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Contract Negotiations for Small Parcel Shipping

By Last updated on: October 11, 2019

Is This Something My Business Should Do?

The real question here is not why should your business negotiate for better shipping rates, but instead – why not? But before you call your friendly carrier rep for a meeting, there are a few FedEx service agreement discounts strategies you will want to consider first. 

No one knows your business as you do. Well, this SHOULD be the case at least. Review your shipping data. Is there a volume amount or a specific geographic area that saw the biggest increase? Are there areas of concern Did you see a high amount of late deliveries? Are you able to offer customers the best shipping options at the most competitive cost? If you are trying to negotiate a better price or shipping option than what you currently have, it only makes sense that you must know what you currently have. If you sit down at the negotiation table with your carrier rep who knows your business data better than you do, who now has the advantage?

Contract Negotiation Strategies

Also, before you feel victorious with negotiated discounts, you need to know that they are discounts that will truly be beneficial to your business. Discuss the negotiated services with the carrier – and get details in writing – to ensure the services will affect your bottom line. Ask questions like, “If these discounts were in place last year, how would our total spending have been different?” Again, this enforces the point that you must know your shipping data.

FedEx Shipping Data

We’ve discussed the importance of knowing past shipping data, but do not lose sight of needs for future shipping plans. Shipping costs can change drastically if your business grows to include different shipping locations or frequency. As your business expands, you may notice a change in peak shipping dates or that you are shipping more frequently from a different location. Perhaps you have emerged into a new industry altogether. Regardless of the reason, you do not want to pay for services you do not need.

Of course, YOU are an advocate for your business but do not perceive your carrier representative to be the opposite. Obviously, it’s in the rep’s best interest to procure your business, but it’s also in his best interest to keep it. Building a good working relationship with your representative is a great way to assure that both sides will confidently reach decisions that are beneficial. Performance evaluations do not end with your employees. If your carrier representative is not providing the excellent service, it may be time to pack up and ship out and find someone new.

FedEx Service Agreement Discounts Negotiations

Over the next few blog posts, we will go into further detail of how to tackle your contract negotiations. Refund Retriever will provide you with the expertise to maximize FedEx service agreement discounts. As an auditing customer, we’ll give you reports (also free) with insightful, convenient, and useful knowledge about your shipping. After all, it’s your data – we just manage it and provide bitable information.

Our goal is to give you a clear roadmap on how to successfully negotiate yourself, free of charge. Specifically, we’ll discuss:

  • Detailed analysis of shipping data
  • How can Refund Retriever’s free analytical tools help?
  • FedEx service agreement discounts benchmarking
  • What is negotiable?
  • How to put together Request for Proposals (RFPs)
  • Other Options

Stay tuned!

Brian Gibbs

Author Brian Gibbs

More posts by Brian Gibbs

Brian Gibbs | President of Refund Retriever

Brian Gibbs founded Refund Retriever in 2006 while running his first eBay based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he then graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur and other publications discussing parcel auditing, shipping, e-commerce and more. Learn more at or call (800) 441-8085 for more information.

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