You've likely had some questions about the “Adjustments & Other Charges” section on your UPS bill. Navigating UPS surcharges and carrier adjustments isn't easy, especially when the list of possible adjustments is long. For high-volume shippers especially, ensuring the accuracy of carrier adjustments can lead to major cost savings. To catch these issues, many shipping companies conduct a parcel invoice audit. An audit will note, among many things, any invalid charges, improperly applied incentives, and opportunities for cost savings.
To understand the finer details of what an audit will look for, it's helpful to familiarize yourself with billing adjustments and incentives. In this blog, we will take a look at some common adjustments, types of incentives, and how the two can affect each other.
As with most carriers, UPS reserves the right to audit any package or invoice and adjust your bill to reflect inaccuracies. It's part of their Tariff/Terms & Conditions of Service, so by using their services, you agree to these audits and resulting billing adjustments. Some of the more common billing adjustments include:
If you're wondering how to dispute UPS charges, you can do so through your UPS account by selecting the “Invoice Tab,” clicking the dispute link for any invoice you wish to dispute, and completing the subsequent form. If you're facing a large number of charges, it might be best to contact a shipping expert like ShipSigma for a thorough parcel invoice audit and recommendations to resolve these issues and lower your overall shipping spend.
Another thing to keep in mind when reviewing your UPS bills is your incentive credits. When a bill is full of multiple adjustments, incentive credit discounts may not always be applied properly. Let's examine some key features of UPS incentives so you know what to look out for on your next bill.
UPS offers promotional discount incentives that are based on the most recent UPS daily rates. Incentive credits are listed on your bill along with adjustment charges. One can easily affect the other, so it is important to approach a bill review by examining every detail. These incentives can be divided into two categories: guaranteed discounts and volume-based incentives.
Guaranteed Discount Incentives
As the name suggests, guaranteed discounts will apply to your bill regardless of your shipping volume (aside from any low-volume thresholds). UPS breaks down these incentives by weights, service, and zones. This UPS Service Incentive Summary illustrative guide shows an example of the charts UPS uses to determine what your discount will be based on these factors.
Volume-Based Incentives
These incentives are not guaranteed and depend on your shipping volume levels. For example, UPS may agree that they will apply a 10% discount to every ground package you ship as long as your base weekly transport charge is between $1,000 and $2,000. Generally, the higher the shipment volume, the higher the incentive discount.
For both types of incentives, the exact percentages and details are usually determined in your carrier contract negotiations.
Before reaching out to UPS customer service or searching for a UPS dispute phone number, consider contacting ShipSigma. Many of our employees are former UPS and FedEx workers, giving us elevated knowledge of industry incentives and adjustments. The mission of our entire team is to cut parcel and freight shipping costs for our customers by offering:
If you'd like to discover numerous actions you can take to realize shipping cost savings, try our platform out for free today.
A package qualifies as a large package when its length plus girth [(2 x width) + (2 x height)] exceeds 130 inches (330 cm). UPS applies a minimum billing weight of 90 pounds (41 kg) to all large packages regardless of actual weight.
What triggers an Additional Handling charge from UPS?UPS assesses an Additional Handling charge for packages requiring special processing, including cylindrical items, wooden or metal shipping containers, and packages whose longest side exceeds 60 inches (152 cm) or whose second-longest side exceeds 30 inches (76 cm). Reviewing your packaging dimensions against these thresholds before shipping reduces the likelihood of unexpected charges.
What is the difference between guaranteed and volume-based UPS incentive discounts?Guaranteed discount incentives apply to every shipment regardless of volume (subject to any low-volume thresholds) and are structured by weight, service, and zone. Volume-based incentives are contingent on your shipping levels, so the discount percentage rises as weekly shipment volume increases.
How do I dispute a charge on my UPS invoice?Log into your UPS account, select the Invoice Tab, click the dispute link next to the invoice in question, and complete the form that follows. For a large volume of disputed charges, working with a parcel invoice auditor provides a more comprehensive review.
How are UPS incentive discount percentages determined?The specific percentages and conditions for both guaranteed and volume-based UPS incentive discounts are established through carrier contract negotiations. Negotiating favorable terms requires a detailed understanding of your shipping profile, including volume, zones, and service mix.