10 Ways to Reduce shipping costs

by Josh Biggs in Ecommerce on 28th May 2019

In the list of expenses, there is one thing which every business has to incur. It is nothing but the shipping charges. Be it large or small endeavour, offline or online businesses, these expenses must be included in their daily transactions. Business people have to take into consideration technological changes and inflation and adapt to changing situations. It is as well crucial to stay updated with shipment terms and updated trends. This proves to be a beneficial factor for businesses.

In this regard, there are many third-party logistics companies like 3PL Links that offer cost-effective and dependable services. It helps in reducing costs and attains 100% customer satisfaction.

Nowadays there are many companies which need transportation services. On a daily basis, there are various freight charges incurred by them. For instance, Imagine you hold an apparel store both offline and online. There is every transaction involved in sending various cloths to the clients staying in a different state or delivering a new order to the dealer. If you ship them alone, it costs you more than you think.

Wondering how it would reduce all your shipping costs and save money for your business. Then this article is for you.

Here are 10 ways that reduce shipping costs.


1) Choosing a carrier

There are a lot of options available with regards to shipping services, delivery cost, and packaging. Every shipper has a common carrier like 3PL Links, that perform well continuously. Each carrier has its own strengths. You as a business owner needs to understand them and use each carrier for your own advantage. Get the best rates with the existing shipment firms that are operating in your region and cut down your costs.


2) Rate Shop

Compare your parcels and carriers among all the carriers and delivery methods. Get cost-effective service by Contacting in-house logistics team and have a quickest possible service. For instance, have a first class service when your package weighs less than 13 ounces. If the package is more than 14 ounces, then you can opt for priority mail.

Moreover, for regional carriers and Saturday deliveries, there are companies that offer lower prices than the national shipping carriers as they cater to the small local area. Understand these features in advance as you don’t end up paying higher prices.


3) Packaging

A primary feature that decides your shipping charges is the weight. The weight of the deliverable product is the synergy effect of the packaging and the real weight of the product. In this, utility and efficient-based packaging help in minimizing the costs to a much greater extent. The shipping rates are generally provided based on the dimensions and weight of the packages. That is the reason why companies are going for utilities and not adding any unnecessary paddings, hard packages other hyperboles.

Similar to the weight of the package, dimensions are another basic feature in deciding the shipping rates. Moreover, the issue for the package is not how much something weighs but how much space it uses. Hence, review your package methods and make sure that you’re not wasting any space.


4) Third-party services

Most of the shippers don’t have the appropriate resources to manage all the transportation needs efficiently. It might add value to your company by outsourcing totally to logistics carrier or provider as these firms have necessary personnel staff to streamline your shipping process. These can offer many options right from shipping to buying insurance etc. Third-party can reduce costs at the same time you can focus on the other important business activities. These service companies let you plan and implement best practices by increasing customer satisfaction.


5) Process Electronically

There are different tools available to make shipping convenient and efficient than doing it manually. Use automated package processing to receive discounts. There are a few systems where you can earn discounts on priority and express mail, in addition to the discounted fee structure, if you submit your shipment details electronically. Investing in warehouse management systems, transportation and Yard management Systems and any other similar technologies is crucial in reducing rates. Mostly ship in large volumes, if not you can still generate a set of shipment rules. These technological tools even help the warehouse staff to avoid all the common processing mistakes.


6) Prepaid Shipping

To aid in cutting the costs, ponder upon prepaid. A few logistics company provide lower costs when your transportation charges are prepaid. They have even discounted prices. Prepaid shipping generally refers to buying a number of shipping labels upfront and append them to package whenever needed instead of paying for each package. Shipping carriers offer discounted rates on prepaid shipping. Prepaid shipping works better whenever you have similar weight packages very often. Shipping cost is determined in advance.


7) Purchase insurance from any third-party

If you’re buying insurance for your products, it’s always better to explore various alternatives from any third-party insurance providers. They provide much-lowered rate plans for your companies. For instance, if the selected carriers charge 80 cents for every 100 dollars, third-party companies offer only 45 cents. Few companies offer 50% less than what the regular carriers charges. This kind of savings adds up to your firms.


8) Combine all your shipments

To save your freight cost, consolidate products from different suppliers for shipping. Combine your shipments with other companies with the same carrier. List out the local businesses and find a suitable partner for co-shipping.  Otherwise, ask the customers to make the bulk orders if they are making small orders repeatedly. Consider working with a third-party logistics that serves numerous companies and save up to 25% of transportation costs.


9) Build a reputation and relationships

Carriers such as 3PL Links fix the price based on estimated loading time. If there is fast loading time, the impact will be on savings cost. ¬†For carriers, this means getting on to the road faster and serve more customers. In this aspect, you can build an ever-lasting relationship with clients. Once you rely on one carrier who is trust-worthy and provided better service, build that relationship with them. Put in a lot of efforts to rank top among your carrier’s top lists. They’ll then bestow their appreciation. In that matter, even the carrier doesn’t offer the lowest price always, they are chances of saving time, resources and money in the long-run.


10) Ask for discounts and refunds

Many firms provide shipment guarantees. If there are any delays, then you are eligible for a refund. They are even member discounts if you are associated with the industry’s professional. You could be eligible for a 50% discount in most of the cases that depend on the size of your association.

Moreover, there are package auditing entities that track your packages and refund the amount you’re overpaid. They may also monitor your bills to make sure you’re not overpaying.



For every business shipping costs cater to the biggest expenses falls under the expense bracket. Many entrepreneurs are searching for the best route to reduce the sting. To achieve this, the above are the best ways to cut down the costs. In addition to it is always important to take out the valuable time and analyze your transportation processes. Collaborating with third-party logistics provider can have a considerable impact.


Categories: Ecommerce