11 Proven Strategies To Reduce eCommerce Shipping Costs (2024 Update)

Shipping costs are one of the most significant influences on eCommerce profitability in 2024, where online competition is intense, product margins are thin, and customer expectations are immense.

Speaking to online sellers daily, our shipping experts understand the market pressures and actively work with small and medium-sized businesses around the world to better understand and reduce their shipping expenses.

Online retailers are typically caught between a rock and a hard place:

Option A: Absorb shipping expenses, which can significantly impact profitability and eat away at individual order margins for low-value products; or;

Option B: Pass shipping costs on, which results in higher prices that may deter customers and lead to an increase in abandoned carts and wasted advertising dollars.

This is why finding smarter ways to minimize shipping costs and improving your online customer experience is essential for success—and what will set good retailers apart as we head towards 2025. The good news is that balancing shipping costs, delivery efficiency, and customer expectations is achievable for small businesses and large brands.

Here, we’ll take a deep dive into the specific products and strategies you can implement in your business to reduce shipping costs, maintain profit margins, and keep your customers happy.

1. Review Packaging to Cut Shipping Costs

Optimizing your packaging is one of the most effective ways to reduce shipping costs. Package weight and dimensions directly impact your shipping rates, especially with dimensional weight pricing models. By reducing packaging size and weight, you can save money on shipping.

Many Easyship customers have significantly reduced their shipping costs by rethinking their packaging strategies and implementing defined product details within the App.

This allows Easyship’s Intelligent Auto Box Selection feature to automatically select the smallest package for each order based on the mix and number of items customers choose. This reduces dimensional weight fees, ensuring that businesses only pay for the actual space their products take up during shipping.

By combining this strategy with more compact, lightweight packaging materials, Easyship online sellers can minimize their shipping expenses. Don’t forget to keep in mind the type of packaging used to make for a memorable unboxing experience!

How to optimize packaging:

• Use lighter materials like air pillows or bubble wrap in place of heavy boxes where possible.
• Analyze your current packaging—if you’re using oversized boxes, switching to smaller, more compact packaging can make a big difference.
• Set up product dimensions within Easysip to set up automation rules to always select the smallest possible package or parcel.
• Leverage Easyship's shipping calculator to input package dimensions and weight, which will automatically compare and recommend the most affordable shipping options.
• Test different packaging options within Easyship’s platform to see how varying package sizes impact shipping costs so you always select the lowest-priced option.
• By optimizing packaging and taking advantage of Easyship's built-in tools, you can easily manage shipping costs, collect savings and pass them onto your customers.

2. Leverage Flat Rate Shipping Options

Flat-rate shipping is a highly effective way to control shipping expenses, especially when dealing with heavier or larger items. By providing predictable, fixed, and flat rate options, you can eliminate unexpected fees and make it easier to budget and forecast shipping costs, regardless of the destination or weight of the package.

More than 100,000+ eCommerce brands use Easyship globally to access deeply discounted shipping rates and save up to 91% on their shipping label fees. Whether you're shipping domestically or internationally, Easyship’s platform allows you to compare rates from multiple couriers in real time, ensuring you never overpay for shipping. This convenience gives you peace of mind, knowing you're always getting the best deal. 

How to take advantage of flat-rate courier services:

• Sign up with Easyship to instantly access discounted rates from major global and regional couriers.
• Use Easyship’s rate comparison tool to select the cheapest option for each order
• Set up automation rules that always select the cheapest option based on criteria like destination country, package size, or product.
• Review the savings regularly to ensure you're maximizing cost reductions.

3. Print Shipping Labels In-House

If you still rely on the local post office to print your shipping labels, it's time to bring the process in-house. Doing so can help you reduce costs, free up time, speed up your fulfillment process, and give you more control over your shipping operations.
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Most eCommerce businesses using Easyship have transitioned to printing their shipping labels from home or their warehouse, eliminating the need for frequent post-office trips. When combined with Easyship pick-up services that are available on many courier services, this strategy can save valuable time—while delivering unmatched access to the best business shipping rates through Easyship’s all-in-one platform.

How to print shipping labels in-house:

• Invest in a reliable label printer to quickly notice savings in both time and money.
• Use Easyship’s label generator to print labels, whether for single shipments or in bulk, with access to discounted rates and pre-filled shipping details.
• Automate the label creation process by connecting your store with Easyship to automatically sync incoming orders and update shipment tracking.
• Stock up on label paper and ink to avoid disruptions or delays in your shipping process. You can often buy this in bulk and save even more.

