Shipping costs are often one of the largest variable expenses in FBA operations. While many sellers rely on Amazon’s standard freight programs (SPD, negotiated pallet rates), exploring alternative LTL carriers can unlock meaningful savings — especially at scale.
Common Carrier Options
- Amazon’s negotiated programs (SPD, standard pallet rates) — convenient but not always the most competitive
- Third-party LTL carriers — may offer better per-pound or per-pallet pricing depending on lanes, weight, and frequency
- Regional specialists — sometimes undercut national carriers on regional routes
- Consolidation & hybrid approaches — combining multiple shipments or splitting between carriers to optimize per-unit cost
Key Variables That Drive Pricing
- Lane (origin to destination) — some routes have more capacity and competition
- Weight and density — lighter, bulkier shipments may have worse per-pound costs
- Frequency and consistency — regular shippers often negotiate better rates
- Accessorial fees — residential delivery, limited-access warehouses, liftgate service, etc. can add 15–50%
- Transit time flexibility — willing to accept slower delivery can cut cost significantly
How Squatio Helps
Lowering freight costs directly improves unit economics. Prospect (Product Database) helps you identify which SKUs are high-velocity, low-margin candidates where even 5–10% freight savings compound into meaningful profit recovery. Use it to prioritize which products warrant the operational overhead of testing new carriers, and to model how carrier cost changes flow through to your margin targets.
Have you negotiated rates with carriers outside of Amazon’s standard programs? What was your experience with pricing, reliability, and hidden fees?
Source: Reddit