Shipping and the UPS/FedEx Debate

With the box taped your order is now on the last leg of its trip through Newegg's warehouse as it heads down the final set of rolling conveyers.


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The metal crates and employees that you see below are all for Army Post Office and Fleet Post Office (APO/FPO) shipments to the US Military. "Shipping to the US Military is requires extensive paperwork in comparison to our normal shipping operations," says Howard Tong, Vice President of Newegg.com. "Not many companies provide this service but we feel it's worth the extra effort to support our troops and our nation."


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With your box packed, labeled and taped up it's off to shipping and it's in Newegg's shipping that most of the recent controversy has been about. Newegg's default shipping is through UPS, although you can pay extra for FedEx. Newegg used to be a FedEx shop by default, however recently FedEx significantly raised their rates, which Newegg passes directly onto their customers. Newegg claims that the rate hike was an attempt by FedEx to discourage customers from shipping via 3-day air, which loses money for FedEx, and instead choose FedEx ground which is profitable.

However FedEx Ground isn't as good as UPS ground, so the end result is frustrated FedEx 3-day air customers that have to pay more, or customers forced out of pricing to go with UPS, which hasn't always had the best track record. In response to complaints about UPS VP Tong says, "We're serious about providing our customers with the best service.  We've taken the criticisms about UPS constructively and have greatly improved the situation.  However we're always striving for perfection and always welcome further feedback."


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With the truck loaded, it's off to your delivery address. As we mentioned at the start of this article, Newegg's goal is to be able to have your shipment to you within 2 days of ordering it regardless of shipping method. It's not a guarantee, but rather an internal goal that they've been striving for ever since their inception.

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  • Kuroyama - Tuesday, February 14, 2006 - link

    Since no one was specific about location, seems the link to the contest on "The Secure Area" page wasn't fixed, although the entry later in the article is OK.
  • bigboxes - Tuesday, February 14, 2006 - link

    I had to use IE. I'd rather not have to use IE if at all possible.
  • bldckstark - Wednesday, February 15, 2006 - link

    I clicked the link in the article, and the advertisement link on the left frame, and both worked just fine for me with FF. The ad opened a new window, the link changed pages. Also I haven't seen it mentioned yet guys, but I bet this article is already linked all over the net.

    Anand and crew, how much is traffic up (or down) over normal since you posted this article?
  • allometry - Wednesday, February 15, 2006 - link

    I would check your FF install. I'm using 1.5 and had no issues signing up...
  • Marlin1975 - Tuesday, February 14, 2006 - link

    quote:

    However FedEx Ground isn't as good as UPS ground



    Sorry but what is that based off of??? I have used both for a LONG time between items that were basic small to large items such as engine heads I have ported or crankshafts and can say Fed-Ex ground has never been a problem for me or anybody else i know that ships a good deal. Even in the anandtech forums most swear by Fed-Ex ground way before UPS.

    Also if Fed-Ex ground is the same price as UPS ground then why does Newegg not offer Fed-Ex ground?
  • superkdogg - Wednesday, February 15, 2006 - link

    If UPS ground is better, can somebody tell them that my laptop ram that I ordered two weeks ago(!) should be here by now. Not only did the shipment originate in New Jersey and miss Wisconsin instead landing in Phoenix (already late at this point), it was then rescheduled for delivery another 6 days later(!!).

    So far it's been 14 days (counting weekends, so a little slack there). This wouldn't be so bad, but that I'm off work after some surgery and can't sit up long enough to use my desktop. So I'm stuck struggling with my new laptop that I got cheap since it has only 256 MB of ram. Try to play any game with integrated graphics and 256 MB using XP (Home in my case) - ain't pretty. Oh well, allegedly my additional 1 MB is coming sometime soon (unless it inexplicably ends up in Nova Scotia on its way back).
  • superkdogg - Wednesday, February 15, 2006 - link

    Oops. Obviously 1 MB wouldn't make much difference. 1 GB would.
  • Cygni - Wednesday, February 15, 2006 - link

    Im with you, FedEx Ground blows UPS Ground away in my book. I always fork over the extra couple bones to get FedEx Ground when I blow paychecks on newegg (fairly regularly) after a couple "experiments" when Newegg switched to UPS... Boxes always come quicker, and in much better shape.

    I do like the OPTION of shipping with either, but for my dollar, im going with FedEx.
  • LoneWolf15 - Wednesday, February 15, 2006 - link

    Ditto. I'll choose FedEx Ground over UPS Ground anytime. They've been more gentle on my packages, I've gotten far better customer service too. I'll gladly pay a buck extra per package to get FedEx Ground over UPS Ground.
  • bob661 - Wednesday, February 15, 2006 - link

    Yeah, UPS Ground blows ass.

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