Avoiding Fed Ex overage charges

I read online somewhere that you can avoid FedEx overcharges by paying upfront in cash. I've never actually tried it though.

Originally Posted by Evan

I read online somewhere that you can avoid FedEx overcharges by paying upfront in cash. I've never actually tried it though.

Evan

By paying upfront in cash you will be overpaying drastically for your shipments. If you go into a UPS store or a FedEx Office the rates they use are different than if you have an account with UPS or FedEx. In most cases the rates are almost 30% higher than if you were to open your own account with no discounts. There are 3 different types of rates that UPS and FedEx use.

- Retail Rates (UPS store and FedEx Office)
- Daily Shipper Rate (anybody can set up an account online)
- Negotiated Rates (discounts off of the daily shipper rate)

It is worth it use your account to ship. Plus UPS and FedEx can either return the package to sender or hold the package for funds if there are excessive overages that need to be collected.

Originally Posted by SuppliesGuy

Evan

By paying upfront in cash you will be overpaying drastically for your shipments. If you go into a UPS store or a FedEx Office the rates they use are different than if you have an account with UPS or FedEx. In most cases the rates are almost 30% higher than if you were to open your own account with no discounts. There are 3 different types of rates that UPS and FedEx use.

- Retail Rates (UPS store and FedEx Office)
- Daily Shipper Rate (anybody can set up an account online)
- Negotiated Rates (discounts off of the daily shipper rate)

It is worth it use your account to ship. Plus UPS and FedEx can either return the package to sender or hold the package for funds if there are excessive overages that need to be collected.

Good to know. Has anyone here messed around with FedEx SmartPost or USP SurePost. I heard that those services are sucky, but they are supposed to be cheap.

Originally Posted by Evan

Good to know. Has anyone here messed around with FedEx SmartPost or USP SurePost. I heard that those services are sucky, but they are supposed to be cheap.

SmartPost and SurePost are considered last mile delivery services. FedEx and UPS will pickup the package and drop it off at the USPS BMEU (Bulk Mail Entry Unit). USPS delivers it from there. It is a 7-10 day delivery service. There prices are cheaper when you are shipping lighter weights around 1-5 lbs. The down side is there is usually a minimum of 100 packages per day to qualify. Unless you are shipping lightweight packages in quantity those services are not worth it.