E-Commerce Shipping Basics: Saving 25% Or More From Your Shipping Provider

Many online sellers new to ecommerce don’t realize that they can get (or should expect) shipping discounts from the major shippers like UPS and Fed-Ex. If you use UPS or Fed-Ex for shipping services, be sure to take advantage of these discounts because they really add up over time. As your volume goes up, in most cases so does your discount. NEVER, even if you are a new seller, pay standard shipping rates.

If you are just starting out, finding discounts can be difficult especially if you have unproven volume. Start by checking any business association you may belong to. For example, I paid a couple of hundred dollars to join the National Sporting Goods Association (nsga.org) and this benefit alone more than paid for the association fees. One of the many benefits they provide is discounted Fed-Ex rates for members. For example, at the time of this writing, they offer:

Fed Ex Ground:
15% on packages weighing 1-15lbs.
20% on packages weighing 16-30lbs.
25% on packages weighing 31-150 lbs.

Similiar discounts apply for Fed-Ex Express and Home Delivery services. Other associations often have the same type of discounts. Once you find and are signed up at the discount rate, take it to the other shipping providers like UPS and ask for them to meet or exceed it. In most cases, they will at least match.

Prior to DHL leaving the US market, this process was even easier, as you could play each provider off each other by always choosing two shippers and leaving the third out. Every year or so, you would restart the negotiations and let the third one in on the process (they usually came in lowest to win back your business).
Its a little tougher now, but in this economy, they all want your business.