What's the minimum volume for a shipping agreement?

For direct agreements, carriers typically expect a commitment around 500 shipments a month, though the threshold varies by carrier and region. Platform agreements have no minimum — you can use discounted rates from your very first shipment.

Can I get discounted shipping rates without an agreement?

Yes. Shipping platforms negotiate with carriers on their aggregate volume and open those rates to their users. No commitment, no paperwork, and the rate doesn't change if your volume drops. It may not match a direct agreement, but the gap versus list price is large.

What's the most commonly overlooked clause in a shipping agreement?

Fuel surcharges and the dimensional-weight formula. A unit price can look attractive while the real cost climbs sharply because the surcharge isn't included. The formula matters just as much as the rate: if you sell light but bulky products, actual-weight billing works strongly in your favor.

Can I hold agreements with several carriers at once?

You can, and in most cases you should. Each carrier is strong in different regions and weight bands, so multiple agreements let you pick the cheapest option per shipment. Depending on one carrier is both a cost risk and a capacity risk during peak.

How do I check that my negotiated rates are actually being billed?

Reconcile the first invoice line by line against your rate card. Verify five things separately: unit price, fuel surcharge, COD commission, dimensional-weight calculation, and the return tariff. Most errors surface in the first two invoice cycles and can be corrected retroactively.

How long should the contract be?

Keep your first agreement short. One year is standard, but six-month and no-commitment options exist. Locking in long before you've measured the carrier's delivery performance with your own data can leave you stuck with a bad carrier for a year.

What to Check Before Signing a Shipping Agreement

A shipping quote needs more than your monthly parcel count. Include parcel sizes, destinations, returns and collection requirements. Giving carriers the same shipment profile makes their offers easier to compare.

Related reading: reducing shipping costs, carrier agreements page.

What Is a Shipping Agreement?

A shipping agreement is a contract between an e-commerce business and a carrier that provides discounted shipping rates under certain conditions. Under an agreement:

Special rates below standard list prices apply
Volumetric weight calculations may be more favorable
Cash on delivery commission rates can be reduced
Insurance and additional services may be discounted

Types of Shipping Agreements

1. Direct / Individual Agreements

Agreements negotiated directly with the carrier in one-on-one discussions.

Advantages:

Fully customized pricing for your business
Better rates as your volume increases
Can request special services (priority delivery, custom pickup schedules)

Disadvantages:

Requires monthly volume commitment (typically 500+ shipments/month)
Negotiation process can take 1-4 weeks
Must negotiate separately with each carrier
Rates may increase if volume drops

How to apply:

Contact the carrier's corporate sales department
Share your estimated monthly volume, average weight/dimensions
Specify your shipping regions and delivery expectations
Get quotes and compare
Review contract terms carefully (duration, commitment, penalty clauses)

2. Platform Agreements

Pre-negotiated agreements that shipping management platforms have with carriers based on aggregate volume. Platform users benefit from these discounted rates directly.

Advantages:

No minimum shipment commitment
Start immediately — no paperwork or waiting period
Access discounted rates from multiple carriers in one place
Rates don't change even if your volume drops

Disadvantages:

Rates may not be as low as individual agreements (for very high-volume businesses)
Custom service requests may be limited

Ideal for:

New e-commerce businesses
Merchants shipping fewer than 500 orders per month
Businesses that haven't reached the volume for individual agreements
Entrepreneurs who want to start quickly

3. Hybrid Approach

The smartest strategy: use your own negotiated rates with carriers where you have agreements, and platform rates for the rest. Browse the full list of supported carriers to see which ones you can work with.

For example: if you have a direct agreement with one carrier, use that. For other carriers, use the platform's pre-negotiated rates. This way you always get the best price for each shipment.

Tips for Negotiating with Carriers

Prepare volume data

Before approaching a carrier, prepare your last 3-6 months of shipping data: total shipments, average dimensions, shipping regions, return rate.

Get quotes from multiple carriers

Don't negotiate with just one. Get quotes from at least 3 carriers to compare. You can use one carrier's quote as leverage with another.

Negotiate dimensional weight calculations

The pricing formula matters as much as the price itself. Some carriers can calculate based on actual weight instead of volumetric weight — a huge advantage for light but bulky products. Do your packaging optimization before the negotiation and you'll come to the table with a smaller average parcel.

