Are pricey shipping rates preventing you from launching or expanding your small business? You’re not alone: 41% of retailers said shipping costs were their biggest challenge in 2022.1
Here’s the good news: Negotiating better prices can unlock significant savings. Try these top strategies and tips to help secure more favorable shipping rates.
Lower shipping rates not only boost profitability but also directly increase customer satisfaction and loyalty – 38% of shoppers say that reasonable shipping fees are one of the most important factors when choosing between retailers who don’t offer free shipping.2
Before you can unlock better rates, it’s helpful to understand all the various cost components. This can include:
Before contacting your carrier and negotiating shipping rates, arm yourself with knowledge and a clear strategy. You can prepare by:
Like with any business deal, effective negotiation is an art that combines preparation with strategic communication.
Use these negotiating strategies for shipping rates:
Negotiating better shipping rates requires not only a grasp of shipping best practices but also tact and timing.
Strengthen your case with these negotiating tips:
Secured a tentative deal with your shipping carrier? Great! As you approach the finish line of finalizing your shipping rate agreement, make sure to:
Keep in mind that even with favorable shipping agreements, “item not received” situations are inevitable. For an extra layer of protection, consider PayPal Seller Protection for Merchants,3 which can provide protection for the eligible goods you ship out.
By mastering these negotiation tactics, from preparation to finalizing terms, small business owners may enhance profitability and boost customer satisfaction by passing along any savings.
Want a better way to manage your shipping? Check out PayPal Shipping to unlock shipping rates, automate tracking, and keep info in sync.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.