USPS prices have gotten stupid
I have been doing this for 15 years. 95% of my packages are 8 ounces or less. So, I've been shipping USPS without exception until just this month.
For a while I would often see a 1 cent difference between UPS and USPS, with USPS being 1 cent more. I didn't care about 1 cent though and it saved me from having to make two stops to drop the packages off. So, I'd spend the extra cent.
But as of this month, the prices are all over the place. I just now put together 11 package, 3 were cheaper through USPS. The other 8 were cheaper either through Fedex or UPS. Now a few of the UPS ones were again just one cent cheaper, but because I had a package that was dramatically less through UPS, that means I had to make the stop to drop it off anyway. So every package that was just 1 cent cheaper than USPS, I went ahead and bought through UPS, because I'm going to the UPS drop off center no matter what.
One USPS wanted 9 dollars! For an 8 ounce package!
I always choose ground advantage because my packages are fragile, in case you were wondering.
All I can say is that USPS is being run into the ground by morons who'd rather lose business than figure out how to generate revenue. Sure, they'll get the amateurs who walk in shipping stuff to family. But the professionals are all going to take their business elsewhere.
So my question is, am I doing something wrong here? I've heard rumors about some rural fee USPS is charging. But how are we supposed to compensate for that through Amazon? Is there a way to adjust shipping fees with that much detail?
USPS prices have gotten stupid
I have been doing this for 15 years. 95% of my packages are 8 ounces or less. So, I've been shipping USPS without exception until just this month.
For a while I would often see a 1 cent difference between UPS and USPS, with USPS being 1 cent more. I didn't care about 1 cent though and it saved me from having to make two stops to drop the packages off. So, I'd spend the extra cent.
But as of this month, the prices are all over the place. I just now put together 11 package, 3 were cheaper through USPS. The other 8 were cheaper either through Fedex or UPS. Now a few of the UPS ones were again just one cent cheaper, but because I had a package that was dramatically less through UPS, that means I had to make the stop to drop it off anyway. So every package that was just 1 cent cheaper than USPS, I went ahead and bought through UPS, because I'm going to the UPS drop off center no matter what.
One USPS wanted 9 dollars! For an 8 ounce package!
I always choose ground advantage because my packages are fragile, in case you were wondering.
All I can say is that USPS is being run into the ground by morons who'd rather lose business than figure out how to generate revenue. Sure, they'll get the amateurs who walk in shipping stuff to family. But the professionals are all going to take their business elsewhere.
So my question is, am I doing something wrong here? I've heard rumors about some rural fee USPS is charging. But how are we supposed to compensate for that through Amazon? Is there a way to adjust shipping fees with that much detail?
49 replies
Seller_fioOy2143ntyc
You're buying shipping through Amazon? I haven't noticed any recent extreme changes; I purchase through USPS.com or a third-party site.
The only shipper I've noticed changes with is UPS. I recently got hit with their new 'rounding up dimensions' change.
Seller_z3XfkorVSmnEY
Yes, USPS made some big chages this summer. Rural addresses now have a "surcharge".
FWIW, have you tried setting up free pickup service with the USPS? We use it all the time. Saves us a trip to the post office.
Also, if your volume is high enough it might make sense to pay for a UPS pickup. We're using SmartPickup which means we pay a weekly fee and then we can request a pickup any day. For us, this is cheaper than having daily pickup, or one-time picks. If you don't have a UPS account, call 800-PICK-UPS and ask about business accounts.
Seller_nRFmxiQg4EGrw
There is no way to adjust specifically for the rural orders, at least not on Amazon, where we are required to charge the same shipping charge for the entire country.
Yeah, it's an anti-business move. But the people in charge of the USPS were put there with the goal of making it so bad that people would use the private carriers that those same policy makers own stock in.
Seller_Sram36TnVt73c
It not supposed to generate revenue--that's what private businesses are supposed to do.
USPS is government infrastructure (guaranteed in the Constitution) and is supposed to be subsidized by our government, but there are some in our government (the actual morons) trying to sabotage USPS by defunding it or making unrealistic requirements like funding USPS retirements/benefits for 75 years into the future (!).
Fun Fact: Postmaster General David Steiner previously served on the board of directors for FedEx, a major private shipping competitor. Although Steiner is required to divest from FedEx and has stated he opposes privatizing the U.S. Postal Service, his background has raised conflict-of-interest concerns.
