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Inflation and supply chain issues are slated to continue affecting the holiday season. Traditionally, the holiday shopping season is the most eventful time of year for businesses. However, with ongoing financial difficulties for customers and merchants alike, your customers are going to be cutting back on their holiday purchases. This means your business needs to listen to your customers and not be afraid to let them lead the way while organizing your holiday sales strategy. Back in August, we partnered with Retail Economics and surveyed merchants and customers about their plans for this year’s holiday season and found a disconnect in expectations. We’re going to share all of these findings with you as well as tips for reframing your sales plans to better reflect the sentiment of customers.
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One of the most important things to note about our findings is the current disconnect between merchants and customers. Here are a few of the main areas of contrast:
Customers are making their expectations and holiday shopping plans clear. For a successful holiday shopping season, your business may need to better align with your customers. For example, let your customers’ buying habits dictate your inventory strategies. Pay attention to which items are selling and which aren’t as well as the rate at which your products are selling to avoid a large amount of unsold inventory at the end of the season. Also, consider cutting costs in other areas by ordering free packaging from USPS and other carriers where available instead of increasing your customers’ shipping costs and/or using services with longer delivery windows.
58% of customers are planning to cut back on their holiday shipping, but where are these cuts going to occur? Out of our surveyed customers, three areas of products ranked the highest:
If your business focuses on apparel, electronics, and/or toys, don’t panic. These insights are meant to help your business adjust your holiday shipping plan to better fit that of your customers. For businesses in these categories, we recommend focusing on promotions and deals. Look for bundling and discount opportunities for your products. For example, if your customer buys a pair of pants, run a promotion where another clothing product is free or heavily discounted. Your customers are going to be looking for deals wherever available, so your business may need to offer additional promotions to compete with other retailers.
We’ve mentioned how and where customers are going to cut back on their purchases, but let’s shift the focus for a moment. When customers are purchasing gifts this year, what are their expectations? And, how can your business get your customers to complete their purchases? Here’s a breakdown of the contributing factors customers said determine whether or not they purchase from a business:
Your customers are paying attention to their available shipping options and the features of each shipping option as well as your returns process. Now is the time to review all of the carrier services on your website. Check to see which shipping options have available tracking. Review the delivery window for each service to see how it coincides with the holiday season. Walkthrough your site from your customer’s viewpoint to see if you would be satisfied with all of the services provided. If you feel like your website needs a refresh, we’re going to help you with guidance on how to better implement customer expectations this holiday season.
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When 30.3% of customers say the cost of shipping is one of the biggest contributing factors to whether or not they purchase from your store, your current shipping costs are worth looking into. Rising prices are affecting you as well as your customers. But, with the rates you get from USPS and UPS as a Stamps.com user, you can avoid raising shipping costs for your customers.
As of October 19, 2022, Stamps.com offers users lower USPSⓇ rates than ever before. You can expect up to 84% off retail rates and 15% off Commerical Plus Pricing (CPP) on Priority MailⓇ, so the savings will add up with higher holiday shipping volumes. These rates will help you offer your customers reliable services like Priority MailⓇ where they can track their packages and get their gifts usually within a 1-3 delivery window without having to raise your prices. Also, Priority MailⓇ shipments can be shipped until Monday, December 19 and still arrive in time for Christmas, so your last-minute shoppers can utilize this service as well.
Stamps.com users can also expect up to 88% off UPSⓇ International Services, 72% off Next Day AirⓇ and 2nd Day AirⓇ, and 77% off UPSⓇ Ground. This way, you can offer affordable shipping costs to all of your customers, including those who are looking for international shipping options.
Our Rate Advisor will show you the cheapest shipping option available for your shipment as well as our recommendations and the fastest shipping options. Not only can you compare your shipping options, but once an option is selected, it will automatically show on your order where it’s ready to print. This way, you can choose the best shipping option for each shipment, depending on your customer’s needs. With the help of Rate Advisor, you can keep your shipping rates the same because you don’t have to select the same service for every shipment, and your customers will thank you.
