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Discover What Are UPS Discounted Rates for Shopify Shipping

May 15, 2023
Anthony Robinson
Written by
Anthony Robinson
Discover What Are UPS Discounted Rates for Shopify Shipping

Discover UPS Discounted Rates for Shopify Shipping

If you're running an online store on the Shopify platform, you might be looking for ways to reduce your shipping costs. One effective strategy is leveraging UPS discounted rates. In this article, we'll delve into how you can access these rates, the benefits they offer, and strategies to maximize savings on Shopify shipping.

How to Obtain UPS Discounted Rates for Shopify Shipping

To start, you must have a registered UPS account. After logging in, you can apply for discounted rates. Eligibility for these rates often depends on your business size and shipping volume. Smaller businesses might qualify automatically, while larger enterprises may need to negotiate customized discounts with UPS tailored to their specific needs.

Integrating your UPS account with your Shopify store is crucial to accessing these discounted rates. This integration can be seamlessly achieved through the Shopify Shipping settings, allowing you to manage UPS rates directly from your Shopify dashboard.

Benefits of Using UPS for Shopify Shipping

Utilizing UPS for your Shopify shipping comes with numerous advantages:

  • Reliability: UPS is renowned for its dependable delivery services, ensuring your products reach customers on time.
  • Variety of Delivery Options: Offer customers choices such as expedited, ground, and international shipping.
  • Advanced Tracking: UPS provides robust tracking capabilities, enhancing customer transparency and satisfaction.
  • Cost Savings: Accessing UPS's discounted rates can significantly reduce your shipping expenses, increasing profit margins.
  • Exceptional Customer Service: Dedicated UPS representatives assist with any shipping-related issues, ensuring smooth operations.

Additionally, UPS offers tools like UPS WorldShip, which streamlines shipment management, label printing, and package tracking, all integrated within your Shopify environment.

Understanding Shopify Shipping Rates

Shopify provides several shipping options, including:

  • Free Shipping: Attract customers by offering free shipping on orders over a specified amount.
  • Flat Rates: Charge a consistent shipping fee regardless of order size or destination.
  • Carrier-Calculated Rates: Automatically determine shipping costs based on package weight, dimensions, and destination.

Using UPS carrier-calculated rates can offer competitive pricing. However, it's essential to evaluate whether this option is the most cost-effective for your business compared to flat rates or free shipping incentives.

Negotiating Lower Shipping Rates with UPS

To secure customized discounts with UPS, consider the following steps:

  1. Provide Business Details: Share information about your shipping volume, average package weight, and frequency.
  2. Compare Competitor Rates: Evaluate offers from other shipping companies to strengthen your negotiation position.
  3. Highlight Specific Needs: If you frequently ship to remote areas or require specialized services, use this as leverage for better rates.

For businesses shipping large or heavy items, negotiating rates for UPS Freight can lead to substantial savings. Similarly, companies with a global customer base can benefit from negotiating rates for UPS Worldwide Express services.

Maximizing Savings with UPS and Shopify

Implement these strategies to enhance your savings:

  • Offer Free Shipping Thresholds: Encourage higher order values by providing free shipping on orders that exceed a specific amount.
  • Use Flat Rate Boxes: For smaller items, UPS's flat rate boxes offer predictable shipping costs, aiding in better budgeting.
  • Leverage Shopify's Shipping Calculator: Ensure you're charging customers appropriately to cover shipping costs.
  • Access Negotiated Rates: Connect your Shopify account with UPS to utilize discounted rates based on your shipping volume.
  • Adopt Eco-Friendly Options: Consider UPS's carbon-neutral shipping to reduce environmental impact and potentially lower costs.

Setting Up UPS Discounts on Shopify: A Step-by-Step Guide

  1. Log In to Shopify: Access your Shopify admin panel.
  2. Navigate to Shipping Settings: Go to Settings > Shipping and delivery.
  3. Select UPS as Your Carrier: Choose UPS from the list of available shipping carriers.
  4. Enter UPS Account Information: Input your UPS account credentials to link your Shopify store.
  5. Apply Discount Information: If eligible, enter your negotiated discount details.
  6. Test Shipping Rates: Before going live, verify that shipping rates are correctly applied during checkout.

