Ecommerce and online markets have changed everything, including the way small businesses use and pay for the mailing and shipping services of the major carriers.

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Discounted postage stamps are available to everyone online. You don’t have to own a business to qualify for online postage and shipping services. The more you mail and ship, the more time and money you can save. These savings are available at some major carriers’ websites, as well as online shipping services like PitneyShip.

Let’s look at a few ways you can help your business save on shipping costs with online postage.

Ship it like an ecommerce expert

You don’t have to be an ecommerce expert to save on postage and shipping. Online, brick-and-mortar, spare room, or garage, savings are available wherever you do business. However, online merchants have led the way.

First, they understand that shipping costs are just one aspect of the overall customer experience. Shopping online is all about offering a good service, and how a product is delivered plays a vital role. It's wise to have a shipping strategy that not only saves you money but also satisfies your customers. Here are some points to consider:

• To charge or not to charge: Determine whether you want to charge for shipping (that’s one way to save postage) or provide free or flat-rate shipping as a service enhancement.
• Packaging choice: If you're consistently selling the same items, it'll pay to have consistent packaging. Carriers like USPS®, UPS®, and FedEx® offer free packaging, though some online stores benefit from branding through customized packaging. Whatever your choice, avoid over-packaging; use the smallest, lightest packaging that meets your needs.
• Standardized shipping: Once you select your packaging, standardize your shipping. PitneyShip simplifies this with pre-sets based on size, volume, etc., ensuring consistency in your shipping processes and costs. Carriers like USPS now offer rates based on package dimensions (DIMs) too.
• Bulk mailing: Don't overlook marketing; you have it to consider too. USPS offers stamp and postage discounts for mailers using postal barcodes. With PitneyShip technology, you can print these codes easily, leading to even more discounts.

Find the right online postage service for you

Now that you realize the potential to save on postage by purchasing online, where do you start? Which service offers the best savings?

Both USPS and UPS have special offerings for small businesses on their sites, but this can limit you to just that carrier. Online shipping services provide even greater savings and allow you to compare various carrier options all in one place. Here’s how much you can save with PitneyShip:

How to save on shipping - more than 30 tips from ...

This week, I aimed to share valuable tips to save on shipping costs from your e-commerce site. If you're shipping products to your customers (which most of you are), shipping expenses can stack up fast!

Here's a quick tip you can implement right away to save on shipping charges

If you're shipping packages under two pounds, USPS services (First Class or Priority Mail) are your best bet. For packages over two pounds (common in wholesale orders), consider opening an account with FedEx or UPS since their rates are often lower at this weight.

Remember to register for a UPS or FedEx online account (at www.ups.com or www.fedex.com) and print your labels beforehand instead of visiting their physical stores. Shipping directly from the store without an account can cost you up to 50% more. You can still drop off packages for pickup but ensure that the labels are pre-printed and pre-paid online.

Additionally, shipping to a commercial/business address is cheaper than to a residential address with carriers like FedEx and UPS. Services like Mail Boxes Etc. tend to charge high fees, so it’s wise to avoid them when possible.

Use USPS flat rate boxes

We're using USPS flat rate boxes for our shipments and enhance our shipping process with a service called ShipStation, which syncs up with our website, making label creation easier. This service also gives us discounted shipping rates. Initially, I was skeptical about flat rate boxes, but they have turned out to be our best option. With our products being skin care and beauty items that can be somewhat heavy, thorough research revealed that these boxes are ideal for us. My experience has been entirely positive! Thanks to Stephanie from DermWarehouse.

Purchase a label printer

We’ve identified two crucial ways to save on shipping costs: purchasing a label printer accelerates fulfillment and cuts down our packaging slip costs. We utilize a Dymo XLW, which allows us to customize our labels for branding too. Also, we harness Shopify Shipping, a special feature within Shopify that simplifies label printing from supported carriers at competitive rates, saving us $1-15 USD on average for both national and international shipments. Thanks to Kellan from thePnut.

Safety is our priority

I handle shipping for glass terrariums and kits (containing soil and moss without glass). Due to the fragile nature of glass, I follow specific requirements to save on costs. Each business has distinct needs; for me, safety is paramount. I rely on a dependable service that offers tracking and has a low parcel loss rate. For my terrarium kits, timely delivery is crucial to prevent the moss from dying, while cost remains a consideration since these kits are priced at just $10. Optimizing packaging can mitigate shipping costs too — for instance, selecting a box size that fits your product or seeking less expensive alternatives for packing materials (like newspapers instead of packing peanuts). Thanks to Adam from Geodesium.

