Shopify Shipping Discount for UPS not working

Topic summary

Core Issue:
Multiple Shopify merchants report UPS shipping discounts suddenly stopped displaying when purchasing labels, starting around late October/early November 2024. Rates appeared significantly higher—sometimes $100+ more per order—while USPS discounts continued showing normally.

Merchant Frustrations:

  • Support conversations yielded inconsistent explanations and circular responses
  • Some merchants threatened to leave Shopify, citing shipping discounts as their primary reason for choosing the platform
  • Rates obtainable directly from UPS.com or competitors like Shippo were often lower than Shopify’s “discounted” rates

Explanations Provided:

  • UPS surcharges: Shopify support cited new UPS Additional Handling Charges and Demand Surcharges (effective Sept-Oct 2024) for packages over 48 inches, which aren’t eligible for Shopify discounts
  • Display change: One merchant discovered discounts are still applied but no longer shown separately in the label summary—the displayed price is already discounted
  • Disconnecting UPS accounts: One user reported removing their connected UPS account restored normal discount visibility

Current Status:

  • Issue remains unresolved for most participants
  • Shopify announced an additional 25% UPS rate increase effective January 12, 2025
  • Merchants report support unable to provide phone assistance or transparent pricing breakdowns
  • Some considering alternative platforms or shipping providers
Summarized with AI on November 1. AI used: claude-sonnet-4-5-20250929.

My shipping was working fine until my most recent order where I noticed my shipping label was going to cost more than the customer paid. After trying everything (even upgrading my plan) it appears that UPS shipping discounts that were applied via Shopify are no longer working. USPS shipping discount still show. Anyone else having trouble with this? I have spent two days talking with someone via chat and then email. Any luck getting someone to call you and walk through the problem? It’s charging $30+ shipping to a $30 product.

6 Likes

We are having the same problem. Talked to live chat and just ran around in circles. We see our Shopify Plan Discount when selecting USPS.

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same!! And now they’ve come back to say that the rate when creating the label is right and that the price at checkout will increase. I can look back at shipping costs from just last week and they are $5-$10 cheaper and same for exact orders with the same customers last year. Very frustrating as shipping discounts were our main reason for picking Shopify as our e-commerce channel!

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We are having the same problem a well! Not getting discounts on any shipping carrier now and also getting an error message saying unable to ship between destinations.

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@Abuckner @Magnadyne @ryflyy

probably one of the major reasons to go for the carrier business accounts of your own. Carriers like UPS, FedEx, DHL, etc. offer significant discounts to e-commerce business owners in various regions. It is always better to have complete control of the shipping rates that you have been offered and the assurance that the same shipping rates will be displayed and charged while printing labels.

We have a lot of Shopify business owners using our application with carriers like UPS and FedEx and they hardly face the issue of shipping rates not matching the discounts negotiated with the carrier. Also, our application shows the shipping rates displayed on the checkout and the one that is charged while printing shipping labels beforehand, so that you can compare and make adjustments.

Hey! It’s happening the same to me! Please keep us updated if you are able to solve this issue. I already opened a case.

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It seems to have solved for me this morning. Keep us updated if it’s solved for you, too.

How did they solve your problem? Happening to my store today also.

I opened a case yesterday but the help rep told me everything seemed to be working ok. I did a test order today and honestly the problem seemed to have resolved on its own.

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Interesting. It is happening to be on multiple computers on different wifi networks, so I hope mine resolves in a day also… frustrating.

Did yours start showing the discount amount again? Support is saying that it wont show the discount anymore and that the prices are right… but I can get the same price from UPS.com.

No, it is not and it’s can get the same prices elsewhere. Their entire UPS rates are wrong and they won’t listen.

Yes we noticed this on our account also. First sign was November 5th. Support has been useless.

We still have the issue. Someone please help! Each order is over $100 higher than it should be.

Yes! Still no resolution. We are in the process of setting up our website through Square and will be cancelling Shopify as their shipping discounts were the only major seller for us.

All shipping rates seem to have increased across the board, even USPS. Support is telling me that although it’s not showing a discount when trying to buy a UPS label it is correct and they are justifying it by going into calculating shipping cost in your Shopify admin / shipping area. I’m only seeing a 2% discount on USPS. Very frustrating!

We pay for “up to 88% shipping discounts” and I can still go to Shippo and get a lower shipping rate than they’re offering now. It’s false advertising on their part that we’re actually still receiving a discount. I can also get the same, if not better rates from UPS directly. It clearly changed overnight and Shopify will not acknowledge it.

Agreed! If only there was a way to talk to someone over the phone!!

Going directly through UPS is still showing higher for us. Its possible this is just holiday surcharge pricing as that does happen. But Shopify said a benefit of Shopify Shipping with UPS is " Shopify will cover any peak surcharges on UPS Ground shipments during the holidays " Source - https://www.shopify.com/blog/ups-shopify-shipping

I was talking to one of the customer service for 20mins. Same issues with you and everyone else.

I’m telling you, Shopify is trying everything to rip you off and make money and save their own cost.

So I just deleted my own UPS account which I connected with Shopify account.

You know what, everything went back to normal and getting the discounts I used to get.

So everyone, when you see the error message from Shopify shipping saying “you need to re-connect your ups account”, don’t ever do it!!!

Shopify is just trying to rip you off and make more money and cost less money on their end!!

1 Like