Is this happening to you, and if yes what do you do about it?
When a customer puts in their info and add a business name, shopify treats that address as a commercial address, yet that is not how FedEx sees it. FedEx has specific areas they consider commercial and residential. So business's are not always in a commercial location. (good example would be a home based business) There for The customer is under charged. So I loose money. The other has also happend, but so far only once, where it was a commercial area but the customer did not add a business name, so this customer was over charged and yes, this customer called me on that one, and I had to give them a refund.
The app we develop, Advanced Shipping Rules, allows you configure different rates for different groups of products that then get combined intelligently at checkout for your customer.
We also allow you to set carrier rates to each group.
Our carrier rates do address look-ups and determine Commerical/Residential automatically.
For instance we'll display FedEx Home Delivery or FedEx Ground automatically based on the address.
I am currently finding myself in the "customer" role in this same scenario. I ordered a large item that has to be shipped by freight (real large, like think the size of a refrigerator or gun safe). The seller also uses shopify so I was familiar with the checkout process. Nowhere during checkout did it ask me if my address was residential or commercial. The amount I paid for shipping was $175 on top of the cost of the item.
Well I just got a call from the seller saying that I need to pay a bunch more for shipping because the freight company tried to deliver but realized the address was residential so they didn't stop.
Needless to say I'm upset. But I can tell the seller is extremely busy (took 9 weeks to make my product) and also has very little shopify knowledge so I'm just doing some research on his behalf as to a way to solve this problem for him for his future customers/future orders.
So far I found a thread that someone made where they were able to add a checkbox during checkout and if that checkbox was selected it would add a product to the cart. so the checkbox in this case could be "Is this a Residential Address?" and if the box is checked it could add a hidden product to the cart called "Residential shipping + $150" or something. but the thread i found was stating that it was not always working so they were asking for help. with no replies.
Not finding a perfect (free) solution though so far.
FedEx Home Delivery is a dedicated shipping service that delivers to residential addresses and FedEx Ground is a service that delivers to commercial addresses. FedEx charges extra for delivering to a residential address. Applicable shipping service should be offered to the customer based on the shipping address entered during the checkout process, ie.
You can provide FedEx Ground or FedEx Home Delivery at checkout based on the shipping address using FedEx Rates, Labels and Tracking app. The app uses the FedEx address validation API to classify the address as commercial or a residential, and automatically provide the FedEx Ground or FedEx Home Delivery at checkout based on this process.
You said the app uses FedEx address validation to calculate commercial vs residential, but what app are you talking about?
I ask for clarification in case it might help others reading this thread. Although it wouldn't change my situation unfortunately, as the items in question are far too large and heavy to ship with FedEx. LTL Freight companies have to ship these items.
I was mentioning about FedEx Rates, Labels and Tracking app (https://apps.shopify.com/fedex-shipping)
Did you try the FedEx Freight Services for shipping heavy items?
In order to handle commercial and residential addresses, firstly you need to have your own FedEx account. In that account, make sure that you get access for Address Validation API. If that is done, then your addresses are eligible to be categorised as 'commecial' or 'residential'. Only thing left is a compatible solution that can understand the response from the FedEx API and charge accordingly. You can try the Multi carrier shipping label app which will identify the response from FedEx API and charge commercial or residential rates.