Shipstation - MASSIVE Adjustment charges

I run a small company, and use Shipstation to ship my packages from Canada to USA via UPS. I’m meticolous about weight, sizes (only have a few products) and coding them for CUSMA with origin being canada, and the right Harmonization codes.

Today, I got a VERY disturbing email which sure looks like it came form shipstation:

In December I shipped 214 packages .. average value was $200 CAD, and average shipping label was $18 CAD.

Shipstation cannot answer if this is real yet or not … They ended the chat and said they will followup via email.

I’M FREAKING OUT ….. $30,580.23 in “adjustments” just doesnt make any sense. I’ve had other UPS adjustments but they were just a few cets to a buck here and there.

Thoughts?

With ZERO detail given, can someone help me make sense of this ?

From Shipstation ….

Thank you for your patience while we looked into your case.

I’ve shared your concerns with our leadership team, and after a thorough review, we confirmed that these charges are government‑mandated duties and taxes assessed by the destination country. Unfortunately, this means we’re unable to waive the fees.

That said, we understand the impact this has on your business. To help ease the burden, we’ve submitted a request for the balance to be charged in two installments: 50% of the total due initially, with the remaining 50% charged one month later.

3 days later, on a Saturday evening at 8pm , this is what I get …. with not a single ounce of detail.

So Shipstation has given detail, and I’m at a loss.

My weights are 100% accurate, and they blanket chose EVERY shipment in December and applied a weight to them that is 2x + what any of my actual weights are. I have no SKU’s that are even close to 907g.

I’ve also been shipping for a year+, and NEVER been charged like this before. Certainly been some adjustments (which i debate every time, as they seem to always want to use 907g as a default for some reason.) Entry Prep Fee & Disbursement Fees … no idea what they are or are for.

Thoughts anyone?

This happens very offen with couriers esp. 3rd party like Shipstation, Freightcom, etc. We have this happen many times with Freightcom and now we record every shippiment. we measure the size and weight on a scale. its a pain, but so far its the only way to fight it. If you don’t pay it, they will suspend your account and send it to collections. We once ask for proof of the size and weight they claim but they said it was on us to prove it which i find bs.

Good luck on this and keep us updated incase anyone else runs into this problem as well.

That amount definitely sounds unusual, especially if your historical UPS adjustments were only minor differences.

I’d recommend:
• Verifying directly inside your official ShipStation billing dashboard
• Contacting UPS billing support independently (not via the email thread)
• Checking if dimensional weight or customs reclassification triggered a bulk adjustment

Also, if you’re frequently shipping cross-border, it may help to implement stricter shipping rule validation at checkout to minimize post-label adjustments.

Hopefully this turns out to be either a system error or a phishing attempt.

You cant agure and complain directly with UPS. Using 3rd party shipping, you are using thier account. You don’t have an account directly with UPS.

Hi Vacek,
I found your Shopify Community post about the massive ShipStation adjustment charges, and I’m currently facing the same issue.

Did you ever find out what actually caused the charges or get any resolution from ShipStation?

We’re in a very similar Canada-to-U.S. shipping situation, and the duties/taxes we were charged seem completely disproportionate.

Any update or advice would be greatly appreciated.

Thank you.

Hi Lucduf,

I’m not even sure where to begin, but I’ll try to summarize where things stand.

First, I’ve closed my ShipStation account and moved to a direct account with UPS. Based on my shipping volume, the pricing is actually better than what I had through ShipStation. More importantly, I now have an account representative and have already had face-to-face meetings with them on Teams. It’s honestly been a breath of fresh air to deal with a real person. I’d recommend this route to anyone, because you have full control over your account and someone you can actually speak to if there’s a problem.

After getting everything properly configured for cross-border shipping, I sent about 20 packages this week. My UPS rep had their team manually trace every one of them to verify USMCA compliance, brokerage handling, and related details. They did this simply to ensure everything was set up correctly going forward. It was genuinely white-glove service.

Now, on to ShipStation.

Support has essentially been nonexistent. I’ve asked multiple times to speak with someone directly, but instead I keep getting the same templated responses along the lines of “We understand how stressful this can be…” followed by generic assurances that they’ll work with me. Frankly, those responses feel patronizing at this point. Like it is a $20 problem ….

I’ve requested very detailed information on all 214 shipments involved. Because those shipments were processed under ShipStation’s UPS account, I have to go through them to obtain the data from UPS. So far, I’ve received nothing back, while roughly $30,000 remains as an open balance on my account.

