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unprecedented level of online shopping hurts UPS Q4 earnings


Last year, Christmas holiday shopping was at its peak where every online retailers made huge sales, but the UPS logistics company has said that the “unprecedented level” of online shopping hurts its Q4 earnings.

Deutsche Post Paket Logo - Minimal TemplateThe company has revealed on Friday that it had taken every “extraordinary” steps to serve for the holiday season, including the hiring of 85,000 temporary employees, which was actually planned only 50,000. But, the overwhelmed demand, especially via “last minute orders”, bad weather and shorter shopping season also one of those factors that hurts its last quarter earnings.

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This unexpected shopping last minute explosion just before Christmas could force the company to change its policy for this year’s Christmas, that might include the higher prices for last-minute shipping. During last shopping season, it was reported that hundreds of thousands of packages weren’t delivered at the right time because of the high volumes.

Regarding the last holiday situation, UPS said the following statement:

On December 23, UPS delivered more than 31 million packages, the most ever and 13% over the prior-year peak day. This year’s highest delivery day occurred six days later than expected and was 7.5% greater than planned.

You should also know that the largest online store in United States, Amazon.com had provided refund of shipping charge and a $20 credit for some of its customers, who were affected by UPS delays. UPS had done a tremendous mistake by incorrectly forecasting the holiday season and now, it has to learn from its mistakes and it should never take the peak online shopping seasons lightly.

Atlanta-based logistics company, UPS will be reporting its Q4 2013 financial results on January 30th and it’s also expected that the company will be providing its future plans for the year 2014 on the same day. Can UPS reveal its plans to launch the UPS Delivery Drones in 2014?

[ Source: UPS ]


About John W Arthur

john@thenextdigit.com'
John is the head of our IT Security team and he writes about Security, IT news on The Next Digit. He was the Employee of the Year 2013 for his selfless support and efficiently setting up the whole security infrastructure. He also occasionally writes on "IT Sec Pro" Print Media of Sweden. All posts by John

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