As we’ve mentioned, customers take shipping costs highly into consideration when making purchases. Another way to gain an advantage over your competitors and align with customer expectations is to offer free shipping. During the holiday season, customers expect deals and promotions. However, with the rise of big marketplaces like Amazon giving customers the option for free shipping year-round, it’s worth considering free shipping during the holidays if your business is able. If you aren’t sure where to start, we’re going to give you a few tips on how to offer free shipping for this holiday season and beyond.
Customers will be more likely to complete their purchase if there’s free shipping available, even if it’s over a certain threshold. With ongoing economic hardships, your business may need to choose between not raising shipping costs for customers and offering free shipping. A good compromise is to offer free shipping over a certain threshold. For example, you could offer free shipping for customers who purchase over $50 of products or more. During the holiday season, customers will be on the lookout for stocking stuffers and last-minute gifts, so they’re more likely to add items to their cart if it means they’ll receive free shipping. Higher sales will offset the cost of offering this free shipping.
Social media is one of the most powerful tools you can use to promote your business for the holiday season; it’s also a great way to build customer engagement. Encouraging your customers to share photos of your products extends the reach to your potential customers, but how should you reward your current customers? That’s where the idea of free shipping comes in. Share exclusive codes for free shipping and discounts with your social media followers to boost your sales during the holidays. If you can’t offer free shipping to all of your customers, you can still reward your existing customers.
In addition to the shipping rates Stamps.com users can access and Rate Advisor, we have two other features designed to help you this holiday season: Branded Tracking and QR Code Returns. Returns and visibility were involved with two of the factors customers mentioned as contributors to whether or not they completed their purchases Branded Tracking gives your customers tracking information in a more personalized way, and QR Code Returns allow your customers a convenient returns process. We’ll dive more into these two features below.
Branded Tracking notifications are customizable emails your customers receive when their packages are shipped. These notifications can include your business’s social media handles and contact information as well as the tracking link for your customer’s shipment. Including your social media handles on Branded Tracking notifications helps to promote any of the exclusive deals we mentioned in the previous section. 14.5% of customers stated tracking visibility was one of their biggest considerations when it comes to completing their purchases, and Branded Tracking helps them track their shipments with ease.
Another feature we’d like to highlight is QR Code Returns. With 18.3% of customers stating that convenient returns were a major factor when deciding whether or not to purchase from a business, returns will be important this holiday season. QR Code Returns can be generated for shipments and sent directly to your customers. Once received, your customer can bring their return to USPS or UPS with the QR code to have the code scanned. After the code has been scanned, a return label will be generated, and USPS or UPS can receive your shipment. QR Code Returns make the returns process smoother for your customers because they’re able to get help directly from a carrier and don’t have to print a label in advance.
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With so many financial struggles affecting the world, holiday shopping is going to look different than in years past. Your customers aren’t able to spend the same amount of money on gifts, but your business can still give them an excellent customer experience. Providing your customers with free shipping options will make purchases more likely. Using Stamps.com features like Rate Advisor will help you to find the most cost-efficient shipping options available, so you don’t have to raise shipping costs for your customers. Don’t be afraid to let your customers guide your business’s holiday shopping decisions. It’s more likely you’ll have a merrier holiday season if you do.
For more holiday shipping 2022 insight, download our free ebook below!
How can you reach a wider audience and increase sales? Try shipping internationally! Your products are amazing, and more customers should see what your business has to offer. International shipping may require a slightly different shipping process than domestic shipping. However, international shipping is a way to boost sales, and we’ll show you the steps needed to create an international shipping process.
Much like domestic shipping, international shipping comes with a set of restrictions and guidelines. International shipping restrictions may vary from carrier to carrier and by whether your shipment will be traveling by air or ground-based carrier services. Each carrier’s shipping restrictions can be found on their website. For more information about international shipping restrictions, contact your carrier directly.
Once you’ve reviewed the international shipping restrictions applicable to the products your business ships, communicate these guidelines with customers. Explaining international shipping limitations to your customers during the checkout process will create a more pleasant shipping experience. Also, knowing international shipping restrictions keeps shipments from being returned and/or your business from receiving penalties.
