{"id":140,"date":"2022-04-19T10:50:09","date_gmt":"2022-04-19T15:50:09","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/ecommerce-shipping\/reduce-shipping-costs\/"},"modified":"2025-10-02T19:21:57","modified_gmt":"2025-10-02T19:21:57","slug":"reduce-shipping-costs","status":"publish","type":"page","link":"https:\/\/www.shipbob.com\/au\/ecommerce-shipping\/reduce-shipping-costs\/","title":{"rendered":"Reduce Shipping Costs"},"content":{"rendered":"\n<section class=\"wp-block-shipbob-blocks-section-hero-standard-form hero-standard\"><div class=\"container row\"><div class=\"col hero-standard-content\"><h1 class=\"hero-standard-title \"><strong>11 Ways to Reduce Shipping Costs for Ecommerce in 202<\/strong>5<\/h1>\n<p>Shipping isn\u2019t cheap.<\/p>\n\n\n\n<p>Couriers raise their shipping rates every year. Demand in the ecommerce sector leaves a shortage of everything from truck drivers to warehouse space. Amazon only makes&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/small-business-shipping\/\" target=\"_blank\" rel=\"noopener noreferrer\">small business shipping<\/a>&nbsp;more challenging by continuously raising the bar for faster free shipping \u2014 all of which becomes increasingly more expensive to replicate for small businesses that&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/self-fulfillment\/\" target=\"_blank\" rel=\"noopener noreferrer\">fulfil orders from home<\/a>. So this begs the question, how can I reduce my shipping costs?<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-so-what-do-you-want-to-learn\">So, what do you want to learn?<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#how-to\">How to save money on shipping<\/a><\/li>\n\n\n\n<li><a href=\"#5\">Save on shipping costs with these 5 questions<\/a><\/li>\n\n\n\n<li><a href=\"#outsourcing\">Can outsourcing reduce costs?<\/a><\/li>\n\n\n\n<li><a href=\"#faq\">Conclusion and FAQs<\/a><\/li>\n<\/ul>\n<\/div><div class=\"col hero-standard-form offset-1  \"><div class=\"card hero-home-customer-card form-card\"><h3 class=\"form-title\"><strong>Request Fulfilment Pricing<\/strong><\/h3><h3 class=\"h4 form-subtitle\"><\/h3><p class=\"form-copy\"><\/p><div class=\"card-body form-2c853f60-8374-4dbc-937d-1fecb0e842f2\" data-controller=\"form-controller\" data-form-controller-form-id-value=\"2c853f60-8374-4dbc-937d-1fecb0e842f2\" data-form-controller-form-container-query-value=\"form-2c853f60-8374-4dbc-937d-1fecb0e842f2\"><\/div><p class=\"form-note\">We\u2019ll get back to you within 24 hours. <a href=\"\/privacy-policy\/\">Privacy Policy<\/a><\/p><\/div><\/div><\/div><\/section>\n\n\n\n<p><a id=\"how-to\"><br><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-11-ways-ecommerce-stores-can-reduce-shipping-costs-right-now\">11 ways ecommerce stores can reduce shipping costs right now<\/h2>\n\n\n\n<p>Shipping costs involve many variables. There are also plenty of\u00a0<a href=\"https:\/\/www.shipbob.com\/blog\/hidden-costs-self-fulfillment-beyond-shipping-postage\/\">hidden costs<\/a>\u00a0when handling\u00a0<a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/in-house-fulfillment\/\" target=\"_blank\" rel=\"noopener noreferrer\">fulfilment in-house<\/a>. Here are some ideas that can potentially lower your average shipping cost.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-understand-shipping-zones\">1. Understand shipping zones<\/h3>\n\n\n\n<p>Many brands pay high shipping fees when they ship to destinations that are far away.&nbsp;<a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/shipping-zones\/\" target=\"_blank\" rel=\"noopener noreferrer\">Shipping zones<\/a>&nbsp;are the geographical areas that couriers ship to, spanning from Zone 1 to Zone 8 for domestic shipments in the United States. Zones measure the distance a shipment travels, with the point of origin located in Zone 1.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" height=\"278\" width=\"700\" src=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/689319a6dbaf342d72543e763db4e4fe.png?w=1280\" alt=\"A diagram of two maps of the United States, comparing the use of 1 vs 3 fulfillment centers and the impact it has on shipping zones.