Introduction
Holiday shopping is here, and many small shops are worried. Their shipping costs have gone up a lot this year. That means they earn less money on each order.
What Happened
CNBC shared this story on November 6, 2026. Small shops sell goods online and send them by mail. A shipping label is the sticker that pays for delivery. One shop owner is Jenni Shields. She sells handmade hair bows and headbands in Kansas City, Kansas.
Eight years ago, Shields paid $2.93 to ship one order. Last year, the same kind of label cost about $4.50. Last month, it cost nearly $6.
She charges her customers $6 for shipping. That fee also has to cover about $1.50 for boxes and packing. So she no longer breaks even on her orders. She told CNBC, “I am losing money at this point, and I’ve really taken a huge hit this year.”
Key Figures
- Shipping label, eight years ago: $2.93
- Shipping label, last year: about $4.50
- Shipping label, last month: nearly $6
- Air cargo: $3.37 per kilogram, up 43% in one year
- Amazon shipping costs, third quarter: up 11%
- Holiday sales forecast: up 4.2% to $1.01 trillion
Why It Happened
Fuel prices have gone up a lot. Fuel is the gas and oil that moves trucks, planes, and ships. The surge began after the United States and Israel attacked Iran in February. Higher fuel prices push up shipping costs.
Demand is also high for fast air shipping. A lot of that demand comes from hardware used to build data centers. A data center is a big building full of computers. Air cargo now costs about $3.37 per kilogram, up 43% from a year ago, according to Freightos.
Shippers have also added holiday fees. UPS, FedEx, and USPS all charge extra during the busy season. Big companies can handle this better because they have long deals with shippers. Small shops buy shipping as they need it, so they pay the price on that day.
Why It Matters
Small shops are caught in the middle. They do not want to upset customers who love free shipping. But free shipping now costs them money. Some shops may raise their fees or end free shipping.
Todd Shelton runs a clothing company in New Jersey. This week, he started to charge customers for return shipping. Shields is thinking about raising her shipping fee for the first time in six years.
This matters for shoppers too. If small shops close or raise prices, people will have fewer choices. Big shops may win more sales because they can absorb the cost. Amazon is one big example: its shipping costs rose 11% in the third quarter, but it can still offer fast delivery. Big tech stocks also had a rough week.
What Happens Next
The busy holiday season is here now. Holiday fees from shippers will last until the season ends. Small shops will watch their costs each week. Some may raise their shipping fees before Christmas.
Shoppers are still spending, but they are careful with money. The National Retail Federation expects holiday sales to grow 4.2% to $1.01 trillion. Much of that growth is because prices are higher.
Final Thoughts
Shipping is now a big cost for small shops. A label that cost $2.93 now costs nearly $6. Big companies can absorb that cost, but small shops cannot. You can read more business stories in our Business News section.
Quick Questions
Why are shipping costs so high this holiday season? Fuel prices are high, and shippers have added holiday fees. Air cargo costs are also up a lot.
How much does it cost a small shop to ship one order? For one small shop, the cost rose from $2.93 eight years ago to nearly $6 last month. The shop charges $6 for shipping and still loses money.
Will holiday shopping still be strong in 2026? The National Retail Federation expects holiday sales to grow 4.2% to $1.01 trillion. People are still spending, but prices are higher.
Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.
Sources: CNBC; National Retail Federation. Photo: Pexels.
Leave a Reply