> ## Documentation Index
> Fetch the complete documentation index at: https://help.jetpack3pl.com/llms.txt
> Use this file to discover all available pages before exploring further.

# General Rate Increases (GRI)

> Understand how and when Jetpack adjusts pricing, how you'll be notified, and what factors drive rate changes in the fulfillment industry.

<div className="page-intro">
  Like all logistics and fulfillment providers, Jetpack periodically adjusts pricing to reflect changes in operational costs, carrier rates, labor expenses, and market conditions. These General Rate Increases (GRIs) ensure Jetpack can continue providing high-quality fulfillment services while maintaining financial sustainability. Understanding how GRIs work, when they occur, and how you'll be notified helps you plan for cost changes and make informed business decisions.
</div>

## What Are General Rate Increases?

General Rate Increases (GRIs) are periodic adjustments to Jetpack's pricing structure that reflect changes in the cost of providing fulfillment services.

**What triggers rate increases:**

* **Carrier rate changes** - Major shipping carriers (UPS, FedEx, USPS, etc.) increase rates annually
* **Labor cost increases** - Wage adjustments to remain competitive in local markets
* **Facility operating costs** - Rent, utilities, equipment, and maintenance expenses
* **Material cost changes** - Packaging materials, pallets, and supplies
* **Market conditions** - Inflation, supply chain disruptions, and economic factors

<Info>
  **Industry Standard**: Annual pricing adjustments are standard practice across the logistics and fulfillment industry. GRIs ensure service providers can maintain service quality and operational efficiency while absorbing increased costs.
</Info>

***

## When Do Rate Increases Occur?

Jetpack typically implements General Rate Increases on a predictable schedule to help merchants plan for cost changes.

**Typical GRI timing:**

* **Annual increases** - Most GRIs occur once per year, often in Q1 (January-March)
* **Carrier-driven increases** - Additional adjustments may occur when carriers implement mid-year rate changes
* **Special circumstances** - Extraordinary market events may necessitate unscheduled adjustments

<Note>
  **Advance Notice**: Jetpack provides advance notice before implementing any rate increases, giving you time to evaluate the impact and adjust your pricing or fulfillment strategy accordingly.
</Note>

***

## How You'll Be Notified

Transparency is critical when pricing changes. Jetpack follows a clear notification process to ensure you have adequate time to prepare for rate adjustments.

<Steps>
  <Step title="Advance notification">
    You'll receive email notification **at least 30-60 days** before any rate increase takes effect
  </Step>

  <Step title="Detailed change summary">
    The notification includes:

    * Specific services affected
    * New rates compared to current rates
    * Effective date of the changes
    * Rationale for the increase
  </Step>

  <Step title="Support resources">
    Jetpack Care is available to answer questions and help you understand how changes affect your specific account
  </Step>

  <Step title="Implementation">
    New rates take effect on the specified date and appear on subsequent invoices
  </Step>
</Steps>

<Tip>
  **Keep Contact Information Current**: Ensure your email address on file with Jetpack is monitored regularly so you don't miss important rate change notifications.
</Tip>

***

## What Services Are Affected?

General Rate Increases can affect various aspects of Jetpack's pricing structure, though not all services are adjusted in every GRI.

**Common areas affected by GRIs:**

| Service Category         | How It's Affected                                                         |
| ------------------------ | ------------------------------------------------------------------------- |
| **Storage Fees**         | Bin, shelf, and pallet rates may increase to reflect facility costs       |
| **Fulfillment Fees**     | D2C and B2B order processing fees may adjust with labor costs             |
| **Pick Fees**            | Per-unit and per-case pick charges may increase with labor costs          |
| **Receiving Fees**       | WRO processing and per-unit receiving may adjust                          |
| **Carrier Surcharges**   | Pass-through charges from carriers (always reflect current carrier rates) |
| **Extra Services**       | Kitting, returns processing, dangerous goods handling, and other services |
| **Fulfillment Minimums** | Monthly minimum thresholds may adjust annually                            |

<Warning>
  **Carrier Surcharges**: Carrier-imposed surcharges (fuel, peak season, dimensional weight, etc.) are pass-through charges that change whenever carriers adjust their rates—these are not controlled by Jetpack and may change more frequently than Jetpack's own pricing.
</Warning>

***

## Understanding Rate Increase Factors

Multiple factors contribute to the need for periodic rate adjustments. Understanding these drivers helps contextualize why increases occur.