Before we talk about paying taxes and duties, let’s discuss the difference between the two. Duties are additional costs given to specific products as they enter specific countries. Duties are imposed on items that can compete with items created within the country. For example, if you’re shipping coffee to a country known for selling coffee, especially at a higher price, the duties added will be greater for this product. Taxes are given to a product based on its overall cost and the amount of taxes on a product will vary from country to country.
If you’re shipping to the UK or the EU, customs forms will need VAT (Value Added Tax) and IOSS (Import One-Stop-Shop) numbers. VAT is determined by a product’s cost, minus any components of the product that have already been taxed. IOSS is a business-specific number given by your store of marketplace and choice. IOSS gives your business the opportunity to pay VAT instead of having the financial responsibility fall on your customers when their package is delivered. VAT and IOSS numbers are tax ID numbers and help determine:
Customs forms are additional pieces of documentation attached to your shipments. These forms can be physically or electronically submitted, depending on the carrier used. Customs forms include information about the content of your package and help your shipment move through customs offices faster.
As we mentioned earlier, packages headed to the UK or the EU will need VAT (Value Added Tax) and IOSS (Import One-Stop-Shop) numbers on the customs forms. Additionally, shipments passing through or going directly to most countries in the EU will be required to have Harmonized or HS codes. HS codes are six-digit codes used to represent a product and its attributes. HS codes are also universal, so assigning them to products helps to bypass potential language barriers.
Note: Shipments to Puerto Rico and military addresses are considered domestic shipments but will need customs forms.
Our partner carrier, GlobalPost, provides merchants with an efficient international carrier service. GlobalPost works with carriers across the globe to decrease shipping delays and get packages to your customers safely. When using their GlobalPost Standard International service, you can expect:
Click the Mail tab on your dashboard.
Select your label/paper size from the Print On drop-down menu.
Use the Mail To drop-down menu to choose the destination.
Enter the recipient’s address manually or from your Stamps.com Contacts list.
Weigh your shipping materials. If using your connected Stamps.com Postal Scale, the package’s weight will show automatically.* Then weigh each individual item within your box. You’ll need these weights for the customs forms later on.
*Note: Confirm the Auto box next to your item’s displayed weight is checked.
Pick a USPS international service option from the Service drop-down menu. Only options available to the destination country will be shown.
Purchase additional insurance, especially for high-value packages.
Click Edit Form in the Customs section.
Select the best description for the items you’re shipping from the Package Contents menu.
Click the Non-Delivery Options menu and select your preference.
Enter an International Transaction # if applicable.
Select the Add Item option.
Here, you’ll add your product’s description, the quantity of the item, as well as the item’s weight and value. You’ll repeat this process for each item in the package. If you need to add a description, remember to be specific for shipments traveling through or to the EU. Avoid general descriptions like “clothing” or “electronics.” Shipments through and to the EU will also need HS codes added. A complete list of customs requirements for each USPS mail class can be found in our Learning Center.
Agree to the USPS Privacy Act Statement and Restrictions and Prohibitions and click Save.
Edit your international shipment’s mail date if the package will not be shipped on the same day the label is created.
Leave the Hide Postage Value box checked.
Select Print Receipt if you’d like a printed copy of your receipt when your label is printed.
Create a Reference Number for the Stamps.com Print History files.
Select or create a cost code as needed.
For new merchants, we recommend printing a sample first. Once you’ve confirmed the test print is correct, hit Print Postage.
If you notice incorrect information on your label after printing, click the Reprint button on your screen. One big thing to note is you’ll have one opportunity to reprint.
For instructions on creating an international label through Stamps.com’s PC Software, visit our Learning Center.
You’ve learned how to evade negative shopping experiences for your customers by communicating shipping restrictions. You understand how to complete customs forms and decrease the chance of shipping delays. You’ve found international shipping options with carriers like GlobalPost and walked through creating international labels on Stamps.com. Now, you’re officially ready to open your store to global customers!
