How to Use Volume Discounts to Negotiate Better Shipping Rates with OnTrac

Shipping is a critical aspect of e-commerce, and businesses that operate online must be able to manage their shipping costs effectively. Shipping rates can significantly impact a business’s bottom line, especially for small and medium-sized enterprises that have to compete on price. One company that offers businesses an opportunity to reduce their shipping costs is OnTrac. In this article, we’ll explore how to use volume discounts to negotiate better shipping rates with OnTrac.

Understanding the Importance of Shipping Rates for E-commerce Businesses

For e-commerce businesses, shipping costs can make up a significant portion of their overall expenses. This is why understanding shipping rates is important. Shipping rates are the fees charged by shipping companies like OnTrac to transport packages from one location to another. These rates vary depending on the weight and dimensions of the package, the shipping destination, and the type of service selected. A better understanding of shipping rates will help businesses to predict their expenses accurately and plan accordingly.

Moreover, shipping rates can also impact customer satisfaction and loyalty. High shipping costs can deter customers from making a purchase, especially if they find similar products with lower shipping costs elsewhere. On the other hand, offering free or discounted shipping can attract more customers and increase sales. Therefore, e-commerce businesses need to strike a balance between affordable shipping rates and maintaining profitability. By analyzing shipping data and negotiating with shipping companies, businesses can optimize their shipping strategies and improve their bottom line.

What is OnTrac and How Can it Benefit Your Business?

OnTrac is a regional shipping carrier that operates in eight western states: California, Arizona, Nevada, Oregon, Washington, Utah, Colorado, and Idaho. As a regional carrier, OnTrac provides reliable delivery services at a more affordable rate than national carriers like UPS and FedEx. OnTrac also offers a range of solutions to help businesses of all sizes manage their shipping requirements more effectively.

One of the key benefits of using OnTrac is their focus on speed and efficiency. OnTrac offers same-day and next-day delivery options, which can be a game-changer for businesses that need to get their products to customers quickly. Additionally, OnTrac has a strong track record of on-time delivery, with a 97% success rate.

Another advantage of using OnTrac is their commitment to sustainability. OnTrac has implemented a number of eco-friendly initiatives, such as using hybrid vehicles and optimizing delivery routes to reduce emissions. By choosing OnTrac as your shipping carrier, you can feel good about reducing your business’s carbon footprint.

The Benefits of Volume Discounts for Shipping Rates

One of the most significant benefits of working with OnTrac is their volume discount pricing. Volume discounts are offered to businesses that ship large volumes of packages regularly. Volume discounts work by providing a percentage discount on the shipping cost based on the total volume of packages shipped. The more packages a business ships, the higher the percentage discount. These discounts can be an effective way to reduce shipping costs for businesses that ship large quantities of products.

In addition to cost savings, volume discounts can also lead to improved efficiency in shipping operations. By shipping larger volumes of packages, businesses can consolidate shipments and reduce the number of individual shipments they need to make. This can lead to fewer trips to the post office or shipping center, saving time and resources.

Furthermore, volume discounts can help businesses to remain competitive in their industry. By reducing shipping costs, businesses can offer more competitive pricing to their customers, which can help to attract and retain customers. This can be especially important in industries where shipping costs are a significant factor in the purchasing decision.

Calculating Your Shipping Volume and Eligibility for Volume Discounts

Before negotiating volume discounts, it’s important to understand your shipping volume. To calculate your shipping volume, review your shipping invoices for the past six months and determine how many packages you’ve shipped. Once you have this information, it’s easier to determine whether your shipping volume is high enough to be eligible for volume discounts. Contact your OnTrac sales representative to see if you qualify for discounted shipping rates.

It’s also important to consider the weight and dimensions of your packages when calculating your shipping volume. Some carriers may have specific requirements for package size and weight in order to qualify for volume discounts. Make sure to review the carrier’s guidelines before negotiating any discounts.

In addition to volume discounts, some carriers may offer other incentives for high-volume shippers, such as dedicated account managers or priority customer service. These perks can be valuable for businesses that rely heavily on shipping and need quick and reliable support. Be sure to ask your carrier about any additional benefits that may be available to you.

Tips for Negotiating Better Shipping Rates with OnTrac

When negotiating with OnTrac, start by sharing your shipping volume and your shipping requirements. OnTrac offers a range of services that can help businesses manage their shipping requirements more effectively. You can negotiate discounts by consolidating your shipments, negotiating longer-term contracts, or working with OnTrac to optimize your shipping processes. Whatever your strategy, it’s important to have a clear idea of your shipping requirements and expectations.

Another important factor to consider when negotiating with OnTrac is your shipping destination. OnTrac offers regional shipping services, which can be more cost-effective for businesses shipping within a specific region. If your business primarily ships within a certain area, it may be worth exploring OnTrac’s regional shipping options to see if you can negotiate better rates.

