Ecommerce Blog - Fortune3

How Can I Get the Best Rates from USPS, FEDEX or UPS for Shipping?

best shipping rates usps fedex upsQ: I own an ecommerce website and we understand that shipping is a vital part of our business. We’d like to get better rates on our shipping but we haven’t had much luck contacting these companies and speak to the right person? Are there specific departments to talk to?

A: I know the simple answer is to call them, right? Even if that works, the best way to get the best rates from these companies is really to NEGOTIATE. If you don’t have negotiating skills, let someone who does in your staff deal with them. In reality, if you’re involved in ecommerce, every aspect of the purchase process, from choosing service providers to product providers take negotiation skills to get the best possible deals so you can have the lowest overhead and rates.

With every representative you speak too, let them know about your volume now and the volume you expect if they were to offer you better rates. Let them know they aren’t the only shipping carrier you offer BUT if they give you a significant discount and better rate than the other companies, you may choose to use them exclusively for your shipping, that is always an attractive offer from a merchant.

USPS has the best domestic U.S. shipping rates. The truth is that though it is more affordable, UPS and FEDEX are much safer as a way to ship, ESPECIALLY if you are shipping expensive products.

Having the lowest possible shipping rates is extremely important so that you can offer free shipping and not lose much margins on the product.
When it comes to international shipping, these companies will really work with you, especially if you can show volume or ask to be put on a trial basis with the best possible rates at first and offer great rates to your consumers.

It will be hard to get better rates from a company like USPS which already has low shipping rates, however, using a service provider like Endicia for your shipping or any other third party platform that re-sells, you may be able to get a slight discount on USPS shipping.

Posted in Q&A

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  • Ruben

    Good info but not all true. Roger wrote that USPS has the best shipping domestic rates that is only half true. For packages 4lb and lower yes it might be somewhat true because UPS and FedEx like packages that are a little heavier and they have set minimum charges set starting from $5.85 base charges and then you have to play in other surcharges. We have a small auto parts company and ship mostly FedEx only use USPS for First Class mail which is like $2 if the package is under 1lb, but for us to get the rates that we have now took a long time to negotiate, I have a friend who works for shipping consultants and he helped us out a lot since he knows how everything works we get extremely good rates. Example a package weighing 13lb and 24x16x12 from NY to Cali is like $9 if not purchasing insurance. So do you homework and negotiate all you can, if you don’t have luck on your own hire a firm, they might be expensive but in the long run they will save you a whole lot.