Shipping Rates & Contract Negotiation
At ShipSigma we manage, analyze, and optimize over $1Billion in parcel spend to provide you with a deep understanding of the excess of fees your contract has built in and where savings exist. Using our industry-leading cost modeling software, we’ll provide you with a Shipping Savings Guarantee before you negotiate. Once negotiation begins, we'll provide you with a market-best carrier network strategy, contract management & compliance services, surcharge mitigation, and ongoing analysis and optimization opportunities.
We could not say enough good things about our relationship with ShipSigma. Beyond the initial savings, they continue to find us new angles for savings, set up dashboards specific to our needs, and meet with us quarterly to go through reporting/review savings/new opportunities. ShipSigma has been more than just a service for us, they have been a continuous partner as we navigate the difficulties of controlling our freight costs and holding the vendors accountable.
Tyler B. Vice President of Finance, Leading Global Manufacturer
4 hours. It took less than 4 hours of my time for my company to see half a million in annual savings. No headaches, no feet-dragging negotiations, no confusing documents. It was so easy.
Todd M. Vice President, Food Manufacturer and Distributor
The insights and analytics, ShipSigma provided before and after negotiating our carrier agreements, make it clear we have a long-term partner who is aligned with our company values. The cost modeling and rate simulation let us know the exact savings we would see, down to the last cent. After running our historical data, ShipSigma was able to find us almost 28% in annual shipping savings with our same carrier.
Jonica H. Controller, Market Leading Wine Distributor
Our team managed billions of dollars of various category spend. To have ShipSigma guarantee a savings and then fully execute so that we’re realizing increased EBITA within 60 days allows us to focus on other strategic opportunities.
Randy H. Chief Procurement Officer, Leading Provider of Pork Products
We thought we had the best rates. We were told we had the best rates. ShipSigma got us better rates. They found us nearly 25% in savings and helped us renegotiate our contract with our carrier. It was just so easy.
Brad M. Chief Operations Officer, Clothing Retailer
The parcel invoice audit was a lifesaver for us. The team at ShipSigma monitored the weekly audit and noticed that instead of shipping air, over 60% of our packages could have traveled ground with no delay in arrival. They saved us more money than we had ever saved in our manual audit process.
Julie F. Chief Financial Officer, Industry Leading Retailer
In this blog, we will explore the small parcel delivery rates of various carriers to help you always pick the most cost-effective shipping option. We will also tell you how the experts at ShipSigma can help you cut your costs.
How Much Does It Cost to Ship 300 Lbs UPS?
Cost to send 300 lbs via UPS Services.
UPS Service |
|||||||
Weight |
UPS Next Day Air Early |
UPS Next Day Air |
UPS Next Day Air Saver |
UPS 2nd Day Air A.M. |
UPS 2nd Day Air |
UPS 3-Day Select |
UPS Ground |
300 pounds |
$834.00–$3,456.00 |
$834.00–$3,531.00 |
$789.00–$3,009.00 |
$585.00–$2,652.00 |
$522.00–$2,310.00 |
$399.00–$1,686.00 |
$237.00–$1,743.00 |
Besides the standard services above, UPS offers freight shipping for packages weighing over 150 pounds. Below are the rates for sending a 300-pound shipment via UPS’ Air Freight services.
UPS Next Day Air Freight
Zones |
|||||||
102 |
103 |
104 |
105 |
106 |
107 |
108 |
|
(Guaranteed Service) |
$1.61 |
$2.65 |
$4.83 |
$6.81 |
$6.99 |
$8.81 |
$9.63 |
(Non-Guaranteed Service) |
$1.57 |
$2.51 |
$4.55 |
$6.44 |
$6.61 |
$8.34 |
$9.12 |
UPS 2nd Day Air Freight
Zones |
|||||||
202 |
203 |
204 |
205 |
206 |
207 |
208 |
|
(Guaranteed Service) |
$1.58 |
$2.60 |
$3.34 |
$3.49 |
$5.19 |
$6.94 |
$8.15 |
(Non-Guaranteed Service) |
$1.48 |
$2.46 |
$3.10 |
$3.25 |
$4.85 |
$6.51 |
$7.64 |
UPS 3-Day Freight
Zones |
|||||||
302 |
303 |
304 |
305 |
306 |
307 |
308 |
|
(Guaranteed Service) |
$1.45 |
$2.50 |
$3.07 |
$3.35 |
$4.78 |
$5.99 |
$6.93 |
(Non-Guaranteed Service) |
$1.35 |
$2.35 |
$2.89 |
$3.15 |
$4.52 |
$5.65 |
$6.54 |
How Much Does It Cost to Ship 100 Lbs UPS?
The cost to ship a 100-pound package via UPS varies depending on the distance to the destination. The table below shows rate ranges for sending a 100-pound package using UPS’ different services.