\" class=\"wp-image-17223\" \/><\/figure>\n\n\n\n<p>The farther away the shipping destination is, the higher the zone and more expensive and slow it is to ship. If you can eliminate shipping to higher zones, you can save a lot of money over time and benefit from better shipping options with lower rates \u2014 more on partnering with companies that have multiple&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/differences-warehouse-fulfillment-center\/\" target=\"_blank\" rel=\"noopener noreferrer\">fulfilment centres<\/a>&nbsp;shortly!<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-weigh-your-packages-and-reduce-dimensions\">2. Weigh your packages and reduce dimensions<\/h3>\n\n\n\n<p>Unless you\u2019re using&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/flat-rate-shipping\/\" target=\"_blank\" rel=\"noopener noreferrer\">flat-rate shipping<\/a>, then&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/shipping-heavy-items\/\" target=\"_blank\" rel=\"noopener noreferrer\">shipping heavy items<\/a>&nbsp;cost more. If you\u2019re printing labels and shipping from home, consider investing in a postage scale to better predict costs and purchase the right shipping labels. In addition to weight, couriers consider dimensions of the package when&nbsp;<a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/calculate-shipping-costs\/\" target=\"_blank\" rel=\"noopener noreferrer\">calculating shipping costs<\/a>.<\/p>\n\n\n\n<p>If you\u2019re using too big of a box for a lightweight item, you will pay more than you should because of the space the package takes up. Larger boxes can lead to larger&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/dimensional-weight-explained\/\" target=\"_blank\" rel=\"noopener noreferrer\">dimensional weight<\/a>, which in turn will lead to more expensive shipping costs.<\/p>\n\n\n\n<p>To reduce package weight (and ultimately reduce shipping costs), try the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Create custom packaging with smaller dimensions that are tailored to your product to optimise your dimensional weight (i.e., make it a more snug fit as opposed to having items rattling around in a box, which leads to you essentially paying for air in the box).<\/li>\n\n\n\n<li>Use \u201cships in own container\u201d (SIOC) packaging, meaning your product packaging is what you add a shipping label to, so you don\u2019t add a box on a box.<\/li>\n\n\n\n<li>Reuse old boxes. If you\u2019re shipping something to friends or family members, there\u2019s no reason you can\u2019t reuse a sturdy box over again (and packing materials).<\/li>\n<\/ul>\n\n\n\n<p>TLDR: Avoid shipping more air than what is necessary.<\/p>\n\n\n\n<p><h3>3. Find discounted supplies<\/h3><\/p>\n\n\n\n<p>Shipping companies such as USPS, UPS, and FedEx may provide small businesses certain boxes and envelopes for free or at a discount for certain packing supplies. You can also purchase packing supplies like boxes,&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/what-is-dunnage\/\" target=\"_blank\" rel=\"noopener noreferrer\">dunnage<\/a>, bubble wrap, airfill, and&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/poly-mailers\/\" target=\"_blank\" rel=\"noopener noreferrer\">poly mailers<\/a>&nbsp;in bulk to save money.<\/p>\n\n\n\n<p>Don\u2019t let the higher investment upfront scare you off \u2014 you won\u2019t run out right away and you\u2019ll also reduce your average per-shipment cost. You may even find some&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/free-shipping-supplies\/\" target=\"_blank\" rel=\"noopener noreferrer\">free shipping supplies<\/a>.<\/p>\n\n\n\n<p><h3>4. Get discounted shipping rates<\/h3><\/p>\n\n\n\n<p>All shipping companies have pricing discounts available based on shipping volume, and you don\u2019t have to be shipping hundreds of thousands of orders a month to get these discounts. There\u2019s no harm in attempting to negotiate volume discounts in exchange for loyalty to one shipping courier. Of course, the more packages you ship, the better rates you can get.<\/p>\n\n\n\n<p>Ecommerce store owners should seek lower shipping costs, as long as the service for the lower costs does not affect the shipping solutions or extend delivery times.