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Nov 12, 2008 -- DHL exiting domestic overnight shipping business

Clark has been using prepaid DHL overnight envelopes that he bought at Costco as one way to save a buck. DHL is typically cheaper than FedEx or UPS. But as of January 30, they're exiting the domestic overnight shipping market.

Not having a third competitor is bad for business. When you have a duopoly -- like there will be with FedEx and UPS -- you typically have higher prices, worse service and less innovation.

As for Clark, he'll have to find another means to get cheap shipping. He may have to degrade service and go to 2-day or 3-day shipping, or go for ground service instead of overnight air service. Lastly, Clark wants to mention USPS as another option -- so he doesn't get chewed out on the Clark Stinks forum!

Looking for a refund on prepaid DHL envelopes you bought at Costco? Call DHL ShipReady at 1-800-514-0351.

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

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What others are saying

  • DHL Prepaid envelope refund
    Don't bother to call the phone number. You get a recorded message with an email address to request a refund (deadline was Feb 09) and they never respond anyway. Speaking with customer service was infuriating. They basically say "too bad". For results, call your member association where you bought the envelopes (i.e. membersales) they will refund your money. DHL doesn't want you to know this, but they are working with these organizations and have to pay them back.
  • BEWARE of DHL!
    DHL accounts are Net 15 but with snail mail they tend to get the check around Net 20. DHL now has a new policy, if you are just 1 day late they are putting you into collections. The reason given is that with the shut down of its' US operations they are trying to force their customers to get current. My recommendation to everyone is BAIL OUT now! Try Fed X, UPS or any other carrier.
  • DHL
    You forget why UPS and FedEx have trouble competing with USPS rates. USPS does not pay taxes as does UPS and FedEx. Taxpayers still pay part of the tab for USPS.
  • DHL awful
    Bling Bling ghetto temp drivers used to throw my packages on the front step. I am glad they are going out of business. A UPS manager went out in his own car to get me a package off a drivers truck and hand delivered it to me in a critical situation. UPS Rocks!!! You get what you pay for in life.
  • USPS vs FedEx
    I recently sent a letter (.5 lb) from LA to Baltimore via FedEX, the cost was $31. USPS flat rate for the same service is only $16.50. I was shocked at the Fed Ex price.
  • DHL
    Not only was DHL poorly run, but they hardly gave the US Domestic business a chance to mature before they pulled the plug. Not only will your shipping prices rise (with USPS in bed with FedEx) because there are really only two freight providers, they are leaving in their wake the livelihood of over 14,500 folks across the country. Not only are ground personnel effected but it is going to shutter 2 airlines(ABX and Astar), and adversly effect all the subcontractors that service them in Ohio and else ware. If I was a DHL customer I would find other means to move my freight ASAP. The aircrews may feel they are about the get the shaft pay wise and stop flying "on time"
  • DHL
    The biiggest problem with DHL that many do not know is that the majority of their carriers are independents, hence therefore they do not care as much as UPS and Fed Ex do about your package delivery's
  • USPS is not a viable competitor
    The only problem with USPS as a competitor is that it is such a poor performer there isn't much competitive pressure.

    Their 'next day' package commitment area is laughable- UPS and Fedex cover most of the entire country- even 50 miles from their nearest stations, but the USPS can't cover much of the US with their commitment.

    USPS package 'tracking' is a joke. Usually a next day air package will show nothing until AFTER delivery.

    USPS refunds are typical governmental hassle... go to your post office?!?! Are you kidding me? I call FedEx and the credit is on my account in a day...uSPS will be 6-8 weeks of 'investigation'.

    And then, after all of this, the USPS employees fall back on "Sir, do you realize that the Postal Service moves XXX million items every day?".... Yes I do, which is why the USPS will never be a real competitor to a high value expedited package service.
  • USPS
    You are dead wrong on this one. USPS is usually the cheaper of them all. You don't stink.Just wrong.
  • USPS
    Clark,check out the latest Consumer Reports. USPS provides comparalbe service to FedEx and UPS at a cheaper cost. Sometimes, much cheaper.
  • USPS
    I'm so glad Clark at least mentioned USPS. I am a mail carrier delivering the mail in all kinds of weather (heat, cold) working hard 6 days of week. I don't have a choice of how many days a week I work because of the way our routes are evaluated. I think you should try mailing packages, or whatever you choose to mail using USPS, UPS, DHL to the same areas on the same day, same weight of packages & see how we rate in price & the time it takes to get there. You might be surprised!!!!!!! By the way, I listen to you while I'm working hoping I do make it to retirement!!!!
  • post office
    I'm sure in your show notes that you meant to say USPS in the last paragraph. And I support that. My local post office even has a self service machine that you can process packages and other mail at all hours of the day and NOT have to wait in long lines during normal business hours. You should try this, Clark.
  • USPS
    The post office is a 3rd competitor. It is by far the cheapest. We guarantee overnight express deliver. We even delivered some of DHLs parcels for them.
  • USPS
    I really hate how Clark always bad mouths the Postal Service. I am a faithful listener daily, while delivering my route. I have learned so much from listening to your show. Perhaps you should check the rates at USPS and stop talking about people who are working and making an honest living. We have bad just like any company, but for the most part we are a great group of employees. While I am at it, stop telling people to not raise their flags, instead tell them to take their mail to a collection box. We do not stop if the flag is not raised when you have no mail that day.
  • DHL Shipment to Peru from Atlanta
    I shipped a pack of letterhead stationary with DHL down to my father in Peru. We were both left with sticker shock as it was over $400!! I kid you not. I didn't even use next day air! DHL's service was terrible and the prices a rip off.
  • Bad Service Constant from DHL
    In several different states (Washington, Idaho, Colorado, Texas) I had to deal with DHL for extended periods of time for both business purposes and also for domestic phone or internet orders. I have to say their service was terrible in every region. I never had a package delivered on the date and time promised, and I probably have received at least several hundred packages from them. On a regular basis they would 'lose' packages (that got inexplicably shipped back to the source), be late on packages, their package tracking was slow to nonexistant, and on several different occasions I had to drive 70 miles to pick up a package that had been overnighted from the factory and was urgently needed at the promised time, because they supposedly 'tried' to deliver it, but finding the gate to the business park wasn't open, they turned around, instead of doing what UPS and Fedex did, which was to park and walk 15 feet to a door to ask someone in the office there to open the gate. It doesn't surprise me at all that DHL is losing business. They're by far the most unprofessional shipping company I've worked with. I agree with Clark that it's bad to not have competition, but honestly, I have always avoided DHL like the plague. I've even chosen to not purchase items online because the DHL was the shipping company.
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