UPS and Newegg, WTF?

[TankGuys]

After all the complaints Newegg has recieved about UPS. They should IMMEDIATLY remove them. By Newegg knowing UPS is damaging packages, delivering them late, or providing rude support it makes them look VERY Unprofessional. Im all for good shipping prices, but Newegg can get together with FedEx and talk about cheaper rates after UPS is no longer a Carrier with Newegg.

I'll agree with Aaron on this, as far as the rates from FedEx. I can tell you that we vendors *always* want to negotiate better rates for everything we have to pay for - including shipping. Doing so would either allow the vendor to make more money, or would allow us to pass the savings onto our customers, thus gaining more business.

So, while I'm obviously not privy to the inner-workings of Newegg, I'd say I 100% beleive Aaron that they tried thier best to get better rates from FedEx... there's just no reason to assume otherwise.

On the flip side, that still leaves the main issue at hand, which is the seemingly wide-spread dislike of UPS. This is a real bummer, because like they said, there isn't much alternative. FedEx rates have gone up, and nobody likes those new rates. That leaves DHL, USPS, Airbone Express, et al. However, none of those offer the coverage/volume required for such a large vendor. (Well, USPS does, but that's not an attractive option for a few reasons).

My guess? Newegg/FedEx had a contract in which FedEx "gave away the farm" to gain the business. That contract has since expired, and FedEx was unwilling to renew at those rates. Now Newegg is left with little alternative. It's a bummer, but I wouldn't direct much malcontent towards the 'egg, as I don't think they really have much choice in the matter.

 

[Bullnettles]

I used to didn't care who shipped it, but a 300 dollar amp "disappeared" for about 6 months in a fedex warehouse... thank goodness for insurance. So I ordered solely from ppl who shipped UPS from then on. NEVER had a single problem. I dunno if I'm special, but our guy always asks for a sig. He's been there awhile, dunno if that helps. Recently at school, I ordered good ole' UPS and it was a week late from it's online status. Everything was fine, but that's kinda weird. Ordered a Sonata II over break while at home, after reviews said UPS banged up their box and broke stuff (i know, stupid) but it was fine. No broken anything. Used ZZF's free 2nd day fedex reluctanty and BAM, here on time, perfect condition. Maybe I had a fluke, I dunno, but I'll take UPS at home and Fedex at college. They each rock in their own territory.

 

[Donovanj]

I have to add my two cents here. I have been a long time (5-6 years?) customer of Newegg and I am VERY dissapointed with the decision to change to UPS as the default shipping. UPS is a decent shipper to business addresses but completely horrid when shipping to residential ones. This is not just the opinions of a small precentage, but of the majority. Also, if you are going to offer other options, then why not USPS? USPS priority is only $4.05 for ANYWHERE in the US under a pound. At the high end, flat rate boxes with almost unlimited weight are only $8.10 to anywhere. Plus they deliver on Saturday!

I still cannot believe that Fedex prices have risen so drastically in only a few months. Before UPS was added as a shipping option, a lot of these prices were half or even less than half of what they are now. Also, how come so many other retailers can still offer the Fedex prices you USED to have?

You had a formula that has worked for many years. Great prices, very fast shipping (Fedex) and great customer service. This has taken you from being a small online outlet to the best in the business and earned you a huge loyal customer base in the process. Your shipping was one of the major items that set you apart from other retailers. Most items were delivered early, not on time or late. Like someone else said, your shipping choice DOES represent your business. Just ask anyone why they choose Newegg over someone other retailer??? It certainly was one of the main reasons why I choose them.
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[Rozal]

Fedex raised there prices. Newegg decided since Fedex is more expensive, what about our customers who can't shell out the extra 3-6 dollars? I mean common, how would newegg look if it did not have UPS? Shipping would cost some money! So they added UPS. Fedex's same services are still avalible, and there is a reason why almost all buisnesses do not use USPS. In all honesty Newegg should not be blamed. My dislike in UPS as they gave me a 4 day shipping instead of the told 3 day. Newegg Support took my issue, refunded my shipping, and offered me a Free FedEx Saver Shipping on my next purchase, talk about excellent support and prices, no?

