By Jared Lindauer, Group Product Manager & Pablo Garcia Cano, Director of Product Marketing
Attention Brands & 3PLs: If you rely on USPS Parcel Select, UPS SurePost or FedEx Ground Economy for ecommerce orders, brace yourselves for a major disruption. Recent postal changes are eliminating key discounts and last-mile delivery options, resulting in rate hikes of up to 99% for packages weighing under 1 lb.
The impact is clear: affordable shipping for common e-commerce parcels is rapidly disappearing. Brands and 3PLs that have depended on these services must now either absorb higher costs or risk losing customers over price increases.
But there’s hope on the horizon. Today, Veho is launching Premium Economy, an innovative service designed to enable shippers to offer superior delivery experience at a highly competitive cost.
At Veho, we’ve always prioritized exceptional service and reliability, supported by our cutting-edge technology platform. Our industry-leading 99% on-time delivery (OTD) and customer-first approach have made us the go-to choice for brands and 3PLs that refuse to compromise on quality. We are excited to offer that same level of experience to shippers that prioritize cost over speed.
What is Veho Premium Economy?
Premium Economy is designed for shipments that don't require expedited (1-2 day) delivery but still need a reliable, predictable, and customer-centric shipping solution. With guaranteed delivery windows of 2-5 days across 44 key markets, Veho Premium Economy offers a compelling alternative to economy services like UPS SurePost and FedEx SmartPost.
Key features and benefits include:
- Industry Leading OTD: 99% on-time delivery within 2-5 days
- Transparent, competitive pricing: Oz-based pricing for shipments under 1 pound
- Extensive Coverage: Serving 44 high-volume markets nationwide
- Superior Customer Experience: Real-time tracking, direct-to-recipient communication, and 24/7 support
- Seamless Scalability: Capacity that scales with your business via Veho's >67K Driver Partner network
- Superior Technology Platform: Proprietary platform optimizes every delivery with intelligent routing and real-time visibility
How Veho Premium Economy Works
Premium Economy is part of our broader vision to serve all your shipping needs. Orders destined for Premium Economy are automatically routed to the nearest Veho hub, processed, and assigned through our platform to a Driver Partner. Our advanced dispatch and routing algorithms ensure delivery within the promised 2-5 day window. Customers receive real-time tracking updates, and Veho's direct-to-recipient communication tools provide proactive updates and issue resolution.
Throughout the process, Veho's platform provides complete visibility and control, with analytics to help shippers optimize logistics. With the ability to seamlessly scale capacity, Veho Premium Economy adapts to changing business needs. With Veho, you don’t compromise— you optimize.
Bridging the Economy Shipping Gap
Recent changes in the carrier landscape, including USPS, UPS, and FedEx rate hikes and the discontinuation of cost-effective services for lightweight parcels, have left shippers and 3PLs scrambling. About 4 billion under-1-lb shipments per year in the US are impacted.
Veho Premium Economy fills this crucial gap by enabling high-volume shippers and 3PLs to access discounted rates without sacrificing service quality. Our asset-light business model and innovative technology provide a best-in-class delivery experience at economy prices.
The USPS Dilemma: Disappearing Discounts and Limited Alternatives
One of the biggest challenges facing shippers is the recent elimination of USPS discounts for last-mile services like Parcel Select DDU. This has forced many carriers and consolidators to raise rates on Economy services such as UPS SurePost and FedEx SmartPost.
For shippers and 3PLs, the impact has been significant:
- Fewer cost-effective options for lightweight parcels, especially under 1 lb
- Significant rate increases on Economy services like UPS SurePost and FedEx SmartPost.
By offering competitive rates with reliable 2-5 day delivery windows and real-time tracking, Veho Premium Economy provides the predictability needed to keep costs in check and customers happy.
A Flexible Solution for Evolving Needs
Whether you need to optimize logistics costs, expand capacity during peak periods, or provide a superior delivery experience on a budget, Veho Premium Economy can help:
- Balance cost and speed without compromising on delivery experience
- Guarantee reliable delivery windows
- Offer superior delivery experience with 4.9/5 CSAT
Getting Started with Veho Premium Economy
Ready to experience the Veho difference at an economy price point? Our team of logistics experts is standing by to help you optimize your shipping strategy.
Visit shipveho.com/premiumeconomy or speak with a specialist to get started. With Veho Premium Economy, you don’t have to settle. Unlock cost savings without compromising quality, and start delivering happiness to both your customers and your bottom line.
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