Shippers, online retailers seek way around rising delivery costs

United Parcel Service employees Judy Wise (L) and Jewel King (R) work to unload packages at the UPS Worldport All Points International Hub during the peak delivery season in Louisville, Kentucky, December 9, 2016. REUTERS/John Sommers II

ADDISON, Illinois: In an unassuming building in the Chicago suburb of Addison, United Parcel Service Inc engineers design custom boxes for retailers as part of a joint effort to tackle a vexing issue: the high cost of delivering e-commerce packages. 

Online retail sales are expected to reach US$392.5bil (RM1.75tril) this year, according to research firm eMarketer, but with US consumers now demanding free shipping on most packages, shippers and retailers are facing a squeeze.