{"id":23006,"date":"2022-05-12T10:54:00","date_gmt":"2022-05-12T15:54:00","guid":{"rendered":"https:\/\/www.shipstation.com\/?p=23006"},"modified":"2022-07-15T13:37:17","modified_gmt":"2022-07-15T18:37:17","slug":"how-to-reduce-ecommerce-shipping-costs","status":"publish","type":"post","link":"https:\/\/www.shipstation.com\/blog\/how-to-reduce-ecommerce-shipping-costs\/","title":{"rendered":"How to Reduce eCommerce Shipping Costs"},"content":{"rendered":"\n<p>Shipping costs are a major expense for any e-commerce merchant. When you\u2019re first starting out, you may be buying your labels at the post office\u2014hoping to one day have a driver instead hop down out of their truck and come to you to pick up outgoing parcels. <\/p>\n\n\n\n<p>ShipStation knows that shipping can be time-consuming and expensive. But there\u2019s no reason that your business should be held back by something as essential as shipping. When you have to spend less time figuring out how to keep shipping costs low, you can spend more time growing your business. There are a few things you can do to increase your profit margins and gain a competitive edge over your competition:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Use online shipping<\/li><li>reduce shipping costs<\/li><li>Shop around with multiple carriers<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Use Multiple Carriers<\/strong><\/h2>\n\n\n\n<p>Having a multi-carrier shipping strategy helps keep costs low. Sometimes, businesses become accustomed to certain shipping services for a given package or destination. However, with rates constantly changing, increased fuel surcharges, and increased discounts, comparing rates lets you find the <a href=\"https:\/\/www.shipstation.com\/blog\/ups-fedex-and-usps-shipping-discounts\/\" target=\"_blank\" rel=\"noreferrer noopener\">best shipping services<\/a> for your parcels. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Use Shipping Software<\/h2>\n\n\n\n<p>Using an online shipping platform like <a href=\"https:\/\/www.shipstation.com\/blog\/what-is-shipstation\" target=\"_blank\" rel=\"noreferrer noopener\">ShipStation<\/a> is the most immediate way you can save money on ecommerce shipping. The difference between the retail prices the post office charges and the Commercial Base rates you pay through shipping software. Even if you only ship several parcels per week, the cost of shipping software can be offset simply through the money you save on postage. Let\u2019s not forget the adage \u201cTime is money.\u201d The time-saving effects of online shipping are also advantageous enough to make the switch.   <\/p>\n\n\n\n<p>As with most great tools, shipping software has a bit of a learning curve. It\u2019s hard to hit the ground running with something as complex as ecommerce shipping. If you&#8217;ve used things UPS WorldShip or FedEx Shipping Manager, you are on your way. But once you get over that initial hump of learning the tools and features, you\u2019ll wonder how you ever got through the day without it. Comparing <a rel=\"noreferrer noopener\" href=\"https:\/\/help.shipstation.com\/hc\/en-us\/articles\/360026157611-Rate-Calculator\" target=\"_blank\">calculated rates<\/a> to find the best shipping method for your orders eventually becomes second nature. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reuse Packaging<\/h2>\n\n\n\n<p>It may seem obvious, but re-using packaging is a great way to cut costs when shipping. Boxes experience wear and tear throughout their lifecycle. And the end consumer typically doesn\u2019t notice the difference between a scuff on the corner of the box coming from its final delivery or if it was from a return shipment that you repurposed. Just make sure that the contents within its protective outer box are safe and sound. Additionally, don&#8217;t ever ship a parcel in the manufacturer&#8217;s box. This is a great way to get a parcel stolen from a customer&#8217;s doorstep. Furthermore, many insurance providers don&#8217;t accept claims for shipments in a manufacturer&#8217;s box. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Use Cost-Effective Cushioning<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft\"><img loading=\"lazy\" decoding=\"async\" width=\"298\" height=\"289\" src=\"https:\/\/www.shipstation.com\/wp-content\/smush-webp\/2019\/07\/Screen-Shot-2019-07-11-at-6.00.05-PM.png.webp\" alt=\"\" class=\"wp-image-23019\" srcset=\"https:\/\/www.shipstation.com\/wp-content\/smush-webp\/2019\/07\/Screen-Shot-2019-07-11-at-6.00.05-PM.png.webp 298w, https:\/\/www.shipstation.com\/wp-content\/smush-webp\/2019\/07\/Screen-Shot-2019-07-11-at-6.00.05-PM-58x56.png.webp 58w, https:\/\/www.shipstation.com\/wp-content\/smush-webp\/2019\/07\/Screen-Shot-2019-07-11-at-6.00.05-PM-111x108.png.webp 111w\" sizes=\"auto, (max-width: 298px) 100vw, 298px\" \/><\/figure><\/div>\n\n\n\n<p>Ways to ensure this are to use effective and affordable packing materials such as brown paper fill. Packing peanuts are a thing of the past and bubble wrap is mostly just fun to pop. There are more environmentally sound and affordable ways to transport goods. And at the end of the day, customers just want to get their package in one piece. <\/p>\n\n\n\n<p>Brown paper fill works well because it is malleable and cheap. Simply stuff it in around the fragile contents of the box and make sure that it doesn\u2019t jostle. Void fill is important for fragile material because roads are bumpy and no one\u2019s perfect\u2014you want to make sure any impact or dings don\u2019t happen to your parcel\u2019s contents. Sure, this larger, slightly heavier packaging technique can cause shipping rates to be a tad higher, but it\u2019s a drop in the bucket compared to paying for a return label for broken merchandise. