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7 Ways To Reduce Shipping Costs

By: Jake RheudePublished 01/24/2020

Reducing shipping costs for your eCommerce store is one of the most effective ways to improve your bottom line. Small businesses in particular can see a huge upside in taking the time to lower shipping costs. Particularly if you offer free shipping, lower shipping rates will increase your profit margin. If your customers pay for shipping, they are more likely to complete a purchase with a positive customer experience if you charge lower shipping costs.

A recent study from the National Retail Federation (NRF) found that three quarters of respondents see free shipping as a must. This was a 68% increase from the previous year. That expectation includes free shipping for orders of less than $50. The best way to afford free shipping is to reduce shipping costs.

At the same time, customers expect fast delivery. A 2018 survey found that consumers increasingly want faster delivery options, including same-day delivery. Online shoppers will pay for expedited delivery in some situations. However, fast and cheap (or free) is the winning combination for shipping costs.

High shipping costs are the number one reason people abandon online shopping carts. So how can you reduce your shipping costs? Is it possible to get a lower shipping rate? Here are 7 ways you can reduce your shipping costs:

1. Slim Down Package Weight

You can’t reduce the weight of your products, but you can slim down your packaging and infill.

2. Lower Your DIM Weight

Shipping your products in smaller boxes can save you money on DIM weight pricing, too. DIM weight is a calculation that all the major carriers use to incorporate size into their price structure.

3. Consolidate Shipping Boxes

4. Avoid Expedited Shipping Charges

The best way to avoid expedited shipping charges is to process your orders quickly. If an order languishes at the fulfillment center for several days before it’s picked and packed, you’ve shortened your window for on-time shipping. The sooner you hand off an order to the carrier, the longer you have to meet customer delivery expectations.

5. Shorten Shipping Distance

6. Negotiate with Carriers

Volume shippers can negotiate lower rates with FedEx, UPS, and other shipping carriers. If your eCommerce business is big enough, you may be able to secure discounted prices. However, even small businesses and startups can benefit from carrier discounts.

7. Get Help from the Pros

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