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FedEx Agreements: Everything Business Sender’s Need to Know | Part 1

By Last updated on: March 13, 2020

Understand How FedEx Agreements Are Organized

The black and white details of FedEx agreements can often look like a foreign language even to the savviest of shippers and business-minded leaders. From surcharges and money back guarantees to termination fees and more, there is a lot to digest when it comes to reviewing, understanding and ultimately feeling confident about the terms of a FedEx agreement. Keeping this in mind, Refund Retriever has broken down the general outline of FedEx agreements to make understanding them much easier.

Below, we’ve identified the general breakdown of a FedEx contract with explanations to support each section.

Express Pricing

Whether you need next day, 2-day or 3-day, this section identifies the terms and conditions of this part of the agreement. You want to be sure that the pricing is clear on both domestic express as well as international export shipments, as well as have clarity to the fees and surcharges that may impact your overall shipping spend. A key factor in these terms is that you rightfully deserve a money back guarantee if any shipments are late or conflict with the terms of your agreement. Be sure that you do not waive this right at any point in your FedEx agreement since this can ultimately cost your business money and increase unnecessary shipping spend.

Ground Pricing

Similar to express pricing, FedEx identified various terms, conditions and pricing provisions based on a variety of ground shipments. Among them include:

  • Ground Domestic – Delivers packages within 1 to 7 days based on distance and destination.
  • Ground Domestic Multi-weight – Combine multiple packages for the same destination in one shipment. Pricing will be based on total weight at a minimum of 200 pounds.
  • Ground Export (Ground to Canada and Mexico) – Cross-border shipping that helps to manage the duty fees, international shipping forms, tariff codes and other necessary details of shipping to Canada and Mexico.
  • SmartPost (USPS final delivery) – A service designed to support shippers through 25 strategically positioned hubs o the USPS destination closest to the customer’s residence. From there, USPS delivers the last leg of the delivery to the customer’s door.

Fees and surcharges will apply to shipments based on factors that may include delivery location, delivery dates and weight of the package. Having clarity to these terms, conditions and pricing is a key aspect of your agreement with FedEx that you do not want to have overlooked. Additionally, do not waive the right to claim money back when deserved on ground deliveries, either. To automatically capture these refunds, explore more here.

Freight Pricing Attachment

Whether time is more important to you or saving on your shipping spend, it’s critical to understand the terms of freight pricing and more specifically, the conditions in which FedEx identifies to your contract for this service. Specific terms and conditions will apply to this section – just as they will all sections – and variations to consider include express deliveries, domestic deliveries, and volume deliveries. Unique to this section, as well, is a discount program based on the volume of shipments. Like other FedEx agreement sections, you do not want to waive the Money Back Guarantee that FedEx offers to all shipments.

Additional Details to Keep in Mind

As you review your FedEx agreement, some additional details to keep in mind include:

Money Back Guarantee: For eligible services, shippers are entitled to request refunds under the FedEx Money Back Guarantee policy. To help ensure you get refunds when deserved, introducing a parcel auditing system into your shipping strategy is incredibly beneficial to your business. Through automation and no upfront cost, shippers can capture refunds and then have them deposited directly into their accounts – both making it easy while helping shippers save money. Explore more about parcel auditing here. Necessary Shipments: FedEx has the right to cancel agreements if a shipment is not made within 30 days. These terms are identified as part of your FedEx contract and should be reviewed to ensure they align with your business needs.

Potential Discounts: Often shippers can save money on certain shipments but just as often, shippers are not aware of these potential savings. Due to this, having your contract reviewed by a professional can benefit you in further understanding the fine print details of a FedEx agreement. By having your contract reviewed and possibly negotiated for you, you would save up to 20% a year (on average). Discover more here about how to help your business unveil discounts and other saving opportunities from FedEx.

Contract Negotiations: At any time during a contract agreement, shippers can negotiate their contract terms with FedEx. Whether having just created a contract or it’s about to expire, negotiations are always possible. This said, it’s ideal to begin the process sooner than later since negotiations can take time.

Early Termination Fee: FedEx does not require you to have a termination fee however it is often included in contracts. If this is the case for your shipping contract with FedEx, consider negotiating this to save on a potential fee that you should not have to pay.

Refund Retriever will explore FedEx agreements in more details in this three-part series. Stay tuned for Part 2 where we will discuss how base and earned discounts work when it comes to FedEx.

Brian Gibbs

Author Brian Gibbs

More posts by Brian Gibbs

Brian Gibbs | President of Refund Retriever

Brian Gibbs founded Refund Retriever in 2006 while running his first eBay based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he then graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur and other publications discussing parcel auditing, shipping, e-commerce and more. Learn more at or call (800) 441-8085 for more information.

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