Your shipping costs are quietly eating your profits alive.
What started as a few dollars per package has snowballed into thousands of dollars per month. Every order that goes out the door takes a bigger bite out of your margin. Meanwhile, your competitors seem to offer free shipping on everything.
Here’s what they know that you don’t: Volume unlocks everything.
Whether you’re shipping dozens of packages a week or hundreds, there are proven ways to slash your shipping costs without sacrificing delivery speed or reliability. The secret isn’t shipping more—it’s shipping smarter through volume-based programs that most business owners never discover.
What you’ll learn
The 4 primary ways to get discounts
How major carriers like USPS and UPS structure their programs
How to work with carriers directly
Which software offers the best instant rate reductions
TL;DR:
Key takeaways
You don’t need massive volume to start reducing costs
Software platforms offer instant access to pre-negotiated rates
Understanding hidden fees is as important as the rate itself
What counts as “bulk” or “high-volume” delivery?
Bulk delivery isn’t about one massive shipment—it’s about consistent volume over time. This regular activity is how businesses qualify for better rates from carriers who want to secure reliable customers.
Bulk programs are price breaks carriers offer once your business ships a substantial number of parcels regularly. You can access them by (1) working with a carrier directly, (2) using software with pre-negotiated rates, or (3) partnering with a 3PL.
Key metrics carriers evaluate:
Items per week/month: Most programs start at moderate weekly volumes
Monthly spend: Common threshold requires substantial monthly costs
Item characteristics: Weight, dimensions, and destination zones also influence eligibility
Consistency: Carriers prefer predictable volume over sporadic spikes
Growth trajectory: Demonstrating increasing volume helps secure better terms
Different carriers have varying qualification thresholds. USPS Commercial Pricing is accessible to most businesses, while UPS and FedEx contract negotiations typically require higher volumes. The key is finding the right program match for your current volume while positioning for future growth.
NOTE: Each carrier—USPS, UPS, and FedEx—has different volume thresholds and rate structures, which we’ll detail in the following sections.
4 primary ways to access bulk discounts
There are four main pathways to securing cost reductions, each suited to different business sizes and volumes. Understanding these options helps you choose the most effective approach for your specific situation.
Direct carrier contracts
This approach works for high-volume shippers who can create custom contracts called Service Agreements. These agreements provide the deepest cost reductions but require significant leverage through consistent volume and the ability to commit to minimum quantities. Businesses typically need substantial weekly shipments or significant monthly spend to qualify.
The process involves detailed data analysis, competitive bidding, and extensive terms. Carriers evaluate your profile, zone distribution, and service mix to create customized pricing. While time-intensive, this pathway offers the greatest long-term value for qualifying businesses.
Software platforms
Platforms like Pirate Ship and Shippo aggregate volume from thousands of small businesses, allowing everyone to access pre-negotiated rates. This democratizes bulk pricing for businesses that wouldn’t otherwise qualify for direct carrier contracts. These platforms handle the complexity while providing instant access to reduced rates.
Most platforms integrate seamlessly with ecommerce systems, offer comparison tools across multiple carriers, and provide additional features like address validation and tracking management. This makes them ideal for growing businesses that need immediate cost relief without complex negotiations.
PRO TIP: Many platforms offer additional features like address validation, batch printing, and analytics that can streamline your fulfillment process beyond just cost reductions.
Third-party logistics (3PL) partners
Outsourcing to a third-party logistics (3PL) partner gives you access to their massive, consolidated volume and deeply reduced rates. 3PLs often provide a full range of 3PL services like warehousing and kitting in addition to delivery benefits.
3PLs leverage millions of annual shipments to secure rates that individual businesses cannot access. They also handle the operational complexity of fulfillment, allowing you to focus on core business activities while benefiting from enterprise-level logistics infrastructure.
Association programs
Some trade groups or business associations offer members access to group programs, though these are typically less common and may have limited carrier options compared to other methods. These programs work by pooling member volume to qualify for group rates, though the benefits are often modest compared to other approaches.
Carrier-specific programs
Each major carrier structures its bulk pricing differently, with various tiers and qualification requirements that can significantly impact your costs. Understanding these differences helps you choose the best partners for your specific needs.
| Carrier | Key program(s) | Best for |
|---|---|---|
| USPS | Commercial pricing, ground advantage | Small items, residential delivery |
| UPS | Digital access program | Mid-volume shippers |
| FedEx | Advantage program | Priority services, business delivery |
| DHL | Small business partnership | International services |
USPS breakdown
USPS offers Commercial Pricing with Base and Plus tiers, providing significant reductions over retail rates. USPS Ground Advantage rates increased 5.4% in 2024 but remain competitive. The new USPS Merchant Rate Card (MRC) pricing that began July 1, 2024, creates additional opportunities for Ground Advantage and Priority Mail.
