How to Discount FedEx and UPS Shipping Costs | Lojistic [ ](https://www.lojistic.com)- Why Lojistic - [ All Inclusive. Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. 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Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. Parcel, LTL, truckload, ocean, rail, air freight. ](https://www.lojistic.com/carrier-connectors) - [ Industries Served Retail, eCommerce, 3PL, manufacturing, and more. ](https://www.lojistic.com/industries-served) - [ Roles Most Impacted & How Supply chain & logistics, procurement, finance leaders. ](https://www.lojistic.com/roles-most-impacted) - [ Use Cases How Lojistic helps manage and reduce shipping costs. ](https://www.lojistic.com/use-cases) - Platform Features - [ Global Analytics & Reporting Predictive analytics and scenario modeling for all carriers globally. ](https://www.lojistic.com/shipping-analytics-software) - [ Rate Optimization & RFPs Tech-powered data prep, strategy, and rate impact analyses. ](https://www.lojistic.com/rate-optimization-rfps) - [ Parcel and Freight Audit & Payment *+PAY* Carrier refunds and payments automated and made simple. ](https://www.lojistic.com/freight-audit-and-payment) - [ GL Coding & ERP Sync Automatically code shipping costs down to the order level ](https://www.lojistic.com/gl-coding-erp-sync) - [ Lojistic API & App Integrations Easily integrate normalized shipping data to your business systems. ](https://www.lojistic.com/api-app-integrations) - [Pricing](https://www.lojistic.com/pricing) - [About](https://www.lojistic.com/about) - [Company](https://www.lojistic.com/company) - [Culture](https://www.lojistic.com/culture) - [Careers](https://www.lojistic.com/careers) - [Partner Programs](https://www.lojistic.com/partner-programs) - [Security](https://www.lojistic.com/security) - [Media](https://www.lojistic.com/media) - [Ratings & Review](https://www.lojistic.com/reviews) - [Videos](https://www.lojistic.com/videos) - [Blog](https://www.lojistic.com/blog) - [Contact](https://www.lojistic.com/contact) [Create Free Account](https://app.lojistic.com/demo/connect-carrier?activeStep=create-account&trackDemo=false) [View Demo](https://app.lojistic.com/demo) [ Log In](https://app.lojistic.com/demo/account/login?trackDemo=false) How to Discount FedEx and UPS Shipping Costs ============================================ ![Icon denoting blog author information in Lojistic’s content layout](/images/pages/blog/icon-author.svg)Rich Harkey ![Calendar icon used to display blog post dates on Lojistic’s website](/images/pages/blog/icon-calendar.svg)September 11, 2011 Shipping with FedEx and UPS can be very costly. Over the last year, prices have risen substantially. However, there are some simple things that budget-conscious customers can do to [discount FedEx and UPS shipping costs](https://www.lojistic.com/rate-optimization-rfps) without sacrificing delivery speed. **Use Third Party Insurance** FedEx and UPS Shipping charge $.0.70 for each $100 of Declared Value that they insure. Third party insurance offers the same level of protection at lower rates, such as $0.30. That 'insignificant' forty cents adds up. Consider a shipment that costs $3000, if it is insured with the carrier, the shipper would pay $20.30 (insurance for the initial $100 is usually free). If the shipment was covered by [third party insurance](https://www.lojistic.com/), it would only cost the shipper $9.00, over a $10 discount on FedEx or UPS insurance costs. **Use the Correct Packaging** Carriers charge different rates for different envelopes, packages and boxes. Posting a letter in an envelope, will be cheaper than using a Pak. FedEx charges $48.35 to send a Pak cross-country but only $29.70 for an envelope. When sending documents, shippers can get a significant discount by using a plain envelope. **Use 'Next Day Air' Shipping Selectively** Next Day Air shipping is two-to-three times more expensive than ground shipping. However, it may not be any faster. If the package is only going 150 miles or less, it is unlikely that it will arrive any faster if sent by Next Day Air. In fact, it is likely that if two letters were sent to the same destination that close by, one by regular ground shipping, the second by air-mail, they would travel in the same truck, arriving simultaneously. **Pay Online** Paying online for shipping with FedEx results in automatic discounts of 10%. Paying with American Express raises the discount to 15%. Frequently check the Promotion center for additional FedEx discounts. **Ask For Discounts & Refunds** Customers who frequently ship over seas or use next-day delivery services in bulk can call customer relations and ask for a negotiated discount. \[call-to-action\]Learn how Lojistic can help reduce your shipping costs!\[/call-to-action\] Even small and medium enterprises have the opportunity to try and negotiate a discount with FedEx or UPS. However, to effectively negotiate with these major carriers businesses need to know the details of their shipping needs, as well as what industry standards are. Businesses that don't have this expertise in-house should consider making use of a consulting and auditing firm, like Lojsitic, that specializes in shipping efficiency. A consulting and auditing firm can help businesses save even more on shipping by performing [audits of shipping charges](https://www.lojistic.com/freight-audit-and-payment). Freight carriers often charge customers incorrectly for 'services' like 'correcting' addresses, by changing 'Apt #' to 'Unit ', or incorrectly classifying a building as residential instead of commercial. These fees can and should be refunded. Roughly 3% of FedEx deliveries are late. However, refunds are only given if the customer asks for them. A consulting firm can make sure that businesses only pay for the service they receive. ![Rich Harkey Headshot](https://www.lojistic.com/assets/public/users/rich.png) Author Rich Harkey Rich Harkey Senior Strategy Manager Rich Harkey is a results-driven professional with extensive experience in the logistics and supply chain industry. As the Senior Strategy Manager at Lojistic, Rich leverages over three decades of expertise to help businesses improve their shipping strategies and reduce costs. With a deep understanding of the requirements of shippers and the operational intricacies of carriers, he excels in everything from optimizing business rules and managing carrier invoices to negotiating carrier contracts. Rich's comprehensive knowledge of the logistics industry, combined with his strategic insights and passion for data analysis, has enabled thousands of companies to gain visibility into their shipping expenses, driving impactful results. [« Previous Post](/blog/how-to-lower-shipping-costs-and-maintain-customer-expectations) [Next Post »](/blog/the-confusion-of-ups-and-fedex-discounts) **Lojistic Blog** [Recent Posts](https://www.lojistic.com/blog) | [Categories](https://www.lojistic.com/blog/categories) Why Lojistic ---------------- - [All-Inclusive. Zero Cost. ](https://www.lojistic.com/pricing) - [All Modes. All Carriers. 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