Why are the generated shipping rates five times higher than standard?

Payments + Shipping & Fulfilment
1

I am currently very confused about the ground shipping rates I am seeing on Shopify.

An account that we have shipped to before with another service is trying to place a reorder of the same package, size, and weight. This order cost around $22 to ship from OK to OR via Fedex Ground in February 2024. Today is May 8th 2024 and this order is quoted at $48. I expect some variance in shipping costs due to what service one uses and what time of the year they are shipping, but more than double?

Even more confusing to me is that we are on the Shopify shipping discount plan. Shopify is showing me that this order, which I sent 3 months ago for $22, is discounted to $48 MARKED DOWN FROM $94.

The shipping address for this order is not in a rural area by any means. I have confirmed the product weight within the product catalog, confirmed the shipping and receiving addresses, and deleted the order to try creating another with better results.

I do not understand why I am seeing a shipment estimated at 5x the amount that is normal only to be discounted down to 2x the amount. Is there any other details I should be looking into?

1 Like
2

Hey, @PacSubs !

We’d love to take a closer look at the order you’re purchasing a shipping label for. From here, can you please visit our Help Center and start a chat with the AI assistant to be connected with a support advisor? They will assist you further then. Thanks!

3

Hey PacSubs. Rates have increased – although the amounts you are mentioning seem quite steep. This may provide some more context: FedEx, UPS 2024 rate increases: What shippers should know | Supply Chain Dive

In any case, have you sought quotes from any other carriers? Is that possible? That’s usually where I’d start, but best of luck in any case!

4

If you have your own FedEx account, log in and use the FedEx calculator to check the rates.

Ensure the product weight is configured correctly and verify the default box weight and dimensions. Most of the time, this is the reason for rate mismatches.

If the rate discrepancy continues, consider using your own FedEx account with the PH Ship, Rate & Track for FedEx app, giving you more control over the charges applied to you and your buyers at checkout.

5

Hi David, thank you very much for the link. I was unaware that rates had increased but yes this seems far too high.

6

Hey @PacSubs

I recommend checking the carrier rates through their website directly to compare to the rates you are seeing in your store admin. Rates are set by the carrier, but we are happy to investigate if you feel there is a discrepancy in the rates being reported with Shopify Shipping.