EBAY-Post Office Prices vs. Fedex and UPS

I know that the post office recently raised rates across the board and only can hope that Fedex and UPS wont follow suit.

I have noticed that costs for Fedex and UPS ground are significantly less expensive that priority mail.

I end up buying stuff on ebay where the seller is using USPS priorty mail and its costing almost $12 for tiny and lightweight items..

Comparable costs for the same item throug Fedex ground are only about $6-$8

Why do sellers insist on using the more expensive shipping option (assuming that they are not building a "handling" cost into it)..

Spread the word... stop using the post office

The seller should have been shipping things to you via the USPS priority male flat rate boxes/envelopes.

If it can fit in a large envelope, and weighs under one pound, they should be able to mail things anywhere in the U.S. for $4.05.

If it can fit in one of two different size boxes, they can mail it anywhere in the U.S. for about $8.10 - definitely compatible with FedEX and the other services.

Best of all, the USPS does not charge for these flat rate boxes -- only the pre-paid ones. Go to the usps.com website, then select the 'supplies' and 'flat rate' options, you can see the pictures of the boxes (big enough for a couple of tiki mugs) and ask for some there.

I have no reason why more people don't use this flat-rate service, as it is so convenient and easy, especially for the smaller items. I think people are lazy - they just don't want to investigate things. Either that, or they use it as an excuse to pad their income at your expense.

By the way, I am currently annoyed with UPS. One of their brown vans backed into my car in late March - over 2 months ago - and they have still not filed the initial paperwork so their insurance company can reimburse me for my car repair ($1300 worth of damage). Until they do so, I am boycotting UPS.

[ Edited by: ikitnrev 2007-06-07 16:10 ]

I agree with you Monkeyman!

I'm in the process of switching our shipping from USPS to FedEx. Now FedEx ground is cheaper than Priority Mail, and you get a tracking number too!

The big issue is that the Post Office has switched to dimensional weight for anything larger than 12"x12"x12". We used to be able to ship a long, but light weight item for $9 via Priority, but now the same thing costs $30! FedEx ground is the way to go!

Ikitnrev, you're a little behind the times there. Flat rate envelope is now $4.60, flat rate box is now $8.95. I usually find that if something fits in the flat rate box, many times it is under 3 pounds, so if you put it in a regular Priority box, it would still be cheaper. Your item has to be over 3 pounds for the flat rate box to actually "save you money".

Here's the inside dope as explained by my local postmaster. Before 9/11, American Airlines had the contract with the US Postal Service to fly packages to their destination. The USPS employees would pick up the parcels at the airport and take them to their sorting stations. After 9/11, AA let their contract go and FedEx snapped it up. Since then, FedEx flies all USPS packages. He explained to me that during the holiday season, the first year they took over, FedEx made their packages a priority and if they had room on the planes they'd take whatever USPS packages they could fit in. Some of the Priority and Express packages were not getting to their destination within the overnight/ 2-3 days time frame. The USPS has a Express guarantee and was losing a lot of money because of this. The US Govt started charging FedEx the penalties they incrued. FedEx just paid the fines and kept doing as they do. So the US Govt stepped in to help re-structure, hence the new mayhem. Because of the amount of space on the planes, all packages have to be within certain size limits to insure that all packages will get on the plane. The more space they take, the less likely they'll put them on the plane if they are close to capacity. The USPS used to charge extra for large packages, now they have upped the rates so that FedEx Ground is the only reasonably priced way to ship a package that weighs more than 4 lbs. So you can pay $9.00 to have your package arrive within 5 - 7 days or pay almost 3 times as much to get it there in 2 days.

I have shipped through all carriers in my area: UPS, FedEx, DHL and USPS. I now only ship via USPS.

My reasons are based on my personal experience. I have had packages arrive to me in such disarray I can't believe they made the trip. I call them "frankeboxes" They are busted open and taped back together half-assed, have holes in the sides that look like they were used for punching bags, look as if they were dropped from a second story window and no longer have the square shape of a box. FedEx, in my area, is the biggest abuser. I have caught my FedEx guy practicing his bowling by sliding packages to my door down the concrete porch. The same guy, the next week, carried a package to my door trailing packaging peanuts the whole way. The entire corner of the box was gone. He just shrugged his shoulders and said, "That's they way it was when it got to my truck. I'll make a note of it." When I asked him to wait until i inspected the inside of the box to see what damage was on the inside, he told me he really didn't want to because he was already behind on his route. So I called the main office and complained. I have also caught a different FedEx guy doing the ole' underhand toss off the cart on a package clearly marked "FRAGILE." When I called him on it he just looked at me like I was some crazy bitch. I called my distributor and told them that I wanted to switch carriers. In fact, any carrier that offers FedEx I decline and pay extra for UPS because I know I have a better chance of getting them in one piece. The people I know who work for FedEx always blame the sorting centers or hubs for the damages, not the pilots of the planes so maybe that's why two companies can offer such different experiences using the same carrier.

