• Shipping costs are a major pain point for small businesses, but there are strategies to find affordable solutions
• Understanding factors like weight, dimensions, distance, speed, and carrier choices is crucial for optimizing shipping costs
• Small businesses can leverage tools and strategies like discounts, flat-rate shipping, optimized packaging, and technology to reduce shipping expenses and gain a competitive edge

Shipping costs can be a major hurdle for small businesses, especially in the competitive world of eCommerce. This comprehensive guide equips you with the knowledge and strategies to navigate the complex shipping landscape and find the cheapest shipping for your business.

According to a 2023 Statista report, U.S. online shoppers care most about price and speed when it comes to shipping. Free shipping is the most important delivery option for 70% of shoppers, followed closely by fast delivery and tracking.

We'll break down the key factors influencing shipping costs, explain different pricing models offered by major carriers, and explore various strategies to reduce your expenses. 

You'll also discover valuable tips for optimizing your shipping strategy, leveraging technology for savings, and even accessing exclusive discounts through Easyship, a leading shipping and logistics company.

Get ready to transform your shipping process, save money, and gain a competitive edge in the eCommerce market!

Key Small Business Shipping Costs

Small business shipping costs can seem complex, but understanding the key factors empowers you to make informed decisions and optimize your budget. Here's a breakdown of the main components:

1. Package weight and dimensions:

• Actual weight: The physical weight of your package, measured in pounds or kilograms
• Dimensional weight: A calculated weight based on the package's length, width, and height. Carriers often use this to ensure fair pricing when dealing with bulky but lightweight items

2. Shipping distance:

• The farther your package travels, the more it typically costs. This is influenced by zones defined by carriers, with closer destinations usually costing less

3. Shipping speed:

• The desired delivery timeframe significantly impacts costs. Expedited options like overnight or 2-day shipping come at a premium compared to standard ground delivery

4. Carrier choice:

• Different carriers have varying pricing structures and strengths. Major players like the United States Postal Service (USPS), UPS, FedEx, and DHL Express offer diverse options, while regional carriers may cater to specific needs or offer competitive rates within their service area.

5. Additional services:

• Optional services like signature confirmation, insurance, or specialized handling incur additional fees. Evaluate if these are truly necessary based on your product value and customer expectations

Understanding Major Carriers Pricing Models:

Carriers typically offer different pricing models depending on your needs:

• Per-package pricing: This is a straightforward approach where you pay based on the weight, dimensions, and destination of each package
• Zone-based pricing: Carriers divide their service area into zones, with shipping costs increasing for further destinations
• Flat-rate pricing: Some carriers offer flat rates for specific box sizes within certain weight limits, ideal for predictable shipments of similar items
• Volume discounts: As your shipping volume increases, you may be eligible for negotiated discounts with carriers

Remember:

Shipping costs are dynamic and can be influenced by fuel prices, demand fluctuations, and even seasonal variations. Stay informed and compare rates regularly to ensure you're getting the best value for your money.

By understanding these factors and exploring different pricing models, you can gain a deeper grasp of your shipping costs and make informed decisions that optimize your budget and support your business growth.

How to Find the Cheapest Shipping For Small Business

Struggling with high shipping costs as a small business owner? You're not alone! But fear not, there's hope! This guide explores how to find discounted shipping rates, both domestically and internationally, specifically tailored for small businesses.

The good news: major carriers around the world offer a variety of shipping solutions designed just for you. Forget one-size-fits-all! By leveraging powerful shipping tools, you can easily compare rates and find the perfect carrier for each shipment, ensuring you never overpay.

Ready to reduce your shipping costs and boost your bottom line? Check out how to find the cheapest rates using the Easyship Shipping Calculator today!

How to Find the Cheapest Domestic Shipping Rates

In this example, we will compare the available shopping services available for a 2 LB package shipped from New York to Los Angeles using the Easyship Shipping Calculator.

It's important to note that the choice of the best shipping option can vary depending on specific business needs, customer expectations, and cost considerations. 

While the cheapest option minimizes expenses, the fastest option ensures quick delivery, and the best value option offers a balance of cost, speed, and service quality. Check out the below example rates to gauge which is the best shipping company for cross-country shipping:

Cheapest Option:

• USPS - Ground Advantage at $6.33 for 2 - 5 working days with basic tracking. This option offers the lowest price among all the listed shipping options

Best Value:

• UPS® Ground at $12.58 for 4 working days with excellent tracking. Considering the balance between delivery time, tracking quality, and cost, this option offers a good combination of speed and service quality at a reasonable price
• Another notable mention is USPS - Priority Mail at $10.85 for 1 - 3 working days with regular tracking, offering a slightly faster delivery time at a marginally lower cost but with slightly lower tracking quality compared to UPS® Ground

Fastest Option:

• UPS Next Day Air® Early at $76.99 for 1 working day with excellent tracking. This is the fastest option available, ensuring next-day delivery

How to Find the Cheapest International Shipping Rates

Are you shipping products to customers outside of the US? While international shipping presents a range of challenges, one of the first to overcome for any small business is shipping prices. The example below from the Easyship Shipping Calculator analyzes prices from Los Angeles to Hong Kong.

Small businesses should consider these shipping services based on their specific needs, balancing cost, speed, and tracking capabilities.

