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Increased Shipping Charges


#1

Hi:

I submitted an order last night to a wholesale company I normally do
business with. For the first time since I have been dealing with
them I was asked “is this to be shipped to a residential or a
business address?” I said residential because I work out of my home.
When I asked the rep why he wanted to know this, he said “well, it
costs a little more for us to ship to residential addresses because
the trucks are not going to those areas normally, they have to be
specially routed”. He couldn’t really specify “a little more
expensive” I will find that part out after I compare invoices.

My question is, has this become a standard practice? I don’t wish to
pay “a little more” because I work from home, but will not go to the
trouble of finding new suppliers if this is considered standard in
the industry.

Thanks
Kim


#2

Kim,

I have had a UPS account for more than 15 years. A few years back
they implemented a surcharge for delivery to a residential address.
It started out as an additional $1 per package and has increased each
time a new year rolls around. Then there’s the additional gas
surcharge…

I too work from a home studio and the surcharge does make me mad,
but I don’t think UPS cares! The kicker to this is that the driver
who picks up my packages is also the one who delivers packages to my
home business. Go figure. I pay a weekly fee for the luxury of a
daily pickup and then pay an additional fee per package to have items
delivered to that same address. Not a bad deal for UPS.

Add your name to the ever growing list of disgruntled vendors who
are held hostage by the shipping industry.

Pam Farren
Newburyport, MA


#3

Kim,

The residential surcharges have been standard for both UPS and FedEx
for years. Both define residential as a home/house even if a business
is run there. For a non-jewelry part of my business I have daily
pickup and spend over $6K per year on shipping, but still classified
as residential for deliveries.

Vendors are paying closer attention to the shipping charges now and
more are passing on the residential surcharges. You should expect the
residential surcharges from most vendors these days.

Norman Buck
HowlingStudios.com


#4

If the seller ships via UPS, there is an additional charge (about
$1.00 ) to residential addresses. If your shipment is freight, you
could have as much as a $50.00 added charge to residential address.
This includes use of a lift gate for heavy items. These expenses are
costs to the seller and must be passed on to the customer.


#5

Kimberly,

I’m not sure about UPS, but Fedex charges more for a residential
delivery these days. You can see it all at Fedex.com. Also, anyone
who ships should be aware that a signature is NOT required for a
residential delivery, UNLESS the shipper requests and pays for that
service (unlike a business delivery). So, don’t be surprised if
Fedex or UPS just leaves it on the doorstep if you don’t answer the
door.

Residential deliveries are a pain for the carriers, so they charge.
Remember, these expenses are write-offs, so the costs are are
decreased accordingly.

I ship a LOT, and always ask the recipient how they want it shipped.
Please note that you can get a cheap flat rate from USPS in both
Priority and Express Mail. To be honest, I am thinking about adding
a minimum $5 handling charge for the boxes, packing, time, etc. No
one should work for free.

Wayne


#6

As far as I know, when I ship UPS, it is always like this. When I
ship to a business it is cheaper than if it is a residence. So I
don’t think it is the wholesaler, I think it is the shipping
company.

Beth


#7

It’s standard with UPS. whenever I order from Rio, I ship to my
husband’s business address because it is cheaper. Go figure.

V.


#8

Actually, this is absolutely true. Anyone who ships UPS or fedex has
a selection to make based on business or residential address. It
costs roughly $2 to $4 more to ship to a residential address. If a
person using the shipping programs specifies that it is going to a
business address and this is not true, The shipper will get charged
the extra amount on their weekly/ monthly invoice from UPS or fedex.
So if you ship to 40 or 50 people a week, the shipper could be
loosing quite a bit of money.

Daniel Grandi
Racecar Jewelry Co. Inc.


#9

The extra charge is not levied by the Vendor, but the company chosen
by the vendor to ship the merchandise has been levying these
charges. The Courier companies are differentiating the home and
office, probably a pretext to charge little more. Fed Ex, UPS have
increased the shipping charges on this pretext, on fuel charges etc.
We are living in times where people are finding just any excuses to
raise the prices. For instance, reserving a room in Tucson and upon
being asked why it is $ 250 per night and what are amenities being
offered, among other things I was told that their rooms have heavy
doors, doors have two locks, the room has window, has chair, a
bathroom, a TV, etc. So I think it is just a creative way by the
courier companies to charge us more. Anil Gupta


#10
Residential deliveries are a pain for the carriers, so they
charge. 

Thanks for the input everyone. I am very glad that it turned out to
be an issue with UPS and not my supplier (who I like very much). Oh
well, small price to pay for retaining the freedom to work in my
pj’s…or while the tv is on…snacking on chips
whenever…listening to DaveMatthews real loud…etc

Thanks
Kim


#11
Please note that you can get a cheap flat rate from USPS in both
Priority and Express Mail. 

I would be careful with USPS, I would insure it and make sure it’s
trackable. I’ve had some things taken over the years. I think it’s
because the insured amount is on the package. A little package with
a big insurance, gee, I wonder what that could be! They’ve always
paid out insurance, but it’s a hassle.

To be honest, I am thinking about adding a minimum $5 handling
charge for the boxes, packing, time, etc. No one should work for
free. 

