Its a good service option for them, it saves them probably $4 per package because it gets rid of the residential surcharge. It doesn't work the same way as the if it fits it ships because UPS is picking up the package and in a way subcontracting it to the USPS.
The reason its good for the customer is because they get full UPS tracking, they can have delivery to PO boxes and delivery on saturday for no extra fee.
We toyed around with the Fed Ex version for our e-commerece site, we would have used it for our free shipping option but we had trouble getting it to interface with our software,. Its not a scam and I doubt Midway is raking in cash with it, they still have to pay people to pack the orders and pay for the shipping supplies hence where handling fees come from.
Midway has bad customer service IMO. I placed an order online and forgot to add an item, called them right after I placed the order to see if they could add the other item and i was told no I would have to place another order and pay the shipping (item was $5 shipping was $9) That is such BS! I oversee a warehouse and call center and a fullfilment site, I can't believe they can't add an item to an order or wouldn't ship it for free..