<\/p>\n\n\n\n<p><h3>5. Check out offers from the platform(s) or marketplace(s) you sell on<\/h3><\/p>\n\n\n\n<p>See if the ecommerce platform your store is powered by or the marketplace you sell on offer any bulk discount shipping services or programs. They may have features that provide&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/real-time-carrier-rates\/\" target=\"_blank\" rel=\"noopener noreferrer\">real-time courier rates<\/a>, shipping apps, built-in features, and integrations with&nbsp;<a href=\"https:\/\/www.shipbob.com\/fulfillment-software\/\" target=\"_blank\" rel=\"noopener noreferrer\">fulfilment software<\/a>&nbsp;that can provide you with better rates and fulfilment services.<\/p>\n\n\n\n<p><h3>6. Insure with third parties<\/h3><\/p>\n\n\n\n<p>One way to save on shipping costs is to cut extra services, which, depending on the value of the product you\u2019re shipping, could be&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/shipping-insurance\/\" target=\"_blank\" rel=\"noopener noreferrer\">shipping insurance<\/a>. If you do need shipping insurance for your orders, third-party package insurers are usually cheaper than going with your shipping courier \u2014 in some cases nearly half the price. Of course, this is most applicable to high value items.<\/p>\n\n\n\n<p><h3>7. Go prepaid<\/h3><\/p>\n\n\n\n<p>Prepaid shipping can get you up to 20% off shipping costs from UPS and FedEx simply by purchasing a certain number of shipping labels upfront. You don\u2019t need to affix them to a box until the individual order needs to go out. This not only saves costs but time as well.<\/p>\n\n\n\n<p>Note: This really only works when you consistently ship orders containing the same weight and dimensions or know this information ahead of time to ensure accurate shipping costs.<\/p>\n\n\n\n<p><h3>8. Switch from boxes to poly mailers<\/h3><\/p>\n\n\n\n<p>If you sell small, non-fragile products like clothing, shipping orders in a mailer envelope or poly bag can be far more cost-effective than boxes. The dimensions are smaller, taking up less room on a delivery truck, and using them also requires less packing supplies like tape and bubble wrap to save even more money.<\/p>\n\n\n\n<p>If your orders contain different combinations of products, consider different sized poly mailers.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2022\/07\/Poly-Mailers.png?w=1280px\" alt=\"\" class=\"wp-image-1751\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2022\/07\/Poly-Mailers.png?w=700px 650w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2022\/07\/Poly-Mailers.png?w=860px 768w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2022\/07\/Poly-Mailers.png?w=1180px 1080w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2022\/07\/Poly-Mailers.png?w=1400px 1280w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2022\/07\/Poly-Mailers.png?w=1600px 1440w\" fetchpriority=\"low\" \/><\/figure>\n\n\n\n<p><h3>9. Look into hybrid services<\/h3><\/p>\n\n\n\n<p>Hybrid shipping services like UPS SurePost and FedEx SmartPost pick up your orders and then work with other couriers like USPS to transport your packages to a sorting facility or post office location, where it is then shipped to a residential area for&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/how-last-mile-delivery-works\/\" target=\"_blank\" rel=\"noopener noreferrer\">last-mile delivery<\/a>. This can cut costs as much as 50% in some cases. However, the tradeoff is often a slower delivery.<\/p>\n\n\n\n<p>Note: There are specific volume, weight, and dimension requirements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-10-stay-on-top-of-shipping-carriers-pricing-changes\">10. Stay on top of shipping couriers pricing changes<\/h3>\n\n\n\n<p>Every year, the major shipping couriers increase their shipping rates as part of the annual general rate increase (GRI). These increases vary by courier, service level, weight, and other variables, but generally equate to about a 5% increase on average (though we\u2019ve seen higher during the pandemic).<\/p>\n\n\n\n<p>Additionally, couriers may implement surcharges at various peak times (such as the holidays and Q4 or what we saw happen during the early days of the COVID-19 pandemic), when there is a surge in packages being shipped. They also implement other surcharges annually, ranging from large package surcharges to signature required surcharges.<\/p>\n\n\n\n<p>Unfortunately, there is no way to reduce shipping costs for these rate increases and surcharges, and you\u2019ll either have to bake them into the shipping fee you charge your customers, eat the costs, or offset them some other way.