Ask about COD commission

If you offer cash on delivery, negotiate the commission rate. Standard 2-3% rates can often be reduced to 1-1.5% with an agreement. Just as important as the commission is how quickly the carrier remits the cash — our cash on delivery guide covers the cash-flow side.

Watch the contract duration

While 1-year contracts are standard, 6-month or no-commitment options exist. Prefer shorter terms for your first agreement — extend if you're satisfied with performance.

What to Watch Out For

Hidden costs

Fuel surcharges: Some agreements don't include fuel surcharges in the quoted price
Additional service fees: Doorstep delivery, scheduled delivery, SMS notifications may carry extra charges
Return shipping: Return shipments may be priced at a different tariff

Performance conditions

Clarify the conditions under which agreement prices remain valid
Learn what happens if you can't meet minimum volume requirements
Get information about price increase periods and notification timelines

The performance side of an agreement matters as much as the price side. Two carriers quoting the same rate cost very different amounts once late deliveries and damage rates are counted — starting to measure carrier performance becomes your strongest card in the next negotiation.

Integration support

Check if the carrier offers API support
Verify compatibility with your e-commerce platform
Ensure label printing, tracking, and return processes support automation

Shipping Agreement Price Comparison

Prices vary by region, weight, and service type. A general comparison:

	List Price	Direct Agreement	Platform Agreement
Small package (local)	$8-12	$4-6	$5-8
Small package (national)	$10-15	$5-8	$6-10
Discount range	—	35-55%	25-45%
Commitment	None	Yes (monthly volume)	None
Setup time	—	1-4 weeks	Instant

Note: Prices are estimates and vary by carrier, region, and volume.

A Real Scenario: A Merchant Shipping 300 Orders a Month

Numbers make the difference concrete.

Merchant profile: An accessories retailer. 300 shipments a month, mostly small packages, 70% national.

At list price (no agreement):

Local: 90 shipments × $10 = $900
National: 210 shipments × $12 = $2,520
Total: $3,420/month

With a platform agreement:

300 shipments × ~$7 = $2,100/month
Monthly saving: ~$1,320
Annual saving: ~$15,800

With a direct agreement (requires a 500+ shipment commitment):

Local: 90 × $5 + National: 210 × $6.50 = $1,815/month
But at 300 shipments a month this merchant can't credibly commit to 500
The platform agreement is the sensible choice at this stage

Once this merchant reaches 500 shipments a month it can open direct negotiations and save roughly another dollar per parcel.

How to Write Your First Quote Request

A template you can send to a carrier's corporate sales team:

Hello, [Carrier] corporate sales team.

We run an e-commerce business on [platform] under the name [Brand Name]. We currently ship around [X] parcels a month and aim to reach [Y] over the next six months.

Our shipment profile:

Average weight/dimensions: [Z]

[A]% local, [B]% national

Cash on delivery share: [C]%

We'd like a quote for a corporate shipping agreement. We're also in discussions with [other carrier].

Contact details: [phone, email]

Tip: Including the line about talking to another carrier is what gets you a more competitive number.

Which Method Should You Choose?

Situation	Recommended approach
0-100 shipments/month, just starting	Platform agreement
100-500 shipments/month, growing	Platform agreement + request quotes from 1-2 carriers
500+ shipments/month, stable volume	Direct agreement + platform agreement (hybrid)
2,000+ shipments/month	Mostly direct agreements, best available rates

Post-Agreement Checklist

For the first month after signing, verify:

Do the unit prices on the invoice match the agreed rates?
Is the fuel surcharge calculated correctly?
Is the COD commission the rate you agreed on?
Does the dimensional weight calculation follow the agreed formula?
Are return shipments billed at a different tariff?
Are SMS/notification fees invoiced separately?

Running these checks in month one is how you catch surprise costs while they're still correctable.

When the agreement comes up for renewal, the carrier rate increase and contract renewal guide shows how to calculate what the announced increase really means for your shipments and how to prepare for the conversation.

Putting This Into Practice

Price each offer against the same shipment list. Confirm surcharges and return terms in writing, then compare a sample invoice with the tariff.