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Buyers given Fedex Ground Rates instead of Fedex Home Rates Starting Jan 2018, ouch!

Has anybody noticed that starting in Jan 2018 the shipping calclulator AND eBay check-out process is giving a 48% to 51% discount on large heavy Fedex shipments if your settings pass full discounts on to the buyers? The max discount for Fedex is supposed to be 37% for home delivery.  Since home delivery is the lions share of shipments (at least for me).  It seems the 37% rate should be passed on the sellers, NOT the 51% rates unless they have a verified business address.  Once this happens there is no way to recoupe this revenue and you just have to eat the loss on shipping.  I am guessing this is a new "bug" in the system.  The help desk simply told me to contact Fedex to get an adjustment,  ha ha ha.  Please let's hear if others are having this problem?  It took me a while to figure out what was causing the buyers to be undercharged, but the math works out that they are being undercharged by about 12 to 14% on Fedex Home shippping for large cartons.  This adds up fast for sellers when a single Fedex label can cost over $50!

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Buyers given Fedex Ground Rates instead of Fedex Home Rates Starting Jan 2018, ouch!

Anonymous
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@babclassics wrote:

@Anonymouswrote:

wrote:

wrote:

Hi everyone, I have an update on this topic to share: we've implemented fixes to the way that FedEx SmartPost costs are displayed that should resolve the recent problem with buyers seeing a different price than what you see when you went to print labels. I apologize for the trouble this may have caused and recommend contacting Customer Service if you have any questions about the shipping discrepancies you may have run into while this was an issue.


The Smart Post calculations are much better but still about 14% undercharing for packages that kick in the new heavily increased dimensional pricing, in my opinion.  I posted details in the "SmartPost cost doubled" thread where @Anonymous also posted this update on the smartpost fix.

 

The original topic of this thread was about Ground versus Home Rates issues.  Several people posted on what they thought the problem was with that undercharge.  It seems it is not the residential delivery fee that i first stated in this thread.   It has been mentioned that this discrepancy has been fixed but i can say it has not been fully fixed.  I finally got my actual Fedex charges back on the monthly invoice and there are still undercharges happening for FedEx Home.  But not all shipments.  Am yet to find the common thread but there is still definately an undercharge to the buyer for large heavy FedEx Home packages to some zip codes.  So i don't think the original problem that started this thread is fully fixed.  Will post more with exact details as they appear but several examples are already given much earlier in this thread and they still yield the same results of quoted cost to buyer being lower than label print cost by a siginficant amount.


Hi @babclassics, I've emailed you just now for more info so I can look into what may be going on. Looking forward to working with you!


Ok, got your email and sent examples with details on Smartpost and FedEx Home label costs that still look fishy.  Hope you got them OK since they were to a generic email address.  If not, let me know.  Will post back here for everyone as the results unfold.


Hi @babclassics, I just wanted to give you a little update on this topic. We are still investigating for any potential issues for some of the details you shared, but I did hear back from our shipping team in regards to the price changes when comparing FedEx Ground/Home Delivery before and after the 22nd of January. Prior to the 22nd, we did have a higher rate for this service but were able to negotiate a change that lowered these rates slightly. Your FedEx Ground/Home Delivery shipments after the 22nd will be lower than before that date.

 

Rate changes for FedEx went into effect on January 1st with additional updates to FedEx SmartPost on the 22nd. We did have a bug where the displayed price to buyers differed from what sellers paid when purchasing the label, but the label amount shown to the seller was correct based on the FedEx's rates. If you have any labels that were subject to this discrepancy our Customer Service team is happy to review for adjustments as needed.

 

Again, we are looking into what issues may be persistent and will work closely with FedEx to resolve any gaps in the estimates vs. the actual charge! I will keep you posted here when I learn more!

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