Which carrier is the most advantageous for large shipping volume (~150k in shipping fees / year)

Hey guys!

 

A family member has his own website and he has grown a lot in the past few years.

 

Last year alone he paid about 150,000$ in shipping labels alone (about 14k packages).

 

He is currently with Canada Post but he isn't getting much of a discount. I ship maybe 5% of his volume and get similar rates from them myself.

 

So, are you aware of a carrier that's usually more advantageous for larger shipping volume such as his?

 

He ships only in Canada using expedited parcel and 95% of his packages are under 1kg and fairly small.

 

Thanks!

Message 1 of 7
latest reply
6 REPLIES 6

Which carrier is the most advantageous for large shipping volume (~150k in shipping fees / year)

Which carrier is the most advantageous for large shipping volume (~150k in shipping fees / year)

Thanks I will send him this link.

 

If you don't mind me asking guys, how much do you pay to ship a 10cm x 10cm x 10cm and 0.5kg package to your own city?

 

With taxes and everything we pay 9.70$. He's at ~9.40$.

Message 3 of 7
latest reply

Which carrier is the most advantageous for large shipping volume (~150k in shipping fees / year)

Are all those shipped within Canada? A company that could give you a good deal for Canada might not be so good for International.

 

The main carriers in Canada (in no particular order)

 

Canada Post

Purolator (owned by Canada Post)

Canpar

FedEx

UPS

 

Your family member needs to get on the phone and negotiate. Canada offers volume discount, on their website they only show Level 1 - 4 discounts but Level 4 only requires volume of $7,500, not sure if it's still true but Canada Post used to have 10 discount levels.

 

Negotiating with the private carriers can yield huge discounts, large accounts at FedEx can get discounts of 60 - 70% of retail rates if you have the volume.

 

If this involved shipping to the USA or Overseas check out ChitChats, they don't have an office in Quebec City but consolidations can be sent to their Montreal office, they can take your US bound shipments across the border to USPS and offer a couple of different services for overseas.

 



"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.
Message 4 of 7
latest reply

Which carrier is the most advantageous for large shipping volume (~150k in shipping fees / year)


@vip-marketplace wrote:

Thanks I will send him this link.

 

If you don't mind me asking guys, how much do you pay to ship a 10cm x 10cm x 10cm and 0.5kg package to your own city?

 

With taxes and everything we pay 9.70$. He's at ~9.40$.


I'm paying $7.19 plus HST for deliveries within Toronto using Chit Chats Canada Post account.

 

 



"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.
Message 5 of 7
latest reply

Which carrier is the most advantageous for large shipping volume (~150k in shipping fees / year)

On paper $10.85 including fuel surcharge and taxes for Expedited.

In fact, I use discount postage stamps which cost me much much less - so about $5 including my time to go to the PO with the parcel and get the barcoded label.

 

Using mint discounted postage stamps can be a real money saver for the small seller, but labour costs would make it impractical for someone sending dozens of parcels a day.

Message 6 of 7
latest reply

Which carrier is the most advantageous for large shipping volume (~150k in shipping fees / year)

I had my husband check at his work to see what the cost would be to send that package and it was $5.01 with taxes. They are on a weight only contract with no measurements as they ship several million dollars in postage per year so there must be several other discount levels available.

That was Canada post expedited. Xpresspost local would be $5.53.
Message 7 of 7
latest reply