Small retailers brace for 'huge hit' this holiday season as shipping costs spike

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When Jenni Shields began her small business eight years ago selling handmade hair accessories, she paid $2.93 to ship an order, or close to $4 in today's dollars when adjusted for inflation. Last year, Shields said, an average shipping label for her products cost around $4.50. But when she took a typical batch of orders to her local U.S. Postal Service office last month in Kansas City, Kansas, she was shocked to see that it was an average of nearly $6 per package. Shields is just one of the small- and medium-sized retailers who are struggling to keep up with rising shipping costs as the price of fuel continues to trend upward. Small business owners such as Shields are facing a difficult holiday season.