Should I Use My Own UPS Rates Instead of the UPS Rates from ShipStation?

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Shipping is one of the most significant operational costs for e-commerce businesses. Choosing the right carrier and rates can make or break your profit margins, so it's essential to make informed decisions.

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If you’re using ShipStation, you may have come across the option to use UPS by ShipStation's pre-negotiated rates or connect your own UPS account to the platform. So, which option will help you save more?

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Let’s break it down so you can make the best decision for your business.

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What is UPS by ShipStation?

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UPS by ShipStation offers discounted rates that are built into the platform. This option is highly competitive, especially if your shipments are light or your business doesn’t have huge shipping volume. 

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Here’s why:

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Lower rates for packages under 5 pounds: For smaller packages, the rates through UPS by ShipStation are tough to beat unless your own UPS account has extremely high shipping volume. We’re talking 20,000+ shipments per month. These discounts are a great advantage for most businesses.

Access to UPS Ground Saver (SurePost): With UPS Ground Saver, you benefit from a hybrid shipping option where UPS handles the bulk of the journey, and USPS takes care of the final mile to the recipient’s door. This can lead to major cost savings for residential deliveries, and many businesses don’t have access to SurePost when using their own UPS account.

No volume requirements: Unlike working directly with UPS to negotiate rates based on shipping volume, there are no specific volume thresholds to meet in order to access these ShipStation-discounted rates. This makes it ideal for most businesses shipping less than 20,000 shipments per month.

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When Should You Use Your Own UPS Account in Shipstation?

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If you have your own UPS account, especially one where you've negotiated favorable rates, you might wonder whether you should use that instead of UPS by ShipStation. 

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In some cases, using your own account may result in better rates, particularly for larger packages, shipments with special services, and if your shipping volume is high enough to negotiate deeper discounts than what ShipStation offers. 

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However, there are a few things to consider:

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Connection fees: ShipStation charges a fee to connect your own UPS account to the platform. The connection fee varies depending on what subscription plan you have.  If you’re on the high-volume plan, ShipStation charges you an additional $0.08 per shipment to print a label using your own carrier account.

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Rate competition: Your negotiated rates may not always be better than those offered through UPS by ShipStation and visa versa. For example, while your rates may be better for shipments without a delivery area surcharge, UPS by ShipStation rates may beat your rates for addresses with a delivery area surcharge. It’s worth comparing your rates with different delivery surcharges to see where your rates or their rates are better.

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Special Services: While UPS By ShipStation offers great rates for UPS Ground and Ground Saver, their pricing for Air services are not the most economical. If you’re a shipper who requires express shipping, negotiating directly with UPS can get you better rates on services like Second Day Air and Next Day Air.

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How String Helps You Always Ship With The Cheapest UPS Rate

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String integrates with ShipStation to automatically compare real-time rates for all of your shipping accounts. Instead of choosing one account, String automatically compares UPS by ShipStation and your own UPS account for each shipment. This ensures that you always choose the least expensive option for every shipment.

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Here’s why String is valuable:

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Maximize your savings: String will always pick the lowest-cost option, whether it's from UPS by ShipStation or your own account. No more manual comparisons, and no more accidental overspending.

Leverage multiple UPS accounts: If you use more than one UPS account (including UPS by ShipStation), String will evaluate the rates from all available accounts, ensuring the most cost-effective choice for each shipment.

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Save time and reduce errors: Automating the rate-shopping process with String eliminates the time-consuming task of manually checking rates. This not only speeds up your shipping workflow but also reduces the risk of costly errors.

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Conclusion

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The decision to use UPS by ShipStation or your own UPS account depends on a variety of factors, including your shipping volume, the size of your packages, and your specific business needs. For many businesses shipping smaller packages, UPS by ShipStation’s rates are hard to beat, especially with the added benefit of SurePost access.

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If you’re shipping in high volumes and have negotiated custom rates with UPS, using your own account could be more beneficial—though you’ll need to consider the fees ShipStation charges for using your own account.

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With String, you don’t need to choose one or the other. All of your shipments are automatically updated with the lowest cost UPS account you have. 

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Click here if you want to see how String could help you save an average of $1.07 per shipment. 

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