Avoid locking yourself in with one carrier

To save on shipping and postage, steer clear of committing to one carrier. Try selecting the most suitable carrier for each individual order. While it might seem tedious to evaluate your shipping choice each time you get an order, rates can differ substantially based on package weight, dimensions, and destination. For instance, USPS doesn't impose residential fees, whereas FedEx and UPS do, which can add up significantly over time. By staying flexible with your options, you can effectively manage costs and choose the most favorable rates. Thanks to Dave from OnlineLabels.com.

Use zone skipping

Zone skipping is one of the best ways to cut costs in our business. We ship larger products, so dimensional weight, as well as the actual product weight, can make our rates steep when shipping across the country. Zone skipping consolidates shipments going to a distant region and sends one LTL freight shipment (in our case) to a consolidator in that zone. The consolidator then ships the packages from their distribution center to our customers, significantly reducing shipping costs per package. While this isn’t applicable for express shipments, the savings from zone skipping help offset the express costs when necessary. Thanks to Mario from CeremonialSupplies.com.

Send by freight

One cost-saving strategy we've adopted is to use freight shipping instead of UPS or FedEx, provided the order size justifies it. You can split a large order across different freight trucks, but make sure this arrangement meets customer expectations, as deliveries may arrive at varying times. Thanks to Dustin of ShippersSupplies.com.

Negotiate with multiple carriers

Shipping expenses are crucial for remaining competitive in the e-commerce industry. Through my experience, I learned to trim shipping costs significantly. Many small business owners don’t realize their negotiating power. Don’t hesitate to negotiate rates with multiple carriers to see which one offers the lowest. When carriers know they're competing for your business, they'll be motivated to provide better prices. Additionally, leverage the free packaging provided by carriers. I saved over 65% on packaging costs by utilizing Flat Rate Boxes from USPS. You can also cut costs using recycled materials. Always remember to negotiate for better rates as your business expands! Thanks to Lisa Chu from www.blacknbianco.com.

Reuse packaging

As a small e-commerce business owner, I often grappled with the high costs of packaging to ship products. I’ve successfully saved on packaging by reusing materials I receive in the mail. Bubble wrap, packing peanuts, and boxes can add up when purchased regularly, but these can all be reused. I even ask friends and family for their spare packaging! Thanks to Max from Fish Tanks Bank.

Ship by First Class Mail

Numerous shipping options exist, and the best choice depends on the size, shape, and weight of your items. Most businesses opt for USPS First Class Mail or USPS Priority Mail. Generally, First Class Mail is the cheaper alternative; if your products qualify, use it instead of Priority Mail. Don't overspend on unnecessary shipping services! Thanks to Andrew from The Kratom Connection.

Belong to a professional association

Check if your professional association has arranged discounts with major private carriers. Personally, I enjoy a good discount with UPS through Green America, a nonprofit that promotes ethical consumerism and to which I belong. Thanks to Reena from Eco-Artware.com.

Be as accurate as possible with weights and descriptions

The best way for us to save on shipping has been maintaining accuracy in our weights and item descriptions. Accurate input ensures consumers aren’t overcharged and saves us from underestimating shipping costs! Thanks to Jennifer from ShowMeDecorating.com.

Know your box size

Being knowledgeable about box sizes is key, especially when shipping via freight and ground services. Ensure smaller, lightweight boxes are shipped ground — a common mistake where users assume large or heavy boxes should travel freight. The more you can ship ground, the more you’ll save, and your customers will benefit from improved service, as freight can lead to pitfalls. Thanks to William Shuhaibar from TheBathOutlet.com.

Outsource your shipping

Outsourcing your shipping via Amazon FBA or similar services can be cost-effective in the long run. While it may appear costlier due to service fees, you won’t have to handle expenses such as personnel or warehouse rentals. Utilizing Amazon FBA or similar ensures reliable delivery and satisfied customers, plus no more need to store your products. Thanks to Chad from Skubana.

Ship Boxes by Cubic Weight

Utilizing the Cubic Weight system is an efficient strategy for minimizing shipping costs. Carriers like USPS provide discounted rates for customers with high volumes who ship small, heavy packages. Specifically, Priority mail packages weighing under 20 pounds and measuring less than .5 cubic feet qualify for these rates. Essentially, your customers pay for the actual size and distance the box is traveling, rather than its weight. Thanks to Kevin from ShipMonk.com.

