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parcel contract negotiations

With the assistance of modern technologies, ecommerce is seeing a new dawn, a rise that will remain for a long time. In order not to miss the wonderful opportunities, various companies have also started shipping their products directly to the customers, eliminating third parties. However, due to the high shipping cost, customers often avoid going ahead with the purchase.  


Imagine one day you decided to grab a flute and live your childhood dream of learning the instrument. Excitedly, you start surfing online, and after finalizing the perfect one, you see a hefty shipping expense when you reach the checkout page. It’s a no-brainer to guess your next move. It is not unusual; customers usually drop the idea of buying 9 out of 10 times, resulting in a lost opportunity. It was a guaranteed sale, but you missed the chance due to extra shipping costs.  

Now imagine the same scenario on a larger scale. You could lose millions of dollars because your shipping is expensive. So, what’s the remedy? Low shipping costs.  

Yes, low shipping cost is a reality, and in this blog, you will explore how you can reduce your shipping costs.  

1. Never forget to negotiate  

Many businesses never get low shipping prices because they do not ask for them. You do not have to be a giant business house to get discounts on your shipping. You can negotiate great rates with service providers even for your regular/daily orders. Never hesitate to ask or negotiate for the maximum discount they can provide. Also, keep in mind there is always another option available, so try and avoid sticking to one carrier only.  

2. Know shipping zones

You cannot even dream of having a low shipping price when you manufacture in one part of the world and deliver it on the other side. If you are manufacturing your products in the subcontinent regions and then supplying them in the United States, you will incur substantial shipping charges. Before you deliver, you need to be aware of your shipping zones. In other words, you need to shorten the delivery distance. To do that, you can establish fulfillment centers. 

3. First, consolidate, and then ship  

Imagine you get multiple orders for the same address, and as per your policy, you cannot ship all the items in the same box. You will ship orders in different packages, which will cost you more. You could have avoided the overpayment by consolidating the orders. Yes, then one can argue over the weight of the parcel. However, it will still not cost you the same. Also, consolidating may strengthen your case for discounts.  

4. Establish fulfillment centers  

Fulfillment centers or warehouses are the storage where you store your finished goods. You can build your fulfillment centers or partner with any 3PL (third-party logistics) and use their warehouse to store your products and complete orders in nearby regions. It is one of the easiest ways of reducing your shipping costs, as it will restrain you from paying the excess zone charges. Also, these third parties have multiple tie-ups with large carriers, and they ship in bulk, ensuring you are eligible for discounts. The closer your warehouse, the lower the shipping cost. You do not need hundreds of centers to fulfill the order frugally; even one in each region will do.  

5. Use multiple carriers  

Your foremost goal is satisfying your customers without incurring any loss. If changing  carriers is necessary, so be it. You should always look for multiple carrier rates and try to negotiate with them. Getting the low shipping price is what you aim at. To optimize your parcel costs, you must aim at various carriers.  

Also, let’s face it: some carriers are fast, and some are safe. If you wish to ship fragile products, you will consider a safe shipper. While delivering apparel or non-brittle products, you would prefer speed. Sticking to one carrier is time-saving and builds relationships with them. Still, you can get more benefits with a multi-carrier strategy.  

6. Get Parcel Advisory  

The most efficient way of reducing your shipping rates is by leveraging Parcel Advisory. These services are effective and can save you more than you expected. The key features of Parcel Contract Negotiation are to audit your shipping invoices, find out where you can save more on parcel costs, and help you negotiate better carrier contracts. This can save thousands of dollars, which goes back into your bottom line, raising your revenue without selling or reselling anything.  

7. Reduce the weight

Another reasonable way of decreasing your shipping costs is by reducing your parcel weights. It is evident that the weight of your parcel is directly proportional to the price; thus, the lesser the weight, the lower the price. Decreasing the weight of your product is not possible. You would always have to reduce the weight of your packaging. Some examples are shipping nonfragile or brittle materials in lightweight cardboard boxes. You can use cloth bags for shipping clothes or weightless products, etc. Simultaneously try to reduce your infill by accurately sizing packaging. 

TransImpact has, over the years, ensured that our clients save the maximum they can on each parcel they send. Our solutions encapsulate in-depth reporting and insights that will force you to act on it and negotiate. TransImpact works for the clients to increase their savings, and they do it all in complete transparency. Our clients know what we are doing and why we are doing it.  

With the assistance of advanced software and a team of experts, we provide solutions to our clients that are hard to say no to, as we offer maximum savings at the minimum cost. You do not just have to believe us; schedule a call with one of our experts and sense the difference yourself.

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