5 Ways Businesses can save Money on Shipping

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5 Ways Businesses can save Money on Shipping

Defining shipping costs is one of the biggest challenges business owners and entrepreneur face in e-commerce. Poor or no planning can result in owners overpaying, as well as losing sales if the company can’t provide consistent and cost-effective delivery to customers.

Businesses want to establish reasonable and attractive shipping costs, so they do not lose the desire to order from customers. Also, they do not want to absorb significant shipping costs that they simply cannot afford. Finding the right balance can be difficult, so let’s review some of the options.

Here are five ways businesses can save money on shipping

Charge shipping costs to your customers

This way, you have no cost to take care of, you can charge customers the exact price you will have to pay to ship orders. Some offer a real-time estimate of shipping charges at the time of payment, so customers pay the exact amount you will pay to send the products. The downside of this method is that the clients may be discouraged from regularly buying on your e-commerce if your shipping rates tend to fluctuate.

Propose a fixed shipping rate

To give customers peace of mind with a fixed identical shipping costs, you could offer a fixed shipping rate. You can have a single rate for all packages, or a few different rates depending on the number of items ordered or the size of packages sent. Many online sellers give two or three different fixed prices, depending on delivery times, in this way, customers wishing to receive their items faster can choose to pay more.

Offer Free Shipping

Free shipping is always an attractive feature for customers, but to offer it you need to be sure to bear the costs. Otherwise, you could slightly increase the price of your items to cover shipping costs. Offering free shipping from a minimum purchase amount is often a good idea, this encourages customers to buy additional products, enabling you to absorb costs more easily.

Thinking about return costs

No matter the quality of your products, every online seller will have to manage returns, and you will have to consider the costs of sending these returns as well. You could opt for a chargeback by the customer, or offer free returns and take care of the expenses yourself. Otherwise, you could offer both free returns with a drop-off point and pay the door-to-door return fees.

Automation tools

Having the ability to compare rates between different carriers and using various services for each shipment is a good way to save money. Working in this way can allow you to offer lower shipping costs, or even provide to your customers without having to incur significant expenses.

There is a good example of automation tools that allow you to compare the rates of different carriers for each of your shipments. You can connect your platform to this tool to save you time and streamline the shipping process. Furthermore, you can request custom integration if you want to let your customers choose the best shipping option and pay the associated fees.


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