Dejoy was the same--former Postmaster General Louis DeJoy had significant ties to private logistics and shipping companies. Before leading the U.S. Postal Service, he served as the CEO of XPO Logistics, a major private freight transportation and contract logistics company that also serves as a USPS contractor.
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Personally, there are no nearby UPS drop-off points by me--the two I was using ceased accepting UPS packages. FedEx is even further away.
KJ_Amazon
@Seller_4Sh29kRkwLHjN Thank you for reaching out to the forums about recent USPS rate increases, specifically for some shipments to 'rural' addresses. Multiple sellers have been discussing this issue recently, and I have been sharing the forum threads and suggestions with our partner team.
At this time I suggest reviewing posted commercial rates to determine the range of shipment rates you may see, and using that information to determine your pricing/shipping model. There is no current system to set shipping rates based on location ZIP code.
KJ_Amazon
Amazon Needs Zone-Based Shipping Rates for FBM Sellers After New USPS Price Changes
Seller_0EiTWTPC4Lbig
I think you are looking at this backwards.
USPS is not raising rates because it is "being run into the ground by morons." It is trying to stop losing enormous amounts of money and build a financially sustainable postal system.
For years, many USPS services were effectively priced below their true operating cost. That is great for us as shippers, but it is not a sustainable business model.
And competition is exactly what you are seeing. If UPS or FedEx is cheaper for a particular package, use them. If USPS Ground Advantage is cheaper for another, use USPS. There is no reason to expect one carrier to be the cheapest for every weight, zone and destination.
We ship hundreds of thousands of Merchant Fulfilled orders. Carrier selection has increasingly become a package-by-package decision based on size, weight, destination, service level and cost.
Shipping economics have changed. Our job as business owners is to adapt our pricing and operations to those costs, not expect USPS to continue subsidizing our shipping economics indefinitely.
Seller_XJk5RkDQR39p0
For the first time in history, some USPS prices are higher than FedEx:
For shipping to rural areas, FedEx is one dollar cheaper than USPS.
Sad but true.
Seller_4Sh29kRkwLHjN
OMG, I just discovered that USPS is also charging a higher amount for the FLAT RATE priority envelopes to go to some regions.
what part of FLAT RATE!!! are we not understanding? It's right in the name!!
Seller_gatjkdfPmzT4O
The USPS rural surchage is definitely adding to many sellers costs unnecessarily. But the problem is that Amazon and other platforms should allow us more control so we can adjust accordingly. UPS and FedEx have also been charging rural surchages (Besides residential) for as long as I can remember. The platforms should allow us to charge the surcharge onto those customers. It's not fair if I can ship USPS Ground or UPS Saver across the country for 4 oz for $6 but then for the same weight to the same region but rural have to pay another $2.50 at least.
Seller_1yVLNgz7dLGHO
Something has gone wrong with the data from USPS or the way Amazon collects that data and it seems to be affecting the one pound or less shipments for USPS Ground Advantage. I had two sales this week with same size package and weight of 4 ounces. One going 517 miles and possibly changing zones that charged me $5.40. The other one was 131 miles and within my own state tried to charge me $8.94. The following is the response from Amazon Seller support.
"After reviewing both orders, we can confirm that the difference in charges is due to USPS zone-based pricing. USPS calculates shipping rates based on the origin and destination zip codes, not just package weight and dimensions. Even when a shipment stays within the same state, the origin and destination zip codes may fall into a different shipping zone than a cross-state shipment, which can result in a higher rate. These rates are set by USPS and passed through by Amazon; Amazon does not reimburse sellers for differences in carrier rates that result from standard zone-based pricing."
This sounds exactly like someone that has never purchased mail in the United States. They really think I am crossing zones within a state. Maybe if I lived in Texas, California or Alaska but not in Oklahoma unless the panhandle is involved but not when the item is going from Tulsa to Oklahoma City.
I am now having to go through USPS' sight to buy shipping which leaves much to be desired but for passing through costs it is funny that my rate from USPS was back in the $5 range. I tried to tell Amazon Seller support that something is wrong but those people are idiots and will not listen. You can't fix stupid, you just have to do your best to avoid it.
