For small businesses, shipping is often one of the most unpredictable — and frustrating — expenses. What starts as an affordable cost early on can quickly eat into your margins as orders increase, especially when you’re shipping larger packages or managing returns. The good news is, you don’t have to settle for the standard rates posted online. Even as a smaller operation, you have more negotiating power than you might think.
Understanding how to approach shipping carriers and third-party providers can help you secure better rates, save money consistently, and improve your bottom line. Here’s how to start that conversation effectively.
Leverage Your Shipping Volume (Even If It’s Modest)
Shipping carriers reward volume, but you don’t need to ship thousands of packages a month to qualify for discounts. Start by tracking your average number of shipments per week or month. Even if you’re shipping as few as 50 packages monthly, it’s worth reaching out to carrier representatives to discuss potential pricing tiers.
Highlight any seasonal spikes you anticipate — like holiday surges — and any plans for growth. Showing that you’re tracking volume and forecasting demand positions you as a proactive customer, which makes carriers more willing to negotiate.
Carriers like FedEx, UPS, and even USPS for higher-volume Priority Mail services, are open to providing small business incentives. Reach out to their small business solutions teams directly for custom quotes.
Explore Third-Party Shipping Partners
Third-party shipping consolidators and platforms can help small businesses access discounted rates usually reserved for larger companies. These services aggregate shipments across many small shippers to unlock bulk pricing. By shipping through them, you benefit from volume discounts without having to meet high minimums on your own.
For example, visiting resources like GoParcel gives you access to shipping strategies and insights that help you understand how to leverage third-party solutions.
Bundle Services for Additional Savings
When negotiating with carriers, don’t just focus on postage rates. Ask about discounts for related services like insurance, tracking, pickups, or even packaging supplies. Bundling these extras can create additional savings and streamline your entire shipping operation.
For instance, some carriers offer reduced rates on package pickup if you schedule recurring collections, while others provide volume-based discounts on insurance coverage for high-ticket items.
Demonstrate Consistency and Reliability
Carriers prefer working with businesses that ship consistently. If you have regular shipping schedules, share that information with your carrier rep. Let them know how often you dispatch orders, which destinations you serve, and your projected growth. This transparency signals long-term value, making carriers more inclined to offer favorable terms.
Be Ready to Compare Offers
Negotiation works best when you come prepared. Before entering discussions, research competitors’ pricing and delivery timelines. Carriers understand the market is competitive, and being informed gives you leverage. If you can show that another provider offers comparable service at a lower cost, your preferred carrier may be more willing to match or beat that rate to retain your business.
Review Rates Regularly
Carrier rates change over time, especially as fuel prices fluctuate or seasonal demands rise. Make it a habit to review your shipping costs at least twice a year. Revisit your agreements and renegotiate when your volume increases or your shipping patterns shift. Keeping the conversation open ensures you continue to get the best deal as your business evolves.
