How can you get the price breaks that your business deserves without getting taken to the bank on steep shipping fees? There are some things that you can do and some tricks that we will show you to help you combat rising shipping costs.
According to major news sources like USA Today, the U.S. Post Office has just rolled out their newest rate increases. They entail some stark increases on pricing that can range from 3% all the way to a whopping 23%.
This can hit the wallets of online retailers particularly hard because they have to accommodate for the fact that most consumers expect low cost or free shipping these days. One related study found that shopping cart abandonment can increase by 50% when cheap shipping is not offered. Yet another study found that over 70% of consumers want a cheap shipping option or they will abandon the shopping cart.
Commercial Plus Pricing with USPS
Commercial Plus Pricing is a coveted volume discount that’s offered by the USPS to attract larger volume shippers. That’s the key here. For example, eBay lets you get it if your store is shipping so many packages because they pass the savings along to you. Amazon does not just yet, but offers other shipping discounts.
The trick here is qualifying. In order to qualify for USPS Commercial Plus or Base pricing, you need to meet annual volume requirements. Basically, if you are not shipping at least 50,000 packages per year, you usually won’t qualify for Plus, but you can still qualify for Base and get a substantial discount on all your shipped packages.
FedEx One Rate & UPS Mail Innovations
When shipping smaller or medium packages, these two services are a good consideration. You will need an account with either service provider to take advantage of these price breaks, and you will need to be shipping a certain volume annually in order to qualify.
You’ll get a discounted rate if you follow the rules, but is it good enough to offset comparable rates that are offered by USPS when you meet their volume requirements? If your package is under the right dimensions, then you may be able to save even more than these services offer.
Discount, Member Only Shipping Services
A number of companies and services providers have teamed up with the USPS lately in attempts to save their customers money. What they have devised is genius. They take the volume that all shippers (their users or customers) are sending and use that to get these lucrative pricing discounts for everyone.
Services like Flat Rate Select can connect users to lucrative price breaks on flat rate shipping that they may not otherwise qualify for. While it won’t apply to your heavier packages, Amazon has helped us understand that most ecommerce packages weigh less than five pounds, which means that many retailers can shave down their shipping costs on their smaller, heavier packages.
So there you have it, three ways to save with minimal effort on your part. Imagine if the rest of life were only so easy. We’d all be sleeping a bit better at night.