Understanding Amazon FBA Shipping Rates in 2017: What You Need to Know About UPS

If you’re an Amazon FBA seller, one of the most important decisions you’ll make is which shipping carrier to use for your shipments. With so many options out there, it can be overwhelming to figure out which one is the best fit for your business. In this article, we’ll focus on UPS and what you need to know about its shipping rates for Amazon FBA in 2017.

The Basics of Amazon FBA Shipping Rates

Before we dive into the specifics of UPS shipping rates for Amazon FBA, it’s important to understand the overall pricing model for Amazon’s FBA program. Essentially, when you use FBA, you’re paying Amazon to handle your order fulfillment and shipping. Amazon charges a variety of fees for this service, including fulfillment fees (which vary by item size and weight), storage fees, and referral fees.

On top of these fees, you’ll also need to pay for shipping your products to Amazon’s fulfillment centers. This is where UPS comes in. As one of Amazon’s approved carriers for FBA shipments, UPS offers a variety of services and rates for this purpose.

It’s important to note that UPS shipping rates for Amazon FBA can vary depending on a number of factors, including the weight and dimensions of your products, the distance they need to travel, and the level of service you require. For example, if you need expedited shipping or special handling for fragile items, you can expect to pay more than if you opt for standard shipping.

Another key consideration when it comes to Amazon FBA shipping rates is the timing of your shipments. If you’re able to plan ahead and send your products to Amazon’s fulfillment centers during off-peak times, you may be able to take advantage of lower rates. Additionally, consolidating your shipments and sending multiple products at once can help you save on shipping costs.

How Amazon FBA Shipping Rates Are Calculated

The specific rates you’ll pay for UPS shipping services in the context of Amazon FBA will depend on a variety of factors. These can include the weight and dimensions of your packages, the origin and destination locations, and the specific service level you choose.

For example, you might opt for UPS Ground for a package from California to Texas. Depending on the weight and size of the package, you might pay anywhere from $7-$20 (or more) in shipping costs. Alternatively, you could choose UPS 2nd Day Air for a faster delivery timeframe, but at a higher cost. It’s important to calculate these costs carefully so you can factor them into your overall pricing strategy for your FBA products.

Another factor that can affect Amazon FBA shipping rates is the type of product you are shipping. Some products may require special handling or packaging, which can increase the shipping costs. Additionally, the distance between the Amazon fulfillment center and the customer’s location can also impact the shipping rates. It’s important to consider all of these factors when determining the most cost-effective shipping options for your FBA products.

Understanding the Different Types of UPS Shipping Services

One important thing to note when it comes to UPS shipping rates for Amazon FBA is that there are many different types of services available, each with its own pricing model. Here are a few of the most common UPS shipping options to consider:

• UPS Ground: This is UPS’s standard shipping service, which generally offers delivery within 1-5 business days within the contiguous United States.
• UPS 2nd Day Air: This service offers delivery within two business days, but at a higher cost than Ground.
• UPS Next Day Air: For packages that need to arrive quickly, this service offers overnight shipping to most locations in the US.
• UPS SurePost: This is a hybrid service that combines UPS’s Ground network with the USPS for final delivery. It can be a cost-effective option for certain shipments.

It’s important to note that UPS also offers additional services that can be added to your shipment for an extra fee. These services include signature confirmation, insurance, and Saturday delivery. Signature confirmation ensures that the package is only delivered to the intended recipient, while insurance provides protection in case the package is lost or damaged during transit. Saturday delivery is a convenient option for customers who need their package delivered on the weekend.

Another factor to consider when choosing a UPS shipping service is the size and weight of your package. UPS has specific size and weight restrictions for each service, so it’s important to check these before selecting a shipping option. Additionally, UPS offers special services for oversized or heavy packages, such as freight shipping and LTL (less-than-truckload) shipping.

Tips for Reducing Amazon FBA Shipping Costs with UPS

As an FBA seller, controlling your shipping costs is a key part of your business strategy. Here are a few tips to keep in mind when using UPS for your FBA shipping:

• Bulk shipments: If you can consolidate multiple products into a single shipment, you can save money on overall shipping costs.
• Plan ahead: Book your shipments in advance to take advantage of lower rates and avoid last-minute rush fees.
• Use your own boxes: Amazon provides guidelines on packaging materials and sizes for FBA shipments, but you don’t have to use Amazon-branded boxes. If you can source your own boxes and packing materials, you may be able to save on costs.

