Can I negotiate shipping costs with the carrier?
When building your eCommerce business, a common question is whether you can negotiate shipping rates with carriers to save money and maximize your profits. The truth is that both major and regional carriers are willing to negotiate with shippers to tie them up to lower rates, but you can only enter into these negotiations if your volume is large enough to offer the lower rates as worthwhile for the operation business. Basically, unless you’re a large commercial shipper, you’re probably out of luck.However, there are other There are other ways to save on shipping than negotiating directly with the carrier…and you don’t have to ship individual packages to access them. let’s start!
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Benefits of Negotiating Freight Rates with Shipping Lines
The main benefit of negotiating shipping rates is that Potential cost savings for your business. By locking in a discounted price, you can lower your shipping costs and increase your profits. This is especially important for small e-commerce businesses selling items for relatively low amounts. Think about it: if you sell a shirt for $20, it costs $10 to produce, and your shipping label costs $8, your profit is only $2! By reducing your shipping costs by a dollar or two, you will more than double your profit margins…and it will change the world.
Start by identifying what you ship
When negotiating rates with a carrier, you first need to figure out what you’re shipping. Are you sending many smaller, lighter packages? Or are you sending some bigger, heavier boxes here or there? Do you ship to customers across the United States, or are your recipients located in specific regions?
The point is, before you ask for a discounted price, you need to do your research to figure out what you need from the carrier. Be transparent and provide that information to the carrier as clearly as possible; at the end of the day, the better the picture you paint, the easier it will be for the carrier to figure out what it can offer you. Of course, if the carrier you’re talking to isn’t involved, you can always walk away.
That said, keep in mind that shipping companies think to keep your business. Chances are, they’ll be willing to work with you to find a solution that works for everyone involved. It doesn’t hurt to be flexible at all! When asking for a better price, you may receive a discount if you commit to shipping a certain amount or frequency.
Skip the negotiation and save money with online shipping software
Here are the key points to note: If you are not a high-volume shipper, you may not have leverage at the negotiating table. In short, it’s not worth the carrier custom discounted pricing unless you’re flooding their network with a lot of packages. However, you can still save on shipping by purchasing discounted labels with online shipping software.
Due to its large customer base, shipping software companies are able to enter into economies of scale agreements with shipping lines. These deals lock in the largest possible discounts with carriers like USPS and UPS, and pass those savings on to their customers. In layman’s terms, These companies have done all the negotiation for you。 This makes it super easy to take advantage of these lower rates and start saving money on your shipping labels today. All you need to do is open an account with the shipping software provider of your choice, and you’re off to the races – no negotiation required!
Why saving on shipping costs is so important
Getting lower shipping rates is a key strategy for small business owners looking to save money. In fact, whether or not you save money on shipping labels can make or break your business.
If you’re a high-volume shipper negotiating directly with a carrier, be sure to do the proper research, be clear about your needs, and be willing to walk away if necessary. On the other hand, if you are just starting out, don’t hesitate to sign up for an online shipping software service that will allow you to get lower shipping rates instantly. Both of these strategies are proven ways to save on shipping costs and boost your profits!
