We want to start to be competitive with our shipping method. Issue is that our carrier account (fedex and ups) offers us very high rates.
How do you get an account with better rates? With amazon offering 85-90% discount on standard rate, we are out of luck. Fedex offers about 30% discount with the code for small businesses, but we need to get in the range of 70-80% to be competitive.
Unfortunately, you'll probably never be able to compete with Amazon on shipping rates. They send out such a massive volume of packages that they're able to negotiate steep discounts on their shipping rates. Imagine if Amazon stopped using UPS because they weren't offering a good enough deal. UPS would lose a ton of money. That's why they're willing to offer such huge discounts. Individual companies are small fries compared to Amazon, so UPS and the other carriers don't care as much about losing their business.
You may be able to get better rates if you partner with a 3PL company. Since they do a lot of shipping for a lot of different companies, they typically get better rates than any individual company can. But then you have to pay them to fulfill your orders.
Hey Gennifer, yes I agree with the 3PL. That's where we are now, issue is that they all start to give you a good discount on their rates to lure you in and then they change their percentage and make more money. At this point I am looking at other solutions like Shippo and Shipstation and comparing with Shoipfy and SHoipfy right now looks better. They offer a better discount about 74% on aberage, which is not bad. Still not Amazon, but at least better than what UPS or Feded will give me which is about 40%
You should try OTW Shipping . They are new and super flexible with you. Their shipping rates won't change to upcharge you, and they have high discounts on shipping and use rate comparison to choose the best option for you. The only reason their shipping costs would increase is if USPS, FedEx, etc upped their rates.
As someone who runs and operates a 3PL I feel like I can chime in on this.
If a 3PL company bates and switches prices on you that is unethical and wrong. Our prices are set and we make it a point to make the experience of working with us as seamless and as transparent as possible.
We offer no order minimums and the prices are all agreed upon in the agreement, the only changes that occur is if I see that a customers shipping volume increases. In most cases i will either lower the pick pack fee and or wave the storage fee.
Feel free to contact me if you ever have any 3pl questions, I will help you and answer any questions you have. The fee for that is $0... And that wont change.