In the heart of the holiday rush, small- and medium-sized businesses (SMBs) are grappling with skyrocketing shipping costs that threaten to erode already tight margins, while picturing a small online retailer frantically packing orders for the season’s biggest sales, only to be hit with unexpected surcharges that could sink the bottom line. This year, a logistics titan has stepped in with a potential lifeline, offering a discount program that could redefine how SMBs navigate the busiest—and costliest—time of year. What does this mean for the backbone of the economy, and can it truly level the playing field?
Why Shipping Costs Are Make-or-Break for SMBs
For many SMBs, shipping expenses aren’t just a line item—they’re a survival factor during peak season. With holiday demand driving up package volumes, logistics carriers often impose surcharges that can catch smaller players off guard, leaving them scrambling to cover costs without passing the burden to customers. This financial strain is particularly acute for businesses lacking the negotiating power of large corporations, making every dollar saved a critical win.
The stakes are higher than ever as economic pressures like tariffs compound the challenge, squeezing budgets further. A strategic intervention by a major logistics provider could shift this dynamic, offering relief at a time when SMBs need it most. This isn’t just about cutting costs—it’s about empowering smaller enterprises to compete in a high-pressure market.
The Critical Role of SMBs in a Competitive Logistics Arena
SMBs have emerged as a focal point for logistics giants vying for market dominance. Unlike high-volume clients with razor-thin margins per package, smaller businesses often yield higher profitability per shipment, making them a coveted segment for carriers. In a landscape where competition between industry leaders is fierce, capturing the loyalty of SMBs has become a top priority.
Beyond profitability, these businesses represent a growing share of shipping volume, driving carriers to tailor solutions to their unique needs. Economic headwinds, including fluctuating demand and additional fees during peak periods, only heighten the urgency for cost-effective options. This convergence of industry trends underscores why SMBs are at the heart of new strategic initiatives.
Unpacking the Details of UPS’s Discount Initiative
UPS has launched a bold discount program in collaboration with American Express through the Business Savings Suite, targeting SMBs ahead of the peak season. This initiative offers volume-based savings, with discounts reaching up to 74% on international express services for businesses shipping 31 or more packages weekly, and a 50% reduction on domestic fees like fuel surcharges. Available through February 2026, the program provides relief during the critical holiday window from September 2025 to January 2026.
Data reveals the growing importance of SMBs to UPS, with this segment accounting for 32% of U.S. volume in the second quarter of this year, marking a significant year-over-year rise of 230 basis points. The discounts aim not only to ease seasonal financial burdens but also to deepen engagement with smaller shippers, positioning UPS as a partner in their success. This move reflects a calculated effort to build long-term loyalty in a vital market.
Leadership Insights on Championing Small Business Growth
UPS executives have been vocal about the company’s commitment to supporting SMBs during challenging times. Chief Commercial and Strategy Officer Matt Guffey has highlighted the focus on reliable service and flexible return options, noting that these elements are essential for smaller shippers navigating peak demand. His comments reflect a deliberate strategy to prioritize quality alongside cost savings.
CEO Carol Tomé has pointed to broader economic hurdles, such as the impact of tariffs, which disproportionately affect SMBs lacking the resources to absorb cost increases. Meanwhile, CFO Brian Dykes emphasized the financial weight of this segment, underscoring their expanding role in the company’s portfolio as UPS pivots away from over-reliance on high-volume clients like Amazon. These perspectives, drawn from recent earnings discussions, reveal a unified vision to bolster smaller businesses.
Practical Steps for SMBs to Capitalize on Savings
For SMBs eager to make the most of this opportunity, actionable strategies can turn discounts into tangible gains. The first step is enrolling in the Business Savings Suite via American Express to access tiered savings based on weekly shipping volumes. Businesses should assess their shipment patterns to qualify for higher discount levels, ensuring they meet thresholds for maximum benefit.
Planning shipments strategically to minimize exposure to peak surcharges is another key tactic. Leveraging UPS’s logistics tools, such as advanced tracking and streamlined returns, can enhance operational efficiency during the holiday crush. By integrating these resources, SMBs can maintain customer satisfaction while keeping costs in check, transforming a seasonal challenge into a competitive edge.
Reflecting on a Strategic Shift with Lasting Impact
Looking back, UPS’s decision to roll out targeted discounts for SMBs during the peak season stood as a pivotal moment for smaller enterprises battling economic and logistical hurdles. This initiative not only provided immediate financial relief but also signaled a broader industry recognition of the value these businesses bring to the table. The collaboration with American Express and the emphasis on tailored solutions marked a shift toward more inclusive strategies in logistics.
As the dust settled on the holiday rush, the focus turned to sustaining this momentum. SMBs were encouraged to build on these savings by forging stronger ties with carriers, exploring long-term volume commitments, and advocating for continued support amid evolving economic landscapes. The path forward hinged on adapting to industry innovations and seizing every opportunity to thrive, ensuring that small businesses remained a driving force in the market.