Finally, it’s important to keep in mind that OnTrac is not the only shipping carrier available. It’s always a good idea to compare rates and services from multiple carriers to ensure you’re getting the best deal for your business. Don’t be afraid to negotiate with other carriers as well, and use any competitive offers to your advantage when negotiating with OnTrac.

Understanding the Factors that Affect Shipping Rates

Several factors affect shipping rates. The type of service selected, the shipping destination, the weight and dimensions of the package, and the package’s value all factor into the cost. Other factors that can impact rates include fuel surcharges, residential delivery fees, and Saturday delivery fees. By understanding these factors, businesses can better plan their shipping expenses.

It’s important to note that shipping rates can also vary depending on the time of year and current market conditions. For example, during peak holiday seasons, shipping rates may increase due to high demand. Additionally, if there is a shortage of carriers or an increase in fuel prices, shipping rates may also be affected. It’s important for businesses to stay informed about these market conditions and adjust their shipping strategies accordingly.

Maximizing Your Savings by Choosing the Right Shipping Method with OnTrac

OnTrac offers a range of shipping options to meet the needs of different businesses. Businesses that require expedited shipping can choose OnTrac’s express service, while those that want to reduce costs can opt for OnTrac’s ground service. Businesses can save even more money on shipping costs by taking advantage of OnTrac’s smart post options.

Additionally, OnTrac offers volume discounts for businesses that ship large quantities of packages. The more packages a business ships with OnTrac, the greater the discount they receive on their shipping costs. This can be a significant cost-saving measure for businesses that regularly ship large quantities of products.

The Importance of Tracking and Delivery Confirmation with OnTrac

OnTrac offers businesses access to real-time tracking and delivery confirmation. Tracking and delivery confirmation help businesses to operate more efficiently by providing them with the information they need to manage their inventory and customer expectations better. With OnTrac’s advanced tracking tools, businesses can monitor their packages from pickup to delivery.

Moreover, OnTrac’s tracking and delivery confirmation system also helps businesses to identify and resolve any issues that may arise during the shipping process. For instance, if a package is delayed or lost, businesses can quickly identify the problem and take appropriate action to ensure that their customers receive their orders on time.

Additionally, OnTrac’s tracking and delivery confirmation system can also help businesses to improve their customer service. By providing customers with real-time updates on the status of their packages, businesses can enhance their customers’ experience and build trust and loyalty. This, in turn, can lead to increased sales and revenue for the business.

How to Manage and Track Your Shipments with OnTrac’s Online Tools

OnTrac’s online tools provide businesses with the information they need to manage their shipping operations effectively. Businesses can access shipping forms, track shipments, and view delivery confirmation through OnTrac’s online portal. This portal can also be customized to meet the specific needs of individual businesses.

In addition to the basic features, OnTrac’s online tools also offer advanced reporting capabilities. Businesses can generate reports on shipping volume, delivery times, and other key metrics to help them make informed decisions about their shipping operations. These reports can be exported to Excel or other formats for further analysis.

Another benefit of using OnTrac’s online tools is the ability to set up automated alerts. Businesses can receive notifications via email or text message when a shipment is delivered, delayed, or encounters any other issues. This helps businesses stay on top of their shipments and quickly address any problems that arise.

Common Mistakes to Avoid When Negotiating Shipping Rates with OnTrac

When negotiating shipping rates with OnTrac, it’s important to avoid some common mistakes that businesses often make. One of the most common mistakes is not having a clear understanding of shipping requirements. It’s also important to understand the pricing structure and shipping options available to your business. Be sure to ask for a written contract that details the negotiated rates and terms to avoid any surprises.

Another common mistake to avoid when negotiating shipping rates with OnTrac is not considering the volume of shipments. If your business ships a high volume of packages, you may be eligible for discounted rates. It’s important to provide accurate shipment volume information to OnTrac to ensure you are receiving the best possible rates. Additionally, it’s important to regularly review your shipping rates and negotiate with OnTrac to ensure you are getting the most competitive rates for your business.

The Future of E-commerce Shipping and the Role of OnTrac

The future of e-commerce shipping is expected to see increasing demand for faster and more affordable shipping options. OnTrac is well-positioned to meet this demand. With its regional network and focus on providing affordable shipping services, OnTrac is poised to play a significant role in e-commerce shipping for years to come.

In conclusion, OnTrac’s volume discounts can be an effective way for e-commerce businesses to reduce their shipping costs. Businesses that ship large volumes of packages regularly should consider negotiating volume discounts with OnTrac. By understanding shipping rates, negotiating discounts, and selecting the right shipping options, businesses can reduce their shipping expenses and operate more efficiently.