USPS Commercial Base pricing is available to any business with an account, offering immediate reductions over retail rates. Commercial Plus pricing requires higher volumes but provides deeper reductions, particularly for Ground Advantage services. Priority Mail Cubic pricing offers exceptional value for small, dense items by using dimensional pricing rather than weight-based calculations.
The Postal Service also offers zone skipping programs for high-volume shippers, allowing businesses to inject mail closer to destination zones for additional cost reductions. These programs work best for businesses with predictable volume and flexible timing requirements.
ALERT: Priority Mail Cubic offers exceptional value for small, heavy items by using actual dimensions rather than weight-based pricing.
UPS breakdown
The Digital Access Program allows platforms to pass UPS reductions to users. Businesses can get up to 77% off UPS Ground through partners, with no minimum volume commitments. UPS structures its programs around both volume and revenue thresholds, with deeper discounts available as businesses scale.
UPS also offers specialized programs for specific industries and service types. Their SurePost program combines UPS ground transportation with USPS final mile delivery for residential addresses, offering cost reductions for less time-sensitive deliveries. Smart Pickup services allow businesses to consolidate multiple pickups for additional cost reductions.
For businesses ready to commit to higher volumes, UPS Negotiated Service Agreements provide customized pricing based on specific shipping patterns, zone distributions, and service requirements. These agreements typically require detailed data analysis and minimum volume commitments but offer the greatest long-term value.
FedEx & DHL breakdown
The FedEx Advantage program offers up to 50% off Priority services through partners like the U.S. Chamber of Commerce. FedEx structures its programs around both domestic and international services, with particular strength in business-to-business delivery and time-sensitive shipments.
FedEx SmartPost provides an economical option for residential delivery by combining FedEx transportation with USPS final mile delivery. This service works well for less urgent deliveries to residential addresses, offering significant cost reductions compared to standard FedEx Ground residential delivery.
DHL’s Small Business Partnership program provides reductions up to 45% for international services. DHL excels in international express delivery, particularly to Europe and Asia, making it valuable for businesses with significant international volume. Their programs focus on express services rather than ground transportation, positioning them as a premium international option.
NOTE: For non-standard items, specialized 3PLs focused on shipping big and heavy products often have better rates than standard carrier programs.
How to work with carriers directly
Direct contracts work best for established shippers with consistent, significant volume who have the leverage to demand custom pricing from carriers. This approach requires preparation, data analysis, and ongoing relationship management, but can deliver the deepest long-term cost reductions.
Step 1: Gather your data
Successful contracts require comprehensive historical data demonstrating your value as a customer. Collect substantial historical data, including volume, total cost, and detailed information about average weight, dimensions, and DIM weight calculations. Zone distribution data showing where you ship most often helps carriers understand your network requirements.
Additional data points include service level distribution (ground vs. air), seasonal patterns, and growth projections. Carriers want to understand not just your current volume but your future potential as a customer. Package mix analysis showing the percentage of different service types helps carriers structure appropriate pricing.
Step 2: Identify your leverage points
Getting competing bids from multiple carriers creates power during discussions. Flexibility on service levels—being willing to use ground instead of air—also serves as a bargaining chip. Consolidation opportunities, such as combining multiple locations under one contract, can increase your attractiveness to carriers.
Consider your payment terms, pickup requirements, and technology integration needs as additional leverage points. Carriers value customers who pay promptly, have efficient pickup processes, and integrate well with their systems. These operational efficiencies can translate into better pricing terms.
Volume commitments can secure better rates, but ensure you can realistically meet these thresholds. Overcommitting and paying penalties negates the benefits of reduced base rates. Work with carriers to structure realistic volume tiers that align with your growth projections.
Step 3: Target specific surcharge reductions
Rather than asking for a blanket reduction, focus on specific line-item fees that impact your shipments most. Common targets include reducing fuel surcharges, waiving residential or delivery area surcharges, and securing a more favorable DIM weight factor.
Fuel surcharges can add substantial percentages to your total costs, so even small reductions here create a significant impact. Residential surcharges can devastate margins for B2C businesses, making these a priority for reduction or elimination. DIM weight factors determine how dimensional weight is calculated, and securing favorable factors can dramatically reduce costs for lightweight, bulky items.
Additional surcharge targets include address correction fees, delivery attempt charges, and signature requirements. Each of these represents an opportunity to reduce your total cost per shipment beyond the base rate reductions.
PRO TIP: If this process seems too complex, an alternative is to leverage a fulfillment expert who already has these relationships. Learn more about how to choose the right 3PL partner.
