How Do Carrier Discounts Work?

February 20, 2025

Carrier discounts are negotiated price reductions on shipping rates, usually offered to high-volume shippers. These discounts lower the base shipping cost and may include additional savings on accessorial fees (e.g., residential delivery, fuel surcharges).

Types of Carrier Discounts:

  • Volume Discounts – The more you ship, the lower your per-package cost.
  • Negotiated Service Agreements (NSAs) – Custom pricing agreements between businesses and carriers.
  • Contract Pricing – Locked-in rates over a specified period.
  • Regional & Hybrid Discounts – Lower rates for zone-skipping or alternative last-mile carriers.
  • Marketplace Discounts – Some platforms (e.g., Shopify, Amazon) offer pre-negotiated rates with USPS, UPS, or FedEx.

How FirstMile Helps:

FirstMile leverages its multi-carrier network to provide volume-based pricing even for smaller shippers. Unlike single-carrier solutions, we compare multiple shipping options to find the best rates and transit times.

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