The Advantages of “Volume Shipping Rates” Instead of Negotiating Your Own.

One of the biggest questions when starting and running your own business is figuring out how to fulfill and ship your orders.  Getting your product into the hands of your consumer is the lifeblood of your business. Storing inventory, hiring employees to prepare orders, and figuring out your carrier service are all part of the process.  One of the biggest costs in this process is the actual cost of shipping your product. Parcel carriers use multiple factors when it comes to charging for shipping your product including actual weight and dimensional weights.  Also, different carriers are better at certain things than others.  

Along with scheduling pick up times, contract negotiations, and figuring out which service is best for what, trying to decide between using UPS, FedEx, USPS, or others can be confusing, difficult and time consuming.  To appeal to their customers, these companies do offer negotiated shipping rates, but getting the best rates can be difficult if you do not have a large amount of shipments going out each day. Fulfillment centers are able to leverage their shipping volumes to negotiate larger discounts on their shipping rates because of the number of shipments that are sent using their account each day.

With these negotiated rates, it offers some flexibility to companies who are trying to offer competitive advantages to their customers such as free shipping or expedited shipping at a cheaper price.  These options are vital in the E commerce world of today. If you haven’t already thought of using a 3rd party logistics company, you may want to start thinking about that now for the savings on the shipping rates alone.  We at Launch Fulfillment have done our due diligence to find and partner with carrier services that will offer competitive shipping rates to our customers and help them grow their business. This helps us become one of the leading fulfillment companies in Utah.

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