We do a 2% markup on UPS to cover the weekly daily pickup charge. Perhaps you could do a negative markup, maybe?
We have a daily pickup account, which charges a weekly pickup fee. We use a slight markup to cover this.
Hmm this is disappointing. UPS gives us 45% off international shipping and I was really hoping to push that with the new site. I will experiment with negative markups (if they are even possible) but it will be a kludge since there are many variables involved.
When I talked to my rep a couple months ago he said there were no plans yet to do UPS negotiated rates. I found it to be an odd business decision on their part since UPS is much more widely-used than FedEx, but whatever.
However, the negative markup thing does work well enough for you to pass the discount on to the customer.