FedEx Smartpost Pricing - More than Doubled?

[turbofreckles]

I ship via FedEx Smartpost very often on my seller account for cheap, but larger packages, especially across the country. I went to print some labels today and the prices have more than doubled. They are more expensive than FedEx Ground which is a quicker and better service. I usually can send a 5lb package to the West coast from the East coast for $10-14, but now the price shows as $27.00 (FedEx Ground is $20). Even within a few hundred miles, the price usually is between $5-9.00, the price quoted now is $14.00. Does this have to do with the updated USPS pricing or is it some other error with eBay? 

[Anonymous]

---

@turbofreckles wrote:

I ship via FedEx Smartpost very often on my seller account for cheap, but larger packages, especially across the country. I went to print some labels today and the prices have more than doubled. They are more expensive than FedEx Ground which is a quicker and better service. I usually can send a 5lb package to the West coast from the East coast for $10-14, but now the price shows as $27.00 (FedEx Ground is $20). Even within a few hundred miles, the price usually is between $5-9.00, the price quoted now is $14.00. Does this have to do with the updated USPS pricing or is it some other error with eBay? 

---

Hello everyone, I wanted to let you know that we are aware of some recent issues with FedEx SmartPost shipments. Recently, pricing changes were introduced and necessary updates were not made in time on our end. We are working to resolve problems with our shipping calculator, search results, view item pages and checkout. The pricing seen by sellers when printing SmartPost labels is accurate, but may be more than what the buyer was charged.

Until this is resolved, we recommend that sellers utilize an alternative service. Also be aware that lightweight packages (those under 10lb by weight or dimension) are typically the only sizes where SmartPost provides significant savings over other shipping services.

We apologize for any trouble this may have caused and will provide updates as they become available!

[wando92]

Therefore the moral of the story is that there is no economy shipping options anymore. Priority mail is the new economy shipping option! 

Waiting to to see the fall out- from fedex smart post staffing to eBay box sale - free boxes with priority mail. Why buy boxes??

[wando92]

Hello it is not true. Even items less than 10 pounds costs more with smart post than priority mail. Right now, there is NO economy shipping method anymore.   There is going to be fall out - including eBay sales . It is funny to say Priority mail is the new economy shipping option. Smart post is slooooow and expensive. Ha! The geniuses we have!

[berserkerplanet]

>>Hello it is not true. Even items less than 10 pounds costs more with smart post than priority mail...

Almost none of that is true.

Yes, Smartpost is no longer as dirt cheap, but is far less expensive than Priority Mail for non-local destinations in some cases.

A 7 pound 12x12x10 pkg to zone 8 will run: $15.42 Smartpost, $16.57 FedEx Home Delivery, and $27.04 Priority Mail, and $27.03 Parcel Select.

If we increase the 7 pound package size to 15x14x10 it will run: $32.27 Smartpost, $20.52 FedEx Home Delivery, and $39.76 Priority Mail, and still $27.03 Parcel Select.

Priority Mail is a bad choice for either of those scenarios, and FedEx Home Delivery turns out to be better or about the same as Smartpost, and the clear winner for the larger pkg.

[mikescuriouscurios]

berserkerplanet:

Mostly true. Over the weekend with the glitches still in the Smartpost WAS all over the place and showing almost double for a while. Now that it is working better, there are still some cases where USPS Priority can be cheaper. Such as short distances (i.e. 0-1 zones away) - you DID mention "non-local".  Although you never know who is going to purchase from where, so it is best to err on the far-side. At least I HOPE it is showing accurate shipping costs now or a lot of people are going to be surprised when they start getting the billings from Fedex AFTER the package is actually delivered.

This lower rate for SmartPost appears to be mostly due to the fact that if you look at the seller discounts that Eb displays closely they are apparently discounting Smartpost to US upwards of 30% in many cases, vs 10-14% for USPS priority.  If you are displaying the retail rates to buyers instead of the seller discount rates there are many more cases where smartpost still appears to the buyer significantly higher than priority.

[wando92]

berserkerplanet,

not sure where you got your data. From my side of the town, smart post is more expensive and takes three time as long than priority mail in almost all occasions unless you have a small box like 8x6x4. 

It is brokenly stupid. 

[wando92]

And priority mail should see a SURGE in volume because of this.  priority mail is a terrific service, but the cost of it makes  selling larger (note, just slightly larger, not huge) and heavier (again just slightly heavier) items prohibitive. Offer free shipping? Good luck! You will see free shipping offers disappearing on eBay unless you sell really small items. So long to pushing for free shipping eBay. 

[actionfigurevault77]

As others have mentioned, I don't know where you're getting these numbers, but you're incorrect. I LITERALLY just punched in the stats to a zone 8 location via Smartpost for a 12x12x10 box which is fairly small to be honest and for something as little as ONE FREAKIN pound all the way up to 11 lbs. it's the same exact charge.

$24.83!! I'm sorry, but that's unreasonable and it will CRIPPLE small business. I don't know how any one can possibly ship anything across the country any more other then smalls as there's no service available that's cost effective. You'd be spending more in shipping more then half the time the item's even worth and nor the buyer or seller will spring for it.

The Amazon take over is getting closer by the day and I don't see much that Ebay is doing about it. Seriously, that's the best deal that God knows how many Ebay sellers were able to get on behalf of Ebay's negotiations? There's just no way to compete.

[actionfigurevault77]

Also, God forbid you actually need something even SLIGHTLY larger such as a 12x12x12 box at the same exact weight it even gets worse. Close to $28.00 for that two extra inches. Seriously ridiculous.