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Add Shipping Costs into Item Price<\/strong><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.shipstation.com\/wp-content\/smush-webp\/2019\/07\/Screen-Shot-2019-07-11-at-6.06.46-PM.png.webp\" alt=\"\" class=\"wp-image-23021\" width=\"224\" height=\"224\" srcset=\"https:\/\/www.shipstation.com\/wp-content\/smush-webp\/2019\/07\/Screen-Shot-2019-07-11-at-6.06.46-PM.png.webp 176w, https:\/\/www.shipstation.com\/wp-content\/smush-webp\/2019\/07\/Screen-Shot-2019-07-11-at-6.06.46-PM-150x150.png.webp 150w, https:\/\/www.shipstation.com\/wp-content\/smush-webp\/2019\/07\/Screen-Shot-2019-07-11-at-6.06.46-PM-84x84.png.webp 84w, https:\/\/www.shipstation.com\/wp-content\/smush-webp\/2019\/07\/Screen-Shot-2019-07-11-at-6.06.46-PM-56x56.png.webp 56w, https:\/\/www.shipstation.com\/wp-content\/smush-webp\/2019\/07\/Screen-Shot-2019-07-11-at-6.06.46-PM-108x108.png.webp 108w\" sizes=\"auto, (max-width: 224px) 100vw, 224px\" \/><\/figure><\/div>\n\n\n\n<p>88% of customers prefer to shop on websites that offer <a href=\"https:\/\/www.shipstation.com\/blog\/use-free-shipping-drive-sales\/\">free shipping<\/a>. Makes sense, right? Well, as an ecommerce seller, you need to find ways to offer free shipping without breaking the bank. The most common way this happens is to inject the shipping costs into the item price. There\u2019s no such thing as a free meal, and there\u2019s no such thing as free shipping\u2014someone\u2019s gotta pay and it\u2019s usually the customer. You have to keep your margins in mind. And if you ship items that are small and inexpensive to ship, a slight price increase may be unnoticeable to the customer. Research your competitors to see how they handle shipping costs, while the cheapest cost usually wins, if you can\u2019t go too low, find a way to spin it more positively. First Class Mail typically doesn\u2019t take more than 3-5 business days to make final delivery. And this is where a shipping software can really come in handy. <\/p>\n\n\n\n<p>Offer \u201cSame Day Shipping\u201d for all orders. This is not the same as \u201cSame Day Delivery\u201d but it\u2019s a good hook for your customers. It just means you\u2019ll ship the order out on the same day as when the customer placed the order. A shipping software can reduce the shipping time so much that you can print the labels from anywhere on earth. Even if you ecommerce isn&#8217;t your day job, you can always print labels using something like a <a href=\"https:\/\/www.shipstation.com\/mobile\/\" target=\"_blank\" rel=\"noreferrer noopener\">mobile app<\/a>. This will send the customer an <a href=\"https:\/\/help.shipstation.com\/hc\/en-us\/articles\/360026157911-Customer-Notifications\" target=\"_blank\" rel=\"noreferrer noopener\">email notification<\/a> and you can ship the parcel when you get home. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Use Carrier Provided Packaging<\/strong><\/h2>\n\n\n\n<p>Carriers incentivize customers to use their more premium services by offering complimentary packagings. As such, these packagings tend to be service-restricted. So, if you get Priority Mail Flat Rate Envelopes, don&#8217;t use them with First Class Mail shipments. They will get returned to you.<\/p>\n\n\n\n<p>To see how much time and money you can save, sign up for a <a href=\"https:\/\/www.shipstation.com\/start-a-free-trial\" target=\"_blank\" rel=\"noreferrer noopener\">free ShipStation trial<\/a> today<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shipping costs are a major expense for any e-commerce merchant. When you\u2019re first starting out, you may be buying your labels at the post office\u2014hoping to one day have a driver instead hop down out of their truck and come to you to pick up outgoing parcels. ShipStation knows that shipping can be time-consuming and [&hellip;]<\/p>\n","protected":false},"author":66,"featured_media":22062,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42],"tags":[],"class_list":["post-23006","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-shipping-basics"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.1 (Yoast SEO v25.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Reduce eCommerce Shipping Costs - ShipStation<\/title>\n<meta name=\"description\" content=\"Want to know how to reduce shipping costs for your ecommerce business? 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