May 14, 2023

Reading time: 7 minutes

How to Save on eCommerce Delivery Costs: Shipping Smarter, Not Harder

Are you a business owner who is having trouble meeting the needs for cheap shipping and more sales? We’ve got you covered with our top tips to slash your shipping costs and maximize your margins.

This post will delve into the nitty-gritty of eCommerce delivery costs. Expect to discover the following and more:

Expert strategies to negotiate better shipping rates with carriers
Optimize your packaging to minimize waste
Streamline your order fulfillment process to boost your sales

Maximizing Your Margins: Top Tips to Slash Your Shipping Costs and Increase Your Sales

This information will help you save money on shipping costs and make the most of your eCommerce strategy. You’ll also discover how to make customers happy by providing prompt and reliable shipping.

This article is a must-read for anyone looking to optimize their margins and boost their business success. So, sit back, relax, and let’s dive into the world of eCommerce shipping together!

Understanding Shipping Cost

Shipping is an essential part of any eCommerce business, but it can also be a significant expense that affects your bottom line. If you know what factors affect shipping costs, you can make better decisions and improve your eCommerce strategy. Here are some of the primary factors to consider:

Distance: The farther a package has to travel, the more it will cost to ship. Shipping costs are typically calculated based on the distance between the origin and destination.
Weight and size: The weight and size of a package affect the cost of shipping. Heavier and larger packages are more expensive to ship than lighter and smaller packages.
eCommerce Delivery speed: The faster you want a package delivered, the more it will cost to ship. Shipping options such as overnight or expedited shipping are generally more expensive than standard shipping.
Carrier selection: The carrier you choose to ship your packages can also impact the cost of shipping. Different carriers offer different pricing and service levels, so it’s important to research and compare options to find the best fit for your business.
Package value: The value of the package you’re shipping can also affect the cost of shipping. Packages with high values may require additional insurance or tracking, which can increase the overall cost.

If you know the average shipping cost for your industry and region, you can figure out if your shipping costs are competitive and find ways to save money.

Also, knowing the things that affect shipping costs can help you make smart choices about shipping options and carriers. The knowledge will help you keep costs down while still giving your customers good service.

Cheap Shipping Options

Shipping costs can be a big expense for online businesses, but there are ways to keep these costs low and make as much money as possible. Here, we’ll explore some of the most affordable shipping options available and provide tips on how to find cheap shipping rates.

The following are various cheap shipping services and rates:

USPS

The United States Postal Service offers a range of affordable shipping options, including the following:

First-Class Mail
Priority Mail
Priority Mail Express

Rates vary based on package weight, size, and delivery speed. However, USPS is often the most cost-effective option for small and lightweight packages.

UPS

United Parcel Service is another popular shipping carrier that offers affordable rates for businesses.

UPS Ground is a reliable and cost-effective option for shipping heavy or large items domestically. They also offer international shipping options.

FedEx

FedEx offers a variety of shipping services, including FedEx Ground and FedEx Express. FedEx Ground is a more affordable option for domestic shipping. The latter offers fast delivery for urgent shipments.

Below are some ways to find the cheapest shipping rates:

Compare carrier rates: Research and compare shipping rates from various carriers to find the most cost-effective option for your business.

Negotiate with carriers: If you have a high volume of shipments, you may be able to negotiate lower rates with carriers.

Use shipping software: Shipping software can help you compare rates from multiple carriers and streamline your shipping process.

There are two things to remember when shipping heavy items cheap:

Use a freight service: Freight shipping services can be more cost-effective for heavy and large items than traditional carriers.

Use a shipping consolidator: Shipping consolidators can combine multiple shipments into one, reducing overall shipping costs.

How to Save on Shipping Costs

As an online business owner, one of the biggest challenges you may face is figuring out how to save on shipping costs. Shipping expenses can add up quickly and eat into your profit margins. Hence, it’s important to find ways to reduce these costs without sacrificing the quality of your product or delivery times.