4. Pre-Negotiated Discounts For The Best-Possible Rates

Negotiating lower shipping rates with individual carriers can be time-consuming and difficult, especially for small businesses that don’t ship in large volumes and have limited buying power. 

Luckily, this is where Easyship excels, providing immense value to online sellers with access to pre-negotiated discounted rates across 550+ courier services globally. Easyship users automatically receive discounted rates from the moment they sign up. Saving up to 91% off retail rates with the best-available platform rates on top couriers like DHL Express, FedEx, USPS and UPS.

This allows eCommerce businesses of all sizes to access competitive pricing from major couriers without the hassle of negotiating contracts with each carrier in each country of origin.

How to save on business shipping rates:

• Sign up for Easyship to take advantage of discounted rates from trusted carriers like USPS, FedEx, UPS, and DHL Express.
• Compare shipping rates in real-time for each shipment, using Easyship’s platform to select the best option based on price and delivery time.
• Set up shipping rules within Easyship to automatically apply the best discounts based on your order's size, weight, or destination.
• Regularly review your shipping settings to ensure you’re continuously optimizing for the best possible savings.

5. Compare Regional Carriers For Domestic Shipping

Large express carriers like FedEx or UPS might not always offer the most competitive rates for specific regions when shipping domestically. In many cases, local or regional couriers provide more affordable options. With Easyship, you can easily compare national and regional carriers to find the best solution for your shipping needs.
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Many Easyship users have found significant savings by opting for regional carriers over larger, national ones. For instance, in some parts of the US, Sendle’s local services offer more affordable rates than larger carriers like FedEx. Easyship’s platform allows businesses to identify and select these regional carriers, cutting costs on local deliveries while maintaining reliable service.

How to compare regional and express carriers:

• Use Easyship’s rate comparison tool to assess rates from both national and regional carriers for each shipment.
• Test out different couriers over several weeks to determine which ones provide the best balance of cost and service in your target delivery zones.
• Diversify your carrier options with Easyship to ensure you’re not overpaying by sticking with a single national courier for all deliveries, especially for local shipments.

6. Take Advantage of Shipping Zones with Fulfillment Centers

Shipping costs increase as packages travel through more zones, making longer-distance deliveries more expensive. By strategically using multiple fulfillment centres that are closer to your customer's delivery address, you can reduce the number of zones your shipments cross, significantly cutting down on shipping fees and delivery times.
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Businesses using Easyship’s fulfillment solutions can store inventory in multiple fulfillment centers across different regions. This allows them to ship orders from the location nearest to the customer, minimizing shipping distances, lowering costs, and ensuring faster deliveries in most cases. With Easyship’s platform, they seamlessly manage inventory across these centers without the hassle of maintaining their warehouses.

How to get started with 3PL fulfillment services:

• Use Easyship’s fulfillment services to distribute your inventory across strategically placed centers near key customer regions.
• Analyze your sales data with Easyship’s insights to determine the regions where most of your customers are located and position your stock in fulfillment centers close to those areas.
• Partner with Easyship’s 3PL network to efficiently manage your inventory and streamline order fulfillment across multiple locations without the complexity of handling it all yourself.

7. Save Time With Shipping Automation

Managing your shipping process can be tedious, prone to errors, and slow down your business operations. Automating your shipping workflows ensures that the most cost-effective and efficient options are selected consistently while minimizing human error. Easyship’s powerful platform offers a suite of automation tools to simplify and optimize your shipping process.
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Easyship’s AI-powered platform takes the guesswork out of shipping. It automatically compares rates across multiple couriers, selects the best option based on your predefined criteria, generates labels, and provides real-time tracking updates to you and your customers. This automation not only saves time but also ensures error-free, efficient shipping.

How to use automated shipping rules:

• Set up custom shipping rules on Easyship that automatically select the optimal shipping method based on factors like destination, order value, or package dimensions.
• Simple configuration by using straightforward “if this” (condition) and “then that” (action) statements.
• Use Easyship’s automation features to handle repetitive tasks such as label creation, tracking notifications, and customer communication, ensuring seamless fulfillment from start to finish.
• Regularly review and fine-tune your automation settings as your shipping volumes grow to consistently focus on speed and cost-efficiency.

8. Integrated All-In-One Shipping Software

During the peak holiday shopping season, your eCommerce tools must run seamlessly to handle the surge in orders. A streamlined and connected dashboard that gives you complete visibility and control is essential for scaling your operations efficiently without disruptions.
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Easyship’s Smart Shipping Dashboard is designed to simplify operations with features like automatic carrier selection and real-time tracking, ensuring smooth, cost-effective shipping even during peak season spikes. Plus, with more than 60+ tech integrations with leading platforms like Shopify, WooCommerce, and Squarespace, you’ll have everything you need in one place.