When I used FedEx exclusively to ship my packages, the amount of damages and complaints I received from customers was so great I was forced to switch carriers. I switched to UPS, but eventually their fees climbed to the point that it was too expensive to use them on packages under 4 lbs. So when the post office came up with the idea that they could ship packages in 2 - 3 days and provide the boxes in which to do so, it made the most sense. If I was to purchase the materials to ship packages, it would cost me up to $5 for materials. I re-use as many boxes as I can but I don't always have enough boxes on hand. That's what makes the USPS so great, they have listened to customers and have numerous sizes to fit just about anything. In the past 5 years I've used the USPS, I've only had 3 lost packages. I can't say the same for UPS or FedEx... For my business, my customers are usually in a hurry to get a gift delivered for someone last minute, so USPS is so speedy they make me look good and people come back to me for that reason. If you print up your shipping labels on http://www.usps.com instead of PayPal, they will automatically e-mail the customer with their delivery confirmation number so they can track their packaged. But this new rate change has caused me to re-think what I can reasonably offer for shipping. I had to raise my rates one dollar, but I'm still on the losing end. I'm going to see what happens in the next few months before I make a rash decision.

But I completely understand your frustration. All of the shipping companies have us over a barrel right now.

Pretty much have to agree with stuff-o-rama there. I was using UPS and FedEx but had to give up due to large amounts of damages and unpaid claims. They're both just horrible to deal with, IMHO.

Also as per above...the big advantage to me of USPS are the free boxes...plain and simple. If you've ever gone out there to buy these things...they are expensive!! Often I start to offer First Class Mail to save on postage, but then when I figure in the cost of the box (or padded envelope)...its cheaper for all to send it Priority Mail!

So it's usually an example of either $3.80 First Class plus $2.00 for a box, or $4.60 for Priority Mail, box included. Pretty easy equation! Plus the Priority Mail usually gets there quicker than First Class, and here's another big plus...if you do your shipping labels online via PayPal or USPS directly...Delivery Confirmation is FREE! Another 65 cents savings that neither you or your customers have to pay.

But the main reason is the damage. So, so, so many damaged boxes with UPS and FedEx. And virtually none from USPS.

For 90% of my "package" (box or thick envelope) shipments...it's a regular Priority Mail box. For anything over 3lbs...it's the Priority Mail Flat Rate Box.

One other more minor area of mention with the USPS, is that even if you forget to schedule a free next-day package pickup...your regular letter carrier will usually be more than happy to take your pre-labeled and pre-postage-paid packages (as long as there aren't way too many for them).

One thing I've noticed over the years with customers...if the item is only $5 and the shipping is $4.60...they tend to complain about the cost of the shipping. But if the same weight and sized item is $200 and the shipping is still $4.60...they never complain!!! I think they often look at the price of the item they are buying and then relate the postage as a percentage to that and think..."Hey! I'm getting ripped off!" Not thinking that weight is weight, size is size, and postage is postage...no matter what the value of the thing is inside.

:)

But generally Monkeyman...if it's small and lightweight...the actual postage should not be over $4.60, or $8.95 at the highest for the Flat Rate Priority Mail box (provided the item will fit in that box, of course). Ebay sellers are permitted to add some "Handling Charges" to that shipping and handling number eBay gives you. But usually if it's going out Priority Mail, the more reputable sellers won't tack on more than a buck or two. So seeing a Priority Mail S&H on eBay of $5.60 is not uncommon.

[ Edited by: PremEx 2007-06-10 17:52 ]

I guess my point is that when Im looking at bidding on ONE aloha shirt (I have many), I KNOW that its not a heavy or bulky item...

I understand that the value of the item does not determine its shipping cost but I am trying to speak specifically to shipping ONE folded shirt for almost $10 using the auto calculator that the USPS provides on ebay.

The changes in shipping costs turn me away and cause me to look elsewhere... a $20 shirt plus $10 shipping is not a $20 shirt.

Its a $30 shirt.

The shipping IS part of the cost of the product... its not a separate component.

Handling costs are lame. I prefer that the seller just charge more for the product.

Also, Ebay will not take their fee from your shipping cost. That's a big part of why sellers inflate their shipping cost and call it "handling" or whatever. But I agree, always consider the shipping cost as part of the cost of the item.

This rate info is 3 years old...I know UPS and Fed-ex have also raised their rates since then. Does anyone know how it compares now?