Why are Shipping Charges so Expensive?

Tractor Seabee · Nov 25, 2015

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 · Nov 25, 2015

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 · Nov 25, 2015

STx said:
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 · Nov 25, 2015

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 · Nov 25, 2015

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 · Nov 25, 2015

STx said:
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 · Nov 25, 2015

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 · Nov 25, 2015

quicksandfarmer said:
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 · Nov 26, 2015

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.