QUOTE (aoeartworld @ Nov 11 2009, 11:02 AM)

Still interested in more cost effective shipping methods and any suggestions for investigating the abandoned carts.
FWIW, every whitepaper and survey I see on conversions says folks want free shipping first and flat rate second. This is not practical for all merchants, but we have found that it makes the difference for us. We offer free and flat rate shipping, then UPS calculated pricing for overnight and second day shipping if the customer wants it. Again, it may not work for your business but finding a way to give customers what they want is usually good.
As for shipping rates, we have negotiated rates and we have found them to be pretty much in line with our invoice on items that don't fall into dim weight pricing. We exclude these dim weight items from expidited shipping and only allow the free shipping option (we build the freight into the price).