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-11-encourage-your-customers-to-place-orders-early\">11. Encourage your customers to place orders early<\/h3>\n\n\n\n<p>During peak season or any high volume events or periods for your ecommerce business (e.g., heading into Halloween for brands that sell costumes or Thanksgiving for businesses that sell turkeys), it is wise to over-communicate by when your customers need to place orders online to ensure they get delivered on time.<\/p>\n\n\n\n<p>The couriers have their own set of cutoffs for each service during the holidays to help prevent gifts from arriving late. For customers who want to reduce shipping costs, this will involve placing orders at the earliest cutoffs to avoid paying more for expedited shipping.<\/p>\n\n\n\n<p>On top of running out of time as dates approach, there may be additional considerations that impact cutoffs, such as labour shortages, weather events that prevent couriers from shipping, shutdowns from COVID outbreaks, federal holidays that close down operations, and other factors.<\/p>\n\n\n\n<p id=\"5\">If you work with a 3PL, be sure to pay attention to not only their specific courier cutoffs, but their inventory receiving cutoffs, holiday turnaround times, any SLA extensions, and general holiday schedule. Any logistics company needs to make many strides over the months leading up to the holidays to prepare for peak season, and any brand needs to pay close attention to relay this information to their customers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-5-questions-that-can-help-save-money-on-shipping\">5 questions that can help save money on shipping<\/h2>\n\n\n\n<p>Not all of the tips above are going to be applicable to your business or&nbsp;<a href=\"https:\/\/www.mymillennialguide.com\/lower-business-expenses\/\" rel=\"noopener noreferrer\">improve your bottom line<\/a>. Thinking about your current&nbsp;<a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/\" target=\"_blank\" rel=\"noopener noreferrer\">ecommerce shipping<\/a>&nbsp;process, answer the following questions to get an even better sense of what you can do to cut or recover shipping costs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-how-are-you-charging-for-shipping\">1. How are you charging for shipping?<\/h3>\n\n\n\n<p>Regardless of how much you\u2019re spending on shipping, the amount you charge customers can also affect your margin.<\/p>\n\n\n\n<p>The psychology of online shopping and consumer preferences is fascinating. You can present shoppers with two scenarios where they would pay the same total price, yet they would&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/cart-abandonment\/\" target=\"_blank\" rel=\"noopener noreferrer\">abandon their cart<\/a>&nbsp;for the one that has a higher shipping cost.<\/p>\n\n\n\n<p>As long as they\u2019re getting a perceived deal or the best value, they are more likely to buy.<\/p>\n\n\n\n<p>Customers don\u2019t want to pay for shipping, but it\u2019s a major expense for a small business. Consider the following ideas to implement to make up your shipping costs:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Adjust the product price to absorb the shipping cost and offer&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/how-to-offer-free-shipping-ecommerce-store\/\" target=\"_blank\" rel=\"noopener noreferrer\">free shipping<\/a>&nbsp;(only if you sell expensive products).<\/li>\n\n\n\n<li>Charge customers a reduced shipping cost while only slightly increasing the product price (e.g., charge customers half the price of shipping but bake the other half into the product price).<\/li>\n\n\n\n<li>Offer a flat rate shipping fee to all customers using a blended average shipping cost across all of your orders.<\/li>\n\n\n\n<li>Require a minimum amount of money to be spent on your store (that\u2019s greater than the&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/average-order-value\/\" target=\"_blank\" rel=\"noopener noreferrer\">average order value<\/a>) in exchange for free or fast shipping.<\/li>\n\n\n\n<li>Put parameters in place for orders that meet different criteria to more accurately reflect the true cost of shipping (e.g., charge different shipping fees for orders going to different countries, one shipping fee for orders that are over a certain cart value, etc.).