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Use FedEx SmartPost or UPS SurePost

FedEx SmartPost and UPS SurePost are more affordable than traditional ground services. Their costs are calculated based on how your subscription boxes reach their destinations. The costs escalate due to carriers having to deliver large trucks directly to customer locations. SmartPost and SurePost mitigate these surcharges and pick up from your facility, leaving the last leg of delivery to the local USPS branch, which often results in substantial savings. Thanks to Kevin from ShipMonk.com.

Use discounts from a fulfillment center

Fulfillment centers like ShipMonk can negotiate better rates with carriers due to higher shipping volumes. You’ll benefit from their expertise and leverage their negotiation power on packing and shipping costs. Thanks to Kevin from ShipMonk.com.

Use FBA (Fulfillment by Amazon)

I found that utilizing FBA (Fulfillment by Amazon) drastically cuts shipping costs due to high volume. They offer free 2-day shipping for both Amazon Prime members and my website sales. Integrating their API to fulfill my web sales saves time and money; it’s the best decision made to save on shipping. Thanks to Zachary from www.testsure.com.

Consolidate your packages

Package consolidation is vital, as it encourages you to ship items in fewer and optimally-sized packages. For instance, if shipping product A to a customer costs $9 and product B costs $7 separately, you’ll generally pay $10-11 to combine them in one shipment. It's critical to keep an eye on this metric, especially with outsourced fulfillment centers that may charge a per-parcel fee, which incentivizes them to ship individually rather than consolidate orders. Thanks to Jake from www.redstagfulfillment.com.

Be strategic about the location of your fulfillment center

Selecting the best location for your fulfillment center is critical, whether it’s third-party or in-house. An e-commerce store in LA importing electronics, for instance, might assume a fulfillment center there makes sense. However, this could lead to high land costs, and if the business isn't primarily serving the west coast, selecting a centrally located warehouse can significantly cut shipping costs over time. Thanks to Jake from www.redstagfulfillment.com.

Ship books by Media Mail

For selling books, Media Mail is the most cost-effective choice compared to pricier FedEx or UPS rates. Books packed securely in boxes usually don't have issues with damage. Expect longer shipping times for distant deliveries; for example, it takes about 10 business days to send from New York to Los Angeles. Thanks to Bruce from www.muse-eek.com.

Use a service like Shipwire

We've discovered that using a warehouse and shipping service like Shipwire links conveniently into our shopping cart and determines the most effective shipping options based on delivery addresses, which greatly reduces our costs. Their adaptable plans grow with our business and have been a key partner since inception. Thanks to Jeffrey from www.thepeopleschemist.com.

Get your shipping labels online

Purchasing shipping labels online rather than at the postal counter can save considerable amounts. Additionally, online purchases in shipping confirmation are cheaper than at the counter. USPS even allows you to schedule pickups from your chosen location, eliminating the need for multiple post office trips weekly. With this system, you save both time and money! Thanks to Lani from www.elledeedesigns.com.

Use Priority Mail

While researching shipping cost-saving strategies, we decided on USPS Priority Mail for its 2-3 days delivery within the U.S. We're particularly fond of the USPS Priority Mail Regional Rate boxes, especially for top-loading A1 boxes. These boxes can accommodate orders weighing up to 15 lbs. They’re also ideal for military mail to APO and FPO addresses. A note: Be sure to print your own commercial base pricing with services like Stamps.com. Thanks to Cory from www.aviatorgear.com.

Reuse packaging

We consistently recycle boxes from our inventory for our outbound shipping. We also partnered with a local newspaper printing business to use their excess unusable paper as packing material. Additionally, a nearby cardboard distributor collects foam scraps and sells them cheaply, offering us an effective packing alternative. And we've found that opting not to insure packages can often be more cost-effective than insuring them, despite occasional losses! Thanks to Nate from www.GrowersHouse.com.

Use Stamps.com

Our strategy involves shipping via USPS, usually a more affordable option than UPS or FedEx. After starting with Stamps.com, we obtained delivery confirmation and tracking at no extra cost, along with a complimentary scale for weighing shipments. As a result, our costs to ship T-shirts stay under $3.00 anywhere in the US, enabling us to offer free standard shipping with no minimums. Thanks to Lando from www.rockerrags.com.

Use a scale

It's essential to weigh every package before applying postage. We noticed that pick & pack workers often become accustomed to using the same postage for similar shipments, but small variations can lead to unexpected costs. Applying postage just 1 ounce lighter than necessary can cause returns and extra charges. Getting weight precise has positively impacted our bottom line and pleased our customers. Thanks to Mark from www.visacuity.com/.