### Carrier Rate Increases

Major shipping carriers implement their own GRIs annually, typically in January. These increases directly impact fulfillment costs:

* **Base rate increases** - Carriers raise per-package shipping rates
* **Surcharge additions** - New accessorial fees for handling, fuel, peak season, etc.
* **Dimensional pricing changes** - Adjustments to dimensional weight calculations
* **Zone rate changes** - Distance-based shipping cost modifications

<Info>
  Jetpack's shipping costs are directly tied to carrier rates. When carriers increase prices, these costs are passed through to merchants to maintain transparent pricing.
</Info>

### Labor and Operating Costs

Fulfillment is a labor-intensive business, and labor costs are the largest component of fulfillment pricing:

* **Wage increases** - Minimum wage adjustments and competitive market wages
* **Benefits costs** - Healthcare, retirement, and other employee benefits
* **Training expenses** - Ongoing staff training and development
* **Facility costs** - Rent, utilities, equipment maintenance, and upgrades

### Material and Supply Costs

The physical materials used in fulfillment operations are subject to market price fluctuations:

* **Packaging materials** - Boxes, poly mailers, bubble wrap, tape, etc.
* **Pallets and containers** - Wooden pallets, slip sheets, stretch wrap
* **Labels and printing** - Shipping labels, product labels, documentation
* **Equipment** - Conveyor systems, scanners, forklifts, racking

***

## Planning for Rate Increases

Proactive planning helps you absorb rate increases without significantly impacting your margins or customer experience.

**Strategies for managing rate increases:**

### Review Pricing Strategy

* **Analyze margin impact** - Calculate how rate increases affect your per-order profitability
* **Adjust product pricing** - Consider small price increases to offset fulfillment cost changes
* **Reassess shipping policies** - Evaluate free shipping thresholds and shipping charge structures

### Optimize Fulfillment Efficiency

* **Inventory placement** - Store inventory closer to customers to reduce shipping zones
* **Package optimization** - Reduce dimensional weight by using smaller, more efficient packaging
* **Order batching** - Encourage larger orders to spread fulfillment costs across more units
* **SKU rationalization** - Identify and phase out low-margin products with high fulfillment costs

### Negotiate and Plan

* **Custom pricing** - Discuss volume-based pricing with Jetpack if your order volume justifies it
* **Long-term contracts** - Explore whether multi-year commitments offer rate stability
* **Budget planning** - Incorporate expected annual rate increases into your financial projections

<Tip>
  **Annual Budget Planning**: Build an assumption of 3-5% annual fulfillment cost increases into your business plan. This conservative estimate helps you plan for GRIs without being caught off-guard.
</Tip>

***

## Frequently Asked Questions

<AccordionGroup>
  <Accordion title="How often does Jetpack increase rates?">
    Typically once per year, usually aligned with carrier GRIs in Q1. Additional adjustments may occur if extraordinary market conditions require it, but advance notice is always provided.
  </Accordion>

  <Accordion title="Can I lock in current rates with a long-term contract?">
    Depending on your order volume and business characteristics, Jetpack may offer custom pricing agreements that provide rate stability. Contact Jetpack Care to discuss options.
  </Accordion>

  <Accordion title="Do rate increases apply to orders already in fulfillment?">
    No. Rate increases apply to orders processed after the effective date. Orders already in the fulfillment process use the rates that were in effect when the order was placed.
  </Accordion>

  <Accordion title="Will I be charged retroactively if I miss the notification?">
    No. New rates only apply from the effective date forward. However, it's your responsibility to ensure your contact information is current so you receive notifications in a timely manner.
  </Accordion>

  <Accordion title="Can I negotiate individual rate components?">
    High-volume merchants or those with unique fulfillment characteristics may qualify for custom pricing on specific services. Contact your Jetpack account team to discuss your situation.
  </Accordion>

  <Accordion title="How do Jetpack's rate increases compare to the industry?">
    Jetpack's GRIs typically align with industry norms of 3-5% annually, reflecting increases in carrier rates, labor costs, and operating expenses. If you have concerns about specific increases, Jetpack Care can provide context and benchmarking information.
  </Accordion>
</AccordionGroup>

***

## Let's Dive Deeper

<CardGroup cols={3}>
  <Card title="Billing and Payments Overview" icon="credit-card" href="/fulfillment/billing-invoicing">
    Overview of Jetpack's billing approach and payment methods
  </Card>

  <Card title="Your Invoices" icon="file-invoice-dollar" href="/fulfillment/billing-invoicing/your-invoices">
    Learn how to read and analyze cost changes
  </Card>

  <Card title="General Pricing" icon="tag" href="/fulfillment/billing-invoicing/general-pricing">
    Current regional pricing for all services
  </Card>

  <Card title="Fulfillment Minimums" icon="gauge-high" href="/fulfillment/billing-invoicing/fulfillment-minimums">
    Regional minimum monthly fees and grace periods
  </Card>

  <Card title="USA Pricing" icon="flag-usa" href="/fulfillment/billing-invoicing/general-pricing/usa-pricing">
    Complete pricing breakdown for US fulfillment centers
  </Card>

  <Card title="Special Handling Fees" icon="hand-holding-box" href="/fulfillment/billing-invoicing/additional-pricing/special-handling-fees">
    Additional costs for fragile items, hazmat, and more
  </Card>
</CardGroup>

***

<Tip title="Questions About Rate Increases?">
  If you have questions about an upcoming GRI, want to understand how it affects your specific account, or need help planning for cost changes, contact Jetpack Care. Our team is always here to assist via Slack, phone, or email!
</Tip>