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FedEx Overcharged Customers for Years, Sealed Email Says

December 14, 2012
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FedEx has been “systematically overcharging” customers by billing businesses and government offices at higher residential rates, a company sales executive said in an internal email unsealed in a lawsuit. “I have brought this to attention of many people over the past five or six years, including more than one managing director, and no action has been taken to address it,” Alan Elam wrote in an e-mail on Aug. 2, 2011. “My belief is that we are choosing not to fix this issue because it is worth so much money to FedEx”...

 

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An Internet information company seeking to boost response rates and drive traffic to its website was reluctant to use direct mail. After the campaign generated so-so results in numerous online channels, however, a direct mail test produced the highest response rates and the most stickiness of any medium they used—even for the coveted new-media generation of 18- to 35-year-olds. The moral: "Sometimes you find a role for print in the areas you least expect it."
 
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One of the biggest developments in parcel shipping over the past decade is the increased use of consolidators. Consolidators compete against standard UPS and FedEx ground services by using a special rate from USPS called Parcel Select. The consolidators sort and drive the parcels to USPS Bulk Mail Centers (BMCs), Sectional Centers (SCFs) and local post offices. Delivery times normally increase by a few days over UPS ground, but Parcel Select rates are very low, so even with the consolidator's fees added on, the costs can be 30 percent less than standard UPS, USPS Priority Mail and FedEx rates.
 

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