Packages no longer absolutely, positively have to get there overnight.
More people are switching to slower delivery options to save money, and profits at FedEx Corp. and United Parcel Service Inc. are getting squeezed.
The two biggest shipping firms in the US recently cut their forecasts, blaming the shortfall in part on customers turning to cheaper options, like ground shipping instead of air delivery. The trend may be a warning sign ahead of the holiday season and upcoming earnings reports.
Sean Lesczynski stopped using expedited shipping two years ago to get parts for the custom bikes he builds in Brooklyn. It was just too expensive for his customers, and they didn’t mind waiting a few more weeks to get their new set of wheels.
“It sounds counterintuitive to say like, someone’s going to spend $5,000 on a bike, but they don’t want to spend an additional $500,” Lesczynski said. “But for a lot of people, that is actually the make-or-break difference in terms of how they rationalize or conceptualize that big purchase