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How to Reduce FedEx, DHL and UPS Shipping Expenses in Your Online Store
Posted Jun 28, 2017 by Vitaly Golovin, Ecwid Team

How to Reduce FedEx, DHL and UPS Shipping Expenses in Your Online Store

Shipping costs are one of the biggest expenses for many small businesses. It’s important to fine-tune this side of your workflow to stay profitable.

One way to cut down on shipping costs is refunds. Carriers sometimes make shipping and billing mistakes that can and should be compensated. This happens according to the regulations of each separate carrier.

The problem is that carrier contracts are tricky because they are based on multiple rates & rules tariffs, requiring an in-depth knowledge of the terminology. That can make issuing a refund a big deal and, if there are numerous refunds, a nightmare.

This post will tell you how refunds are issued with FedEx, DHL, and UPS and how you can automate refunds with a free app from the Ecwid App Market.

Also read: How to Get from Zero to Ship: Carriers, Rates and Strategies

How Refunds Work in Carriers

Large carriers like FedEx and UPS can sometimes bill you wrong due to the great number of orders they process and ship. The reason may be:

  • Billing mistakes, such as double charges or overcharges
  • Service failure, such as a package being delivered late.

For sellers with a heavy order flow, it might be next to impossible to track every mistake and request a refund manually.

A lot of manual work doesn’t guarantee you are getting a refund. It can be canceled easily if you made a mistake in documentation or your request simply appeared too late. Refunds don’t apply to certain product types, such as dangerous goods or dry ice, for example.

Your refunds also depend on:

  • The nature of the delay: if it’s customs issues, you are not likely to get refunded.
  • Destination: if a carrier uses its extended services, you’ll receive a refund only for the portion of the transportation provided directly by the carrier.
  • Time: during the holiday season, the terms might differ due to the high load of shipping services.

A delivery is considered late when your order arrives 60 seconds later than claimed by FedEx. However, you can learn the exact delivery time by phone only. Any delivery time found elsewhere is only an estimate and won’t be a reason for a refund.

With UPS and DHL, only you personally can issue a refund.

With the majority of carriers, transportation expenses are refunded, excluding fines, taxes, or other charges or amounts (such as any fuel surcharge component).

There are many more terms and limitations in the full legal documents:

So, with multiple orders every day, shipping refunds can turn into a nasty piece of work.

How to Set Up Automated Refunds

The Share a Refund app takes care of automated monitoring and claiming your refunds. If you are on one of Ecwid’s paid plans, here’s how you can set it up:

  1. Install the app
  2. Create an account in Share a Refund
  3. Connect your carrier accounts.

If you have a free Ecwid store, you might want to upgrade it to get access to this app and 100+ more. Many of the apps are completely free.

Learn more: 10 Must-Have Free Apps for Your Ecwid Store

What’s Next

As soon as you get a Share a Refund account, it will start spell-checking your shipping accounts and looking for late deliveries, address correction surcharges, Saturday delivery surcharges, dimensional weight misbillings, duplicate charges, residential fee surcharges, and unused shipping labels.

All the claims are automatically submitted and tracked as they are credited back to your FedEx and UPS accounts, and then sent directly to your credit card. Share a Refund will split every refund processed with its services.

Alongside issuing refunds, the app collects downloadable shipping stats on the dashboard and has a scheduled reports feature that sends reports to your inbox on a regular basis.

Convenient, isn’t it? Get Share a Refund to save the time and money that are so important for running an online business.

Also read: How to Set Up Shipping Rates in Your Store Using Ecwid

About the author
Vitaly works with 3rd party app developers to bring the best experience to Ecwid users. In his free time, he enjoys watching YouTube videos and long walks with his friends.