Why are Shipping Charges so Expensive?

[Tractor Seabee]

Discussing subjects like this in long detail is out of place in Technical Forums so decided to start it in this one. This is a much better forum for rants like this.

For me shipping Charges have really become a limiting factor in buying off the internet or ordering items not stocked in the various places we buy things and result in special orders. I have started to buy things and low and behold shipping costs equal to or more that the item costs. I spend a lot of time finding items that have free shipping or at lower costs, or can be found somewhere locally. Most often the item with free shipping cost the same or less than those vendors charging a shipping cost.

Sometimes we do not ask the right questions or make erroneous assumptions when ordering. If you need (rather than want) it the next day or two that is part of the cost after all it takes special attention.

Large, bulky, or heavy items that require regular long haul trucking made an exponential leap when fuel prices skyrocketed. Now fuel is half the price and I do not detect any lowering of costs. Actually due to the economic slump truckers have taken a big pay cut that has not been restored either.

My biggest peeve are $10-15 charges for small items that fit in USPS 1st class or Priority containers at $6 or less. Fed X and UPS are several time as much for the same product. I have never gotten a sensible answer when questioning why they do not ship by USPS. Seems the attitude is that is the way it is. Some have said it is because of the labor cost to take from stock, package, and stage for pickup that is why the use the acronym S & H. My never answered question is why that labor is not a business indirect expense as part of their overhead factor added to their pricing along with the shipping cost to get the item into stock. So; bury part of your cost in S & H and make the customer think he got a bargain on his product cost.

I'll quit rambling an let others amplify this thread.

Ron

 

[STx]

An Amazon Prime subscription with free 2-day shipping on most items is well worth the money, you'll save the $99 cost of the subscription very quickly.

LTL freight rates have dropped significantly, last year I sent 12 hog trap panels from Texas to Virgina and shipping was $1200, this year I sent 18 panels to the same recipient and shipping was $550. Shipping rates full traps around the state have dropped from about $300 last year to around $125 now.

As for your main complaint, I think a lot of sellers (especially on eBay) price their items low with the intention of making up the discount through inflated shipping costs.

 

[prichard]

An Amazon Prime subscription with free 2-day shipping on most items is well worth the money, you'll save the $99 cost of the subscription very quickly.

As for your main complaint, I think a lot of sellers (especially on eBay) price their items low with the intention of making up the discount through inflated shipping costs.

What he said. Prime is great.

My real peeve is when you have to go half way or more through checkout process to even find the shipping charges. If I can't calsulate from cart I often move on to another store.

 

[quicksandfarmer]

What I've noticed lately is that there's a huge difference between the rates that companies who ship a lot get and what you or I get shipping things ourselves.

I needed to ship a $15 item last week, it was cheaper to buy another one on Amazon Prime with free shipping than to ship the one I already owned using UPS ground.

Last spring I bought 3,000 lbs of fencing from Kencove in Pennsylvania. Shipping was $230. If I had shipped it myself with UPS Freight it would have been over $1500. UShip wouldn't have been much cheaper.

I bought a hay rake from AgriSupply last summer -- free shipping!

 

[kenmac]

Well, 1st off, everyone should know that "FREE SHIPPING" doesn't exist.. Someone always pays.. They should use the term shipping included .

I heard on the news the other day, that UPS (along with others) charge a surcharge for shipping ,like they did when fuel prices went up.. They just never dropped the surcharge

 

[Professor Marvel]

An Amazon Prime subscription with free 2-day shipping on most items is well worth the money, you'll save the $99 cost of the subscription very quickly.

LTL freight rates have dropped significantly, last year I sent 12 hog trap panels from Texas to Virgina and shipping was $1200, this year I sent 18 panels to the same recipient and shipping was $550. Shipping rates full traps around the state have dropped from about $300 last year to around $125 now.

As for your main complaint, I think a lot of sellers (especially on eBay) price their items low with the intention of making up the discount through inflated shipping costs.

DITTO

 

[QRTRHRS]

When I buy something online, I factor in the shipping before making my purchase. I try to never use expedited, gotta' have it next day shipping. Then there is the so called driver shortage. I suppose given the number of boomers retiring, etc., there is somewhat of a shortage. Probably more of a decent pay, decent working conditions shortage same as it has ever been in the trucking industry. Perhaps though, some of those "higher paying" offers really are trickling back to the shippers.

 

[jeff9366]

What I've noticed lately is that there's a huge difference between the rates that companies who ship a lot get and what you or I get shipping things ourselves.

This is a surprise?

To negotiate good pricing from FedEx or UPS, you have to contract for regular full truckloads of outbound merchandise. Neither FedEx nor UPS want to touch the trailer contents until it reaches their first depot. With sealed, full trailers depots can operate three shifts, if that is expedient.

Packages have been addressed/coded by the shipper. Packages are read electronically at the first depot. Shipper spends zero face time with the originator.

Individuals shipping occasional parcels are very high cost customers. Package intake is often 60% of shipment expense.

 

[chad22]

A few months ago I ordered a little $3.00 hex flange steering bushing for a guys riding mower that I was fixing.

The shipping was $6.00 for that little thing.

It would've fit into a little envelope but when I went to get it from the post office it was in a large box with a bunch of shipping paper around it.

A waste of a huge box and shipping paper when they could've just put it in a padded envelope.