Beginning March 1, 2023, all shipments to and passing through most countries in the EU will need Harmonized System tariff codes, or HS codes, included on customs forms. More detailed descriptions will be required, meaning general descriptions like “clothing” or “electronics” won’t be accepted. According to the USPS, reasons for the upcoming change are important because they “improve speed and efficiency of cross-border ecommerce” and “meet safety and security requirements, preventing delays, fines, and penalties for noncompliance.” The full list of countries impacted by this change can be found on the USPS website.
HS codes are numerical values given to all goods shipped to countries outside the United States. These codes were created and assigned by the World Customs Organization (WCO); a full list of HS codes can be found on the WCO website. Let’s go through a set of HS codes as an example.
Say you’re shipping coffee to a customer, and the HS code is 090111. Here’s what the numbers within your HS code represent:
In this case, the chapter would be coffee, the heading might be decaffeinated and roasted, and the subheading would classify your product as coffee, decaffeinated and roasted.
Vague item descriptions on custom forms such as “gifts,” “clothing,” and even “none” will no longer be considered acceptable descriptions. It’s best practice to have accurate and specific product descriptions that clearly describe the items being traded.
| Unacceptable | Acceptable |
| Clothes | Men’s cotton shirts, girls’ leather vets, boys’ denim jackets |
| Fresh Herbs | Basil, thyme, parsley |
| Sanitary goods | Detergent, toothbrush, towels |
| Gift | One scented candle, remote-controlled car, silk scarf |
HS codes help customs offices and departments identify the contents of your package so the proper taxes and duties are applied. Adhering to the new guidelines can prevent your shipments from being held up at customs and/or returned to your business. Also, HS codes help bypass language barriers because items are classified uniformly and easily translated.
If you aren’t sure how to classify your product, our partner carrier, GlobalPost, will provide their customers with two free classification services: the On Demand HS Classification Tool and the free HS Code Fulfillment Service.
The On Demand HS Classification Tool is a searchable database designed to shorten the amount of time spent finding a product’s HS code. This tool is perfect if your business ships a small number of international orders, as you can search for up to five free classifications daily. There are also no additional requirements to use this tool.
The free HS Code Fulfillment Service takes the hassle out of finding the HS code. If your business is using GlobalPost for international shipping, GlobalPost will assign the HS code once your shipment reaches the GlobalPost warehouse as long as you have a description of your products. The same goes for customs forms. Shipments sent using GlobalPost don’t need printed customs forms, as GlobalPost will assign forms once a shipment arrives at their facility.
The inclusion of HS codes being mandated for shipments to the EU may seem like additional work. However, HS codes can shorten the amount of time your shipment sits in customs. It also decreases the chance of returned shipments or the incorrect amount of taxes and duties being applied.
If your business ships a higher volume of international shipments, consider using GlobalPost as your carrier of choice. Using GlobalPost eliminates searching for HS codes on your own, as GlobalPost’s Free HS Code Fulfillment Service will apply HS codes to your shipments for you. For more information on the new mandate for HS codes, we recommend reaching out to trade experts and service providers or visiting the World Customs Organization (WCO) website.
Note: This blog will be updated as we receive news regarding the new EU HS code requirements, so check back for new/additional information.
The United States Postal Service’s 2023 rate and service changes have been approved by the Postal Regulatory Commission (PRC), and the updates will take effect on January 22, 2023. We’re going to address all of the upcoming changes, so you’ll have time to adjust accordingly and prevent negative shipping experiences for your customers.
More detailed highlights of the upcoming changes are:
Flat Rate envelopes and boxes will be included in the 3.6% increase for Priority Mail services. USPS will continue offering Priority Mail Flat Rate envelopes and boxes through their website. Also, you’ll be able to order some of these supplies directly from your Stamps.com account. A comparison of the 2022 and 2023 rates can be found below.
