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Now, I am lost a little bit and am wondering what to do with the extra CA$H. As an online merchant, what would you do with the sudden income/saving you get from your shipping costs/savings. I really dont want to spoil the party for myself and for the industry since everyone is probably doing fine. A few of them are 5 times larger than us but we are catching up.
The fedex guy came with such an offer thats almost impossible to turn down. I would most probably be saving close to around 40% of the shipping costs.
That's interesting. My understanding is that the FedEx Routes are now franchised. I wonder if those franchisees have any restrictions on "how low can you go"?
Saving 40%? Wow! That's a significant savings. I'd actually be using that to lower prices and/or offer special shipping rates to increase sales. No need to be greedy when you can take advantage of this and everyone wins. :)
We ship mostly ground packages around 10-20 lbs, so our discount on those is not as large as the discounts on next day shipments.
I am fortunate that I have a 15 year UPS veteran that works for me. He has been a godsend on understanding how to maximize my freight reductions.
I have also found that Fedex and UPS have almost exactly the same pricing, once you have boiled down all the numbers.
What do we do with the extra savings? We use it to fund the "free shipping" that we do on larger orders. Many customers will buy up to the level to get the free shipping, in our case we do mostly wholesale.
If you increase your sales, you will increase your Fed Ex volume which will likely translate into further discounts.
Just wanted to chime in. I have been in talks with my dhl rep for over 1 month in getting new rates. It's actually very very frustrating. It's been one week since I accepted the inital rates to actually get them implemented. Is it just my rep?I may just decide to talk to the local reps. It is no wonder the company is going down the drain, the only good guys are their drivers and I feel bad for them because most of them are disappointed in the way its being run.
gpilling and jpman I was wondering if I can contact you and see what kinda rates your getting, as I don't know anyone else who deals with ecommerce