Small Package Shipping Cost Structure Options

Small and mid-sized businesses (SMBs) need to consider the rate structure that’s right for their shipping needs and budget. While it can be tempting to seek out the lowest rates for every individual package, doing so may not be the most economical or efficient practice when considering the full scope of your SMB’s shipping needs.

Establishing a standard FedEx^® or UPS^® shipping rate structure option will save you valuable time and resources, build trust with your customers and ultimately bring consistency to your shipping strategy. After all, when you know your business shipping costs, you can provide instant shipping quotes at checkout with ease — which is now expected by online shoppers.

In other words, choosing your shipping cost structure option is an important step in developing a successful e-commerce shipping strategy. And with no end to the e-commerce boom in sight, you’ll want to secure the most convenient and affordable shipping options. So keep reading to learn which shipping cost structure option best suits your business’s needs.

How to determine shipping cost

There are three main shipping cost structure options available when shipping with UPS: daily UPS rates, retail rates and flat rate shipping. FedEx, on the other hand, offers two main shipping cost structure options: standard rates and flat rates. Depending on your business’s needs, each of these options have their pros and cons. That’s why Unishippers is here to help you decide which shipping rate option is best for you and your customers.

To determine the shipping cost that’s right for your business, start by requesting a shipping assessment. Our experts at Unishippers run a full diagnostic on your business’s shipping costs to help you better understand your unique needs and challenges. Once you’ve assessed your SMB shipping needs, it’s time to go over your rate options and see how each of them may be beneficial to your business.

UPS Shipping Cost Structure Options

• UPS daily rates. UPS daily rates — the most common rate selection — are for shippers who have a scheduled pickup or an account that provides them with daily rates. These are the base rates for all services, weights and zones before any discounts are applied. All contract discounts — including the negotiated UPS rates that customers of Unishippers gain access to — are based on these daily rates.
• UPS retail rates. This option is available to shippers who utilize UPS retail locations like the UPS Store^® or a UPS Customer Center. Generally, charges by UPS Authorized Shipping Outlets like these will be more expensive. Retail rates are suggested for shippers who:
  • Ship from UPS retail locations
  • Don’t have a UPS account
  • Don’t have a scheduled pickup
• UPS flat rates. With UPS^® Simple Rate, you choose from five flat packaging rates and four shipping speed options. This selection allows for you to ship anywhere in the U.S. for a predictable rate, which can be beneficial to businesses that tend to ship packages with consistent sizes and shipping speeds. View the different packaging and shipping speed options available with UPS^® Simple Rate.

FedEx Shipping Cost Structure Options

• FedEx standard rates. With FedEx Standard List Rates, price is determined based on the weight, size and dimensions of the package. Additionally, the amount of “ground zones” your package travels through during the delivery will affect standard rates. As with UPS daily rates, these are the base rates for all deliveries before any discounts or promotions are applied.
• FedEx flat rates. As long as your packages are under 50 pounds, you don’t have to spend time weighing them to calculate shipping costs with FedEx One Rate^®. FedEx’s flat rate option allows you to choose from among 12 flat rate box options and three delivery speed options (1, 2 and 3 days). With simple and predictable pricing, FedEx One Rate^® is a great option for businesses with consistent shipment sizes.

Your small package shipping partner

As part of the nation’s largest non-retail Authorized Reseller of UPS shipping services, Unishippers provides customers with discounted rates on small package shipping (domestic and international) normally only available to larger businesses. So if you’re ready to get the best small package shipping rates, get a UPS rate quote today.