<\/li>\n\n\n\n<li>Monitor your return rate and revisit your&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-returns\/\" target=\"_blank\" rel=\"noopener noreferrer\">ecommerce returns policy<\/a>&nbsp;to see if you should make customers responsible for covering return shipping costs.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-have-you-tried-another-carrier\">2. Have you tried another courier?<\/h3>\n\n\n\n<p>If you have allegiance to one shipper\/courier just because they\u2019re closest to you, it might be worth looking into other options. Depending on the areas you ship to, different couriers may offer cheaper rates than what you\u2019re currently paying. Use the following sites to dig deeper into your specific shipping costs:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/wwwapps.ups.com\/ctc\/request?loc=en_US\" rel=\"noopener noreferrer\">UPS Shipping Calculator<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.usps.com\/nationalpremieraccounts\/calculaterates.htm\" rel=\"noopener noreferrer\">USPS Shipping Calculator<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.fedex.com\/ratefinder\/home?link=4&amp;cc=US&amp;language=en\" rel=\"noopener noreferrer\">FedEx Shipping Calculator<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/ratequote.dhl-usa.com\/\" rel=\"noopener noreferrer\">DHL Shipping Calculator<\/a><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-are-you-using-the-right-packaging\">3. Are you using the right packaging?<\/h3>\n\n\n\n<p>Many small businesses make&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/packing-shipping-mistakes-businesses-makes\/\" target=\"_blank\" rel=\"noopener noreferrer\">common packing mistakes<\/a>&nbsp;that increase their costs, like using too big package dimensions or extra package weight. Others use boxes when they could use a poly mailer or padded envelope to decrease the weight and dimensions.<\/p>\n\n\n\n<p>If you use custom branded boxes, inserts, and other fancy packing supplies like shredded paper filler or custom tissue paper, and you are struggling to keep shipping costs down, you could probably save money by ditching those.<\/p>\n\n\n\n<p>If you insist on using branded boxes, make sure they don\u2019t have dimensions that fall outside of standard box sizes major couriers use, or you may face additional fees.<\/p>\n\n\n\n<p>If your product packaging can be manufactured so it\u2019s ship-ready, you can save on shipping costs by simply slapping a label on it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-where-are-your-orders-shipping-to\">4. Where are your orders shipping to?<\/h3>\n\n\n\n<p>Understanding patterns in shipping destinations can help to identify where you should be shipping from. If you\u2019re&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/international-shipping\/\" target=\"_blank\" rel=\"noopener noreferrer\">shipping internationally<\/a>&nbsp;and it\u2019s costing you a lot of money, you may want to reconsider or instead work with an&nbsp;<a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/international-fulfillment\/\" target=\"_blank\" rel=\"noopener noreferrer\">international fulfilment<\/a>&nbsp;provider like ShipBob that operates locations across the globe.<\/p>\n\n\n\n<p>For domestic orders, you can\u2019t control or always predict shipping destinations, but you can control where you fulfil orders from. Working with a third-party logistics (<a href=\"https:\/\/www.shipbob.com\/3pl\/\" target=\"_blank\" rel=\"noopener noreferrer\">3PL<\/a>) company, you can utilise their&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-warehousing\/\" target=\"_blank\" rel=\"noopener noreferrer\">ecommerce warehouses<\/a>&nbsp;to store your inventory and ship from locations that are closer to your customers.<\/p>\n\n\n\n<p>This can significantly reduce your average shipping cost when you multiply out those cost savings across all orders.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-have-you-tried-using-a-shipping-or-fulfillment-partner\">5. Have you tried using a shipping or fulfilment partner?<\/h3>\n\n\n\n<p>Companies like ShipStation and Stamps.com have free trials for small businesses managing shipping themselves.<\/p>\n\n\n\n<p>Another big money and time-saver is outsourcing&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/order-fulfillment\/\" target=\"_blank\" rel=\"noopener noreferrer\">order fulfilment<\/a>&nbsp;to a 3PL company that stores inventory, packs orders, and ships packages for you.