Rising shipping costs squeeze small retailers before the holidays

Shields started her business eight years ago, selling handmade hair accessories. At the time, she paid $2.93 to ship an order—about $4 in today’s dollars after adjusting for inflation.

The increase is hitting small and medium-sized retailers as they prepare for the holiday season. Some business owners say shipping and other rising costs could dent their profits or consume them entirely, despite strong demand from customers.