Previously, Local, Zone 1, and Zone 2 all had the same shipping rates. Moving forward, there will no longer be a Local Zone, and Zones 1 and 2 will have two different shipping rates. If your business ships to customers who live close by or in the same state, you’ll see the impact of this change. The changes will be more noticeable when you’re shipping to customers in Zone 2, which is a 51-150 mile radius.
Regional Rate A & B Boxes, used for 15-20 pound shipments traveling a short distance, will be discontinued. If your business uses Regional Rate Boxes after January 23, 2023, USPS will accept your shipment, but the cost won’t be calculated in the same way Regional Rate Boxes were. For this reason, USPS recommends using these materials by January 22. Additionally, check the automation rules currently running on your Stamps.com Online account to ensure this service isn’t applied to any of your shipments.
Priority Mail® Cubic will still be an option for shippers, as it has seen a rise in popularity, and sometimes even offers a lower rate than what was seen with Regional Rate Boxes. The biggest difference with Priority Mail Cubic is that supplies aren’t free. For merchants who want to explore alternatives beyond USPS Cubic, Parcel Select Ground offers shippers a great value, so it’s worth looking into as a substitute for smaller and heavier domestic shipments. Parcel Select Ground offers:
The biggest change to international shipments will involve your Canadian packages. Similar to the US Zones, Canada was previously broken down into 8 different pricing groups. Now, all of Canada will fall under Pricing Group 1. Also, USPS will change Turkey to Turkiye, so don’t be alarmed if the spelling of the country is updated on your labels to reflect this update.
In our recent study, 30.3% of customers stated that delivery costs were the most important factor in deciding whether or not they’d purchase from a business; the second most important factor was the speed of delivery. Rising USPS costs could mean raising shipping costs for your customers. However, you can still enjoy the discounted shipping rates included with your Stamps.com account to help offset these costs.
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The closer we get to the holiday season, the more customers will visit your site. This influx of visitors means your business has the potential to increase your sales and customer base. As potential customers browse your website, they’ll investigate your return policy to decide whether or not your products will be the ones under the tree. Creating an easy-to-follow holiday return policy is a way to nudge your customers in the direction of your checkout. We’ve outlined some of the best ways to craft your holiday return policy.
Trim your tree and holiday shipping costs with a free trial at Stamps.com.
A return policy is a policy on your store’s website dedicated to how your business handles customer returns. These policies typically include how long customers have to return a product as well as information on how to initiate the return process. A holiday return policy is an updated version of your regular return policy with additional information for holiday shoppers. These additional pieces of information include:
Your and your customers will both be extremely busy during the holiday season, so the more information you can include throughout your site, the better. If your customers can easily find answers to their questions, it’s less likely they’ll have to reach out for clarification. Additionally, our recent study with Retail Economics found 18.3% of customers said that convenient returns were the number one reason they purchased from a business. So, creating a customer-friendly holiday return policy will benefit you and your customers alike.
Now that we’ve given you an idea of what a holiday return policy is, let’s dive into what will take your holiday return policy to the next level. When designing your holiday return policy, don’t read it from the perspective of your business; read it from the perspective of your customers. Pretend you’re a new customer visiting your website. Would you be able to understand the return process? If not, edit your policy to be clear and concise. We more than understand you want your customers to have as much information as possible. But sometimes, it’s better to have shorter paragraphs that are easier for your customers to understand than longer paragraphs that are hard to follow and bury crucial information.
Next, thoroughly check your return policy to confirm everything is accurate. If your business will have an extended return policy, confirm all of the dates mentioned are correct and updated for the current holiday shipping season. The same goes for any shipping deadlines written in your return policy — you don’t want your customers to think they have more or less time to shop because the shipping deadlines are from the year before. Finally, test all of your customer service channels in advance to ensure they run smoothly. Submit any email or contact forms to see if they’re being routed to your email. Also, call your support lines to see if all the numbers are working, so your customers aren’t left hanging during the holidays.
Holiday return policies are also a good opportunity to add information about your business that new customers might not know. Include a little excerpt of your business’s origin story and/or fun facts about your business. You can even mention any nonprofit organizations your customer works with during the holidays or even year-round. While your holiday return policy does need to be easy to navigate, that doesn’t mean it can’t be customized to help your business stands out.