Best Value:

• UPS Worldwide Expedited®
• Delivery Time: 4 working days
• Tracking: Excellent
• Total Cost: $40.22
• Reason: This option offers a good balance between speed and cost, with excellent tracking and a relatively fast delivery time

Cheapest:

• SF Express - Economy Express and Flat Export
• Delivery Time: SF Express (6 - 8 working days), Flat Export (11 - 15 working days)
• Tracking: Basic for both
• Total Cost: $20.88 for both
• Reason: These two options are tied for the lowest cost, making them the most affordable choices. SF Express offers a slightly faster delivery time than Flat Export.

Fastest:

• UPS Worldwide Saver® and UPS Worldwide Express®
• Delivery Time: 2 working days for both
• Tracking: Excellent for both
• Total Cost: UPS Worldwide Saver® ($44.45), UPS Worldwide Express® ($48.65)
• Reason: Both of these UPS options offer the fastest delivery time of 2 working days with excellent tracking, though they differ slightly in cost

Shipping Options

These examples from the Easyship Shipping Calculator highlight shipping services to two specific domestic and international destinations. Use it for FREE anytime to compare over 250+ couriers to every eCommerce destination you require. Reduce shipping costs with Easyship today!

Optimizing Your Shipping Strategy:

There are a range of tactics small business owners can use to reduce shipping costs. Let's explore some actionable strategies to save money on shipping today:

• Negotiate discounted rates: As your business grows, negotiate volume discounts with carriers. Consider partnering with shipping aggregators who leverage their collective volume for better deals
• Utilize flat-rate shipping: For items with consistent weight and dimensions, flat-rate shipping options like USPS Priority Mail Flat Rate Boxes can offer significant savings
• Embrace regional shipping zones: Divide your shipping zones based on distance and offer tiered pricing to incentivize closer customers and avoid overcharging those farther away
• Offer free shipping strategically: Consider offering free shipping above a certain order threshold to encourage higher basket values and offset shipping costs
• Optimize packaging: Use lightweight, space-efficient packaging to minimize dimensional weight charges. Consider using void fill like air pillows instead of heavy packing peanuts
• Automate the shipping process: Invest in shipping software or platforms that automate tasks like label printing, rate comparison, and shipment tracking. This saves time and reduces manual errors
• Print shipping labels in bulk: Many carriers offer discounts for bulk printing of shipping labels. Take advantage of this to save on per-label costs
• Offer pick-up options: Allow customers to choose in-store pick-up if you have a physical store. This eliminates shipping costs for them and can be a convenient alternative

Leveraging Technology for Savings:

The world of shipping technology has almost limitless potential for small-business shipping solutions! Explore these tools to streamline your operations and potentially reduce costs:

• Shipping comparison platforms: Compare rates from multiple carriers in one place to find the best deal for each shipment
• Multi-carrier shipping software: Manage shipments across different carriers from a single platform, simplifying logistics and potentially unlocking volume discounts
• Inventory management systems: Gain real-time insights into your inventory levels and optimize shipping based on product availability and location
• eCommerce platform integrations: Integrate your shipping solution with your eCommerce platform for seamless order processing and label printing

Remember, the cheapest option isn't always the best! While cost is crucial, consider factors like reliability, speed, and customer experience when choosing your shipping strategy. Striking the right balance between affordability and service is key to long-term success.

Bonus Tip: Stay informed! Shipping rates and regulations can change. Regularly research and compare the best shipping service options to ensure you're always getting competitive pricing.

By implementing these strategies and leveraging technology, you can significantly reduce your shipping costs and gain a competitive edge in the eCommerce landscape. Remember, shipping is not just an expense; it's an opportunity to build customer loyalty and create a positive brand experience.

Get Exclusive Shipping Discounts with Easyship: Print Shipping Labels Today

Easyship is the top shipping and logistics company working with a network of over 250 couriers worldwide. This has put us in a position to negotiate some of the best shipping discounts with leading couriers, and we can help you reduce your shipping expenses by up to 91%.

Some of our major discounts include the following:

• Save up to 65% on USPS First Class Package
• Save up to 89% on USPS Priority Mail
• Save up to 50% on UPS® Ground
• Save up to 76% on UPS Worldwide Saver®
• Save up to 91% on DHL eCommerce

We also offer a range of easy-to-use shipping tools, to help streamline your shipping experience and delight your buyers. Popular features include:

• Comparison Tool: With our courier comparison tool, you can compare the different shipping services offered by each courier, allowing you to choose your cheapest way to ship based on other factors, not just the cost
• Insurance: To help keep your packages safe in transit, Easyship offers you insurance up to $10000
• Tracking: From custom-branded tracking emails to automatic message alerts, Easyship helps you maintain package visibility with your buyers throughout the delivery process
• Shipping Rate Calculator: You can use our shipping rate calculator to compare shipping rates from different carriers

FAQ’s

What is the average shipping cost for a small business?

The average shipping cost depends on factors like size, weight, and distance, but it can be a major expense for small businesses

How do small businesses save on shipping?

Small businesses can save on shipping by comparing rates, negotiating discounts with carriers, and using flat-rate boxes.

Which shipping company is best for small business?

Easyship helps you compare rates and choose the best carrier for your needs.

Do small businesses get shipping discounts?

Yes, small businesses can get discounts from carriers by negotiating based on volume or using a shipping service like Easyship.

What is the cheapest way to ship products for small business?

The cheapest option depends on your product and destination, but Easyship helps you find the most cost-effective rates.

What is best shipping app for small business?

Easyship is a great shipping app for small businesses because it helps you compare rates, automate tasks, and save time.

What is the best courier service for small business?

Easyship isn't a courier service itself, but it helps you compare rates and choose the best courier for your needs.