Oh well. I figured I would've spent more in gas going to a store around here to get the part. That is even if they had the part at all.

 

[Leejohn]

Motor oil is another pulling the same crap. Goes up with oil price but never comes back down.

 

[jeff9366]

Whether it is shipping charges or the price of motor oil, if you think the prices are high consider buying some stock in the company.

FedEx, UPS, FTL shippers and LTL shippers and the oil companies are publicly traded; as are railroads, airlines and pipelines.

Shippers making a reasonable profit at present, the oils barely profitable or operating at a loss.

BE AN OWNER!

(Now may be a time to consider Energy stocks over Common Carrier Shippers.)

 

[kennyd]

A few months ago I ordered a little $3.00 hex flange steering bushing for a guys riding mower that I was fixing.

The shipping was $6.00 for that little thing.

It would've fit into a little envelope but when I went to get it from the post office it was in a large box with a bunch of shipping paper around it.

A waste of a huge box and shipping paper when they could've just put it in a padded envelope.

Oh well. I figured I would've spent more in gas going to a store around here to get the part. That is even if they had the part at all.

I've had to do the same, use a small flat rate box to shop some small QDs or a restrictor. Looks ridiculous but I've tried to use small padded envelopes before and not only are they not much cheaper, 50% of the time they got shredded at the post office sorting centers and I have to ship agian costing me more money and more lost time for the customer.

 

[davesl708]

Shipping cost is perplexing. I ordered a battery for my phone on Amazon. It shipped direct from the supplier and cost me $6.99 delivered.
At a phone store the battery cost $49.00. Same OEM battery. Same deal on a mole trap. One site wanted $28 + shipping of $8.95. Another wanted $32 including shipping.

USPS complains they are loosing money and want to cut Saturday deliveries. Now I see them delivering on Sunday as well at double pay.
FEDX and UPS are still charging fuel surcharges as before. Why, because they can.

You have to shop around when it comes to shipping since most shipping includes handling charges.

 

[STx]

Handling charges aren't necessarily unreasonable, boxes and packing materials cost money. I usually add $20 to my shipping rates to cover the cost of the pallet, shrink wrap and whatever I have to use to secure things to the pallet. Sometimes I'm having to build a crate type of system where the material isn't all that expensive but it takes me an hour or so to do it, like this one.



I don't think people should be making a profit off the S&H but at the same time, they shouldn't be losing money on it either.

 

[Mendonsy]

Here's a classic example of a shipping and handling ripoff:
Amazon.com: HITCH PIN 3/4 X 6: Home Improvement

 

[QRTRHRS]

Handling charges aren't necessarily unreasonable, boxes and packing materials cost money. I usually add $20 to my shipping rates to cover the cost of the pallet, shrink wrap and whatever I have to use to secure things to the pallet. Sometimes I'm having to build a crate type of system where the material isn't all that expensive but it takes me an hour or so to do it, like this one.

View attachment 448484

I don't think people should be making a profit off the S&H but at the same time, they shouldn't be losing money on it either.

Looking at your photo, I wonder, have you ever had complaints about damaged goods from the reciever? Thing is, your pallet does not protect the corners of your product. You may have watched the driver or your dock worker put it gingerly on the truck. All well and good until the dock workers have at it. Constantly under the "gun", they beat the "tar" out of freight to get the outbounds loads moved.

 

[npalen]

And then there is the question of why some companies charge sales tax and others not. I thought the rule was that sales tax had to be collected if the supplier has a facility in the same state as the buyer but I'm not so sure that is the case.

 

[STx]

Looking at your photo, I wonder, have you ever had complaints about damaged goods from the reciever? Thing is, your pallet does not protect the corners of your product. You may have watched the driver or your dock worker put it gingerly on the truck. All well and good until the dock workers have at it. Constantly under the "gun", they beat the "tar" out of freight to get the outbounds loads moved.

No, it's steel and once it's bundled and wrapped, it's essentially one piece of steel. They'd have to get a piece separated out to damage it and that would require some real effort.

 

[davesl708]

And then there is the question of why some companies charge sales tax and others not. I thought the rule was that sales tax had to be collected if the supplier has a facility in the same state as the buyer but I'm not so sure that is the case.

The next question is are you paying the right tax rate. Does any one know what their rate should be. The store can charge what ever tax rate they want and pay the state/local the correct amount and keep the difference. With so many taxing districts bundled into sales tax and differences from town to town plus local per property tax the rate can be near impossible to know if the store is charging the right rate.

As to shipping ask about options. I usually specify USPS for small items.

 

[quicksandfarmer]

The next question is are you paying the right tax rate. Does any one know what their rate should be. The store can charge what ever tax rate they want and pay the state/local the correct amount and keep the difference. With so many taxing districts bundled into sales tax and differences from town to town plus local per property tax the rate can be near impossible to know if the store is charging the right rate.

As to shipping ask about options. I usually specify USPS for small items.

If the store gets caught doing that they've got some 'splaining to do. If it's egregious whoever authorized it might be looking at jail time.

Sales tax is a total PITA for any company more complicated than a single location doing retail sales only. There's no authoritative source to tell you who you have to pay sales tax to, who you have to collect from, and how much. You pretty much have to figure it out as you go. Screw it up -- collect either too little or too much -- and you face big fines and possibly jail.