• 06-05-2022

What to know about negotiating with shipping partners

In easiest terms, a shipping method is a plan that lets you determine what your shipping goals are and what obstacles you need to overcome to reach those goals. For instance, one major common shipping goal is to reduce shipping costs by a certain percentage without sacrificing order fulfillment, delivery speed, or customer satisfaction. 4 primary areas need to be evaluated by an enterprise when employing a new courier partner, i.e., shipping rates and pricing, speedy delivery, transparency in shipping and tracking by using advanced technology, and finally the reach of the partner, based on the fleet of vehicles and channel partners they have in place. A vital function of determining the best courier companies to partner with us to calculate what are the ideal shipping rates that would enable or enhance your company’s profitability. While creating a simple spreadsheet can help you understand the various elements that contribute to both expenses and profits before manifestation and up to order completion, another smart and efficient option is to deploy AI/ML (Artificial Intelligence / Machine Learning) to calculate and compare shipping rates.

The shipping industry can show you substantial protection possibilities. To identify these, you have to have a sensitive eye. In this blog, we look at major ways you can apply negotiation training skills to obtain better shipping rates.

Research Possible Hidden Costs

One of the things that can reduce your earnings is hidden logistics costs. The final price for your products should factor in all the costs you desire to incur before delivery. Speaking to the different authorities that can come into contact with your products in transit can clarify your overall costs. Knowing the factors affecting your shipping rates can help you negotiate to reduce hidden costs. By working closely with your shipping company, you can identify smart ways to cut down your costs. Many companies have different shipping rates based on weight as well as box dimensions. If you use the standard boxes the shipping company provides, you can save a few dollars on each load.

Payment Terms

Although one-off payment offers come with attractive discounts, they can also be particularly difficult. Making payments in installments is safer and keeps the shipping company committed until the final payment. Offer well-balanced expenditure terms that enable your shipping firm to produce your outcomes on time while determining your economic risk.


Based on your enterprise model, you should have an expense you are not willing to go above. Your procedure should contain the ideal and maximum price you are willing to offer for the shipping service.


A BATNA is your Best Alternative to a Negotiated Agreement. It directs to a set of alternative options you can take if you cannot reach a viable deal in your negotiations. A well-planned BATNA can help you to determine a bad deal and give you the confidence to walk away.


Time restrictions can have a substantial influence on your negotiation procedure. The less pressure you will have to close a deal when earlier you start conversations with shipping companies . Starting your negotiations early can give you more time to reach a mutually practical agreement.