Carrier Adjustments
Man I opened a can of worms this morning.
Running through transaction reports after almost 6 months on Amazon. Used to look occasionally, but stopped because I wanted more data (we started slow, we’re over 500 orders now)…just so I didn’t freak out every time something one-off happens.
So now I think we have some data to really calculate what is worth our time, and what isn’t worth selling on Amazon.
Looking at a shipment from the other day…
15" x 15" x 15", 34lbs, FedEx Ground, quoted $17.93 for Amazon shipping.
Adjustment $13.61, Carrier Audited Weight 33lbs
"The shipping services purchased did not match the carrier-reported charge for the shipping package.
So we just paid $13.61 for saying our box weighed 1lb MORE than it actually did? 1lb? What is the tolerance? We have programmed weights by item & pack size, our scale is calibrated annually, and we weigh net after packaging and everything is complete. But certainly there will be enough variance in peanuts, bubble wrap, craft paper, packaging tape, etc. to tip the scale up or down enough for “rounding” +/- 1lb. $13.61 on one package??
And then of course I start seeing RED…like red everywhere. Carrier adjustments all over the place, residential delivery surcharges, weights, etc. Now I’m mad, because when comparing Amazon shipping prices between FedEx, USPS, and UPS, none of them show any of these fees…especially the residential delivery surcharges. So had we picked one of our other choices (which are sometimes pennies apart from each other) could we have avoided a residential fee?
How are we supposed to know when we will be charged residential fees? Or do only some carriers do it? I figured Amazon has residential surcharge fees waived with their contract. Our company’s UPS account has residential fees waived 100% and we are by no means a high volume shipper.
And how the heck do we account for any minor variance in weight (and difference between their scales and ours, which if ours is at one end of calibration tolerance and theirs is at the other…)…?
Any advice or personal experience to avoid some of these costs is greatly appreciated!
UPDATE: I’ve clicked on a bunch of the Carrier Adjustments now…so far, 100% FEDEX. Most are $1.00-$3.00…and all of them we have overstated our weight by 1lb…which in theory should be a benefit to FedEx, because we’re not skimming on weight declarations. It looks like we’re losing an average of $3.00 per FedEx shipment vs. their stated rate at time of purchase. I guess that’s how they beat UPS a lot on Amazon Shipping. I’m going to keep digging!
Seller_1o4L3Kyf0qRRS
We stopped using Fedex a few years back, because the price they give you when you purchase is only an “estimate”
As you see most estimates incur additional charges upon billing.
I know this response does not offer help, just letting you know you are not the only one.
patty
Seller_NxyJMKWHRM2dZ
We actually get more carrier adjustments from UPS than Fedex. So much that we rarely use them anymore. Fedex has them every now and then, but nothing like UPS. Also Fedex is much better at paying damage claims. UPS always denies them.
Seller_Yvu9QfhV55nVu
USPS does not charge for residential addresses.
Seller_Iax15hxoENYMQ
oi use mostly usps for packages anything expensive or heavy i use ups
remember when using ups or fedex there is always a residential surcharge
also you pay not so much for weight always as dimensional weight
example
you can have a box 20 x 20 x 20 and it could have feathers in it and weigh 2 pounds or the same box with 50 pounds of bricks and the price could be the same
a lot of times ups and fedex are more dimensional weight than physical weight
also remember when using usps if you do not get signature required or use express mail
amazon does not recognize the tracking and if customer sys item is lost you are out the money
Seller_jglZowc8rO988
I read a thread a few months ago about people finding all these recent carrier charges showing up out of no where on the fed ex labels they purchased, I believe this is what you are referring too.
I may also mention there was a thread recently about fed ex refunds on labels not being honored, so I wasn’t sure if you knew this, and to be alert to the fact it is likely impacting your spreadsheets also.
When I saw that particular thread I thought boy am I glad I don’t use Fedex that much…UNITL I got a email saying my fedex label refund was denied for ALOT of money.
I am still waiting for support to correct that and credit me back for the cancelled label.
One poster said they had made it right for them but they spent hours on the phone with dozens of labels cancels to be credited which were wrongfully denied.
Just wanted to mention this for you to be on the look out for in case you did not know about this problem already so you can appeal to get your credits if any are due.
Seller_W3p301LoUeYLi
We realized we were often paying FedEx $10.00 or more in fees adjustments on our shipments.
We changed to always using UPS on those packages it doesn’t make sense to use USPS and now are adjustments are under $1 if we have any at all.
We stopped using FedEx on Amazon for this reason!
Hope that helps!
Seller_WQj6Zg0jH6DBA
About 8 years ago, I was shipping 75% FedEx for eBay sales. Like you, I didn’t look at the statement breakdown until one month it was just so huge that it stood out. When I looked at the FedEx adjustments, it nearly doubled the label costs. I stopped using them and it has been a sore spot ever since.
Currently, we run close to 90% UPS and our weekly spend is >$700. Our invoice comes weekly and, on average, includes adjustments for 4 or 5 labels/week. The amounts are usually under $3 and go both ways, some positive, some negative. Usually the total weekly adjustments range between -$4 and +$4. Annually, 2017 adjustments totaled $57.65 for $34k in shipping expense.
I do occasionally still use Fedex, but only for shipments place through FedEx.com using “detailed” shipping information. I rarely get adjustments now.
Sorry it happened to you. I had hoped they had improved.
Seller_HoYE4Xcyhonuu
We send only a handful of FedEx shipments a year (if it’s the only option to get it there on time) because we know the amount deducted at time of shipping will later increase with an “adjustment”. It is a given with virtually every FedEx shipment. Seems like a scam, but the solution is to simply stop using them.
UPS sometimes hits us with adjustments, but they aren’t nearly as frequent and we have a good relationship with our driver, so as long as they keep it to a minimum we continue to use them.
Seller_rQ7k6zMUDuJjo
UPS does the same thing and amazon says to contact them direct but after doing so i have been told they know nothing about amazon shipping so i must talk to amazon.i have one being investigated for many months now where they said address correction but i used amazon shipping so had to use the address supplied to me by amazon yet it is still pending.My weights and measure are always OVERSTATED so that is not the issue and I think it is a glitch between the carriers and amazon that the carriers take advantage of when they want money and amazon allows it carte blanche and that is not fair equitable or acceptable!
