In today's fast-paced environment, everyone wants things yesterday. This goes double for online shoppers who expect lightning-quick delivery— 23% say they've abandoned their cart due to slow shipping. The right choice in shipping options isn't always clear for businesses, though.

While speedy shipping can be a competitive advantage, it can also come with a hefty price tag— compounded by peak demand fees, fuel surcharges, and zip-code-related surcharges. In its recently released first quarter FY 2025 results, FedEx reported a dip in its premium service usage, with businesses opting for slower, lower-cost options instead. The carriers are facing a growing dilemma as their customers choose between speed and savings.

What's the right choice for your business? Do you need to choose — or is there a way to get the speed your customers want at a price you can afford?

What can we learn from FedEx's FY 2025 first-quarter results?

Compared to last year, revenue is down by $100 million. And the latest adjusted operating income is $1.21 billion— down from $1.59 billion last year.

Despite lower-than-expected results, FedEx president and chief executive officer Raj Subramaniam says he is still "confident in the value-creation opportunities ahead as we focus on reducing our structural cost, growing revenue profitably, and leveraging the insights from our vast collection of data as we continue to build the world's most flexible, efficient and intelligent network."

One of the factors driving the current situation is reduced demand paired with customers increasingly opting for slower ground shipping with FedEx. Businesses are facing rising costs across the board, and shipping is no exception. Choosing the most affordable option allows them to maintain healthy margins while still fulfilling customer orders. Unfortunately, choosing a lower-cost option may be more costly in the long run without the ability to recoup costs through service guarantees.

The power of negotiation

So, what can you do as a business owner? Here's the good news: Slow and affordable or fast and expensive aren't the only two options. There's a sweet spot where you can get competitive pricing and reliable service. The secret weapon? FedEx contract negotiation with ShipRx.

FedEx, like most shipping carriers, offers a tiered pricing structure. The faster the delivery, the higher the cost. But these rates aren't always set in stone. By leveraging your shipping volume and negotiating directly with FedEx, you can potentially secure significant discounts— even on premium services.

This is where we come in. Here at ShipRx, we specialize in helping businesses like yours negotiate the best possible shipping rates with FedEx. We take the legwork out of the process, analyzing your shipping history and identifying cost-saving opportunities.

With decades of experience in the shipping industry, we know what's possible— and how to ensure you get the best deal.

Don't settle for just speed or just savings. Get the best of both worlds with FedEx. Contact ShipRx today for a free savings analysis, and let us help you negotiate the shipping rates you deserve!