So long to all you cowboy hat and stuffed animal sellers! ;(

[basement_to_attic_treasures]

So Mr. Ebay:

Now that most of us found out the hard way that FedEx SmartPost has doubled in cost, it would really have been nice for ebay to have let us sellers know about it ahead of time!  I had to call ebay 3 times before I asked to speak to a manager about the increase.  Nobody told me a week ago that the price was going up or to use the DIM weight; otherwise, I would have re-calculated our items up for sale not using SmartPost.  So we ate the additional shipping charge for 3 items because ebay didn't let us sellers know!  We are so furious!  Our business will probably fail now because we cannot be competitive as we live in California and most of our business seems to come from the East Coast and SmartPost was by far the most cost-effective shipment method. 

Two furious California sellers!

[berserkerplanet]

►Mostly true. Over the weekend with the glitches still in the Smartpost WAS all over the place and showing ►almost double for a while. Now that it is working better, there are still some cases where USPS Priority can ►be cheaper. Such as short distances (i.e. 0-1 zones away) - you DID mention "non-local".

I didn't get into local because most are confused enough as it is. Priority is usually the cheapest option for Zones 1-3 because it doesn't care about dim weight for zones 1-4. Zone 4 it was often close a wash whether Smartpost or Priority would be cheaper, but now Priority probably is the winner there too. On those type of listings I always offered Smartpost, Priority, and often FedEx Home Delivery. Buyers close were better off with Priority and distant Smartpost was the winner. That has all changed with Smartpost dim weight and I haven't worked out the details on any of my specific listings yet, but doubt Smartpost will be an option any longer.

I'm not seeing any changes. Smartpost is still completely broken in terms of the search, listing, and checkout calculations. One of mine shows eBay estimating 25% of actual label cost.

►This lower rate for SmartPost appears to be mostly due to the fact that if you look at the seller discounts ►that Eb displays closely they are apparently discounting Smartpost to US upwards of 30% in many cases ►vs 10-14% for USPS priority.

Once again, I see no lower rates anywhere at this time. And you need to stop looking at and comparing FedEx and USP discounts. It's meaningless because the rates are not related in any way. I also am not seeing any Smartpost discounts over 2-4% anywhere. Where are you getting the 30%? Do you have an actual eBay label that showed that discount, or are you looking at the estimating calculator numbers (which are completely wrong)?

Those 30%, 40%, 50% discount numbers on the estimating calculator are relative to full counter retail and are once again, useless (the same as the USPS price discount amounts are useless). I only detail in online rates. The discount number that matters and I want to see is the one on the actual label creation page that shows how much eBay negotiation juju is getting me off the online rate. Last year those numbers were about 5% to 40% maybe. Now all I see is 2% or 4% which does nothing to help with the rate increases and the dim weight gotchas.

In summary, I don't see any changes, and Smartpost calculator is still broken. And Priority is not a cheaper option for zone 8.

[berserkerplanet]

►not sure where you got your data. From my side of the town, smart post is more expensive and takes ►three time as long than priority mail in almost all occasions unless you have a small box like 8x6x4.

I got my data by manually calculating the charges from the rate tables and current fuel surcharges, and then again from the actual eBay Smartpost label calculator. The numbers are correct.

You are probably using http://www.ebay.com/shp/Calculator which is completely broken and the Smartpost numbers are wrong, and too low by up to a factor of 4.

[berserkerplanet]

►As others have mentioned, I don't know where you're getting these numbers, but you're incorrect. ►I LITERALLY just punched in the stats to a zone 8 location via Smartpost for a 12x12x10 box which ►is fairly small to be honest and for something as little as ONE FREAKIN pound all the way up to ►11 lbs. it's the same exact charge.

I'm having trouble trying to figure out what you are trying to say there.

A 12x12x10 box has a FedEx Dimensional Weight of 11 pounds (there is no under 1 cu-ft exemption like USPS has). It will ship at 11 pounds if shipped Smartpost. And yes, even if that box actually weighs 8oz, it ships at an 11 pound rate. That is the dimensional weight concept. To zone 8 that box will cost $24.33 (and yes that $15.42 amount in my previous post #34 was wrong. But it's still less than Priority to zone 8 for the same package)

[berserkerplanet]

I did make an error in post #34 on the Smartpost price (don't know if a typo or what)

► A 7 pound 12x12x10 pkg to zone 8 will run: $15.42 Smartpost, $16.57 FedEx Home Delivery,
► and $27.04 Priority Mail, and $27.03 Parcel Select.

should have been:

A 7 pound 12x12x10 pkg to zone 8 will run: $24.83 Smartpost, $17.69 FedEx Home Delivery, and $27.04 Priority Mail, and $27.03 Parcel Select.

(The FedEx Home Delivery amount increased about a dollar since the previous check. Not sure if eBay is adjusting things or if another typo on my part)

[berserkerplanet]

One thing I just noticed while checking my figures is that the label calculator is now using a 166 Dimensional Weight Divisor for Ground/Home Delivery (where I'm 99% positive it was using 139 since 1/1/18), but is using 139 for Smartpost.

That is an area where we could get some relief if eBay would/could also use the 166 divisor on Smartpost calculations.

────────────────────────────────────────────────────────

Official stance on this?             @Anonymous

Is the FedEx Ground/Home Delivery/Express? dimensional weight divisor going to be 166 again for 2018? (or is what I saw a transient glitch?)

And is there any hope that the Smartpost divisor will be 166, or is it going to be 139?