 

[Donovanj]

I can maybe understand why really large retailers might not want to deal with USPS. I have had zero problems with USPS priority but others have not faired as well. Also their tracking is nowhere near as good as Fedex. There are a few larger retailers that do still use USPS, Tigerdirect is one example.

As far as Fedex and Newegg rates. Many of their competitors use Fedex and charge the same low prices that Newegg used to. Did these other retailers not get the same rate hike? For example Zipzoomfly is one of these online retailers that offers free 2 day Fedex on most items. While I am sure that UPS was able to provide Newegg a better deal, IMHO the lost business from declining customer satisfaction will more than offset this savings. A quote I saw in another forum says it all: "Guess you saved a buck in shipping that item that I won't buy from you now."

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[David Coleman]

Thread Readers,

I Just wanted to quote David Coleman's post incase any of you read over it.

Thanks again,
Newegg Customer Support

Thanks for the love man. Unfortunately, some of the more vocal critics don't listen to me. Since I have worked for UPS since 2003, I'm "biased". As I've always said, if anybody wants facts about how UPS operates internally, you can talk to one of the UPS employees on this board. If you want opinions and anectdotal stories, ask everybody else.

 

[evancold]

Thanks for the love man. Unfortunately, some of the more vocal critics don't listen to me. Since I have worked for UPS since 2003, I'm "biased". As I've always said, if anybody wants facts about how UPS operates internally, you can talk to one of the UPS employees on this board. If you want opinions and anectdotal stories, ask everybody else.

Or go to unitedpackagesmashers.com

 

[martinjon666]

Thanks for the love man. Unfortunately, some of the more vocal critics don't listen to me. Since I have worked for UPS since 2003, I'm "biased". As I've always said, if anybody wants facts about how UPS operates internally, you can talk to one of the UPS employees on this board. If you want opinions and anectdotal stories, ask everybody else.

There is also a LARGE difference between your FACTS and how this "service" is related to the customer. These "anectdotal" stories are from YOUR customers David, people who have been mistreated and are saying something about it. Yet it still seems that you shrug it off, and call them "stories". Great FACTS.

 

[David Coleman]

There is also a LARGE difference between your FACTS and how this "service" is related to the customer.

I offered insight based on memos and announcements given to all UPS centers regarding the contract negotiation of Dell with FedEx and its subsequent switch BACK to UPS last year.

These "anectdotal" stories are from YOUR customers David, people who have been mistreated and are saying something about it.

Ok...and? I have mentioned previously that FedEx handles packages better because they are a smaller operation. They handle packages less effeciently and more carefully than UPS. The trade off is that they can not process the billions of packages that UPS can each day. When a company begins to ship a large amount of packages like newegg has since their last contract negotion with FedEx, FedEx has been known to renegotiate a higher price for several reasons, one of which is that they cannot continue to profitably ship that many packages with their high quality level of service.

Yet it still seems that you shrug it off, and call them "stories". Great FACTS.

I don't shrug it off. I offer facts. Like how UPS ships BILLIONS of packages every day. And maybe, what 10,000 have problems each day? Maybe 100,000? Maybe 1,000,000? Even if it was 1,000,000 packages (which it isn't...I know from handling severely damaged packages at my center that it usually amounted to ~20 boxes for every 20k or so) that would be only 1% of 1 billion. To use anectdotal stories and case studies as facts, you need a representative sample, which we do not have here. That is why I contrast facts with anecdotes.

 

[David Coleman]

Or go to unitedpackagesmashers.com

Great site...they've got some good pictures there...though I've definately seen worse...much worse...

 

[Nathan0490]

Actually Heres an idea that will make everyone happy, and yes I would like a response from Jason or Aaron on this one. How about newegg gives free FedEx Saver Shipping on most items... ZZF gives Free 2 Day shipping on most items. At least for the long time customers who have spent thousands with egg, i mean comon!


