When you buy something online, it’s hard to predict how much you’ll pay for shipping. It could be a good deal … or it could be a multiple of the item itself. What merchants charge is often uncorrelated to the actual cost of shipping.
Recently, I ordered from Skratch Labs and was given four options:
The first was pretty reasonable. The others were bonkers. I took the ground shipping. When the item arrived, I measured (8x8x5 inches) and weighed (37oz) the box.
I checked the actual cost of shipping such a package from Colorado to NYC, comparing Skratch’s rates to both the rates I pay with Shippo and to retail rates on UPS.com and USPS.com:
| Skratch Price | Shippo Price | Markup | Online Retail Price | |
|---|---|---|---|---|
| USPS Ground Advantage | 5.95 | 6.78 | 0.9X | 11.70 |
| UPS 3 Day Select | 40.25 | 15.55 | 2.6X | 46.45 |
| UPS 2nd Day Air | 50.32 | 18.48 | 2.7X | 60.96 |
| UPS Next Day Air | 97.04 | 50.58 | 1.9X | 130.43 |
While all rates are cheaper than full retail, they are not representative of what UPS charges volume shippers.
The USPS rate represents a 10% savings, but the UPS rates are, on average, 240% of what I would pay. I can’t imagine any customer agreeing to pay these rates.
Perhaps:
- their Shopify integration is calculating the wrong rates, or,
- they to renegotiate your rates their your UPS rep (who is ripping you off), or,
- they marking up shipping rates as a profit source (not a rgeat plan)
Skratch did not respond to my email feedback.