Random Shipping Thoughts: Why do online stores ship USPS, UPS. Fedex, DHL, EMS, etc.... - advantages and drawbacks

[xM.]

Can anyone enlighten me why American retailers/brands are so insistent on shipping internationally using UPS? Their brokerage fees are essentially criminal and multiple times I've had brands say they're going to stop and switch to USPS only to ship the next package with UPS.

I told one brand that I got docked $168 on a $300 sweater and they sounded enraged and vowed not to use UPS anymore; next order a few months later and it's shipped UPS and I'm preparing to either go to the airport to clear it myself or eat almost $200 in fees.

I get paying duty and I get paying taxes. But UPS also charges exorbitant brokerage fees to clear shipments for you. They tacked an additional $70 on top of that sweater purchase.

 

[nahneun]

Because it’s cheaper and logistically easier for them. You are not their target demographic. Are you seriously asking this question with that level of entitlement?

 

[gdl203]

Can anyone enlighten me why American retailers/brands are so insistent on shipping internationally using UPS? Their brokerage fees are essentially criminal and multiple times I've had brands say they're going to stop and switch to USPS only to ship the next package with UPS.

I told one brand that I got docked $168 on a $300 sweater and they sounded enraged and vowed not to use UPS anymore; next order a few months later and it's shipped UPS and I'm preparing to either go to the airport to clear it myself or eat almost $200 in fees.

I get paying duty and I get paying taxes. But UPS also charges exorbitant brokerage fees to clear shipments for you. They tacked an additional $70 on top of that sweater purchase.

We offer the option at checkout between UPS and USPS for Canadian customers (many choose UPS, to be clear) but I can still give you my take from the other side of this:

1. USPS is not cheaper. The rates have becomes very expensive for Intl Priority and unlike UPS/Fedex, they don't offer discounts to commercial accounts who ship a lot. Same for everyone
2. Service is inexistent. UPS picks up every day at our door, even shows up multiple times a day. Once an order is packed, it will go out that day. USPS requires you to schedule pickups, and then they may or may not show up. Sometimes we have to schedule and schedule three days in a row and we wait, and they don't show up. They just don't care. And then Canadian customers get angry with us, because it takes longer to ship.
3. It's more work. With UPS (or Fedex), we just pack it and send it. In their center, they weigh and measure every package and adjust the rate accordingly on our monthly bills. For USPS, we have to weigh and measure every package precisely or we run the risk of a package being rejected/returned for insufficient postage.
4. What if customer refuses to pay duties. You'd be surprised how many Canadian customers, while being fully informed of their obligation to pay duties and tax upon receipt... just refuse to do so. So package has to be returned to us. While UPS charges us a few for that, at least we get it back in days. With USPS, it can take an infinite number of days. We've seen months in the past. Once it is in that limbo, there's no knowing when we get it back and can sell that item again

But mostly, it's #2

 

[xM.]

We offer the option at checkout between UPS and USPS for Canadian customers (many choose UPS, to be clear) but I can still give you my take from the other side of this:

1. USPS is not cheaper. The rates have becomes very expensive for Intl Priority and unlike UPS/Fedex, they don't offer discounts to commercial accounts who ship a lot. Same for everyone

I will say that I'd be more than happy paying more up front than being shocked with 20-30% brokerage fees later, but I may be in the minority. USPS, FedEx, DHL have all been notably cheaper than UPS for me. Their brokerage fees to clear your package range from free (USPS -> Canada Post) to at most $5. UPS charged me $63 recently.

I'd also say that what prompted this post is when I mention to smaller brands that UPS is gouging people and they say "man, that sucks! I removed UPS as an option" or "we're using DHL from now on, don't worry!" and then I place another order only to get that UPS shipping notification. It's to the point now where I might not order from an American site if I see UPS, so it's a huge bummer to have to budget an extra $100 when I place a big one. It's happened a few times lately.

2. Service is inexistent. UPS picks up every day at our door, even shows up multiple times a day. Once an order is packed, it will go out that day. USPS requires you to schedule pickups, and then they may or may not show up. Sometimes we have to schedule and schedule three days in a row and we wait, and they don't show up. They just don't care. And then Canadian customers get angry with us, because it takes longer to ship.

This is very real, and I do appreciate the context. I can't imaging balancing customers angry about surprise fees with customers angry about shipping times, both of which are almost entirely out of your control.