Thanks,
Nathan

 

[skou]

Ok...and? I have mentioned previously that FedEx handles packages better because they are a smaller operation. They handle packages less effeciently and more carefully than UPS. The trade off is that they can not process the billions of packages that UPS can each day. When a company begins to ship a large amount of packages like newegg has since their last contract negotion with FedEx, FedEx has been known to renegotiate a higher price for several reasons, one of which is that they cannot continue to profitably ship that many packages with their high quality level of service.

So, what you're saying, UPS can handle (read break) packages more "efficiently," and this is good?

But, since FedEx doesn't break as much, they aren't as "efficient."

Well, I'll stick with the less "efficient" company, thank you!

(Something tells me, UPS has gotten too big to be "efficient.")

And, I'll also stick with a company that ships with the less "efficient" company.

David, have you noticed, there have been NO people in the greater Phoenix area, complimenting UPS on their great shipping practices? Could there be a problem with the local office? Is there something that could be done about this?

Aaron, is there anything that could be done, on your end, about the Phoenix UPS shipping problems?

steve

 

[David Coleman]

So, what you're saying, UPS can handle (read break) packages more "efficiently," and this is good?

Nope. Not what I said. UPS is set up to handle more packages per unit of time. A negative byproduct of this is an increase in damages.

But, since FedEx doesn't break as much, they aren't as "efficient."

Not what I said. FedEx handles things slower, more delicately than the wide-open package processing factories that UPS hubs and centers are. The effeciency I was referring to (which I should have specified) was cost effeciency. I guarantee, by economies of scale if nothing else, that it costs UPS less per package than FedEx.

Well, I'll stick with the less "efficient" company, thank you!

Good! Fortunately, Newegg offers you that option. Doesn't that rock?

(Something tells me, UPS has gotten too big to be "efficient.")

Time effecient, maybe. Cost effecient, absolutely not. Money is all that matters to UPS. Business customers = money. Residential customers = chump change. That's how management sees it. They'll never tell you that, but thats what their actions and policies indicate.

And, I'll also stick with a company that ships with the less "efficient" company.

Good! I'm sure Newegg is happy to hear you'll be sticking with them!

David, have you noticed, there have been NO people in the greater Phoenix area, complimenting UPS on their great shipping practices?

Are all the UPS customers in the Phoenix area in that area on this board? Again, back to the representative sample.

Could there be a problem with the local office? Is there something that could be done about this?

Yes, and maybe. You could call and complain every time you have a problem with ANYTHING UPS does. Doesnt ask for a signature. Delivers late. Delivers smashed stuff. Whatever. Voice your concerns on something besides a message board; to someone who can actually do something about it (800# customer service or the local center if you can get that number). Every time a complaint is registered with the 800#, a "concern" notice is filed with the local center. Every one of those concerns has to be addressed by the local center management, usually resulting in a phone call to you even if you are just a residential customer. It might take a few incidents till it happens...but if you raise hell with them, they will respect you. Because the local center gets in trouble for excessive "concerns" being filed. Center managers lose their jobs over less, so they take it seriously.

 

[skou]

David, what you are telling me, is FedEx takes the time to ship packages correctly, and you think this is wrong!

UPS, on the other hand, ships packages INcorrectly, but less expensively.

And I should LIKE this?

Why should I ship, with UPS, if some packages are going to be broken? Why even waste my time?

And, as a reciprocal, why should I buy from a company that has this as a business model? (Let's see. I'll spend some of my time and money, on a good chance of a broken package, and bad service.)

(Well, I like FedEx's business model!) They charge more to get a product to MY house, or to my customer's house, but it gets there quickly, and it isn't broken.

steve

 

[Rozal]