Eligibility for UPS discounts may require meeting specific criteria, such as minimum shipping volumes or membership in particular organizations. For detailed information, contact UPS Customer Service.

Tips for Saving Money on eCommerce Shipping with UPS

Beyond discounted rates, consider these tips to further reduce shipping costs:

  • Optimize Packaging: Use appropriately sized packaging to minimize weight and dimensional charges.
  • Utilize UPS Online Tools: Tools like the UPS Shipping Calculator and tracking dashboard can streamline your shipping process.
  • Choose Cost-Effective Shipping Options: Opt for ground shipping over air when possible to save costs.
  • Offer Flexible Delivery Windows: Services like UPS My Choice allow customers to select their preferred delivery times, enhancing satisfaction and potentially reducing failed delivery attempts.
  • Partner Exclusively with UPS: Consolidating your shipping needs with UPS can lead to additional benefits like free shipping supplies and access to UPS fulfillment centers.

Case Study: How The Good Batch Saved Big on Shipping with UPS Discounts

The Good Batch, a small-batch bakery based in Brooklyn, New York, exemplifies the benefits of leveraging UPS discounts. By negotiating a customized discount with UPS, The Good Batch saved over $10,000 on shipping costs within a year. These savings enabled them to:

  • Reinvest in business operations to improve product quality.
  • Offer more competitive pricing to attract and retain customers.
  • Expand their product line, providing greater variety to their clientele.

Overall, the UPS discount played a pivotal role in The Good Batch's growth, enhancing both their operational efficiency and market competitiveness.

Exploring Shipping Options with UPS and Shopify

While carrier-calculated rates are popular, other shipping options can be beneficial:

  • Flat Rate Boxes: Ideal for smaller items, providing a fixed shipping cost.
  • Express Shipping: Suitable for urgent deliveries requiring faster transit times.
  • In-Store Pickup: Allow customers to collect their orders in-store, eliminating shipping costs entirely.
  • International Shipping: Utilize UPS's comprehensive global services, including air and ocean freight, customs clearance, and delivery to over 220 countries and territories.

Additionally, integrating third-party shipping apps with Shopify can further automate and streamline your shipping process. Popular options include ShipStation, Shippo, and Easyship.

The Pros and Cons of Using UPS for Shopify Shipping

When considering UPS for your Shopify shipping needs, weigh the following pros and cons:

Pros:

  • Reliable Service: Consistent and timely deliveries enhance customer trust.
  • Diverse Delivery Options: Flexibility to meet various customer needs.
  • Discounted Rates: Potential for significant cost savings on shipping.
  • Advanced Tracking: Real-time updates improve transparency and customer satisfaction.

Cons:

  • Complex Pricing Structure: Understanding and navigating UPS's pricing can be challenging.
  • Limited International Options: May not be as extensive as other global carriers for some regions.
  • Not Ideal for Small Volumes: Smaller businesses might not qualify for the best discounted rates.
  • Customer Carrier Preferences: Some customers may prefer other shipping carriers, limiting reach.

Despite these drawbacks, UPS remains a strong contender for Shopify shipping due to its reliability and comprehensive service offerings.

Strategies for Reducing Cart Abandonment with Affordable Shipping Options

High shipping costs are a common reason for cart abandonment. Implement these strategies to mitigate this issue:

  • Offer Free Shipping: Setting a minimum order threshold for free shipping encourages larger purchases.
  • Use UPS Discounted Rates: Lower your shipping fees to make them more competitive and attractive.
  • Transparent Shipping Costs: Display shipping fees early in the checkout process to avoid surprising customers at the end.

In summary, utilizing UPS discounted rates is a strategic approach to minimizing shipping expenses for your Shopify store. By effectively accessing these rates and implementing savings strategies, you can provide a superior shipping experience to your customers while enhancing your business's profitability.

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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.
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