Why United Parcel Service and FedEx Corporation Are Hiking Prices - Motley Fool Why prices are going up The pricing increases will grab the headlines, but in reality they are part of a series of actions both companies have been taking to maximize profitability. In short, FedEx and UPS need to take these measures because they are seeing margin pressure as a result of burgeoning e-commerce delivery growth. That pressure shows up in different ways. The need to expand capacity to deal with increased costs brings about higher operational costs -- at least initially eating into gross profit margins. E-commerce demand during peak season is putting pressure on both companies to have the right capacity in place at the right time -- UPS in particular has had issues with this subject. E-commerce vendors are packaging inefficiently and increasingly shipping large, difficult-to-deliver items, such as trampolines or gym equipment.