UPS Small Parcel Service |
|||||||
Weight |
UPS Next Day Air Early |
UPS Next Day Air |
UPS Next Day Air Saver |
UPS 2nd Day Air A.M. |
UPS 2nd Day Air |
UPS 3-Day Select |
UPS Ground |
100 pounds |
$298.47–$1,173.45 |
$268.47–$1,167.21 |
$253.24–$992.83 |
$184.72–$874.49 |
$163.73–$760.59 |
$119.47–$551.12 |
$63.13–$550.71 |
From the data above, we can see that UPS Ground is the cheapest shipping with tracking service for sending a 100-pound package with UPS.
Does UPS Ship Over 50 Lbs?
Yes, UPS does ship packages over 50 lbs. The limit for UPS standard shipping services is 150 pounds. Packages weighing over 150 pounds are considered freight shipments. However, for packages weighing more than 70 lbs (31.5 kgs), you must attach a ‘heavy package’ sticker to the box.
How Much to Ship 50 Lbs UPS?
The table below shows how much shipping a 50-pound package via UPS would cost.
UPS Small Parcel Service |
|||||||
Weight |
UPS Next Day Air Early |
UPS Next Day Air |
UPS Next Day Air Saver |
UPS 2nd Day Air A.M. |
UPS 2nd Day Air |
UPS 3-Day Select |
UPS Ground |
50 pounds |
$161.19–$572.75 |
$131.19–$553.61 |
$121.53–$468.37 |
$99.18–$435.70 |
$86.21–$370.88 |
$61.47–$269.82 |
$24.73–$316.11 |
How Much Does It Cost to Ship 1LB UPS?
The cost to ship a 1lb package via UPS is shown in the table below.
UPS Small Parcel Service |
|||||||
Weight |
UPS Next Day Air Early |
UPS Next Day Air |
UPS Next Day Air Saver |
UPS 2nd Day Air A.M. |
UPS 2nd Day Air |
UPS 3-Day Select |
UPS Ground |
1 pound |
$65.00–$136.72 |
$35.00–$106.79 |
$31.71–$86.29 |
$23.64–$45.11 |
$21.64–$66.79 |
$13.66–$$33.33 |
$10.10–$61.37 |
UPS Ground is the cheapest way to ship a small package of 1 pound via UPS.
How Much Should Shipping Cost for a Small Business?
It is impossible to give an exact figure or range of what a small business should pay for shipping. This is because the cost can vary greatly depending on various factors like shipping volume, frequency, and service level. For example, two businesses may be the same size but have different shipping costs since the cheapest shipping for e-commerce will not be the cheapest shipping for a physical furniture store. However, a general guideline is to allocate around 5-15% of your product's sale price for shipping expenses.
If you want in-depth insight into your shipping accounts, the team at ShipSigma can help. Our proprietary, ai-powered technology helps customers reduce shipping costs without changing carriers or service levels.
Do Small Businesses Get Shipping Discounts?
Yes. Depending on a business's shipping volume, carriers like UPS and FedEx can help small businesses by offering shipping discounts and charging them fewer fees. UPS, for example, has a program called UPS Small Business Rates, whereby small businesses benefit from the following:
- Fewer Surcharges
- Fewer Add-On Fees
- Simplified Contracts
If you ship using FedEx, you can get discounts and rewards at the FedEx Small Business Center. Through this program, FedEx offers customers the chance to save up to 40% on shipping costs and to win brand-name gift cards simply by shipping.
Typically, these discounts are offered on a tier based program, meaning that the more spend, the better Fedex shipping rates you receive.
Who Has the Cheapest Shipping Rates for Small Packages?
USPS is known to be one of the most cost-effective options for shipping small parcels. They offer services like First Class Package, Priority Mail, and Priority Mail Express. On average, USPS offers lower rates than private carriers, especially for lightweight packages. However, USPS is also known to be slower in delivery than FedEx and UPS.
You can also ship small packages affordably with other carriers like FedEx and UPS, especially if you opt for slower-delivery services like Ground or 3-day shipping. These carriers also offer discounts to large-volume shippers, i.e., UPS offers discounted rates through their UPS Small Business Program. There is also an opportunity to negotiate individualized rates.
NOTE: To find the cheapest shipping service for your small package, consider the unique factors of your shipment. This includes the type of package, delivery timeline, weight, and volume of goods, among other factors. Key this data into different carriers' online shipping rate calculators and then compare the rates.
Partnering with a parcel shipping authority like ShipSigma can unlock additional savings by optimizing your shipping strategy through our proven contract engineering process led by our team of experts who are powered by our very own best-in-class technology.
How ShipSigma Can Help
Experience the power of ShipSigma, where a team of seasoned experts and AI-backed software converge to analyze and audit your shipping accounts. Armed with our insights, we negotiate with your carrier to secure better rates. With our proven process, over 300 companies have already saved an average of 25% on shipping costs.
Are you ready to join them and enjoy the great personalized shipping rates? Reach out to us today!