UPS Launches New Digital Tools Targeting Small Businesses
UPS is rolling out new digital tools designed to enhance the shipping experience for small- and medium-sized businesses (SMBs). These updates include a centralized pickup dashboard, faster label creation, and an improved mobile app integrated with The UPS Store. The company aims to capitalize on higher-margin logistics services by focusing on SMBs rather than low-profit last-mile deliveries typically associated with large e-commerce players like Amazon. UPS has been shifting its strategy away from handling 2 million packages per day for Amazon while reducing delivery network capacity in response to lower volumes. In the second quarter, small-business package volume grew 4.3% year-over-year, and SMBs accounted for a record high of 34.5% of total U.S. domestic volume during Q1. Analysts note that smaller businesses often lack access to large-scale shipping discounts, making UPS an attractive option due to its reliable service. The digital enhancements are seen as essential in today's market but reflect UPS’s broader strategy for customer acquisition and retention among SMBs.