Multiple FedEx upcharges on Nov/Dec Shipping for heavy/large shipments

[dtexley3]

@berserkerplanet

@Anonymous

I have several instances where I shipped boxes weighing over 9lb in Nov and Dec via FedEx SmartPost and FedEx Home Delivery.  All the labels were printed via eBay labels.  Now that I have received the invoices I have a number of FedEx charges that are almost DOUBLE the eBay cost.  I know the eBay cost is an "estimate" but DOUBLE???  

Shipment of an 18x18x15 box weight 9lb 10z (ie 10lb) Item # 182910185562.  Dimensional weight is 29.27lbs or basically 30lb.  eBay label estimate was $25.11.  Invoice has a FedEx charge of $39.39.  This is the smallest of the differences but both the sale and the shipping charge are in Dec so it's the easiest to give as an example.

The $14 difference is almost all of the profit on this sale!!!!!  It was two items just big enough that I had to use an oversize box.  If I had known the charge was $40 I would have shipped in two smaller boxes and only paid ~$30 at most!

We have to be able to trust that the eBay label amount is at least close to the final price (ie within 10% at most).  In this case it was off by nearly 60%, I have other cases where it approaches 100%.

Is the eBay label calculation that far off for heavier/larger shipments?

[pursenurse]

Until this week Fedex Smartpost labels did show correct charge. This week, for me however, I noticed a HUGE increase - actually about double what it should be. Contacting eBay CSR was really no help but after checking with FedEx I realized that the eBay charge on shipping label is actually showing the exact amount that FedEx charges for Home Delivery Ground. 

Hopefully, eBay will get this glitch fixed

[berserkerplanet]

Smartpost label costs went up due to overall rate increases 1/1/18, worse dimensional weight divisor 1/1/18, and dimensional weight considerations 1/22/18.

There is currently a bug I and some other sellers are seeing (and I suspect is universal) where Smartpost amounts shown to buyers in search and the listings and charged to buyers at checkout is a low, incorrect amount that ignores dimensional weight, while the label costs are corrrect (and much higher for larger packages due to the dim weight)

See here: https://community.ebay.com/t5/Shipping-Returns/FedEx-Smartpost-Pricing-More-than-Doubled/m-p/2802953...

I'm not sure what you are saying Home Delivery Ground has to do with Smartpost.

There is another bug that started before the 1/22/18 Smartpost bug that does involve FedEx Home Delivery where the search, listing. and checkout amounts are lower than the final label cost by (very approximately) the $3.60 Residential Delivery surcharge amount (although my numbers showed the difference was all over the place depending destination/label cost and needs more analysis, or better yet, fixing).

[pursenurse]

Many thanks for your detailed reply - much appreciated.

The reason I mentioned Fedex Ground Home Delivery is because the rates showing up on eBay shipping label for SmartPost package was actually the identical rate as the Fedex Ground Home Delivery rate forsame package. It is obviously an error in the system.

Why would anyone use a SmartPost label to ship an item when, for the same charge, the package could go via FedEx ground and arrive much faster. It is not logical. I'm sure it'll get straightened out eventually.

Happy Selling!

[berserkerplanet]

I think you are making an error assuming that a Smartpost price being the same as a FedEx Home Delivery price is an error. It can happen due to different rate price increase rates and variable eBay discounts.

Smartpost USED TO be less expensive than Ground or Home Delivery for many shipments before it started using dimensional weight on 1/22/18, but that is no longer the case. Except for 1 pound, at a given weight, Smartpost base rates are higher than Ground rates, and increase faster than ground rates.

Prior to 1/22/18, an 8lb Smartpost package shipped at an 8pound Smartpost rate and life was good.

Now that same package might ship at a dimensional weight of 21 pounds (if it were 17x14x12) which has a base rate of $39.04 to a zone 8 destination. Home Delivery ships at the same 21 pound dimensional weight, but the base rate for that is $28.71. Because residential, we have to add $3.60 to that base rate which comes to $32.31 - about $7 less than Smartpost. For final prices we have to add fuel surcharge to both and then apply the unknown eBay FedEx discounts. Since Ground/Home Delivery discount levels are usually higher than Smartpost discounts, the Home Delivery option would probably end up much less than Smartpost.

There is some package size somewhat less than the example above where the prices would be close or the same for a given destination zone, and then below that size Smartpost would come out ahead again (because of the fixed $3.60 added Residential Delivery Surcharge on the Home Delivery.)

Ground and Smartpost start out at the same base rate for 1 pound, and then increase from there. Right off the bat, Smartpost starts increasing faster, takes that big jump at 10 pounds, and continues to increase faster than Ground. For zone 8 destinations, at 35 pounds, Smartpost base rate is $61 while Ground is $44.86

[pursenurse]

Thanks again for your well-detailed response. I really appreciate your taking the time to explain the situation so clearly.

Happy Selling!