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

If you ship UPS through ShipStation you have two options: ShipStation’s pre-negotiated rates, or your own UPS account connected to the platform. Which one is cheaper depends on your parcel profile and your volume, and the fees for connecting your own account change the arithmetic.

What is UPS by ShipStation?

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.

Here’s why:

Lower rates for packages under 5 pounds: in the accounts I have worked in, the rates through UPS by ShipStation are hard to beat on smaller packages unless your own UPS account carries very high volume. That means a negotiated contract most operations will not qualify for. 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. ShipStation states there are no minimum shipping volume requirements on these rates.

When should you use your own UPS account in ShipStation?

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.

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.

However, there are a few things to consider:

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.  On High Volume plans there is also a per-shipment fee for labels created against your own carrier account. It varies by plan and region, and ShipStation publishes the schedule.

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.

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.

The question is usually wrong

Everything above assumes you have to pick one. You do not. ShipStation will hold both accounts at once, and Rate Shopper will price the actual parcel against both and take the cheaper one, per order.

That matters because the answer genuinely changes order to order. Your negotiated rate wins on the heavy parcel going to a commercial address; UPS by ShipStation wins on the two-pound residential one. Choosing a side means being wrong on half your volume by design. Connecting both and letting the comparison run means being right on each order without anyone deciding.

So the useful version of the question is not which account to use. It is how many accounts you can get into the comparison. Every carrier and every account you connect is another rate in the pool, and the pool is where the saving comes from.

The FedEx version of this question turns on a different set of facts — pickups, third-party billing and collect on delivery are things ShipStation’s own FedEx account does not carry at all, which decides it before the rate does. That is covered separately.

One thing the comparison does not see. ShipStation charges a monthly add-on for connecting your own carriers, and on High Volume plans a per-shipment fee on labels bought against them — the schedule is published. Rate Shopper compares carrier rates, not your ShipStation bill, so a rate that wins by a few cents may not have won once the per-shipment fee is added. Worth knowing where your margin between the two accounts actually is before assuming the cheaper line is the cheaper order.

Conclusion

If you have to choose, the decision depends on 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.

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.