Freight and parcel carriers, especially the UPS/FedEx duopoly, are really clever in how they squeeze profit from their customers. Accessorial fees are one of the largest profit generators for the carriers. Every UPS or FedEx invoice is littered with costly add-ons otherwise known as accessorial fees. And most customers simply pay it. It’s accepted as the cost of doing business. There’s nothing they can do.
It’s cumbersome for shippers to pour over page after page of invoices in an attempt to identify which accessorial fees are affecting their bottom line on a weekly basis. It’s unmanageable.
Lojistic’s FREE platform gives you instant clarity and insights into your shipping analytics data. Clear, concise, and organized data gives you (the shipper) the ability to identify where you’re overspending and the knowledge to fix it— all for free. The most impactful data for shippers to be aware of are the accessorial fees that drain their profits little by little.
One of the most common - and painful - accessorial fees for shippers are Address Correction Fees. Let's define what these are.
What are UPS & FedEx Address Correction Fees?
An address correction fee is applied when a shipper enters an incorrect delivery address prompting the carrier to make a correction on their end. This could be as simple as a spelling error, spacing error, or an abbreviation error. If the delivery address you enter does not match the carrier's destination address verbatim, you might get dinged with an address correction fee.
Why Is Address Correction Necessary?
Address correction is essential for several reasons:
- Delivery Accuracy: Correct addresses ensure that your packages reach their intended destination without detours or delays.
- Customer Satisfaction: Accurate deliveries keep your customers happy and your reputation intact.
- Efficiency: It streamlines the shipping process, reducing the chances of errors along the way.
Potential Consequences of Incorrect Addresses
Let's face it, mistakes happen. But in the world of shipping, errors can have significant consequences:
- Delays: Incorrect addresses can lead to delays in delivery, affecting both you and your customers.
- Additional Charges: FedEx or UPS might apply correction fees or rerouting charges.
- Customer Dissatisfaction: Your customers may become frustrated if their packages don't arrive on time.
- Reputation Damage: Repeated address errors can harm your reputation and customer trust.
Common Reasons for UPS and FedEx Address Correction Needs
Address issues can stem from various sources:
- Typographical Errors: Simple typos or incorrect house numbers.
- Inaccurate Customer Data: If you rely on customer input, errors can creep in.
- Changing Addresses: Customers moving or using different addresses for shipping.
- Complex Addresses: Long, convoluted addresses that are prone to errors.
Incomplete Information: Missing details, like apartment numbers, can cause problems.
Strategies to Minimize UPS & FedEx Address Correction Fees
Nobody wants to pay extra fees. Here are some savvy strategies to keep those UPS & FedEx address correction fees to a minimum:
Double-Check Addresses: Before shipping, verify addresses meticulously. Use address validation software to catch errors.
Stay Informed: Keep tabs on changes in your customers' addresses. Encourage them to notify you promptly.
Use Complete Addresses: Always include apartment numbers, suite numbers, and any additional details that ensure accuracy.
Educate Your Team: Train your team on the importance of accurate addresses and the potential consequences of errors.
Regularly Update Records: Keep your customer databases up-to-date to avoid shipping to incorrect addresses.
Use Postal Service Standards: Follow the guidelines set by postal services for address formatting.
Fedex/UPS Address Correction Fee Cost
The average cost to the shipper is $18-21 per address correction. In addition to this fee, when an address is corrected, it automatically waives the on-time delivery guarantee. If your package is delivered late or there is a service failure, you are no longer eligible to receive a refund for a late shipment. The address correction fee alone could result in thousands of wasted dollars - or more! - per quarter depending on your shipping volume.
How to Request UPS & FedEx Address Correction
In the event that an address needs correction, here's a step-by-step guide on initiating the process:
Contact FedEx Customer Service: Reach out to FedEx/UPS customer service through the provided channels.
Provide Shipment Details: Have your shipment details ready, including tracking number and recipient information.
Request Correction: Clearly state the reason for correction and provide the accurate address.
Confirm Charges: Check with FedEx/UPS customer service for any associated correction fees.
Follow Up: Ensure that the correction is processed, and the package is on its way to the correct address.
You can use Lojistic to avoid these fees. Here's how:
Create a free Lojistic account
Select a date range
Check the Cost Reduction Opportunities tab
Scroll to address correction fees and click “download details”.
This report will show you the original address you had on file vs. the correction made by the carrier. This gives you all the information you need to update the address in your system, thus eliminating all future address correction fees if you ever ship to the same address again. This can be a BIG money saver if you have repeat customers.
If you find that the address on the report is correct---you have a case to call your carrier and demand a refund for an “invalid address correction fee”---you might be surprised at how often this occurs.
Awareness of where your shipping dollars are going is essential in preventing these unnecessary and avoidable fees. Your shipping data should be free to access and use as leverage in determining where you are overspending. Lojistic gives you the tools to identify these areas and determine the best course of action to mitigate avoidable costs or eliminate them altogether. Here's why Lojistic is free to use.
Lojistic automatically ingests, analyzes, and organizes your shipping data to give you the power to “address” these areas of overspending and take meaningful action to eliminate them. Create your Lojistic account now!
Speak with one of our strategy managers today by emailing us a hello@lojistic.com OR let us know a time that's convenient for you and we'll call you then, just fill out this Contact Us form.
Our team can help you review your shipping data, then strategize and employ the right solutions to avoid costly shipping problems now and in the future.
Conclusion
In the world of shipping, precision is paramount. FedEx and UPS address correction is your safety net, ensuring that your packages reach their intended destinations without a hitch. By understanding the process, fees, common scenarios, and solutions, you can navigate the shipping landscape with confidence. So, remember to double-check those addresses, stay informed about your customers, and use address validation software to keep FedEx and UPS address correction fees at bay. Happy shipping!
Author
Bryan Van Suchtelen
Bryan Van Suchtelen
Corporate Director of Parcel Rate Services
Prior to joining Lojistic in 2015, Bryan enjoyed a 26-year career with UPS where his roles included Pricing, Field Sales and Director-level Sales Management of some of UPS’s largest customers.
At Lojistic, Bryan leverages his wealth of experience/expertise to identify and execute supply chain cost management solutions for parcel shippers of all sizes. Bryan has helped his customers reduce their shipping spend by tens of millions of dollars.