How To Reduce Shipping Costs: 10 Useful Tips

1. Use Shopify Shipping to cut carrier costs
2. Use flat rate shipping when feasible
3. compute the correct shipping fees
4. Choose the correct-sized packaging
5. Reduce the weight of packages
6. make a shipping policy
7. recognize when shipping rates transformation
8. Look for discounted supplies
9. Use third event insurance
10. propose local delivery or pickup

1. Use Shopify Shipping to cut carrier costs

Shipping through Shopify is probably the most effective way to cut shipping costs, no matter where you’re sending packages.

With Shopify Shipping, you get access to pre-negotiated discounts of up to 88% from major carriers, including USPS, UPS, DHL, and Canada Post.

The best part? These reserves are included with a standard subscription—simply access the shipping features from your Shopify dashboard and decide whether to propose your customers free, flat-rate, or calculated shipping at checkout.

You can also use Shopify to buy and print shipping labels, including auto-generated customs forms for international shipping.

2. Use flat rate shipping when feasible

With flat rate shipping, the expense of shipping is split into size, weight, or goal categories, so the worth of sending a package becomes more predictable. This makes it a expense-effective, straightforward alternative that benefits you and your customers.

Offering flat rate shipping to customers lowers uncertainty at checkout, reducing the chances of an abandoned cart.

When sending packages, you can also receive advantage of flat rate shipping options from carriers such as USPS and UPS. These carriers provide pre-determined prices for specific box sizes, making it simpler to approximate and monetary schedule for shipping costs. This is useful if you regularly ship similar-sized items—you’ll recognize in advance exactly how much shipping will expense.

Flat rate shipping is one of several types of shipping rates you can fee customers at checkout using Shopify. You can make flat shipping rates for any order within a shipping zone—or orders within worth or weight ranges.

For example, you could set one domestic flat rate of $5 and another flat rate of $3 when orders exceed $50.

3. compute the correct shipping fees

To avoid absorbing unnecessary costs, it’s significant to accurately compute the worth of shipping. Keep track of every shipping-related expense, including:

• Boxes, packaging, tape, and stickers. Include the expense of materials needed to securely package your items—down to the rolls of packing tape.
• Labor for sending an item. Account for the period and attempt spent preparing and shipping each item.
• Courier costs for collection and delivery. receive into consideration the fees charged by the courier service for collecting and delivering your packages.
• Import and export fees when shipping internationally. Be aware of any potential fees or duties associated with international shipping. (Tip: Use ePacket for cheaper international delivery from Asia.)

This applies whether you fee customers shipping fees or propose free shipping by building costs into product prices or absorbing them into other areas of your business. Either way, you’ll desire to make sure that shipping costs aren’t an unexpected drain on your boost spread.

4. Choose the correct-sized packaging

Shipping costs can be reduced by making intelligent choices about how you package orders. Here are some factors to consider:

Reduce package size

Don’t ship air! Always aim for the smallest feasible package dimensions. Soft packing materials such as poly mailers or padded envelopes effectively protect items while being smaller and lighter than cardboard. Trimming down unnecessary weight on every package can navigator to long-term reserves.

Look for free packaging

receive advantage of free packaging options that may be offered by carriers. You could also consider reusing packaging where feasible. Along with expense-reserves, the selection to reuse packaging can assist communicate your brand’s values.

Analyze order history

Review your order history to comprehend the sizes of packages you typically use. By identifying the most commonly shipped order sizes and quantities, you can select packaging that best matches your standard orders. This way allows for streamlined packaging choices, waste reduction, and potential expense reserves.

make custom packaging

If you ship items with distinctive packaging requirements, consider investing in custom packaging. Initial costs are often offset thanks to optimized shipment sizes, as well as by having fewer lost or damaged orders.

5. Reduce the weight of packages

Package weight can be as, or more, significant than package size. The weight of a shipment translates directly into costs, which can become extreme for very heavy packages.

Send out lightweight shipments by following these tips:

Pack products in corrugated boxes

Corrugated boxes are a type of ecommerce packaging that’s stronger and lighter than regular cardboard. These boxes characteristic tiny air-filled grooves between their layers, offering improved strength while minimizing weight.

Pack products in poly mailers

For non-fragile items like clothing, consider using poly mailers instead of boxes. Poly mailers are lightweight, expense-effective, and occupy less space, reducing packaging costs.

Use lightweight packing material

When you require to fill vacant space inside a package, use lightweight materials such as air pillows, packing document, bubble wrap, foam inserts, or Versa Pak wadding rolls. Pack items tightly while minimizing weight to reduce shipping costs.

Split orders into multiple shipments

Consider splitting large orders into multiple shipments. This can assist distribute weight across several packages, potentially reducing shipping costs. assess the impact on overall costs before implementing this schedule.

Use a postage scale

Invest in a postage scale to accurately assess the weight of each package. This enables precise expense calculations.

