Why is Shippo so cheap?

Shippo offers discounted shipping rates because it acts as a shipping software platform that aggregates rates from multiple major carriers, such as USPS, UPS, FedEx, and others. Here's why it can offer cheaper shipping compared to going directly through the carriers:

1. Discounted Carrier Rates

Shippo gives users access to discounted rates from major carriers by leveraging its volume discounts. Since Shippo aggregates shipping for many businesses and individuals, it can negotiate better rates with the carriers. This is particularly beneficial for small businesses or e-commerce sellers who do not ship high volumes on their own.

• USPS Discount: Shippo has partnerships with USPS, meaning it can offer access to discounted USPS rates, which are often lower than the retail prices you'll find on the USPS website.
• UPS & FedEx: Similar to USPS, Shippo also offers discounts for UPS and FedEx shipments, especially when you're shipping regularly or in larger quantities.

2. No Subscription Fees for Individual Users

Shippo does not charge any monthly or subscription fees for individual users. Instead, you pay for the shipping labels you create, and the platform passes on the discounts it gets from the carriers. For small businesses and individual shippers, this is a huge advantage because you only pay for what you need without committing to an expensive membership.

• No Hidden Costs: Shippo provides transparent pricing, so you can see exactly what you're paying for each label.

3. Access to Multiple Carriers

By comparing multiple carriers and their rates in real-time, Shippo makes it easier to find the most cost-effective shipping option for your package. The ability to compare USPS, UPS, FedEx, DHL, and other carriers means you can select the one with the best price for your needs.

4. Automation and Integration

Shippo also offers tools for automating and integrating shipping into your e-commerce workflow. For example, if you’re selling on platforms like Shopify, Etsy, or eBay, Shippo can automatically pull your order information, create shipping labels, and apply discounts for you. This streamlines the process, saving both time and money.

5. Real-Time Rate Calculation

Shippo calculates shipping rates in real-time, which helps you avoid surprises in shipping costs. You can input your package dimensions, weight, and destination, and Shippo will show you the most cost-effective shipping options at that moment, based on your specific package.

Is It "Real" or Too Good to Be True?

Yes, the discounts and lower prices offered by Shippo are real—they are legitimate discounts based on bulk shipping rates negotiated by the platform. However, there are a few caveats:

1. Discount Availability: The level of discount you receive will depend on the specific carriers and shipping services you use. For example, USPS often provides steep discounts through Shippo, but FedEx and UPS may have slightly smaller discounts depending on the size of your shipment.

2. Additional Fees: While Shippo's rates are competitive, some users may find additional fees depending on how the shipping labels are purchased or printed, particularly for international shipments.

3. No Free Shipping: While Shippo can offer discounted rates, it doesn't eliminate shipping costs. The discounts are simply better than the standard retail rates you would get if you went directly through a carrier’s website.

4. Small Business Focus: Shippo is designed to help small businesses and entrepreneurs, so the discounts may be more advantageous to those who ship frequently, rather than for occasional personal use.

Conclusion

Shippo is a legitimate service that offers real discounts on shipping by leveraging its volume-based agreements with major shipping carriers. It's not a gimmick—small businesses and e-commerce sellers can take advantage of these discounts to save on shipping costs. If you're shipping regularly or in bulk, it can be a very cost-effective solution.

However, if you're only shipping occasionally or for personal use, you might find better value directly through USPS, UPS, or FedEx, depending on your package needs. For those who need to compare multiple carriers quickly and easily, Shippo offers a great service with transparent, low-cost options.