UPS rate increase - DOUBLE WHAMMY
On Saturday, and then again today, I pulled the UPS prices for 2 packages to see the change in rates. One to the east coast and one to the west. eBay doesn’t print the list price on the labels page, only the net cost to you and the amount of the discount you are getting.
I made a comment last week based on the UPS report that revenue was down 9 BILLION compared to a year ago. I wondered whether, in addition to raising the retail, they would also change the discount rates. That’s called Hidden Inflation hoping that no one notices.
On the first item the discount dropped from 60% to 50%. So working backwards it looks like the retail price went up about 2% while my net cost went up 27%. On the second it dropped from 57% to 55%.. A similar situation to the first but not as bad on this one.
emac22inwnc
·2 years agoI live in NC , UPS used to be the choice if needed for shipping large items to California or anywhere outside of zone 4. This is not the case now! I don't know when it changed but it would have been nice to be notified of the UPS rate increase. I would advise everyone to switch to calculated shipping on large and heavy items. USPS ground advantage is now the cheaper option. I noticed I'm getting a sudden surge in sales from the West Coast as my policies where set to a flat rate, to cover areas outside of zone 4. So i lost a few bucks , no big deal but it could have been a costly situation as large items often require more cost in shipping supplies. I sometimes think there is an incentive to find the furthest buyer , that final value fee !
wastingtime101
·2 years agoI suggest following eBay Announcements @emac22inwnc .
UPS rate increase announced on Jan 31, effective Feb 4:
https://community.ebay.com/t5/Announcements/UPS-Rate-Update/ba-p/34260242
General Announcements board:
https://community.ebay.com/t5/Announcements/bg-p/Announcements
You can also see latest Announcements on your Seller Hub Overview page:
https://www.ebay.com/sh/ovw
emac22inwnc
·2 years agoThanks, somehow i missed this. I knew about the cubic rate change with USPS but was unaware of the UPS increase. I do offer discounted rates on some of my policies as it makes sense, so the buyer can actually see what the cost really is and perhaps increase sales by setting up such policies, but I'm not sure they understand we are passing our discount to them.
wastingtime101
·2 years agoThat's another factor to support what I said earlier on this USPS discussion about letting sellers offer a % above (non-cubic) commercial rates:
https://community.ebay.com/t5/Shipping/eBay-launching-USPS-Cubic-rates-Jan-21-2024/m-p/34270896#M469455
If we could control shipping to that level, we wouldn't see that "hidden inflation" when these rate changes go into effect.
Although with UPS and FedEx it would be tricker because they don't have a published retail vs commercial list the way USPS does. I suppose with UPS/FedEx it would have to be % above eBay rates. See linked discussion for more context.
12345jamesstamps
·2 years agoI read somewhere the rates went up around 15% to be with other shipper rates.
richard1rst
OP2 years agoRATES are only part of our cost. If the DISCOUNT is reduced then the ACTUAL cost goes up by a lot more than the stated rate. That was the example I posted.
carlmarxx
·2 years agoVery interesting UPS rates are up and they are letting a large number of employee's go . Their service has and is going down in the 3 years . UPS hasn't fixed their sorting hub issues in IL. PA. and NJ. .