What I’ve also learned is that what I believed was a proper USMCA setup in ShipStation was actually far from it. Their system provides no way to upload certification documents, Section 232 documentation, or similar compliance paperwork - either on file or attached to individual shipments. There’s also no way to add notes to the shipping label instructing UPS to reference documentation included with the package.

In other words, there is effectively no mechanism within ShipStation to maintain proper USMCA compliance.

That was something I only realized recently, and I take responsibility for assuming I had everything configured correctly simply by entering the proper HTS codes and declaring Canada as the country of origin. Unfortunately, that appears to have been insufficient.

My current understanding is that the shipments likely crossed the border without USMCA being recognized, which would have resulted in tariffs and taxes being applied. Given that I sell automotive parts, it’s also possible the shipments were incorrectly subjected to metal tariffs, even though my products are 100% 3D-printed plastic.

I’m still waiting for the detailed breakdown to confirm exactly what happened.

Based on my past experience disputing UPS charges through ShipStation, I don’t have much confidence that they will strongly advocate on behalf of their customers. In three separate disputes previously, the response I received was simply that the carrier had “denied” the claim with no detail as to why. That’s difficult to accept when my weights and dimensions are extremely precise, and dimensional weight doesn’t explain the discrepancies either in those cases.

The situation is also complicated by the outstanding $30k balance. If I pay it immediately, I effectively lose any leverage in resolving the issue. Given how prior disputes were handled, I’m not confident ShipStation would pursue the matter further once payment is made.

The one piece of good news is that it is possible to claim USMCA (CUSMA) preferential tariff treatment after the initial import from Canada to the U.S., even if the claim wasn’t properly applied at the time of entry. The challenge is that I’m entirely dependent on ShipStation to work with UPS and pursue that correction.

Given the size of the issue and the uncertainty around how it will be handled, I’ve hired a lawyer who is ready, if needed. I expect this will be a difficult process from here.

To be clear, I’m fully prepared to pay my fair share and accept that there are lessons here for me as well. But the level of support I need from ShipStation right now is something I unfortunately have very little confidence I’ll receive. The best I have gotten is a response form an “associate” manager in the ticket which helped nothing at all.

Fingers/Toes/Other things crossed ……

Hi Vacek,

Thank you for taking the time to share all of this.

Our products are also 3D-printed items made in Canada, but in the sports industry rather than automotive. What really stood out to me is that we are seeing very similar patterns with the charges and ShipStation.

From the limited data available in ShipStation, each shipment seems to include a fixed charge of about $33, plus duty and taxes of roughly 200% of the parcel value, which is obviously devastating for a small business. For December alone, the charges we received are around $18,000.

We also contacted an independent customs brokerage firm. They mentioned that the charges appear grossly excessive, but unfortunately they were not able to help us directly with the case.

Like you, we have stopped using ShipStation and have not paid the outstanding balance yet, as we also want to maintain some leverage while trying to understand what happened.

One question for you: since you now have a direct UPS account, were you able to obtain more detailed information from UPS about shipments that were originally created through ShipStation’s UPS account?

I would really like to stay in touch as this develops. If our patterns are indeed similar, it could be very helpful for us to compare findings, share updates, and help each other through this.

Best regards,
Luc

@Vacek

Just curious, how much orders do you send out on a monthly basis for you to get a competitive rate against ShipStation? I know its volume = discount.

@lucduf

I don’t think you can get more information if the paperwork was submitted from another UPS account. I could be wrong though.

I would document everything and save it incase you need to take ShipStation to court. All 3rd party like ShipStation, Freightcom, etc dont really fight for you. If you guys dont pay your balance, what most likely will happen is they will send it to collections. If you have documentation of your conversations with them and how eager you are to get more addtional information to resolve this matter. It will work in your favor if it does go to court.

@prov1

100-200 shipments per month. It can vary based on promotions I run, etc. My discount started at 100 … and it’s better than shipstation pricing. AND I now have complete Control of things. Many lessons learned.

As for the question did UPS give me detail on any of the ShipStation shipments in question … I haven’t asked. Nor would I expect them to tell me much as it’s shipstations account.

BUT, depending on what I get from Shipstation…. I may well ask for any and all info.

@Vacek Thanks for letting me know, I’m gonna look into UPS as well. Canada Post requires 10,000 packages a year for thier commerical pricing.

I know how you feel, we got burnt with Freightcom and now we also ship directly with couriers.

Just for completeness , my shipments are 99% Canada to USA …. Not sure that makes any difference when it comes to volume. But fyi

If anyone else is experiencing this, please let us know. I’m sure many others are experiencing something similar…..