58% of customers say they plan to cut back on non-essential gifts this year. This means your business needs to get customers to choose your store for the gifts they do plan on purchasing. One easy way to help customers is to extend your holiday return window to make returns easier during a stressful time of the year. Your customers might be traveling for the holidays and/or experiencing inclement weather conditions, so they might not be able to return an order within the normal return window. Also, the customer returning the product might not be the same customer who purchased it, so they might not be familiar with your website and need more time. Extending your return window to accommodate customers is a great way to get them to complete their purchases, and it shows your business truly cares.
As we mentioned earlier, the holiday season is a wonderful time of the year, but it can also be incredibly stressful. Creating an excellent customer service experience for your customers can help alleviate some of those holiday stressors. For example, adding an FAQ section to your website prevents customers from having to wait on a response from your business. Some questions you might include in your FAQ section are:
A great customer experience also includes great customer service. Checking all of your customer service lines is a great first step, but you can go above and beyond with a few extra touches. If your business is able, we recommend having a live chat feature for customers who are unable to use phone support and need a more immediate answer to their questions. Also, confirm your phone, chat, and other live support options are turned off when support isn’t available to avoid customers trying to use them when no one is available to help.
Another way to create a better customer experience is to check your site speed. If parts of your website are loading slowly or not at all, your customers can get frustrated and leave your site. Tools like PageSpeed Insights can help you test your site speed and provide recommendations on how to improve it. Again, visit your website from a customer perspective and improve any parts you think might need to be updated. Your customers will thank you.
Prepaid return labels are another great way to improve the customer experience this holiday season. Prepaid return labels are return labels your business purchases and then sends to customers. This way, your customers don’t have to pay for return postage. And, the good news is, you can create prepaid return labels straight from your Stamps.com account! We’ve included detailed directions below on how to create prepaid return labels with Stamps.com Online.
2. Select the order you want to prepare a Return Shipping Label for.
3. Click Return Label. The Return Label window will open.
4. Select Print-at-Home Label, either USPS or UPS, whichever works best for you and your customer.
5. Then select Continue.
6. Choose who will email the label. We suggest having Stamps.com send the Return Shipping Label.
7. Add a note to your customer.
8. We suggest checking the Send me a copy of this email box for your records.
9. Select Send.
That’s all there is to it. Your recipient will receive an email with an easily downloadable prepaid shipping label complete with detailed instructions to ensure an easy return shipment experience.
Note: Your emailed Return Shipping Label is active for 24 hours from the time it is created. If the label is not used, please request a refund within 28 days.
Setting aside the time to create an effective holiday return policy can help increase your sales and set the foundation for a good, year-round return policy. Trying out a new return policy during the holiday shipping season is the true test, so don’t be afraid to ask your customers for feedback. When you sit down to create your holiday return policy, think about what you would look for as a customer. Create a holiday return policy that’s informative and easy to follow. Consider extending your return window into late January for your customers who need extra time to return their orders. Provide your customers with an excellent experience with several options for customer service and an FAQ section, so your customers can look for answers on their own but have the opportunity to reach out if they have additional questions. Most importantly, don’t underestimate the power of a good holiday return policy.
For more insights on this holiday shopping season, download our ebook below.
Everyone at Stamps.com wishes you a happy holiday season! As you’re preparing for the holiday shipping season, we want to share our holiday support hours as well as information about USPS holiday closures and changes in services.
Stamps.com Support: Closed
USPS: Closed
Stamps.com Support: Normal business hours (6 AM – 6 PM PST)
USPS: Regular hours and operations
Stamps.com Support: Closed
USPS:
Stamps.com Support: Closed
USPS:
*Note: This applies to limited locations. For more information, visit USPS’s website.
Stamps.com Support: Closed
USPS:
Stamps.com Support: Closed
USPS:
Call us toll-free at 1-888-434-0055
Monday–Friday, 6am–6pm Pacific Time