How to Reduce Shipping Costs?

Sarah Fedida
Fetchy Digital Manager. Always here to share with you the best infos
September 9, 2020
cost. shipping

E-commerce businesses have international customers wanting their products. The Wall St. Journal said that in 2017, eCommerce businesses worldwide spent $1.5 trillion on shipping. In most cases, small business owners do not have an unlimited amount of funds devoted to shipping parcels. When they are increasing in popularity, business owners have to be at the post office nearly every single day. eCommerce veterans have curated a few tips that should assist in reducing shipping costs.


Firstly, a business owner should audit their receipts. Auditing does not need to happen every week or month, but this should happen once a year around tax season. On the company's income statement, there is a section devoted to shipping expenses and a journal entry giving an in-depth description of how many purchases were shipped internationally and for what amounts. In some instances, there are some descriptions in the journal which are either doubled or missing entirely. The Wall St. Journal elaborated that 2% of the $1.5 trillion was spent on shipping errors. This can mean you will receive some money back which can go straight back into the business in whichever form you decide to use it as.


The next way one can reduce their shipping costs is to take advantage of free shipping supplies given by postal services. Some postal services companies understand that shipping parcels around the country and the world are a part of many civilians’ lifestyle. For example, Americans can get a variety of boxes and envelopes for free while using USPS. You can either pick the desired supplies up at a post office or order it online and have it shipped to your office space for free. As businesses would be getting these supplies for free, the boxes will be heavily branded with the USPS designs. This would make it more difficult to personalize it and make it less ominous. To know if your preferred postal service has free shipping supplies, search on their website or visit the post office and ask an attendant.


Another tip that may assist businesses in becoming more cost-effective is to calculate the products efficiently. As much as everyone appreciates when a parcel has a beautiful presentation, it sometimes can weigh everything down and cost more than needed to ship. In other words, keep everything simple. Two different kinds of weights can be calculated to find the right price for shipping the parcel. One can calculate the weight or dimensional weight. The weight is the amount that the parcel masses while the dimensional weight is the cubic size of the package. To find the dimensional weight, one must multiply the length, width and height of the parcel and divide all of them by 139 for domestic shipments or 166 for international shipments.

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Some businesses would worry if the dimensional weight would be so high that it would cause higher prices for shipping, so it is very important to monitor this and how to properly calculate this.


Another way that you can save on shipping costs is to use a 3rd party shipping service. Fetchy is a free 3rd party service that puts clients directly in touch with the top couriers and can give them the most inexpensive shipping prices. Fetchy works directly with postal services to get more attractive prices for their clients that they wouldn’t be able to attain on their own. Fetchy brings the courier straight to the business for an effective door to door service. To top it all off, Fetchy provides insurance for all parcels it delivers which assists in eliminating the fears of lost packages.


The final tip is for international eCommerce stores wanting to ship into the United States. Through the process of consolidation, a business owner can put multiple small parcels with domestic shipping labels and place them within a large box with an international shipping label. The large box will be shipped to a Fetchy warehouse located in the United States. An employee will remove the smaller parcels from the large box and ship them to their respective destinations. Consolidation is a more cost-effective option. Once someone estimates both calculations, they will agree that consolidating the products will conclude to be a cheaper option.


Fetchy is such a simplistic software made for the everyday eCommerce entrepreneur. It’s a dynamic plug-in to most well known online marketplaces (Wix, Woo-Commerce, Etsy, Ebay, and Shopify). This is a free software which means no monthly subscription costs to worry about. Fetchy is a cost effective option which allows business owners to spend more on other areas of the business in order to improve the product or business entity. 

There were some ways to cut costs on shipping. Countless other ways are being discovered and put into practice every single day. From free supplies from postal services to using third-party services like Fetchy. eCommerce owners are not aware that they are completely missing these practices. To either achieve a higher revenue or using the extra money for a different portion of the business, these tips would certainly provide results.

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