I love the general feel Im getting from reading this thread.
Did you know that the owner of the UPS store near me is named James MacFarlane?
Guess what my name is.
I really don't enjoy everyone's hate for UPS, though I am glad people finally parted out Newegg. When I first ordered from newegg. The default shipping was FedEx Saver Shipping. I had a time when my package got here 1 day early! Other times where they say by 5:30 but they guy comes at 5:40, I keep it to myself. I knew my FedEx driver, hes seemed nice, I signed for my packages.
With my first newegg UPS purchase my package took about 4 days, with 3 days shipping. UPS didn't move my package making it fit into the 3 buisness day guarentee. I have seen the driver for UPS, he ushally puts my package at the door, and rings the doorbell and leaves.
But what does this have to do with the UPS guy having my name James MacFarlane?
Well they are drivers for carbon copy companies, which do the exact same thing as the other. But while the companies may be the same, the driver's are not.
The FedEx guy was friendly, took his time. While the UPS guy just wanted to get it over with. However there has been a exact situation in my last city. Except this time it was switching sides. The FedEx guy was, 'Leave it here, Just get it done with', while the UPS guy was the person who took his time, and did his job.
While me and the UPS store owner have the same name, we are different people.

 

[David Coleman]

David, what you are telling me, is FedEx takes the time to ship packages correctly, and you think this is wrong!

I never said it was wrong. I said it was more expensive.

UPS, on the other hand, ships packages INcorrectly, but less expensively.

And I should LIKE this?

UPS does not ship EVERY package "incorrectly". Some, small percentage, yes, but not all. No, you shouldn't like it. I have recommended that those not happy with the cheaper shipping options should fork up the extra dough to get the service they want. I'm glad Newegg offers both options, so everybody can have the opportunity to be happy.

Why should I ship, with UPS, if some packages are going to be broken? Why even waste my time?

FedEx breaks packages too. Of course it is a lower number, because they ship significantly less packages. Now I would wager it is a lower relative rate also, due to the aforementioned care and cost ineffectiveness their process affords.

And, as a reciprocal, why should I buy from a company that has this as a business model? (Let's see. I'll spend some of my time and money, on a good chance of a broken package, and bad service.)

Have you ever purchased car insurance? What is your deductible? You can have a policy that has a zero deductible, but charges high monthly rates (FedEx in this analogy), or a policy that has a high deductible when something does go wrong, but a much smaller monthly fee. It's a personal choice. Its a gamble. Again, Newegg offers both. It is your choice.

(Well, I like FedEx's business model!) They charge more to get a product to MY house, or to my customer's house, but it gets there quickly, and it isn't broken.

steve

Millions of UPS customers share the same satisfactory experience every day, at a lower cost. Again, your choice.

 

[mysterfix]

Hey David, I just wanted to chime in on this. I have no ill will towards you but your company sucks in my area. I won't bore you with another anectdotal story but I don't buy from places where my only option is UPS. I really hate the fact that my business isn't important enough for your company to deliver my packages on time.

The stupid shipping hub is less than 2 miles from my house and nothing has ever been delivered in a timely manner. So for me the extra cash for FedEx is well worth it. They deliver on time every time and sometimes I even get my packages early. So kudos to FedEx for remembering that customer service is what really matters.

 

[deathstar13]

i like it when people send me stuff threw fedex.
not only are they rather fast and dont drop kick my stuff as much but the fedex lady who comes to my house is smoken hot!

tell me who doesnt just love haveing a pretty girl giving you pc parts?!



on a side note i like newegg giving the ups option even tho ill never use it.
also they would have been better off offering usps priority.

 

[skou]

IMillions of UPS customers share the same satisfactory experience every day, at a lower cost. Again, your choice.

Just not in the greater Phoenix (where I live) area.

Here, in the Phoenix area, UPS is NOT cutting it.

Period!

steve

 

[skou]

You know what REALLY gets me about UPS, at least here? Their COMPLETE lack of caring for the paying customer. An example follows;

A few months ago, I had a few packages arriving, they arrived at the local UPS warehouse at the same time, but were scheduled to be delivered on 3 consecutive days.

So, every day, for 3 days, the UPS truck was driving down my street, dropping off the day's allotment, only to do the same thing the next day. Yes, it followed the rules, no I couldn't complain about it.

But, if a package ever gets to the local FedEx warehouse, it is on the truck the next day. (If not later the same day.) ALWAYS! ( I also rarely get a package as late, as the promised delivery day. This has happened only once, using FedEx, from Newegg.)

Packages do NOT sit in the warehouse, waiting to be delivered.

I think it is completely stupid, for a company that has on-line tracking abilities, to allow this to happen, and let us see it.

steve