Get the Best UPS Discount Rates for Your Business

May 29, 2023
Written by
Anthony Robinson
vjya1f5xmsv6f6t22nfrhuveus2xehil7sifn7jniqvkrfedb out 0

Get the Best UPS Discount Rates for Your Business

Shipping is a crucial part of any business, and it can be a significant expense. Taking advantage of discounts offered by shipping carriers like UPS can help businesses reduce these costs effectively. UPS provides a variety of discounts tailored to meet the needs of different businesses, enabling them to maximize their shipping budget. In this article, we will explore strategies to secure the best UPS discount rates and optimize your shipping expenses.

Understanding UPS Discount Rates

UPS offers a range of discount rates based on factors such as shipping volume, package weight, and shipment type. Understanding how these discounts work is essential for businesses aiming to minimize shipping costs.

Volume-Based Discounts

UPS provides volume-based discounts, meaning the more packages you ship, the lower your shipping rates become. According to UPS, businesses that ship frequently can achieve savings of up to 20% compared to standard rates.

Shipment Type Discounts

Different types of shipments, such as international shipments, express deliveries, and ground shipping, qualify for specific discounts. Depending on your business’s shipping needs, you can take advantage of one or more of these discounts to reduce costs.

Online Shipping Discounts

Businesses using UPS’s online shipping tools can save up to 18% on shipping costs. Online shipping platforms streamline tracking, scheduling, and payment processes, reducing operational costs for UPS and allowing them to pass these savings on to customers.

Qualifying for UPS Discount Rates

To be eligible for UPS discounts, businesses must meet certain criteria related to shipping volume and frequency. Here’s how you can qualify:

Meeting Volume Requirements

UPS discounts are often tiered based on the number of packages shipped weekly or monthly. Assess your shipping volume and identify which discount tier your business falls into to maximize benefits.

Specialized Shipments

Businesses that frequently ship hazardous materials or oversized packages may qualify for specialized discounts. Consulting with a UPS representative can help determine eligibility for these unique discounts.

Utilizing Online Shipping Tools

Regular use of UPS’s online shipping platform not only streamlines your shipping process but also qualifies your business for additional discounts. Investing in these tools can lead to significant cost savings.

Negotiating Better Rates with UPS

For businesses with substantial shipping volumes, negotiating directly with UPS can result in even more favorable discount rates. Here’s how to approach negotiations effectively:

Understanding Your Needs and Costs

Before negotiating, have a clear understanding of your shipping needs, current costs, and desired outcomes. This information will help you present a compelling case for lower rates.

Knowledge of UPS Pricing Structure

Familiarize yourself with UPS's pricing tiers, which are based on factors like package weight, destination, and delivery speed. Understanding these elements allows you to negotiate rates that better align with your specific requirements.

Persistence and Patience

Negotiations may take time, especially for larger businesses. Patience and persistence are key to achieving customized pricing plans that offer maximum savings.

Maximizing and Evaluating Your UPS Discounts

Once you have secured UPS discounts, it’s essential to maximize and continually evaluate them to ensure ongoing cost savings.

Consolidating Shipments

Consolidate shipments to benefit from larger volume discounts. Grouping packages can lead to more substantial savings per shipment.

Regularly Reviewing Shipping Practices

Analyze your shipping data to identify areas for optimization. Adjusting shipping methods or volumes can enhance your discount utilization and reduce overall costs.

Leveraging UPS’s Additional Services

Utilize UPS’s pick-up services and packing solutions to avoid extra fees and ensure packages meet all necessary requirements, further enhancing your savings.

Using Technology and Automation

Implementing UPS’s technology and automation tools can streamline shipping processes, saving both time and money. These tools can also provide valuable insights into shipping efficiency and cost reduction opportunities.

Comparing UPS with Other Shipping Carriers

To ensure you’re getting the best rates, it’s important to compare UPS discounts with those offered by other shipping carriers. Different carriers have varying rates and discount structures that may better suit your business needs.

  • Evaluate discount percentages and additional fees to compare the true cost of shipping with different carriers.
  • Consider delivery times alongside costs, as some carriers may offer faster delivery options for a higher price.
  • Use shipping carriers comparison tools to make informed decisions based on your business's specific requirements.

Types of UPS Discounts Available

UPS offers a variety of discount types to cater to different business needs. Understanding these can help you utilize the most suitable options for your shipping requirements.

  • Volume Discounts: Reduced rates for businesses that ship larger volumes of packages.
  • Small Business Discounts: Special rates designed for small businesses with consistent shipping needs.
  • Industry-Specific Discounts: Customized rates for businesses in particular industries, such as e-commerce or healthcare.
  • Online Shipping Discounts: Lower rates for businesses utilizing UPS’s online shipping tools and platforms.

Applying for UPS Discounts as a Small Business

Small businesses can benefit significantly from UPS’s discount programs. Here’s how to apply:

Registration Process

Visit the UPS website and fill out the registration form with your business details, such as EIN or VAT number. This registration is the first step towards accessing UPS’s small business discounts.

Meeting Volume Requirements

Ensure your shipping volume meets the minimum requirements for the desired discount tier. Consistently meeting these requirements will allow your business to maintain favorable discount rates.

Utilizing Additional Services

Take advantage of UPS’s additional services, such as free packaging supplies and access to their online shipping platform. These tools can help streamline your shipping processes and reduce costs further.

Evaluating the Cost Savings of Using UPS Discounts

To fully understand the financial impact of UPS discounts, it’s important to evaluate the cost savings they provide.

Tracking Shipping Costs

Maintain records of your shipping expenses, including discounts applied. Using tracking software or spreadsheets can help you monitor savings over time and assess the effectiveness of your discount strategies.

Comparative Analysis

Compare the costs of shipping with UPS against other carriers to determine if UPS remains the most cost-effective option. Consider both the discounted rates and any additional fees associated with each carrier.

Considering Additional Fees

Factor in any extra costs, such as fuel surcharges or residential delivery fees, when evaluating the overall savings from UPS discounts. Understanding the complete cost structure will provide a more accurate assessment of savings.

Common Mistakes to Avoid When Applying for UPS Discounts

Avoiding common pitfalls can help your business secure and maintain the best UPS discount rates possible.

  • Lack of Understanding Requirements: Ensure you fully understand the criteria for each discount to meet eligibility and maximize savings.
  • Not Negotiating Rates: Don’t hesitate to negotiate with UPS for better rates, especially if your shipping volume is substantial.
  • Ignoring Additional Fees: Consider all potential fees when comparing shipping costs, not just the discount percentages.
  • Overlooking Specific Discounts: Take advantage of specialized discounts for different shipment types to enhance overall savings.
  • Using Multiple Carriers Without Comparison: Compare rates and discounts across different carriers to ensure you’re getting the best deal for your shipping needs.

By understanding and implementing these strategies, your business can effectively leverage UPS discount rates to optimize shipping costs and improve your bottom line.

A man with a beard smiles at the camera. He is wearing a gray t-shirt with a simple design on it. The background is plain white.

About the Author

Anthony Robinson is the CEO of ShipScience, a pioneering company dedicated to helping e-commerce leaders optimize their shipping decisions, reduce costs, and automate tedious processes. With a Bachelors Degree in Economics from Stanford University, Anthony brings over two decades of expertise in logistics, business development, and operational efficiency to the table.
Read More
Revolutionize your parcel shipping strategy.
Get a free analysis
© Copyright 2024 ShipScience.com. All Rights Reserved.  Terms of Use  |  Privacy
All other trademarks and copyrights are the property of their respective owners.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram