Couriers optimistic for smooth holiday season; retailers seek policy changes
With Christmas just around the corner, local courier companies are bracing for their busiest season yet. The holiday rush, fuelled by growing online shopping habits and the recently increased duty-free allowance, is expected to bring a surge in shipments.
Couriers companies like ShipMe and Brown Box have rolled out measures to ensure timely delivery of packages, providing much-needed support for consumers navigating the hectic season. ShipMe has issued a call to action for customers to take early steps to avoid disappointment.
“To ensure your packages arrive on time, make sure to upload correct invoices, use accurate shipping addresses, and ensure delivery to our Miami Warehouse by December 16,” the company advised in a customer notice. The team also reminded shoppers to order gifts early, as extended or delayed shipping times at popular stores could impact their plans.
Similarly, Brown Box, which operates under the H&L Group, has ramped up operations to manage the holiday demand. General Manager Carey Lue Pan noted the importance of proper planning and customer cooperation in ensuring a smooth experience.
“We’re encouraging everyone to ship by December 18 to guarantee gifts arrive in time for Christmas. Our team is working extra hours to handle the holiday surge, but it’s a two-way street—when courier companies plan well and customers ship early, everyone benefits,” Lue Pan told the Jamaica Observer.
The courier industry continues to demonstrate resilience and growth, buoyed by strong demand for online shopping. Khary Robinson, chairman of Mailpac Group Limited, highlighted the sector’s preparedness for the holiday season.
“Generally, the industry and our two brands are robust and growing rapidly, as seen in our latest filings. We have seen a continual uptick in packages and expect that to continue through the season,” Robinson said. He added that the seasonal nature of the business is now well understood, allowing for better planning.
“We and our strategic partners, such as the airlines, are generally more prepared for the expected increase in volumes,” he explained, underscoring the collaborative efforts to handle the surge.
The duty-free allowance increase to US$100 for personal items has added fuel to the growth of online shopping, with customers taking advantage of reduced costs to order branded clothing, electronics, and more. While this shift has been a boon for couriers, it has left many brick-and-mortar stores scrambling to compete.
Michael Ammar Jr, director of Ammar’s Department Store, has called on the Government to address what he describes as a “disparity” in how the duty-free policy applies to commercial goods. “The US$100 duty-free allowance is great for consumers, but it creates an uneven playing field for businesses.
“And its only apparels and electronics that are being affected. Consumers are importing large appliances, gardening tools, car parts for examples, and so most businesses that are product sales are left at a disadvantage because the same relief isn’t extended to the commercial side,” Ammar said.
He urged policymakers to take action. “The Government needs to review and adjust duty rates for commercial imports. If duties are lowered, it would increase collections by reducing the incentive for people to find workarounds. When the duty rate was reduced to 20 per cent a few years ago, the revenue increase was good. Lowering it further could yield even greater results,”Ammar told the BusinessWeek.
For brick-and-mortar stores, the challenge is finding creative ways to stay relevant in an increasingly digital marketplace. Ammar’s Department Store, for example, has been forced to adapt by sourcing smarter, reducing markups, and offering products that aren’t easily available online, Ammar explained.
Still, the challenges for retailers extend beyond the duty-free policy. Ammar pointed to the impact of heavy rains, which disrupted sales during key periods like Black Friday. “Retail employs a large portion of Jamaica’s workforce and contributes significantly to GCT [general consumption tax], but this year has been especially tough. We’re banking on better weather this December. We’ve gone all-in with inventory, decor, and promotions to provide a memorable shopping experience,” he added.
In Spanish Town, smaller retailers are feeling the effects of the policy. Andrew Walker, proprietor of Wizboss Electronics and More, highlighted the challenges faced by local businesses. “We’ve noticed more people shopping online for electronics like smart TVs and tablets…they say it’s cheaper to bring them in now. For us, staying competitive means offering warranty services, flexible payment plans, and personalised support,” Walker said.
Despite the hurdles, Walker remains optimistic. “Christmas is a time when people want to shop local for last-minute purchases or when they want to see and feel the product before buying. That’s our chance to shine. We’ve stocked up on the most in-demand electronics and are offering special promotions to make shopping more appealing,” he shared.