For businesses managing order fulfillment, shipping is one of the largest—and most volatile—expenses. But high costs don’t have to come at the expense of fast delivery. With the right strategies, you can cut down on shipping expenses while keeping customers satisfied with quick, reliable service. Here’s how to make it happen.
- Compare Carrier Rates Automatically
Every carrier has strengths depending on package weight, dimensions, and destination. USPS often offers the best rates for lightweight packages under 16 oz, while UPS and FedEx may be more cost-effective for heavier boxes. Using rate comparison tools like ShipStation, Shippo, or EasyPost allows you to automatically find the best price on every shipment in real time.
- Right-Size Your Packaging
Carriers now use dimensional (DIM) weight pricing, which means oversized boxes can cost you—even if they’re light. Right-sizing packaging to match your product can dramatically lower costs. Use custom packaging platforms like Packlane or EcoEnclose to minimize waste and reduce fees.
- Use Regional Carriers for Local Deliveries
Regional delivery services like OnTrac and LaserShip specialize in last-mile and zone-specific delivery across major U.S. regions. These services often beat national carriers on speed and price for local shipments.
- Set Shipping Rules to Automate Savings
Shipping automation can reduce human error and keep fulfillment lean. Many order management systems (OMS) allow you to set shipping rules based on product weight, destination, or shipping method. For example, auto-routing light packages to USPS First Class or heavy items to UPS Ground can eliminate overcharges.
- Tap Into Volume Discounts or Negotiated Rates
Even small to midsize businesses can negotiate shipping rates directly with carriers like FedEx, UPS, or DHL. If you’re shipping consistently—even at modest volumes—you may qualify for lower rates, scheduled pickups, or additional perks.
- Place Inventory Closer to Customers
Shipping costs increase with distance, especially as you cross more zones. By storing inventory in multiple fulfillment centers, you can reduce the average distance each package travels. Services like ShipBob and Deliverr offer distributed warehouse networks tailored for fast, affordable delivery.
- Batch Shipments to Reduce Per-Order Costs
When you receive multiple orders heading to the same zip code—or from the same customer—batching them into a single shipment can lower costs. Shipping software like Pirate Ship and Ordoro allow batch label creation and discounted rates, especially for high-volume days like holidays or drops.
Shipping isn’t free—but that doesn’t mean you can’t get something back. With Fluz, you can earn cashback with FedEx, get rewards with UPS, or earn cashback with DHL using Fluz. Simply buy the gift card through Fluz at the time of payment and apply it to your shipping costs. Even recurring shipments can earn you consistent cashback with no change to your workflow.
- Reevaluate Your Free Shipping Thresholds
Offering free shipping on all orders isn’t always sustainable. Instead, set a minimum order value to unlock free shipping (e.g., “Free shipping on orders over $50”). This encourages customers to add more to their cart while giving you a predictable cost structure.
- Review Shipping KPIs Regularly
Track metrics like shipping cost per order, on-time delivery rate, and return rate to identify trends and areas to improve. Whether you’re using custom dashboards or tools like AfterShip, data-driven decisions will help you stay efficient as you grow.
Shipping costs will always be a factor—but they don’t have to erode your margins. With strategies like zone-based inventory, packaging optimization, and cashback programs like Fluz, you can maintain fast delivery times while keeping your expenses under control.