Importance of Saving on eCommerce Delivery Costs

Shipping is a necessary expense for any business that sells physical products, but it doesn’t have to be a burden on your budget. By reducing your eCommerce delivery costs, you will increase your profit margins, make your products more competitive in the market, and ultimately grow your business.

Tips to Lower eCommerce Delivery Costs

Negotiate with Shipping Carriers

Negotiating shipping rates with carriers can be an effective way to lower your shipping costs. You can often get better rates by leveraging your shipping volume or by using a third-party logistics provider.

Use Flat Rate Shipping

Cheap flat rate shipping can be a great option for businesses that ship products of similar sizes and weights. With flat rate shipping, you pay a fixed rate regardless of the package’s weight or destination, which can help you save on shipping costs.

Optimize Your Packaging

The size and weight of your packages can significantly impact your shipping costs. By making sure your packages are as small and light as possible, you can reduce the cost of shipping.

Consider Regional Carriers

Regional carriers can be a great alternative to national carriers like FedEx and UPS. They often offer lower rates for local or regional shipping and can help you save on shipping costs.

Use TrackMage carrier list with easy filtering to find the best local carrier in your country.

Strategies to Affordably Ship Products Without Sacrificing Delivery Times or Quality

Offer Free Shipping with a Minimum Purchase

When you offer free shipping on orders over a certain amount, customers are more likely to buy more, which covers your shipping costs.

Use Third-Party Logistics Providers

Third-party logistics providers can handle all aspects of your shipping, from warehousing to delivery. They often have negotiated rates with carriers and can help you save on shipping costs.

Utilize Shipping Software

Shipping software can help you automate your shipping process and find the most affordable shipping options for your business. Trackmage is the best software for your shipment tracking needs. You get support for over 1,000 carriers. We’ll explore how this works later in this post.

Consider Outsourcing Fulfillment

Outsourcing fulfillment to a third-party provider can help you save on shipping costs by consolidating your shipments and reducing the number of packages you send out.

Comparison of Shipping Carriers and Their Pricing

Now to answer the question: how much is shipping for companies like UPS and FedEx? We made this table to compare some common carriers’ shipping rates and delivery times. These companies have long price lists for each of their options. These lists give prices for thousands of locations and distances. So, to simplify things for you, we put some constraints in place.

The parcel weight has been set to 1lb for all prices listed.
Domestic refers to a shipment within the US at a 1,500-mile distance (e.g., Dallas to New York).
International refers to as shipment from US to China
Each price listed represents the cheapest retail rate available, irrespective of the restrictions of the shipping option.

	USPS	UPS	FedEx	DHL
*Domestic (1 Day)*	$45.90	$81.85	$90.93	$88.48
*Domestic (6 Days)*	$10.20	$13.70	$13.17	–
*International (1-3 Days)*	$177.50	–	–	–
*International (6-10 Days)*	$46.50	$148.35	$148.69	$510.29

How to Use Trackmage to Manage Shipping and Reduce Costs

Trackmage is an all-in-one shipping management platform that can help e-commerce businesses manage their shipping processes efficiently and reduce costs.

Here are some tips on how to use Trackmage to streamline your shipping and save money:

TrackMage offers a range of features designed to make shipping easier and more cost-effective.

Real-time tracking

Real-time tracking is a useful feature of Trackmage that lets you keep an eye on the progress of your shipments and spot any potential problems or delays. This feature can help you take steps to avoid problems before they happen, which will save you time and money in the long run.

Analytics and reporting

Trackmage’s analytics and reporting features provide valuable insights into your shipping process. It allows you to identify areas where you can improve efficiency and reduce costs. With this information, you can make smart choices about your shipping strategy and change it as needed.

Integration with e-commerce platforms

Trackmage integrates seamlessly with popular e-commerce platforms, such as Shopify and WooCommerce. With this integration, you can handle the shipping process right from your e-commerce platform. This saves you from having to enter data by hand and speeds up the process.

No matter the size of your company, Trackmage can help you manage your shipping and save money. Because it is easy to use and has powerful features, you can focus on growing your business instead of worrying about shipping. Try Trackmage today and see how it can transform your shipping management!