Software platforms offering instant bulk rates
Software provides instant access to reduced rates with no negotiation or volume minimums, making it ideal for small businesses or growing ecommerce stores. These platforms democratize access to enterprise-level pricing while providing additional operational benefits.
| Platform | Pricing model | Key carriers | Max reduction claim |
|---|---|---|---|
| Pirate ship | Free (no monthly fees) | USPS & UPS | Up to 87% off |
| Shippo | Free starter plan (5¢/label fee) | USPS/UPS/DHL | Up to 77% off UPS ground |
| Easyship | Paid plans starting at $29/mo | Multiple international | Varies by carrier |
Platform comparison analysis
Pirate Ship offers completely free access to USPS Commercial Pricing and UPS rates with no monthly fees or hidden charges. Their simple interface focuses on ease of use while providing access to services like USPS Priority Mail Cubic that many businesses don’t know about. The platform works well for businesses primarily using USPS and UPS Ground services.
Shippo provides broader carrier access, including DHL and international options, making it suitable for businesses with diverse needs. Their API integration capabilities make them popular with larger businesses that need programmatic access to rates and label generation. The 5¢ per-label fee on the free plan can add up for high-volume users, but their paid plans offer better per-label economics.
Easyship focuses on international capabilities and provides access to regional carriers that other platforms don’t offer. Their strength lies in cross-border ecommerce, providing customs documentation, duty calculation, and international tax handling. The monthly fees are justified for businesses with significant international volume, but may not make sense for primarily domestic shippers.
Integration and workflow benefits
Modern platforms integrate seamlessly with popular ecommerce systems like Shopify, WooCommerce, and Amazon. This integration eliminates manual data entry, reduces errors, and speeds up the fulfillment process. Automated address validation catches errors before labels are printed, reducing delivery failures and additional charges.
Batch processing capabilities allow businesses to process hundreds of orders simultaneously, dramatically reducing the time spent on fulfillment tasks. Rate shopping features automatically select the most cost-effective service for each shipment based on your criteria, ensuring optimal costs without manual analysis.
Analytics and reporting features help businesses understand their costs, identify trends, and make informed decisions about carrier selection and service levels. These insights become valuable for future planning and potential direct carrier negotiations.
Pros of using software
Easy integration with ecommerce platforms
Compare rates in one place
Print labels efficiently
No minimum volume requirements
Access to specialized services like USPS Cubic
Automated address validation and correction
Comprehensive tracking and analytics
Cons and considerations
Fewer customization options than direct contracts
Customer service is with the platform, not the carrier
Potential for tiered feature fees as you scale
Limited ability to negotiate specific surcharge waivers
Dependency on platform uptime and reliability
READ MORE: As businesses scale (especially on platforms like Shopify), the limitations of software may lead them to consider partnering with a 3PL for Shopify fulfillment.
Calculating your potential cost reductions
Understanding the real-world financial impact helps justify the effort required to secure rate reductions and switch from your current method.
The core formula: (Current Average Cost Per Item – New Rate Per Item) x Total Monthly Shipments = Monthly Reduction
Real-world example
Consider an Etsy seller processing 300 orders per month. Based on reported user data, a business reducing costs by $3.50 per item could see monthly reductions of $1,050 on 300 shipments.
Detailed calculation breakdown:
Current average cost: $8.50 per item
New reduced cost: $5.00 per item
Cost reduction per item: $3.50
Monthly volume: 300 shipments
Monthly reduction: $1,050
Annual reduction: $12,600
This example demonstrates how even moderate per-item reductions create substantial annual impact. For businesses with higher volumes, the absolute dollar impact becomes even more significant, often justifying investment in more sophisticated solutions or dedicated logistics resources.
Advanced calculation considerations: Factor in operational time reductions from automated processes, reduced customer service inquiries from better tracking, and improved cash flow from more predictable costs. These secondary benefits often justify platform fees or 3PL partnerships beyond just the direct rate reductions.
The advertised rate isn’t your final price. Hidden fees and surcharges can eliminate benefits from even the best base rates.
DIM weight pricing
Large, light items can be unexpectedly expensive when carriers bill based on dimensional weight rather than actual weight. This remains a major cost trap for shippers. DIM weight is calculated by multiplying length x width x height and dividing by a carrier-specific divisor (usually 139 for domestic shipments).
Understanding DIM weight calculations is crucial for businesses with lightweight but bulky products. Items that are large but light can be billed at significantly higher weights using standard DIM calculations, dramatically increasing costs.
Fuel surcharges
These variable charges are added on top of base rates and are rarely reduced, fluctuating based on current fuel prices. Fuel surcharges can add substantial percentages to your total costs and change weekly based on published fuel indices.