Another way to reduce your Amazon FBA shipping costs with UPS is to consider using a third-party logistics provider (3PL). A 3PL can help you negotiate better shipping rates with UPS and other carriers, as well as provide additional services like warehousing and order fulfillment.

It’s also important to regularly review your shipping costs and adjust your strategy as needed. Look for areas where you can optimize your shipping, such as using different shipping methods or adjusting your packaging to reduce weight and size.

Common Mistakes to Avoid When Using UPS for Amazon FBA Shipping

Of course, as with any shipping carrier, there are also some common mistakes to avoid when using UPS for Amazon FBA. Here are a few to keep in mind:

• Not understanding delivery requirements: Amazon has strict requirements for delivery procedures for FBA shipments. Make sure you understand and follow these guidelines to avoid delays and additional fees.
• Not accounting for dimensional weight: UPS, like many carriers, charges based on dimensional weight (or “DIM weight”) for packages that are large but not heavy. Make sure you calculate your DIM weight accurately to avoid surprises in your shipping costs.
• Forgetting about surcharges: Carriers like UPS may charge additional fees for things like residential delivery, signature required, or fuel costs. Make sure you factor these into your overall shipping costs.

Another common mistake to avoid when using UPS for Amazon FBA shipping is not properly packaging your items. It’s important to use sturdy boxes and packaging materials to ensure that your products arrive at their destination in good condition. Additionally, make sure to label your packages clearly and accurately to avoid any confusion or delays in the shipping process.

How to Compare UPS Shipping Rates with Other Carriers for Amazon FBA

While the focus of this article is on UPS, it’s important to remember that there are many other shipping carriers out there to consider. Some of the most popular options for FBA sellers include FedEx, DHL, and the USPS. To compare rates and services from multiple carriers, you can use a shipping calculator or tool like ShipStation or Freightos.

It’s also worth noting that different carriers may offer different services and delivery options. For example, FedEx may have a faster delivery time for a higher cost, while USPS may have a slower delivery time for a lower cost. It’s important to consider your specific needs and the needs of your customers when choosing a shipping carrier. Additionally, some carriers may have restrictions on certain types of products or packaging, so be sure to check their guidelines before shipping.

The Benefits of Using UPS for Amazon FBA Shipping

So, with all of this information in mind, why choose UPS for your FBA shipping? There are a few key benefits to keep in mind:

• Reliability: UPS is one of the largest and most established shipping carriers in the world, with a strong track record for on-time delivery.
• Flexibility: With a variety of service options available, UPS can meet many different shipping needs for FBA sellers.
• Integration with Amazon: Because UPS is an approved FBA carrier, it’s easy to book and track your shipments directly through the Amazon platform.

Another benefit of using UPS for FBA shipping is their extensive network of drop-off locations. With over 40,000 locations worldwide, it’s easy to find a convenient spot to drop off your packages for shipment.

Additionally, UPS offers a range of tools and resources to help FBA sellers streamline their shipping processes. From online shipping calculators to automated tracking updates, these tools can save time and reduce the risk of errors or delays.

Best Practices for Packaging and Labeling Your Amazon FBA Shipments with UPS

One final piece of the puzzle to keep in mind when using UPS for FBA shipping is the importance of proper packaging and labeling. Amazon has strict guidelines for these procedures, and failing to follow them can result in additional fees or even delays in delivery.

When packaging your items for FBA shipment with UPS, make sure they are securely packed in appropriate boxes or containers. You’ll also need to include an FBA label on each box, which can be printed directly through the Amazon Seller Central platform.

How to Track Your Amazon FBA Shipments with UPS

Once your FBA shipments are en route with UPS, it’s important to keep track of their progress to ensure they arrive on time and in good condition. You can do this by using UPS’s tracking tools, which allow you to see real-time updates on the status of your shipments.

Understanding the Role of Insurance When Using UPS for Amazon FBA Shipping

Finally, it’s worth noting that shipping insurance can be an important consideration when using UPS for FBA shipments. While UPS does offer some basic liability coverage for lost or damaged items, this may not be sufficient for all sellers. You can and should purchase additional shipping insurance if you have high-value items or other unique needs.

In conclusion, understanding Amazon FBA shipping rates with UPS in 2017 is an important part of running a successful FBA business. By following best practices, comparing rates, and planning carefully, you can keep your shipping costs under control and ensure timely delivery of your products to your customers.