“Free Shipping!” We have all seen this phrase over and over again. The term has become so popular that companies that are not even in the e-commerce space use it. So, does FedEx, UPS, or the USPS really offer free shipping?

You guessed it. NO!

Even though companies are still paying for shipping, many use it as an added sales incentive while others make their customers pay shipping charges, so their products look less expensive. These days most consumers are savvy enough to look for the total delivered price before confirming their purchase.

However they go to market, the most interesting part of this is that the price one company pays for shipping a 1-pound box can differ widely from what another company pays.

How are some companies able to save 10% – 35% or more on your shipping cost?

Here are a few examples:

Volume Discounts

Some retailers use a fulfillment center but have their own freight accounts. Shipping carriers send their weekly invoice directly to the retailer. Other businesses use their fulfillment service’s shipping accounts, and in turn, the cost is part of the broader fulfillment service monthly invoice. These businesses can benefit by leveraging the collective volume discounts that fulfillment centers are able to negotiate.

Location

Many fulfillment companies have warehouses in rural areas. Operating facilities in these areas is less costly, but sometimes these companies’ customers’ products cost more to ship and take longer to arrive. One of the best geographical areas to ship your products from is the Midwest, specifically the Chicago area. Chicago is in the middle of the country and a major shipping hub.

Technology

Not all order fulfillment and inventory management systems are equal, and many of these systems are not made available for customer use. In other words, some fulfillment services offer their customers access to their technology, allowing them to keep a pulse on their orders and inventory. Others do not. Continual access to real-time data enables more efficient budget management.

Shipping Rates

SPC processes almost a billion direct marketing and product packages through the USPS, UPS, and FedEx, EVERY YEAR! Plus, SPC maintains solid relationships with these carriers and negotiated shipping rates. We have dedicated teams that ensure the most competitive methods, service levels, and rates for shipping both advertising-related and product packages.

There is a plethora of information on the internet if you search rate shopping or software partnering with major carriers such as the USPS, UPS, and FedEx. At the end of the day, there are just two factors that are going to get great rates:

• Choose a fulfillment center with extensive knowledge of USPS regulations and all the major shippers and consolidators’ products and services.
• Ensure the fulfillment center has enough shipping volume to negotiate preferred discounted shipping rates with these carriers.

SPC’s solid relationships with major carriers, as well as our extensive knowledge of USPS regulations and alternatives for shipping products across the nation, will reduce your shipping costs and make your business more competitive.

Depending on your product mix, weight, and geographical distance, SPC often reduces shipping rates by 10%, 25%, 35%, or more by providing discounts or by using alternative shipping methods compared to commercial published rates.

Let us demonstrate how we could save you significant shipping dollars and increase your bottom line.

Call or email us today!