Is USPS Out of its Mind with new rates??

[glasser]

OK, so I sell many items with flat rate and indicate I may use USPS or FedEx depending on weight and distance. FedEx is definitely cheaper for long haul ( I live east coast). I know put in my listings if you are West of the Mississippi I may use FedEx.

So today, I prepare a shipment to TX 16 x 12 x 12 6 pounds. USPS rate $43 ( no insurance just postage) FedEx Ground $17. FedEx Ground with $500 insurance and signature confirmation (free with insurance and required) $24.  BTW, FedEx two-day was like the same as USPS priority. UPS has competitive rates to FedEx. 

In terms of delivery times. Package should get there maybe one day later than USPS or maybe the same. On the east coast, if I use FedEx Ground or UPS within a certain distance like a couple of hundred miles packages usually delivered overnight.

I know a lot of sellers very wedded to USPS. But the old adage it pays to shop around really applies here. If I had used the calculator and only USPS, probably scare some buyers away.

[juicydrupes]

I offer both options on every listing. Not really sure how eBay displays the rates to the buyer. I would hope they would show the cheapest option of the two, depending on buyer locale.

[glasser]

@juicydrupes think maybe, never tested, they show what ever you put as the first option.

[santamonicajeweler]

"A General Accountability Office (GAO) report found that USPS lost $69 billion over the previous 11 fiscal years—including $3.9 billion in fiscal year 2018. Then, a forecasted $6.6 billion loss turned into an $8.9 billion loss in 2019."

www.forbes.com/sites/adamandrzejewski/2021/02/20/why-the-us-post-office-is-in-trouble--678539-employ...

USPS is in trouble. With all that abuse by Amazon, they need to change strategy and hopefully find their way. So far, taxpayers are filling the financial gap 

[albertabrightalberta]

---

@glasser wrote:

OK, so I sell many items with flat rate and indicate I may use USPS or FedEx depending on weight and distance. FedEx is definitely cheaper for long haul ( I live east coast). I know put in my listings if you are West of the Mississippi I may use FedEx.

So today, I prepare a shipment to TX 16 x 12 x 12 6 pounds. USPS rate $43 ( no insurance just postage) FedEx Ground $17. FedEx Ground with $500 insurance and signature confirmation (free with insurance and required) $24.  BTW, FedEx two-day was like the same as USPS priority. UPS has competitive rates to FedEx. 

In terms of delivery times. Package should get there maybe one day later than USPS or maybe the same. On the east coast, if I use FedEx Ground or UPS within a certain distance like a couple of hundred miles packages usually delivered overnight.

I know a lot of sellers very wedded to USPS. But the old adage it pays to shop around really applies here. If I had used the calculator and only USPS, probably scare some buyers away.

---

Prices on USPS jump astronomically on oversized (over 1 cubic foot) packages and your package was oversized, thus the high cost. 

But be careful with expecting real insurance with Fedex. They told me they don't offer insurance -- they call it indemnity and it's extremely difficult to win a claim with.

[glasser]

@albertabrightalberta for people like me who sell items of varying sizes, a 12 x 12 x 12 box of smaller only works some of the time. I have no issues with USPS when I ship like a couple of pounds 8 x8 x8, But the exponetial increase comes with sticker shock. I assume some of it is USPS reliance on air shipments via UPS and FedEx that really have strong ground shipping units.

BTW, not sure what the difference is between indemnity and insurance as indemnity is "security or protection against a loss or other financial burden."  When you indemnify someone or something you are agreeing to protect against loss. Common in many contracts.

Further, they sell the product as insurance so kind of hard to claim something wasn't actually insured. Being hard to collect that's a whole other kettle of fish...

[ainpie-10]

Yes, they are out of their mind. I never use them for heavy items.

[chapeau-noir]

As usual they're just moving the deck chairs around in that article - those so-called 'huge salaries' for a small number of people are not what is driving the USPS's deficit problem, that's pennies compared to dollars.  It's the ridiculous pre-funding program passed during Bush II's administration - until that is scrapped and changed for a sensible pension or 401K program, the USPS will continue bleeding money.  I haven't heard much from DeJoy about the bill to do just that which has been stuck in the senate (surprise, surprise, surprise!) for years.

ETA:  Until then, we'll have these crazy shipping rates.  They're about driving me to the edge.

[buyselljack2016]

Time will tell if that $17 rate sticks when thrown against the wall.

Was that your own FedEx account calculation, or the eBay guesstimate?

Beware the surcharges.

[toysaver]

FedEx labels are only estimates and there are dozens of threads of about additional charges coming after shipment.  Make sure to click on the learn more link under the Fed Ex home delivery selection to read the fine print and understand dimensional weight.

[orangehound]

---

@santamonicajeweler wrote:

USPS is in trouble. With all that abuse by Amazon, they need to change strategy and hopefully find their way. So far, taxpayers are filling the financial gap 

---

The USPS makes money with their contract with Amazon ... it is a Trumpism that the USPS loses money with Amazon (he hates Bezos), and this has become internet "fact" now.

But, yeah, the USPS does have some issues that need fixing.

[fern*wood]

I thought fedex also charged dimensional rates.

[craigstevensstudio]

governments way of taxing and syphoning off money from the postal service.  its a rackett.