How to Negotiate FedEx, UPS and USPS Shipping Costs

By | 12/05/2016


As an e-commerce business it is important to find the most cost-effective rates for shipping. There is a lot of research that needs to be done to stay above the competition and keep your customers happy. You have to find the method that is best for your business. In order to get rates that are affordable, sometimes it is best to spend time negotiating with the shipper. Continue reading to find tips for negotiation.

What Are Negotiated Rates?

When a company has an extremely high shipping volume most carriers are will agree to cut their rates. High shipping volume makes a company a very desirable client for a carrier so they will lower their rates if it means that they will do their shipping with them.

How Can My Business Negotiate Rates With FedEx And UPS?

If you want to get lower rates, it could potentially be as simple as just discussing discounted rates with your account manager. In order for it to go smoothly, you must previously have formed a relationship with the account manager at the major shipping carrier your company uses.

Discounts are decided on a case-by-case basis. If you are a company that is not considered to be high volume, but you are showing a steady increase in sales, it is possible that carriers like UPS and FedEx may give you a three month grace period to take advantage of a discounted rate. If sales decrease  during this time, the company will lose the discounted rate it was offered. Assure your company can keep business up to before negotiation to avoid this.

How Can My Business Negotiate Rates With USPS?

The United States Postal Service provides its clients with a Commercial Plus Pricing program. This is based on shipping volume based on the number of shipments from the year prior. This goes for all except Priority Mail Express.

How Has Commercial Plus Pricing Changed With the 2016 USPS Price Change?

At the turn of 2017, the United States Postal Service will disregard Commercial Plus Pricing to only have one set commercial rate. It will remain as is for the remainder of 2016.

Negotiating Deeper Discounts with the USPS

Believe you can get a deeper discount? You can attempt to negotiate further. You do so by requesting a Negotiated Service Agreement. Like previously stated, USPS decides rates on a case-by-case basis. Keep good relationships with your account manager to ensure you always get the best pricing.

If as a business owner, you feel handling the negotiations is not your strong suit, get professional help. Cost-effective rates for shipping is necessary for overall company success and profit. these professionals negotiate for a living. They can handle the major carriers and guarantee you get the lowest shipping rates.