I'm putting together a business plan for an e-commerce site. I'm trying to figure out the cost of shipping at scale so I can calculate profitability. To start with we will most likely be using Shippo or some simular service, but what I'm looking for is what is the best carrier to deal with in general when we hit 1k+ shipments per day?
Some details. This will be a US based business with the predominate volume being domestic shipments. We are located in the upper midwest and expect shipment distribution to be spread evenly across the country. Average shipment weight is 5-10 pounds. We will be selling to direct to consumers and need to be relatively competitive with Amazon.
I know UPS and FedEx will negotiate based on volume. What kind of volume pricing can we expect with that scale? If there are any other industry tips you can share with me I'd appreciate the advice.
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