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USPS Volume Discounts: What You Need to Know

Learn about how you can obtain USPS volume discounts and find useful tips on how to cut your shipping costs!
USPS Volume Discounts: What You Need to Know

By Jules


November 1, 2019

When you sell online, you know how important it is to offer your potential customers affordable shipping rates!

This is where volume discounts come into the picture. With USPS discounts, you'll be able to enjoy significant savings as your number of shipments consistently increase. In this guide, you can gain a better understanding of how USPS discounts work and how to lower your shipping costs. Let’s take a closer look right now!

USPS Volume Discounts

USPS offers a variety of volume discount programs on different service levels toreward merchants for shipping with them over the long-term and make their pricing more accessible. Volume discounts mean you’re eligible to pay significantly discounted rates in comparison to the standard rates offered by the postal service. In order to qualify for any USPS volume shipping discounts, your shipping needs should meet the following volumes:

  • First Class: 5,000 parcels shipped in the prior year
  • Priority: 5,000 parcels shipped in the prior year
  • Express: 5,000 parcels shipped in the prior year

How Can I Lower My Shipping Costs?

One of the biggest expenses that small business owners face are shipping costs. In addition to utilizing USPS volume discounts whenever possible, here are a few more tips to keep in mind!

1. Always Negotiate Your Shipping Rates

Remember, many couriers let merchants negotiate their shipping rates as they ramp up their shipping volume. Do this to save money on your shipping costs!

2. Predetermine Your Shipping Destination

Understanding the destination of your goods helps in lowering costs. Using regional couriers specifically for regional destinations typically saves more money compared to using major global couriers to deliver regionally.

3. Watch Out for Extra Charges

Depending on the courier you’re using, there may be charges for Saturday deliveries, delivery signatures, fuel surcharges, residential delivery charges and the like. Always try to understand these fees beforehand.

4. Use Third-Party Insurance

Research has shown that third-party insurance companies generally charge lower shipping insurance rates than insurance offered by couriers For example, while most carriers charge approximately $.80 - $0.90 for every $100, third party insurance companies instead charge approximately $0.45 - $0.55 for every $100. Whether you’re using USPS shipping or any other service, these savings actually add up, especially for those who sell and ship expensive items.

5. Use The Right Package Sizing

Being that most shipping couriers charge packages based on their weight, size and destination, it’s important that you always use the correct package size. Smaller items, for example, should be placed in smaller boxes rather than larger ones overstuffed with packaging materials, as this can help reduce shipping costs overall.

6. Opt for Online Shipping

Each time you skip the counter at the post office and instead opt for online printing postage printing, you save money! Just purchase your postage online, print it and you’re ready to label and ship your packages.

7. Don’t Miss Out On Free and Discounted Shipping Supplies

With or without USPS discount shipping, you can also save more money by using free or discounted shipping supplies from your chosen courier. When you make use of the courier’s shipping supplies, you save money on purchasing packaging and possible “dimensional fee” that comes with packages exceeding the size regulations of your carrier. Just one option for this include free boxes available at USPS, both online and in post offices.

8. Use Discounted Service Offerings

Whether you are shipping in large volumes or not, USPS offers discounts to those using Priority Mail and Priority Mail Express. Purchasing postage through the right partner automatically offers you this discount!

9. Bill Correctly

Prior to charging your customers for shipping, make sure you’ve taken your time to properly calculate the shipping fees, even if you qualify for USPS volume shipping discounts. You should also consider if delivery will be made on the weekend and what charges this incurs. Factor these extra costs in and bill your customers correctly.

10. Consider Prepaid Shipping

This works more for those merchants that consistently send out a particular weight. Being that you’ve already determined the cost of shipping, you can buy shipping labels upfront, as this comes with discounts of up to 20 percent!

Use USPS Volume Discounts to Cut Your Shipping Costs!

Overall, USPS discounts are a fantastic way to cut your shipping costs. Remember, Easyship partners with USPS, offering a number of their popular shipping solutions at discounted rates. Be sure to sign up for an Easyship account today to start leveraging both USPS’ volume discounts and Easyship’s pre-negotiated rates to reduce your company’s shipping costs!