I noticed a disturbing trend that I hope someone has experienced and subsequently solved.
When international customers, particularly Canadian customers, choose FedEx real-time shipping options for our $200 product, the shipping charged via Shopify and the real-time API is always less than using FedEx.com when I create a label.
I have been able to "force" FedEx.com to quote me the exact cost paid by the customer via Shopify by lowering the total customs value to something ridiculous like $10. Then FedEx.com quotes me a price that is exactly the same as what the customer paid.
I opened a support ticket asking what Shopify passes as the "total customs value" via the API to the FedEx system for real-time rates? I've manually adjusted various parameters (weight, dimensions, declared values, insurance, etc) on FedEx.com to try to match what the customer pays via Shopify. The only parameter I can get to work is the Total Customs Value.
Has anyone else experienced this? If so, have you found a solution?
I looked into this for you, and the reason the rates returned from FedEx through the API are lower is because we do not pass customs value to the FedEx servers. While this is not ideal, we do allow you the option of increasing the rates offered to customers by a certain percentage, which may help you account for the discrepancy here.
Talk to you soon!
I did some investigating, and it looks like we don't pass customs value for any of our real time carrier rates. This seems like something we should definitely look into to benefit our shop owners, and so I've sent off a feature request to have this added in to our RTCS engine. However, even though I've launched a feature request, this does not guarantee that the functionality will be added immediately. For the time being, the best practice here would be to increase your rates by a certain percentage to ensure the closest approximate match to the rates returned by FedEx.com.
Also keep in mind that Shopify also does not retrieve YOUR negotiated rates if you have any discounts, only a base non-discounted rate.. I've been under that delusion for years now and only discovered I've been way over charging my customers.
A couple of thoughts here... firstly, the shipping rate problem is only going to happen with Ground shipments to Canada... Express shipments include the brokerage charges. We had this problem with our first Canadian Ground order and took a bath on the shipping costs. Until something can be resolved here, we've disabled Ground shipments to Canada and only allow Express shipments. I know that is not ideal, but...
Secondly, Alchemist John indicated that Shopify does not show negotiated rates... that is not the case in our store. Our rates that display are our negotiated rates with a package handling fee we add to cover our boxes and packing material. So some Shopify sites do, in fact, display negotiated and not published rates.
I honestly can't speak for FedEx, but that is not the case with UPS and what Shopify has told me directly. That they do not pull negotiated rates. So, I'm not sure what you are seeing or how. Shopify folks care to chime in?