In the shipping industry, Revenue Tiers are vital for securing discounts that grow as shipping volumes increase. Effectively utilizing these tiers is essential for maximizing savings and maintaining a competitive edge. These revenue tiers are also commonly referred to as Earned Discounts.
These discounts are granted in addition to your base discounts and are tied to the terms of your shipping agreement. By increasing your shipping volume, you can move into a higher revenue tier, unlocking even greater discounts. However, if your shipping volume decreases and you fall out of a tier, you risk losing a substantial portion of those discounts, which can significantly impact your savings. Agreements are typically structured with tiers, offering varying discount levels based on specific shipping spend ranges.
Carriers calculate the earned discount on a weekly basis, using a 52-week rolling average to determine your eligibility for each tier.
You can view your current tier in the Gross Spend card located on the Agreement Monitoring page.
You can also refer to this Knowledge Base article for more information about the Gross Spend card:
What is Gross Spend Card from the Agreement Monitoring page?