EggXpert

At the end of an online RMA return process, there is an offer to have a UPS return label printed, with a blurb claiming one benefit is lower cost.  The label cost came up as a little over $8, for a package sent originally in a padded envelope that did not cost Newegg that much to send to us.

This creates a negative shopping experience.  It's a good feature to offer an automated shipping label, but the claim that it's lower cost should be removed because it was the same cost as a generic cost estimate on the UPS website, and higher cost than we ship using a low volume FedEx account, let alone USPS or the volume rates Newegg is getting through UPS.  It creates the perception that Newegg is trying to make money off of selling shipping labels, which they are entitled to offer to anyone willing to pay of course, but to also mention lower cost as if the customer will save money is a dark spot on the feature.

"Lower Cost" is a general, not specific term.

Specifically, the smaller the package, the closer to retail cost you will get.

Generally, the larger/more packages you end, the more you benefit, as the automated system generates shipping quotes using the Bulk Rate that Newegg enjoys with UPS, rather than a person-off-the-street retail rate.

Agreed, and that is why it is so wrong for Newegg to have implied it would cost less, because their volume would allow them to attain the shipping service for less but they aren't passing on any of that savings, instead charging just as much as a person-off-the-street would pay.   This means there is missing money, Newegg's customer is paying more than it costs Newegg and yet Newegg is claiming lower cost when it wasn't.

 Let's use random dollar figures as an example.

-  Newegg RMA label is offered to customer for $10 on an item being RMA'd, while Newegg implies to customer that it's lower cost.

-  Customer pays that $10 to Newegg, but customer could get same rate or lower through same shipper, or their direct competitor.

-  UPS only charges Newegg $6 for that label because of Newegg's volume, Newegg pays UPS $6.

Where did the remaining $4 go?  It didn't make it cheaper for the customer as implied, it made Newegg a profit.

My point was that on larger packages, a $10 charge is less than a $15  or $20 charge a customer would get from a retail quote. (just throwing out random #'s again)

There is no reason to believe that if Newegg is not passing on their savings on a typical package size (even multiple pounds don't cost more through Fedex), that a larger package would save the customer any money.

 

I welcome you and others to compare for yourselves.  Remember, I didn't start this topic at random, it was after observing the situation.  Newegg is entitled to charge whatever they want to, but it should not be misleading.