 

[whorishconsumer]

If we're talking about CA(nada), that is definitely some egregious import tax.

Free healthcare, tho.

 

[gdl203]

I can't imaging balancing customers angry about surprise fees with customers angry about shipping times, both of which are almost entirely out of your control.

Which is why we prefer to let customers decide. But then again, many don't know the trade-offs. They pick UPS to get it faster, but then get angry at taxes and fees. Or conversely pick USPS to save on fees but don't understand it doesn't move as fast and their tracking is a joke

 

[zippyh]

If we're talking about CA(nada), that is definitely some egregious import tax.

Free healthcare, tho.

I think the egregious part is UPS fees that get tacked on, not the actual import tax.

For US bound stuff at least, there’s a way to self clear packages to avoid UPS fees but it involves jumping through many flaming hoops. I’d rather pay the fees but that was only about $30 last time I owed anything to them.

Edit to add: Flaming hoop jumping for Canada.

Avoid Paying UPS Brokerage Fees in Canada w/Self Clearance

A step-by-step guide with photos on how to avoid paying UPS brokerage fees in Canada through a process called self-clearance with CBSA.

goingawesomeplaces.com

 

[LA Guy]

Which is why we prefer to let customers decide. But then again, many don't know the trade-offs. They pick UPS to get it faster, but then get angry at taxes and fees. Or conversely pick USPS to save on fees but don't understand it doesn't move as fast and their tracking is a joke

Honestly, I should break this out exchange into a “why do retailers ship UPS, DHL, FEDEX, or USPS?” Thread. It’s one of the recurring questions that should need easily searchable.

 

[whorishconsumer]

Honestly, I should break this out exchange into a “why do retailers ship UPS, DHL, FEDEX, or USPS?” Thread. It’s one of the recurring questions that should need easily searchable.

Cross-referenced with https://www.styleforum.net/threads/...g-questions-and-stories-thread.328145/page-79

 

[Trit]

I work for Canada Post. Not in any special position or anything. I know the service is bad. I know USPS is the same, for mostly the same reasons. Politics aside, this is why Canadians in the know still want USPS, which will convert to Canada Post at the border:

1) A known duty processing fee. Flat $9.95, no matter what the value of the item. The other shippers hide all fees/duty together hoping people just assume a 30-40% charge is normal. I've had $60 just in processing fees before, once I actually did the math.

2) An actual receipt stuck to the package. With all fees broken down and transparent.

3) The not so secret most desirable one: stuff gets missed at customs all the time. You're only allowed $20 into Canada, before customs starts, $40 with items from USA, due to NAFTA, but items with declared values much higher than that slip through all the time because no one in USPS or Canada Post has a financial stake of whether you pay customs or not. The other companies have that as a major part of their revenue since they pre-pay customs, and charge high fees for this service, so nothing will ever slip by. Maybe you only get lucky one in ten times with USPS/Canada Post, but if that tenth time is a $1000 jacket then that saves you $160.

So even though it's a major headache, I personally appreciate every small US business that is willing to ship USPS to Canada. And I'm not saying that to save my job; Management is still obstinately refusing to make me God Emperor and let me fix the place, so thinking they're unsalvageable is probably fair.

 

[double00]

it's not like sellers are required to ship internationally . I certainly don't , my wares are available where I choose .

the folks complaining are lucky to have access in the first place imho

 

[Trit]

Very true. It's all just a business proposition.

The private brokers make it easier for small companies to ship internationally at the cost of the customers.

The Federal shippers give terrible service but are often cheaper, or more fair, to the end consumer.

Every company can make their own decisions on what they want to offer their customers, or whether they want those customers at all.

I've asked companies to ship a certain way before and sometimes they will and sometimes they won't. Sometimes I buy anyway and sometimes I find somewhere else to get the same item.

For US shoppers, I think they aren't used to the idea that an item can cost literally double what the displayed price says online. Like if I buy something off Yoox it's almost exactly 100% more than the price displayed. It's listed in USD so there's that price conversion to CAD, then a 2.5% fee from your credit card company to do this conversion, then a 16% duty of clothing from Italy, then a 15% sales tax for the province I live in, then $25 USD for shipping, and probably a fee thrown in there by Yoox for handling the customs on their end, but I've never broke it down that far.

And I know other countries have it way crazier than that, so I'm not complaining.