In an industry that operates on micro-margins, discount programs can have a notable impact on your bottom line. Here are three tips to cut your fulfillment costs and grow your profits:
Tip #1: Open an account with UPS
First determine which account you should open: daily account with discounted rates or occasional account with the on-demand rate (same as retail rates). If you spend a minimum of $150 in revenue weekly, you’ll qualify for receiving discounted rates: 30% percent on Ground shipments and 10% on Express shipments. At this level, you can request a driver to stop by your shipping location for pick-up. To set-up a daily account with discounted rates, call 1-800-PICK-UPS. To set up an occasional account with on-demand rates, go to www.ups.com. Select the Business Solutions tab, and then select Small Business Owners. From this page, click on the link to register for My UPS and open a UPS account.
Tip #2: Create a FedEx account
To set up an account, you can either call 1-800-GO-FEDEX or go through their website, www.fedex.com; however, you will receive a 10% discount if you apply online. Once you’ve established an account, you must speak to customer service to determine if you’re eligible for discounted rates. Customer service will have a local sales representative contact you to see if you’re eligible. Discounted rates are based on actual, not projected, package volume.
Tip #3: Join the American Bookseller’s Association
If you’re a member of the American Bookseller’s Association, you’re eligible to receive discounts on FedEx, Yellow Transportation, and Overnite Transportation through their alliance with PartnerShip. There are no obligations and no minimum shipping requirements. You can save up to 30% per carton on FedEx Ground shipments and up to 26% on FedEx Express shipments. Find more information about how to save money through this program.
Tags: ABA, american booksellers association, book savings, discount books, fedex, save money on shipping, save on shipping, ups
The caveat here being that you’re shipping volume. If you’re an author selling the occasional book (as my colleague and I do with our own books at http://www.itenlightenment.com), then the USPS media rate is going to be the best way to go.
For instance, one of my books and envelope weigh a combined 3 lbs. 5.30 oz, which costs $3.01 to send media rate to anywhere in the United States. A quick calculation on UPS indicates that sending the same package via UPS ground to California (its cheapest option) costs $11.30. Sending the same package to Honolulu via UPS ground would cost a whopping $29.45, or more than the price of my book.
Great site!
Jason