How to benefit from a smart shipping dashboard:

• Automate tasks like rate shopping, label printing, and carrier selection using Easyship’s dashboard to improve efficiency.
• Keep customers updated with real-time tracking, ensuring timely deliveries.
• Optimize your shipping process to effortlessly manage increased volumes during Black Friday, Cyber Monday, Christmas, and more.

9. Shipping Insurance For eCommerce

Once an order leaves your warehouse, many things can and do go wrong—loss, damage, or theft can occur anytime during transit and are actually on the rise in some destinations!

Adding reliable shipping insurance is crucial to maintaining control over your customer experience. Shipping insurance protects your business and turns a potential problem into a positive customer touchpoint by showing you’re proactive in resolving issues. There are times when an issue solved proactively for a customer is actually a better experience than there being no issue at all!

Easyship’s shipping insurance provides eCommerce businesses with a simple, efficient way to protect their shipments. If something goes wrong with a valuable order, Easyship makes the claims process easy, helping you secure compensation quickly and turn a negative situation into a positive experience for the customer.

How to add eCommerce shipping insurance:

• Use Easyship’s shipping insurance to protect your packages from loss, damage, or theft.
• Set up automatic insurance for high-value shipments, covering all valuable items up to $10,000 USD.
• If something does go wrong in transit, your profits are protected with insurance cover.
• When a claim is necessary, Easyship’s streamlined claims process ensures you get compensated quickly, keeping your customers satisfied and your business protected.

10. Import Taxes & Duties for International Shipping

Navigating import taxes and duties can be complex when shipping internationally. To avoid costly delays and ensure smooth global shipments, accurately calculating these fees upfront is crucial.

Easyship simplifies this process, helping businesses of all sizes manage duties and taxes seamlessly, empowering your international growth. Your business can then decide to absorb—or pass on these costs for customs clearance.
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Easyship’s tax and duty calculator allows businesses to determine the customs fees for international shipments easily. With the integrated HS code lookup tool, Easyship ensures that your products are classified correctly, helping to avoid delays and unexpected charges during customs clearance.

How to calculate import tax and duties:

• Use Easyship’s tax and duty calculator to estimate fees for international shipments accurately before sending them out.
• Leverage the HS code lookup tool to ensure proper product classification, minimizing the risk of customs delays.
• Automate the calculation of taxes and duties for each shipment with Easyship, giving you more control over your international shipping costs and customer experience.
• Decide whether the shipment will be Delivery Duty Paid (by the seller) or Delivery Duty Unpaid (covered by the receiver).

11. Monitor Shipping Analytics Regularly

Keeping customers informed about their orders and managing returns efficiently is crucial for maintaining customer satisfaction and loyalty. Delays in tracking updates or complicated return processes can frustrate customers, leading to overwhelmed support teams and potentially lost future sales.

Customers expect fast, transparent shipping and easy returns. Failing to meet these expectations can harm your brand’s reputation. By optimizing your post-purchase process, you can make sure your customers are happy and keep coming back with repeat business.

Easyship streamlines the post-purchase experience by offering real-time tracking and seamless returns management. Its real-time monitoring across major couriers ensures that customers receive timely shipment updates. Additionally, branded tracking pages enhance your professional image, making your business appear more trustworthy. You can also simplify returns by automating label generation and sending return labels directly to customers.

How to improve your customer delivery and tracking:

• Utilize Easyship’s real-time tracking to provide your customers with accurate, timely updates on their shipments, improving transparency and reducing customer service inquiries.
• Enhance your brand’s image with branded tracking pages to reflect your business identity.
• Automate return label generation to make the returns process easy and efficient for you and your customers.
• Regularly review your shipping metrics using Easyship’s dashboard to monitor performance, identify areas for improvement, and ensure smooth, timely deliveries.

Managing shipping costs is critical to the success of any eCommerce business. Using these 11 strategies, from optimizing packaging to automating shipping processes with Easyship, you can reduce costs, increase profit margins, and keep your customers happy.

With Easyship’s comprehensive shipping solutions, you can streamline your operations and save up to 91% on shipping costs, ensuring you remain competitive in the rapidly growing eCommerce space.

Ready to streamline your shipping and save costs? Sign up for Easyship today and see how you can take your business to the next level with more brilliant shipping strategies!