View Full Version : DFS and LiveAquaria Do Not Make Money Off Shipping
aquaticvet1
05/19/2007, 12:46 PM
I do not mean to reopen an old thread but wanted to clarify and state a fact.
Fact: Both Drs. Foster and Smith and LiveAquaria pay more in fees to FedEX, UPS and the USPS then we collect from our customers. For simpilicity of ordering we work on an average cost and therefore we are positive on some orders and negative on others. At the end of every single day we lose money on shipping and in fact in 2006 we collected about 2 million dollars less from customers than the true costs. Again in 2007 we are in the red on shipping costs.
I am stating this publicly and urge any FedEx, UPS or USPS employee to correct me on this forum should I not be correct or honest in my facts.
I understand that shipping fees are always a concern and they are for us as well. Unfortunately with the current fuel prices I do not expect things to moderate. The postal system has just implemented another increase and we expect more from the other shippers as well. Even when fuel prices decline the shippers do not reduce their fees.
As always, I appreciate all of your input and apologize when we fall short of expectations. We will continue to listen and we will work hard to improve.
Thank you, Race Foster, D.V.M.
GoingPostal
05/19/2007, 01:37 PM
I don't really see the issue, salt is almost always shipped alone from you guys which I appreciate as it lowers the chances of bags getting ripped or damaging smaller items. Fedex would have charge a ton to ship a tiny probe because they charge minimum charges even on small items. I have always recieved small lights items through USPS and heavy ones through Fedex. Your set shipping may seem high for a small light order but actually must cost you a fortune on heavy items and is comparable to other online stores. You also usually get orders out within a day as opposed to week long waits I've experienced. Plus the customer service rocks.
aquaticvet1
05/19/2007, 01:38 PM
Just a little more clarification. Although it is never our intention to lose money on shipping, ( goal is break even ) there is a reason for it. As a cataloger, we mail about 50 million catalogs per year. Each has stipulated shipping fees and are honored for a reasonable life of the catalog, generally 6 months or so. We attempt to keep our etail shipping fees inline with those in the catalogs. With shippers not letting us know of fee increases 6 months in advance, we structure or customers fees on speculation. No one, including us, expected fuel prices to increase the way they have for the past 36 months. Shippers raised their fees after our catalogs went to press and therefore our charges were not reflective.
Another little known fact is that retailers, etailers and catalogers are now commonly assessed a fuel surcharge to have products shipped to their warehouses. Last year alone we paid close to one million dollars in fuel surcharges to get your products shipped to us so that we could ship them to you. That is why some companies are switching to dropshipping rather than housing their own inventory. Unfortunately this tends to reduce shipping costs but drastically increases out of stocks and backorders. We are attempting to adjust without much dropshipping as we like to control our inventory and keep backorders to a minimum. We feel that our customers want this as well. This year to date-- about 99.2 % of our orders have been shipped without a backorder. This may be a mail order industry record and helped us win " Cataloger of the Year " and numerous customer service awards during the past three years.
Another wrinkle is that shipping fees are no longer calculated by weight-- but rather "dimensional weight". As you may know the Postal System may be going to this method as well. The reason is that a large, lightweight package may actually cost more to ship than a small, much heavier package. The larger package takes up more space on the plane or truck and hence may cost more to ship. Again, the reason that I am pointing this out is that our fees are based on what we think you are going to order and from where and or costs are figured on what you actually order and how far it is shipped. With our diversity of products it is not easy to assess actual shipping fees. They were when weight and distance were the only criteria but now the box size must be figured as well. Dimension ( box sizes ) cannot be determined until your order is assembled. Next time you mail a package at the Post Office you may observe the complexity.
I hope this helps all understand how difficult shipping fees can be to interpret. I realize that we are not perfect but we are striving to get closer. Thank you for standing with us.
Thank you, Race Foster, D.V.M.
dlsmith21
06/03/2007, 06:23 AM
I am a mail carrier and just because someone asks for Fedex or DHL it doesn't mean they will get that carrier. Fedex and DHL drop packages at our post office daily for us to deliver. It is NOT the fault of Drs. F & S if a customer has their package shipped by the either of the 2 shippers and it arrives USPS. Fedex and DHL make the decision whether to deliver or use the USPS. This adds shipping time to an item as it is being processed twice. The price you charge for shipping is, by far, the best I have found for over weight items ie, salt, sand, etc etc. Even though I work for the USPS, shipping items can be difficult to understand. Our standards change so much I can't even keep up with them !
stanlalee
06/03/2007, 01:03 PM
LOL you feel the need to explain yourself because one guy proclaims you made a profit off his $11 shipping cost (stop the press! you mean to tell me you shipped AND made money off those eleven big ones. scandalous!)
anybody who thinks your experience is less than worthwhile let them go on and experience what the rest of whats out there. I dont think you have anything to worry about. you arent what you are because you suck.
Krazy
06/04/2007, 06:21 PM
I seen you guys selling reef crystals on ebay for $34.99 for a 5 gallon pail (160 gallon mix) with $9.99 shipping..
We ALL know that 5 gallon bucket costs WAY more then $9.99 to ship.
Hell you guys even offer $1.99 shipping on additional buckets !!
dfs/la2
06/04/2007, 06:41 PM
Krazy K,
The credit issued was for the price of the tongs at $28.99. To apply this credit to an online order, there will be a check box where you can indicate this credit when going through the checkout. If you wish to have this applied to a LiveAquaria order, you will need to indicate this in the comments section of your order. When the order gets processed, we will then apply the credit to the order. If you prefer to place an order by phone, simply notify the agent that you would like to use your credit.
Mike S.
Tech Support
Drs. Foster and Smith
Krazy
06/04/2007, 06:54 PM
<a href=showthread.php?s=&postid=10077629#post10077629 target=_blank>Originally posted</a> by dfs/la2
Krazy K,
The credit issued was for the price of the tongs at $28.99. To apply this credit to an online order, there will be a check box where you can indicate this credit when going through the checkout. If you wish to have this applied to a LiveAquaria order, you will need to indicate this in the comments section of your order. When the order gets processed, we will then apply the credit to the order. If you prefer to place an order by phone, simply notify the agent that you would like to use your credit.
Mike S.
Tech Support
Drs. Foster and Smith
Mike,
I'm not the one doing the order, so how will the person doing the order apply my credit ? Is there a customer # or something I need to provide them, or just put my customer/order# in the comments section mentioning the $28.99 credit?
Thanks :)
dfs/la2
06/04/2007, 07:25 PM
Krazy K,
We apologize for posting in the incorrect thread. Further information on this matter has been posted in the correct thread regarding your credit.
Mike S.
LiveAquaria
Drs. Foster and Smith
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