How To Use Volume Discounts To Negotiate Better Shipping Rates With OnTrac

Overview:

Shipping is a critical aspect of e-commerce, and businesses that operate online must manage their shipping costs effectively. Shipping rates can significantly impact a business's bottom line, especially for small and medium-sized enterprises competing on price. One company that offers businesses an opportunity to reduce their shipping costs is OnTrac. In this article, we'll explore how to use volume discounts to negotiate better shipping rates with OnTrac.

Understanding the Importance of Shipping Rates for E-commerce Businesses

For e-commerce businesses, shipping costs can make up a significant portion of their overall expenses. Understanding shipping rates is crucial because:

Cost Management: Shipping rates are the fees charged by shipping companies like OnTrac to transport packages from one location to another. These rates vary based on package weight, dimensions, shipping destination, and the type of service selected.
Profitability: High shipping costs can deter customers, especially if they find similar products with lower shipping costs elsewhere. Offering free or discounted shipping can attract more customers and increase sales.

By analyzing shipping data and negotiating with shipping companies, businesses can optimize their shipping strategies and improve their bottom line.

What is OnTrac and How Can it Benefit Your Business?

OnTrac is a regional shipping carrier operating in eight western states: California, Arizona, Nevada, Oregon, Washington, Utah, Colorado, and Idaho. As a regional carrier, OnTrac provides reliable delivery services at more affordable rates compared to national carriers like UPS and FedEx. Key benefits include:

Speed and Efficiency: OnTrac offers same-day and next-day delivery options, ideal for businesses needing quick delivery to customers. They boast a 97% on-time delivery success rate.
Sustainability: OnTrac is committed to eco-friendly initiatives, such as using hybrid vehicles and optimizing delivery routes to reduce emissions, helping businesses lower their carbon footprint.

The Benefits of Volume Discounts for Shipping Rates

One of the most significant advantages of working with OnTrac is their volume discount pricing. Volume discounts are available to businesses that ship large volumes of packages regularly. Benefits include:

Cost Savings: Volume discounts provide a percentage reduction on shipping costs based on the total volume of packages shipped. The more packages shipped, the higher the discount.
Operational Efficiency: Shipping larger volumes allows businesses to consolidate shipments, reducing the number of individual shipments and saving time and resources.
Competitive Pricing: Reduced shipping costs enable businesses to offer more competitive pricing to customers, attracting and retaining more customers.

Calculating Your Shipping Volume and Eligibility for Volume Discounts

Before negotiating volume discounts, it's essential to understand your shipping volume:

Review shipping invoices for the past six months to determine the number of packages shipped.
Assess if your shipping volume qualifies for volume discounts by contacting your OnTrac sales representative.
Consider the weight and dimensions of your packages, as some carriers have specific requirements for volume discounts.

Additionally, some carriers may offer other incentives for high-volume shippers, such as dedicated account managers or priority customer service. Be sure to inquire about any additional benefits available.

Tips for Negotiating Better Shipping Rates with OnTrac

Share Your Shipping Volume: Clearly communicate your shipping volume and requirements to negotiate discounts effectively.
Consolidate Shipments: Consolidating shipments can help in negotiating better rates.
Long-term Contracts: Negotiating longer-term contracts can secure more favorable rates.
Optimize Shipping Processes: Work with OnTrac to streamline your shipping operations for better efficiency and cost savings.
Explore Regional Shipping Options: If your business primarily ships within a specific region, leveraging OnTrac's regional services can lead to better rates.
Compare with Other Carriers: Always compare rates and services from multiple carriers to ensure you're getting the best deal. Use competitive offers to leverage better terms with OnTrac.

Understanding the Factors that Affect Shipping Rates

Several factors influence shipping rates, including:

Service Type: The type of service selected (e.g., standard, expedited) affects the cost.
Destination: Shipping to different locations can impact rates.
Package Weight and Dimensions: Heavier and larger packages typically cost more to ship.
Package Value: High-value packages may incur additional fees.
Additional Fees: Fuel surcharges, residential delivery fees, and Saturday delivery fees can add to the overall cost.

Shipping rates can also vary based on seasonal demand and market conditions. It's important to stay informed about these factors and adjust your shipping strategies accordingly.

Maximizing Your Savings by Choosing the Right Shipping Method with OnTrac

OnTrac offers a variety of shipping options tailored to different business needs:

Express Service: Ideal for businesses requiring expedited shipping.
Ground Service: Cost-effective option for businesses looking to reduce shipping costs.
Smart Post: Offers additional savings for businesses shipping large quantities of packages.

By taking advantage of OnTrac's volume discounts and selecting the appropriate shipping method, businesses can significantly reduce their shipping expenses.

The Importance of Tracking and Delivery Confirmation with OnTrac

OnTrac provides businesses with real-time tracking and delivery confirmation, which are crucial for:

Inventory Management: Monitoring packages helps in managing inventory more effectively.
Customer Satisfaction: Providing customers with real-time updates enhances their experience and builds trust.
Issue Resolution: Quickly identifying and resolving shipping issues ensures timely delivery of orders.

Advanced tracking tools allow businesses to monitor packages from pickup to delivery, improving overall operational efficiency and customer service.

How to Manage and Track Your Shipments with OnTrac's Online Tools

OnTrac's online tools offer businesses robust features to manage shipping operations efficiently:

Shipping Forms: Access and complete shipping forms online.
Track Shipments: Monitor the status of your shipments in real-time.
Delivery Confirmation: View confirmation details for delivered packages.
Customizable Portal: Tailor the online portal to meet your business's specific needs.

Advanced reporting capabilities allow businesses to generate reports on shipping volume, delivery times, and other key metrics, aiding in informed decision-making. Additionally, automated alerts via email or text message keep businesses updated on shipment statuses, ensuring prompt action when issues arise.

Common Mistakes to Avoid When Negotiating Shipping Rates with OnTrac

When negotiating shipping rates with OnTrac, avoid these common mistakes:

Lack of Clarity: Not having a clear understanding of your shipping requirements can lead to suboptimal agreements.
Ignoring Pricing Structures: Failing to understand the carrier's pricing structure and available shipping options can hinder effective negotiation.
No Written Contract: Always request a written contract detailing negotiated rates and terms to prevent misunderstandings.
Underestimating Shipment Volume: Providing accurate shipment volume information ensures you receive the best possible rates.
Neglecting Rate Reviews: Regularly review and renegotiate your shipping rates to maintain competitive pricing.

The Future of E-commerce Shipping and the Role of OnTrac

The future of e-commerce shipping is poised for increased demand for faster and more affordable shipping options. OnTrac is well-positioned to meet this demand with its extensive regional network and commitment to providing cost-effective shipping services. As e-commerce continues to grow, OnTrac is expected to play a significant role in shaping the shipping landscape.

In conclusion, leveraging OnTrac's volume discounts can be an effective strategy for e-commerce businesses to reduce shipping costs. Businesses that consistently ship large volumes of packages should consider negotiating volume discounts with OnTrac. By understanding shipping rates, negotiating favorable discounts, and selecting the right shipping options, businesses can lower their shipping expenses and enhance operational efficiency.