Changes

• Packaging materials (boxes, envelopes, poly mailers)
• Packing supplies
• Labels and printing materials
• Based on supplier pricing

Service Fee Changes

• Storage rates
• Pick and pack fees
• Labor rates for additional services
• Standard support fees

How You’ll Be Notified

Notification Methods

EFS will notify you of rate changes through:

1. Email notification to your registered email address
2. Fulfillment Control Panel welcome page message
3. Posted announcements on our support site

30-Day Notice Period

Timeline:

Day 1: Rate change announced

Days 1-30: Review period – old rates still apply

Day 31: New rates take effect

Example:

• Announcement date: December 1, 2025
• Review period: December 1-30, 2025
• Effective date: January 1, 2026

What the Notification Will Include

Rate change notifications will specify:

• Effective date of the change
• Which rates are changing (storage, fulfillment, shipping, etc.)
• Current rates vs. new rates (comparison)
• Reason for the change (if applicable)
• Where to find updated rate sheets

Your options if you disagree with changes

Your Options When Rates Change

Option 1: Accept the Changes

If you take no action within 30 days:

• You automatically accept the new rates
• New rates apply starting on the effective date
• Your agreement continues under the new pricing

This is the most common scenario – most rate changes are modest carrier adjustments or cost-of-living increases.

Option 2: Object to the Changes

If you disagree with the rate changes:

1. Submit written objection via Zendesk within 30 days
2. Specify which rate changes you’re objecting to
3. Explain your concerns

What happens next:

• Your Client Care Account Specialist will contact you
• May discuss your concerns and options
• May offer alternative solutions or custom pricing

Important: EFS reserves the right to terminate the agreement without cause or penalty if you object to pricing changes.

Option 3: Terminate Services

You may terminate your agreement at any time without cause.

If rate changes make EFS services no longer viable for your business:

1. Provide written notice via Zendesk
2. Arrange for removal of your inventory
3. Pay all outstanding invoices
4. See MSA Section 6 for complete termination terms

Carrier Rate Changes

Annual Carrier Increases

Most carriers adjust rates once per year:

USPS

• Typically increases rates in January or July
• Usually 3-6% average increase
• Affects all USPS services

FedEx & UPS

• Typically increases rates in January
• Usually 4-7% average increase
• May include new surcharges

When carriers increase rates:

• EFS updates shipping rate tables
• You’re notified of changes
• New rates reflected in official Shipping Rates page

Fuel Surcharges

Fuel surcharges change weekly:

How they work:

• Carriers set fuel surcharges based on national fuel price index
• Updated weekly by each carrier
• Applied as percentage of base shipping rate
• EFS passes these through at actual carrier rates

These are not controlled by EFS – they are mandatory carrier charges that fluctuate with fuel prices.

You can monitor carrier fuel surcharges:

• USPS Fuel Surcharge
• FedEx Fuel Surcharge
• UPS Fuel Surcharge

Material Cost Changes

Packaging Materials

Packaging costs may change based on:

• Supplier price increases
• Raw material costs (cardboard, plastic, etc.)
• Shipping costs for receiving packaging supplies
• Availability and supply chain factors

Current pricing: 2025 Packaging Price List

When packaging costs change:

• Updated pricing list posted
• 30-day notification (if significant changes)
• May be incremental adjustments without notice for minor changes

Custom Packaging

If you provide your own packaging materials:

• Material costs are yours to manage
• You control when to adjust based on your supplier pricing
• EFS labor rates for using custom packaging may still change

Service Fee Changes

What May Change

Storage Rates

• Bin storage rates
• Overflow storage rates
• May adjust based on SKU count tiers

Fulfillment Fees

• Pick fees
• Additional item fees
• Standard client support fee

Labor-Based Services

• Hourly/half-hourly labor rates
• Kitting and assembly
• Receiving and prep services
• Returns processing
• FBA prep services

Notification Process

For service fee changes:

• 30-day advance notice provided
• Reason for change explained (when applicable)
• Comparison of old vs. new rates
• Effective date clearly stated

Monitoring Rate Changes

Stay Informed

Best practices:

• Check your email regularly for rate change notifications
• Review FCP welcome page for announcements
• Monitor the EFS Support Site for updates
• Keep contact information current in your account

Subscribe to notifications:

• Ensure billing contact email is correct
• Add team members to email notifications if needed
• Check spam folders for EFS communications

Review Official Pricing Pages

Check these pages periodically:

• 2025 Shipping Rates – Current carrier rates
• 2025 Packaging Costs – Materials pricing

These pages are updated when rates change and always reflect current pricing.

Budget Planning

When you know rate changes are coming:

• Update your cost projections
• Adjust retail pricing if needed
• Review profit margins
• Consider cost optimization strategies
• Communicate with your team

Historical Rate Changes

This section will be updated as rate changes occur. Check back for announcements and effective dates of pricing adjustments.

Recent Rate Change Announcements

Announcements will be posted here when rate changes occur, including:

• Date of announcement
• Effective date
• What’s changing
• Reason for change
• Links to updated rate sheets

Frequently Asked Questions

How often do rates change?

Carrier rates: Typically once per year (January for FedEx/UPS, January or July for USPS)

Fuel surcharges: Weekly, based on carrier fuel price indexes

EFS service fees: Varies – may be 1-2 years between changes, or as needed based on operational costs

Material costs: As supplier pricing changes, typically with 30-day notice for significant changes

Can I lock in rates long-term?

Standard agreements do not lock in rates. For custom pricing or rate guarantees, contact your Client Care Account Specialist to discuss options.

What if I have custom pricing?

Custom pricing agreements may have different terms. Review your specific Pricing for Services (PFS) sheet and contact your Client Care Account Specialist about how rate changes apply to your custom agreement.

Do rate changes apply to orders already placed?

Rate changes apply to services performed on or after the effective date, regardless of when orders were originally placed.

Example:

• Rate change effective: January 1, 2026
• Order placed: December 30, 2025
• Order ships: January 2, 2026
• New rates apply (service performed after effective date)

What if carriers raise rates mid-contract?

Carrier rate increases are pass-through costs. EFS will notify you of carrier changes and update rate sheets accordingly. These changes may occur outside the normal 30-day EFS rate change notification process since they’re imposed by carriers.

Can I get a discount if rates increase?

Rate increases typically apply to all clients. However, you can:

• Discuss concerns with your Client Care Account Specialist
• Inquire about volume discounts if your volume has increased
• Explore cost optimization strategies
• Consider custom pricing if you have significant volume

Cost Management During Rate Changes

Strategies to Offset Rate Increases

Optimize Operations

• Review and reduce storage by removing slow-moving SKUs
• Improve packaging efficiency to reduce dimensional weight
• Use rate shopping shipping codes
• Consolidate inventory shipments

Adjust Your Pricing

• Pass appropriate cost increases to customers
• Review profit margins and pricing strategy
• Consider shipping cost calculations in your retail prices

Increase Efficiency

• Reduce return rates through better quality control
• Improve order accuracy to reduce reshipments
• Streamline inventory management
• Plan inventory shipments to avoid rush fees

Communicate with EFS

• Discuss volume-based pricing if your business has grown
• Ask about cost-saving service alternatives
• Request guidance on optimization strategies
• Maintain open dialogue with Client Care team

What’s Not Considered a Rate Change

Service Modifications

Changes to services you receive are not “rate changes”:

• Requesting expedited receiving (incurs standard expedited fees)
• Adding new services like kitting (services have published rates)
• Changing shipping methods (different methods have different rates)

Usage-Based Variations

Your invoice varying week-to-week is not a “rate change”:

• More orders = higher fulfillment costs
• More inventory = higher storage costs
• Heavier packages = higher shipping costs
• These are normal usage variations at consistent rates

Non-Compliance Fees

Receiving non-compliance fees for not meeting requirements is not a rate change – these are published fees in your agreement.

Contact Information

Questions about rate changes:

• Contact your Client Care Account Specialist via Zendesk
• Review your Master Services Agreement
• Check official pricing pages for current rates

To object to rate changes:

• Submit written notice via Zendesk within 30 days
• Specify which changes you’re objecting to
• Include explanation of concerns

For custom pricing discussions:

• Contact your Client Care Account Specialist
• Discuss volume-based pricing options
• Review long-term partnership opportunities

Related Resources

• Invoices & Terms Guide – How billing works

Remember: Rate changes are a normal part of any business relationship. EFS is committed to providing 30 days’ notice and maintaining transparent communication about pricing adjustments. We’re here to work with you to ensure our services remain valuable for your business.