Why are Shipping Charges so Expensive?

[jeff9366]

Whether it is shipping charges or the price of motor oil, if you think the prices are high consider buying some stock in the company.

FedEx, UPS, FTL shippers and LTL shippers and the oil companies are publicly traded; as are railroads, airlines and pipelines.

Shippers making a reasonable profit at present, the oils barely profitable or operating at a loss.

BE AN OWNER!

(Now may be a time to consider Energy stocks over Common Carrier Shippers.)

 

[kennyd]

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.

I've had to do the same, use a small flat rate box to shop some small QDs or a restrictor. Looks ridiculous but I've tried to use small padded envelopes before and not only are they not much cheaper, 50% of the time they got shredded at the post office sorting centers and I have to ship agian costing me more money and more lost time for the customer.

 

[davesl708]

Shipping cost is perplexing. I ordered a battery for my phone on Amazon. It shipped direct from the supplier and cost me $6.99 delivered.
At a phone store the battery cost $49.00. Same OEM battery. Same deal on a mole trap. One site wanted $28 + shipping of $8.95. Another wanted $32 including shipping.

USPS complains they are loosing money and want to cut Saturday deliveries. Now I see them delivering on Sunday as well at double pay.
FEDX and UPS are still charging fuel surcharges as before. Why, because they can.

You have to shop around when it comes to shipping since most shipping includes handling charges.

 

[STx]

Handling charges aren't necessarily unreasonable, boxes and packing materials cost money. I usually add $20 to my shipping rates to cover the cost of the pallet, shrink wrap and whatever I have to use to secure things to the pallet. Sometimes I'm having to build a crate type of system where the material isn't all that expensive but it takes me an hour or so to do it, like this one.



I don't think people should be making a profit off the S&H but at the same time, they shouldn't be losing money on it either.

 

[Mendonsy]

Here's a classic example of a shipping and handling ripoff:
Amazon.com: HITCH PIN 3/4 X 6: Home Improvement

 

[QRTRHRS]

Handling charges aren't necessarily unreasonable, boxes and packing materials cost money. I usually add $20 to my shipping rates to cover the cost of the pallet, shrink wrap and whatever I have to use to secure things to the pallet. Sometimes I'm having to build a crate type of system where the material isn't all that expensive but it takes me an hour or so to do it, like this one.

View attachment 448484

I don't think people should be making a profit off the S&H but at the same time, they shouldn't be losing money on it either.

Looking at your photo, I wonder, have you ever had complaints about damaged goods from the reciever? Thing is, your pallet does not protect the corners of your product. You may have watched the driver or your dock worker put it gingerly on the truck. All well and good until the dock workers have at it. Constantly under the "gun", they beat the "tar" out of freight to get the outbounds loads moved.

 

[npalen]

And then there is the question of why some companies charge sales tax and others not. I thought the rule was that sales tax had to be collected if the supplier has a facility in the same state as the buyer but I'm not so sure that is the case.

 

[STx]

Looking at your photo, I wonder, have you ever had complaints about damaged goods from the reciever? Thing is, your pallet does not protect the corners of your product. You may have watched the driver or your dock worker put it gingerly on the truck. All well and good until the dock workers have at it. Constantly under the "gun", they beat the "tar" out of freight to get the outbounds loads moved.

No, it's steel and once it's bundled and wrapped, it's essentially one piece of steel. They'd have to get a piece separated out to damage it and that would require some real effort.

 

[davesl708]

And then there is the question of why some companies charge sales tax and others not. I thought the rule was that sales tax had to be collected if the supplier has a facility in the same state as the buyer but I'm not so sure that is the case.

The next question is are you paying the right tax rate. Does any one know what their rate should be. The store can charge what ever tax rate they want and pay the state/local the correct amount and keep the difference. With so many taxing districts bundled into sales tax and differences from town to town plus local per property tax the rate can be near impossible to know if the store is charging the right rate.

As to shipping ask about options. I usually specify USPS for small items.

 

[quicksandfarmer]

The next question is are you paying the right tax rate. Does any one know what their rate should be. The store can charge what ever tax rate they want and pay the state/local the correct amount and keep the difference. With so many taxing districts bundled into sales tax and differences from town to town plus local per property tax the rate can be near impossible to know if the store is charging the right rate.

As to shipping ask about options. I usually specify USPS for small items.

If the store gets caught doing that they've got some 'splaining to do. If it's egregious whoever authorized it might be looking at jail time.

Sales tax is a total PITA for any company more complicated than a single location doing retail sales only. There's no authoritative source to tell you who you have to pay sales tax to, who you have to collect from, and how much. You pretty much have to figure it out as you go. Screw it up -- collect either too little or too much -- and you face big fines and possibly jail.