Wayne, let me know how this works out. I would love to do that. But
I’ve had some customers complain about paying for insurance! Geeze,
insurance? They were convinced that I was “padding” (hee hee) my
shipping costs. I faxed them my bill from UPS to show that I wasn’t.
I don’t think they’d take kindly to a $5.00 handling fee.

Amery in LA, where it rained yesterday! It feels like we skipped
fall and went right into winter.

Amery Carriere Designs
Romantic Jewelry with an Edge
www.amerycarriere.com


#12

Just a hunch but…perhaps increased risk has something to do with
it. With no signature at a residence the shipper might be on the hook
more often.


#13

Kim - its standard practice, and for quite some time. I just tell
them its a business (which it is), as well as my home.

Ivy


#14

Hi Gang,

If the rates charged by folks like UPS & FedEx are getting to you,
you might try the Post Office (usps.com).

You can get Priority Mail shipping envelopes & boxes delivered to
your location free of charge. If you want you can also print labels
with postage on them at that site but there are several other sites
that are much more convenient to use. I’ve been using stamps.com for
several years & find it easy, convenient & economical. They have
several different plans. I’ve got the Pro plan, 14.95/mo. You can
also insure your pkg. through them, their service is better & the
rates are less than the USPS. Every pkg. shipped Priority through
them comes with Delivery Confirmation at no extra cost. They also
offer Pkg. Pickup by the USPS at no charge.

If you drop the pkgs. off at the Post Office, it’s fun walking by
the line that’s waiting, put your pkg. on the counter & leave.

Maybe worth taking a look at.

Usual disclaimers, just a very satisfied customer.

Dave


#15

Dave and others who ship with the post office…

Have any of you had any bad experiences with packages being opened,
not arriving, etc.?

Thanks,
Amery
Amery Carriere Designs
www.amerycarriere.com


#16
My question is, has this become a standard practice? I don't wish
to pay "a little more" because I work from home, but will not go to
the trouble of finding new suppliers if this is considered standard
in the industry. 

Actually, depending on the shipper, the extra surcharge for
residential delivery has been in existence for several years.

BBR - Sandi Graves, Beadin’ Up A Storm
Stormcloud Trading Co


#17

Amery,

I have been shipping with USPS, Fedex, UPS and DHL for over 30
years.

There IS a proper way to prepare packages for safe shipment, and all
these shippers are glad to help. While I have experienced an
occasional delay or mis-routing with all the carriers, I have
experienced a total loss only with UPS and Fedex, each once. Proper
documentation allowed me to get paid, eventually.

I have NEVER experienced a loss with USPS. I now routinely send
almost all goods via Express Mail, flat rate. High value packages
get the Registered, Insured treatment. Slow, but it WILL get there.
It must be signed for by every person who takes possession of it
along the way, and in case of it going missing, the person who last
signed for it is held personally and financially accountable by
USPS. And they will lose their job.

If you carry insurance through Jeweler’s Mutual, you need not buy
insurance for Express Mail packages, they will cover it…both ways,
in fact, good deal.

UPS and Fedex do have the right to open any package at any
time…read their rules. And you can’t insure jewelery with Fedex,
period. Nor loose gems with either Fedex or UPS. Period.

If you ship a lot, you might want to use a private insurer like
Parcel Pro, who will insure Fedex, UPS, whatever privately, if you
follow their rules and procedures, which include a detailed
notification to them of each pkg you ship before you ship it,
including the tracking number. There are lots of ways to move goods
around with great safety. But the best advice I can give is to READ
THE SHIPPER’S RULES BEFORE YOU SHIP!

Wayne Emery


#18

Hi Amery,

Have any of you had any bad experiences with packages being
opened, not arriving, etc.? 

In 15 years, I’ve only had 1 instance where a customer claimed a pkg
didn’t arrive.

It’s possible to use the ‘Signature Required’ option for an
additional charge of $1.35. If the pkg. has a high value, it can be
sent ‘Registered Mail’.

While Priority Mail with Delivery Confirmation isn’t an absolute
tracking system, it does tell you where in the system the pkg. is.
US, some very small out of the way places & most residential, the PO
has made their 2 day delivery commitment over 99% of the time That’s
2 days not counting the days the pkg is mailed or delivered.

Dave


#19

Wayne,

UPS and Fedex do have the right to open any package at any
time....read their rules. And you can't insure jewelery with
Fedex, period. Nor loose gems with either Fedex or UPS. Period 

I have a friend who uses Fedex exclusively to ship her jewelry. She
has a special kind of insurance called DVX, which is expensive and I
think the slowest you can send is 2 day air, they won’t insure with
ground. I also think you have to drop it at certain Fedex customer
counters, you couldn’t bring it to the Mailbox place on the corner. I
haven’t checked into it for myself yet, I think it’s a little
expensive. But she does gold and diamonds, so her shipping can be a
little higher than mine for my silver and pearls.

Thanks for all the info on the different ways to ship. I’m going to
look into the postal service and see if it’s a little easier than
the UPS I’m currently using. I can ship with insurance through UPS,
anything over $1,000 (I think) you have to have the driver sign a
special form. I’m lucky right now that my local mailbox place is
very accomodating. He’ll get the documents signed for me and fax it
to me at home. What a guy!

But, when I ship to Hawaii or Canada, UPS is very expensive which is
why I’m looking for other options…

Amery
Amery Carriere Designs
Romantic Jewelry with an Edge
www.amerycarriere.com