Use multiple carriers

We ship heavier goods (2-20 lbs) via FedEx with discounted rates from our corporate account; anything under 2 lbs ships via USPS Priority around $5 per package, and lighter items under a pound go for under $2 using First Class Mail. This approach relies on a few reasons: 1) FedEx is the most affordable major parcel carrier and doesn’t charge extra for commercial location pickups, and 2) USPS offers free Priority supplies and pickup from both residential and commercial spots. Thanks to Audrey from www.stop-germs.com/.

Package it efficiently

I find that using appropriately sized boxes is essential; packages should fit snugly to prevent any excess space. Using light and airy packaging materials also helps cut costs. If this isn’t feasible, employing flat rate boxes from USPS is a great solution. I prioritize aesthetic appeal in my packages, ensuring proper item placement to deliver quality. Whenever possible, I also reuse air packets from orders, maintaining product integrity while reducing supply costs. Thanks to Christopher from http://sinfulsweetsonline.com.

Use Etsy's shipping service

While selling on Etsy, I appreciate the option to print shipping labels right from their platform, which often costs about half of what I’d pay at the post office. The tracking records are also emailed directly to my customers. With this setup, I can ship orders anytime, even when the post office is closed, ultimately saving both time and money — a crucial aspect for all small business owners striving for success! Thanks to Jenny from www.shesacrafty1.etsy.com/.

Use Endicia.com

On Shopify, I found that for $15.95/month, an Endicia account dramatically reduces our shipping expenses. Packages under a pound ship for around $2.75 (boxes measuring 6 cubes) and those above a pound ship for about $5.50. It integrates well into our shop to avoid typos and automates customs labeling for international shipments. Shipping Easy is another option outside Shopify and store integration. Thanks to Jen from www.purseandclutch.com.

Buy your packaging in bulk

Buying packing materials in bulk is wise and should be approached thoughtfully. Whether it's branded boxes or simple brown ones, shipping supplies can be costly, making it vital to find a balance between affordability and aligning with your brand. Evaluate your projected growth rates since they impact shipping volume — and spend time searching for the best deals (often found online), and buy deeply to ensure ample supplies for years to come. Thanks to Samantha from www.eluxe.ca/.

Know your weight

To save on shipping, leverage FedEx for items over five pounds, and USPS for packages under five. Choose the lightest box or bag possible since some boxes weigh up to three pounds by themselves. It's also cost-effective to use the box that perfectly suits your product, reducing costs associated with unused cardboard space. For Canada shipments, packing weighted blankets in the smallest possible box helps cut costs since Canada Post considers box dimensions in their pricing. Thanks to Eileen from www.cozycalm.com/.

Ship online, not at the store

My top tip for saving on shipping from e-commerce stores is to handle it online. We use Stamps.com, which saves time and money as it allows us to manage everything from home, using the online shipping prices rather than the in-store rates. For oversized orders, we utilize UPS, often through group discounts (e.g., the Handcrafted Soap and Cosmetics Guild) allowing us substantial average savings near 30%. Thanks to Ashley from www.thegnarlywhale.com/.

Use USPS

In deciding to provide free shipping to customers, we assessed the most economical options. After comparing rates with UPS and FedEx, we were astonished by how much more affordable USPS was. For our initial year, I made frequent trips to the post office, getting accustomed to the lines and interactions there. About six months ago, I explored Stamps.com and was blown away by the discounted rates we could have been receiving. We're now saving money and time — no more lines! Thanks to Stacy from www.rainraps.com.

Don't pay for insurance

When evaluating shipping options, considering insurance is crucial to cut costs. After shipping thousands of boxes with only two lost packages, we understand the risk of loss is minimal. For lower-valued packages, we manage by assuming the risk ourselves, reserving insurance for higher-value items. Additionally, sending packages that aren’t too eye-catching on the outside can further mitigate risks correlating to theft. Thanks to Adrianne from TurtleLove.com.

Use the right type of Priority Mail

Many e-commerce sellers utilize USPS Priority Mail for packages under five pounds while shipping to residences. However, there are multiple Priority Mail types to help you save! Ensure understanding of each option, including regular Priority Mail, Priority Mail Flat Rate, and Priority Mail Regional Rate. Researching each will determine which service is best for saving money. As a hint, Priority Mail Regional Rate Box A usually provides the best pricing for packages weighing between 3-15 lbs. Thanks to Eric from www.stamps.com.

Bonus Tip

If you have an American Express card and use FedEx, you can save 5% on every shipment billed to your American Express account, which has saved me hundreds over the years.

Do you have any tips for saving on shipping charges? Please share them below.

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