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><i>\u201cLast July, Prymal reached $40,000 in revenue. After switching to ShipBob just four months later in November, we are reaching $160,000 a month in revenue \u2014 that\u2019s 300% growth. We\u2019re also saving $8,000 per month in&nbsp;<a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/fulfillment-costs\/\" target=\"_blank\" rel=\"noopener noreferrer\">fulfilment costs<\/a>.\u201d&nbsp;<\/i><\/p>\n\n\n\n<p>Courtney Lee, founder of&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/prymal\/\" target=\"_blank\" rel=\"noopener noreferrer\">Prymal<\/a><\/p>\n<\/blockquote>\n\n\n\n<p><a id=\"3pls\"><br><\/a>\nIn addition to obvious direct costs like&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/postage-increase-2020\/\" target=\"_blank\" rel=\"noopener noreferrer\">postage<\/a>,&nbsp;<a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/outsourced-fulfillment\/\" target=\"_blank\" rel=\"noopener noreferrer\">outsourcing shipping and fulfilment<\/a>&nbsp;means you have new time to focus on areas of your business that drive sales, unlike packing boxes and running to the post office as orders come in everyday.<a id=\"outsourcing\"><br><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-outsourcing-fulfillment-to-shipbob-reduces-shipping-costs\">How outsourcing fulfilment to ShipBob reduces shipping costs<\/h2>\n\n\n\n<p>Sometimes, the best way to reduce shipping costs and scale is to partner with a professional fulfilment company. ShipBob provides&nbsp;<a href=\"https:\/\/www.shipbob.com\/inventory-management\/\" target=\"_blank\" rel=\"noopener noreferrer\">inventory management<\/a>,&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/warehousing\/\" target=\"_blank\" rel=\"noopener noreferrer\">warehousing<\/a>, and other&nbsp;<a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/\" target=\"_blank\" rel=\"noopener noreferrer\">ecommerce fulfilment<\/a>&nbsp;services, and also helps brands compete with big retailers.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-embed-handler wp-block-embed-embed-handler wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"ShipBob Fulfillment Center Guided Tour - 3D 360\u00b0 VR Video\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/YdTbM4XlizY?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-bulk-shipping-discounts\">Bulk shipping discounts<\/h3>\n\n\n\n<p>With thousands of customers, ShipBob is able to negotiate bulk discounts from shipping companies such as UPS, USPS, FedEx, and DHL to provide better rates to customers for&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/expedited-shipping\/\" target=\"_blank\" rel=\"noopener noreferrer\">expedited shipping<\/a>,&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/guide-offering-affordable-2-day-shipping\/\" target=\"_blank\" rel=\"noopener noreferrer\">2-day shipping<\/a>,&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/international-shipping\/\" target=\"_blank\" rel=\"noopener noreferrer\">international shipping<\/a>, and other speeds and services.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;We were hesitant about leveraging ShipBob\u2019s transportation management system at first \u2013 but it\u2019s actually been really great. Before we were manually choosing rates for orders coming out of our warehouse, but now ShipBob\u2019s WMS automatically selects the best delivery method for us so it costs us less and our customers get faster shipping.<\/p>\n\n\n\n<p>We\u2019re saving hundreds of thousands of dollars per year, just in postage. When we first got started, we estimated over $400,000 in savings. ShipBob has helped us save 40% on total fulfilment costs.&#8221;&nbsp;<\/p>\n<cite>&#8211; Adam LaGesse, Global Warehousing Director at <a href=\"https:\/\/www.shipbob.com\/blog\/spikeball\/\">Spikeball<\/a>&nbsp;<\/cite><\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-optimize-fulfillment-locations-to-be-closer-to-your-customers\">Optimise fulfilment locations to be closer to your customers<\/h3>\n\n\n\n<p>ShipBob helps ecommerce sellers choose the best location in the US to store their inventory closest to the most customers using shipping destinations from their sales history. By cutting down the distance an order has to travel, it can be delivered quicker and at less cost.