Written by Jodie Pride
21st July 2015 • 5 min read
As an online retailer it’s important to keep your shipping rates as low as possible while also not losing margins on your products. Although shipping costs are one of the biggest expenses for online retailers, if you’re resourceful and tactical, you can find ways get discounted shipping rates.
With Veeqo shipping retailers can get up to 70% discount off shipping rates.
Negotiation is a key aspect of running a business, whether it’s trying to persuade your suppliers to give you a discount on bulk purchases or trying to get get the cheapest deal from your marketing agency.
If you are a high volume retailer it’s worth comparing prices of couriers to see if you can persuade them to offer you lower rates. If these companies know that their competitors are vying for your business (which they will be if you’re shiping plenty of orders) your bargaining power is high – the more you ship, the lower your rate should be. Royal Mail, for example, offers discounts for those shipping a minimum of 5,000 packages a year – this is especially handy if you have a Royal Mail integration with your webstore (E.g a Magento Royal Mail integration).
Don’t think that you’re too small to negotiate rates with large shipping services – just email them, sign up, call them and arrange either a meeting or a phone call. Couriers often have company representatives who will more than likely be willing to meet with you face-to-face to negotiate a deal where you can explain to them your needs and they can explain your options. If you’re not a confident negotiator then let another staff member (or even a friend or family member) do the talking.
Check out all the shipping services available in your country and compare them for different parcel sizes to see which one would offer you the most cost effective option.
Use FBA Calculator
If you’re selling on Amazon it’s well worth checking out their fulfilment option – Amazon FBA. With FBA, you can ship your goods to Amazon (this can be a single item or your entire inventory) and they will take care of picking, packing, shipping and customer service for you.
Besides saving you a lot of hassle, this can also potentially save you money with your shipping fees and also makes your offers more visible to Amazon customers while enabling you to offer Amazon free delivery.
However, while FBA can save you money, it’s also a good idea to check your own shipping rates on FBA Calculator, as it could be cheaper to use a different courier, especially if you’re not shipping your goods long-distance.
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