Residential & delivery area surcharges
Extra costs apply for delivery to homes or rural areas, often adding significant amounts per item. Extended delivery area surcharges can add even more for remote locations, sometimes doubling the base rate for rural deliveries.
Minimum spend commitments
In direct carrier contracts, failing to meet volume commitments can result in penalties or losing your rate tier. These penalties can negate months of benefits, making realistic volume projections crucial during contract discussions.
Annual rate increases
All carriers increase rates annually, requiring renegotiation to maintain your reduction level. Rate increases typically occur annually, and contractual rates often include automatic adjustment clauses that may increase costs even more than published rate increases.
ALERT: Never sign a long-term contract without a performance guarantee clause that protects you if service levels decline.
Step-by-step checklist to start reducing costs today
Transform your delivery costs with this actionable 5-step process you can begin implementing immediately.
01
Step 1: Audit your data – Gather substantial historical data (volume, cost, zones, size/weight)
02
Step 2: Compare your 4 pathways – Based on your volume, decide if you’ll work directly with carriers, use software, or explore a 3PL
03
Step 3: Get quotes or sign up – Actively get bids from carriers or sign up for a free software trial to compare real rates
04
Step 4: Run a test batch – Ship a representative sample of orders using the new method and compare the final invoiced cost to your old method
05
Step 5: Monitor & re-evaluate quarterly – Set a calendar reminder to check that your solution remains the most cost-effective for your business
Transform delivery costs into a competitive advantage
Every business, regardless of size, has a clear path to lower rates through direct contracts, software platforms, or 3PL partnerships. Taking control of delivery costs is one of the highest-impact actions a business can take for its bottom line.
Ready to see your exact reductions? Contact our fulfillment experts today for a free, no-obligation rate audit and see how much you could save with specialized big, heavy, and bulky fulfillment services.
Citations
- USPS. “USPS Announces New Competitive Prices for 2024.” November 2023. https://about.usps.com/newsroom/national-releases/2023/1115-usps-announces-new-competitive-prices-for-2024.htm
- Shippo. “2024 Shipping Rate Changes Explained.” January 2024. https://goshippo.com/blog/2024-shipping-rate-changes-explained-usps-ups-fedex-dhl
- G2. “Easyship Pricing 2025.” October 2024. https://www.g2.com/products/easyship/pricing
- USPS. “U.S. Postal Service Recommends New Prices for July 2024.” April 2024. https://about.usps.com/newsroom/national-releases/2024/0409-usps-recommends-new-prices-for-july-2024.htm
- Pirate Ship. “Save up to 87% off USPS & UPS Rates.” July 2025. https://www.pirateship.com/rates
- G2. “Shippo Pricing 2025.” June 2025. https://www.g2.com/products/shippo-shippo/pricing
- SaaSworthy. “Easyship Pricing: Cost and Pricing Plans.” October 2024. https://www.saasworthy.com/product/easyship/pricing
- Stamps.com. “2024 USPS Rate and Service Changes.” September 2024. https://www.stamps.com/article/usps-rate-change/
- Shipware. “2024 USPS Shipping Rate Changes: What You Should Know.” January 2024. https://www.shipsaving.com/blog/2024-usps-shipping-rate-changes-what-you-should-know
- EasyPost. “USPS Updated Merchant Discount Prices Starting July 1, 2024.” June 2024. https://www.easypost.com/blog/2024-06-25-usps-updated-merchant-rate-card-mrc-prices-starting-july-1-2024
- FedEx. “How to Save on Shipping at Your Business.” October 2024. https://www.uschamber.com/co/co-brandstudio/fedex/fedex-benefits-programs-for-smb-shipping
- Shipware. “How to Get UPS Volume Discounts & Other Rates [2024 Update].” January 2024. https://www.shipware.com/blog/how-to-get-shipping-discounts-with-ups/
- Shipware. “How to Attain Discounted FedEx Rates for Your Business.” January 2024. https://www.shipware.com/blog/the-fedex-shipping-discount-what-is-it-and-how-to-get-it
- ShipWise. “Discounted UPS Shipping Rates for Business.” January 2024. https://www.shipwise.com/products/discounted-rates/ups-discounts
- TI Insight. “UPS Launches UPS Digital Access Program.” October 2019. https://www.ti-insight.com/ups-lauyanches-ups-digital-access-program
- DHL. “Make the Most Out of Shipping With DHL Rewards Program.” August 2022. https://www.dhl.com/ph-en/home/press/press-archive/2022/make-the-most-out-of-shipping-with-dhl-rewards-program-1.html
- DHL. “Small Business Partnership Program.” N.d. https://www.dhl.com/us-en/home/express/small-business-partnership-program.html
- Stamps.com. “Frequently Asked Questions.” November 2024. https://www.stamps.com/postage-online/faqs/