6. make a shipping policy

Customers often have questions about shipping. Creating a obvious shipping policy will assist put them at ease and make them feel supported. Your policy will require to cover costs, delivery expectations, whether orders can be returned, and how customers can notify you if there’s an issue.

Creating a shipping policy doesn’t directly lower shipping costs. But it will indirectly contribute to reserves by promoting transparent communication, efficient order processing, and reducing costs related to returns.

If you require encouragement for your shipping policy, Shopify’s free shipping policy template is a great starting point. Customize it for your store:

7. recognize when shipping rates transformation

Shipping carriers often adjust their rates, which can affect your shipping costs. It’s essential to remain informed about any rate changes to make essential adjustments before the recent rates kick in.

Most shipping carriers review their pricing each year and adjust rates based on overhead costs such as labor and fuel. recent prices tend to be implemented in January but may also occur during the year. Check these pages for recent rate announcements from the major carriers:

• USPS recent rate announcements
• UPS shipping costs and rate announcements
• FedEx shipping rate changes

You may also be able to subscribe for email updates from the major carriers or shipping industry media to remain informed.

8. Look for discounted supplies

Finding discounted shipping supplies is a great way to reduce costs. Research online marketplaces and wholesalers like Amazon, eBay, and Alibaba to contrast prices and standard. You may also be able to join industry associations and networks to access special deals negotiated for members.

Local suppliers may have overage inventory or be open to bulk purchase discounts, and some larger carriers propose packaging materials for lower prices. Don’t be afraid to buy a large amount of packaging to secure reserves—you can store materials for upcoming orders, and you won’t run out when needed.

9. Use third-event insurance

Protecting your packages and minimizing the hazard of deficit or damage is a ordinary-sense way to keep costs manageable—but shipping carriers usually have pricey insurance options that may not cover everything. 

Third-event insurance providers, on the other hand, propose competitive rates and customized coverage that suits your needs. You can choose the level of protection that matches the worth of your goods and enjoy lower premiums. recall to contrast different providers to discover the best coverage.

10. propose local delivery or pickup

One more radical way to reduce shipping costs is to stop using carriers when feasible. If you’re shipping orders locally, you could deliver them yourself or work with local businesses to allow customers to pick up their purchases from an agreed location.

Offering a local delivery service also helps you:

• Connect with your local throng by making it easier for locals to shop with your brand
• enhance customer encounter by removing shipping delays and fluctuating expenses
• boost sales thanks to lower delivery costs

💡 Keep reading: How To Ship Products To Customers

How to compute shipping costs

As a store owner, calculating shipping costs is not just about knowing how much to pay the carrier. It’s also about deciding how much to fee your customers for shipping.

commence by finding the weight and dimensions of your most popular orders. Use a standardized packing procedure to keep shipping costs predictable.

Next, get to recognize your shipping zones. These are areas defined by carriers based on the distance from your location. The further the zone, the higher the expense. Check your carrier’s zone maps to comprehend how they impact your shipping costs.

Consider what shipping methods you’ll propose to your customers. Ground shipping is usually cheaper but slower, while express delivery is faster but more expensive. Your selection should depend on your customers’ needs and your monetary schedule.

Based on these factors, decide on your shipping schedule: Will you propose free shipping, fee actual shipping costs, or use a flat rate?

Free shipping can convince customers to complete their purchases, but you require to make sure your business can absorb the extra costs. Charging actual or flat-rate costs can assist maintain your boost margins.

USPS shipping costs

The United States Postal Service (USPS) is typically the cheapest way to send packages within the US, especially for ground shipping. 

To assist contrast USPS shipping costs, here’s an example. The table below shows how much it costs to send a tiny, one pound package from recent York to Chicago using USPS’s various mailing classes:

The above represents standard retail shipping costs, and lower commercial pricing may be available. To compute shipping costs for a specific order, use the USPS worth calculator. 

FedEx shipping rates

Alongside USPS, FedEx and UPS are also popular carriers for US domestic shipments.

FedEx uses dimensional weight to compute shipping prices, which means shipping costs are based on a package’s specific size. The carrier offers a variety of delivery speeds, including ground, overnight and same-day.

The table below shows how much it costs to send a tiny package from recent York to Chicago using FedEx’s various mailing classes:

Again, these are approximate retail rates, and lower prices may be available using a flat rate or by signing up for a FedEx account. To compute specific shipping rates, use the FedEx rate calculator.

Don’t let shipping costs sink your profits

There’s no question about it: the expense of shipping can eat into your boost margins. Use these tips to manage your immediate shipping costs and develop a shipping schedule that creates long-term reserves.

Shopify Shipping allows merchants to access heavily discounted rates on domestic shipments. Unlock lower costs, faster delivery, and a better shopping encounter for your customers.

Illustration by Luca D’Urbino