<\/p>\n\n\n\n<p>You can also use multiple ShipBob facilities to efficiently reach even more customers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-free-packaging\">Free packaging<\/h3>\n\n\n\n<p>With ShipBob, there are no separate line items for picking, packing, or packaging supplies. We use plain brown boxes and packing materials to not overwhelm your customers with our brand, but let them focus on unboxing your product. Merchants can also send custom branded boxes, poly mailers, and inserts to use for their orders.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-offset-shipping-costs-from-additional-revenue\">Offset shipping costs from additional revenue<\/h3>\n\n\n\n<p>With&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/guide-offering-affordable-2-day-shipping\/\" target=\"_blank\" rel=\"noopener noreferrer\">ShipBob\u2019s 2-Day Express Shipping program<\/a>&nbsp;that can be enabled for all ecommerce stores, you can meet customer expectations, get more shoppers to complete their purchases, and drive lifelong customers.<\/p>\n\n\n\n<p>As a result, ShipBob customers have experienced an&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/my-calm-blanket\/\" target=\"_blank\" rel=\"noopener noreferrer\">18% reduction in cart abandonment rate<\/a>. <\/p>\n\n\n\n<p>By outsourcing&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/retail-fulfillment\/\" target=\"_blank\" rel=\"noopener noreferrer\">retail fulfilment<\/a>, you can also get time back to focus on other tasks that drive new customers to your website.<\/p>\n\n\n\n<p class=\"has-text-align-center\" id=\"faq\"><strong>Request a pricing quote from ShipBob to learn more and see how we can help.<\/strong><\/p>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\"><strong>Request a Fulfilment Quote<\/strong><\/a><\/div>\n\n\n\n<p><\/p>\n\n\n\n<section class=\"wp-block-shipbob-blocks-section-container section section-container  max-width-blog\"><div class=\"container section-info section-info-align-none \"><h6 class=\"section-title \"><\/h6><h2 class=\"section-content h2\">Reduce Shipping Costs FAQs<\/h2><p class=\"section-copy u-hidden\"><\/p><\/div><div class=\"container flex-container row justify-none align-none flex-wrap\">\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">How can I negotiate better shipping rates with couriers?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>One way to negotiate better shipping rates is to consider consolidating your shipping volumes by partnering with a 3PL like ShipBob, which offers aggregated rates due to higher order volumes. Additionally, you can compare couriers and negotiate based on shipping volume, destinations, and package sizes.<\/p>\n\n<\/div><\/div><\/div>\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">What is the cheapest shipping method for a small business?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>The cheapest shipping method for small businesses typically involves using ground shipping services, such as USPS First Class or Priority Mail, which offer cost-effective rates for lighter packages. For heavier shipments, consider flat-rate shipping options. You can also use a 3PL like ShipBob, which can help you access discounted courier rates due to bulk shipping, further reducing your costs. <\/p>\n\n<\/div><\/div><\/div>\n\n<\/div><div class=\"cta-container u-hidden\"><a class=\"btn btn-primary \" href=\"\"><\/a><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"<p>11 ways ecommerce stores can reduce shipping costs right now Shipping costs involve many variables. There are also plenty of\u00a0hidden costs\u00a0when handling\u00a0fulfilment in-house. Here are some ideas that can potentially lower your average shipping cost. 1. Understand shipping zones Many brands pay high shipping fees when they ship to destinations that are far away.&nbsp;Shipping zones&nbsp;are [&hellip;]<\/p>\n","protected":false},"author":149,"featured_media":0,"parent":138,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"hub.php","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"class_list":["post-140","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How to Reduce Shipping Costs: 11 Tips for Small Businesses<\/title>\n<meta name=\"description\" content=\"Cutting shipping costs is a top concern for online stores. 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