How to Reduce Shipping Costs: Save Up to 54%
ShipWave aggregates shipping volume to unlock enterprise-level discounts for everyone. Get Commercial Plus rates up to 54% below retail - no negotiation, no minimum volume required.
How can I reduce my shipping costs?
Reduce shipping costs by: using commercial rates through shipping platforms (saves 40-60%), right-sizing packaging to avoid dimensional weight (saves 10-30%), comparing all carriers for each shipment (saves $2-5 per package), using ground instead of express (saves 50-70%), and leveraging free carrier supplies (saves $0.50-$3 per package).
Compare Shipping Rates
Real rates through ShipWave - save up to 54% vs retail
| Carrier | Service | Price | Delivery Time | |
|---|---|---|---|---|
| All | Retail vs Commercial | $15 vs $9 | 40% savings | Cheapest |
| Same | Express vs Ground | $28 vs $12 | 57% savings | |
| Any | Oversized vs Right-sized box | $18 vs $12 | 33% savings | |
| Per shipment | Wrong vs Best carrier | $14 vs $9 | 36% savings | |
| Combined | Annual (500 pkgs/mo) | $30K-$50K | Total savings |
Retail vs Commercial
Express vs Ground
Oversized vs Right-sized box
Wrong vs Best carrier
Annual (500 pkgs/mo)
* Prices shown are discounted ShipWave rates. Actual rates vary by exact dimensions, weight, and origin/destination.
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Strategy 1: Access Commercial Shipping Rates
The single biggest cost reduction comes from commercial rates. Post Office and carrier store rates are 30-60% higher than commercial pricing available through shipping platforms.
A 3 lb package costing $14 at the Post Office is $8.50 with Commercial Plus pricing - a 39% savings on one label. Multiply across all shipments: 500 monthly packages at $5.50 average savings = $33,000 annual reduction.
Sign up for ShipWave or similar platforms to access these rates immediately with no volume requirements.
Strategy 2: Eliminate Dimensional Weight Waste
UPS and FedEx charge dimensional weight (LxWxH / 139) when it exceeds actual weight. A 3 lb item in an 18x14x10 box is billed as 18 lbs - costing $22 instead of $11.
Right-sizing eliminates this: Stock multiple box sizes and select the smallest that fits. Replace boxes with poly mailers for soft goods. Use void fill only when necessary. Proper packaging can reduce costs 10-30%.
Strategy 3: Compare Every Shipment
No carrier is cheapest for all packages. USPS wins under 1 lb, often wins 1-5 lbs, but UPS/FedEx Ground frequently beats USPS for 10+ lb packages.
Using a platform that compares all options takes 30 seconds and saves $2-5 per package on average. Over 200 monthly shipments, comparison shopping saves $4,800-$12,000 annually.
Pro Tips to Save More
Audit current shipping spend
Calculate average cost per package. Most businesses paying retail average $10-15/package. With optimization, target $6-9/package.
Negotiate carrier rates annually
If shipping 200+ packages monthly, contact UPS/FedEx for customized pricing. Bring competitor quotes. Even 10% off $5K monthly spend saves $6K annually.
Use slowest acceptable service
Ground shipping costs 50-70% less than express. Survey customers - many prefer saving money over speed.
Schedule pickups instead of drop-offs
All carriers offer free scheduled pickups. Save 30-60 minutes and $5-10 in gas daily.
Track and reduce damage/return rates
Returns and damage claims cost $15-50 each. Improve packaging to reduce damage. Better descriptions reduce returns.
Frequently Asked Questions
- Five immediate actions: 1) Use a shipping platform for commercial rates (40-60% savings). 2) Right-size packaging. 3) Compare all carriers. 4) Use free carrier supplies. 5) Choose ground over express.
- Rate type has the biggest impact. Commercial rates are 40-60% less than retail. After that: package weight/dimensions (20-30% impact), distance/zone (20-40% impact), and service speed (30-50% impact).
- Use the smallest box that fits your product. Measure accurately - even 1 inch savings reduces DIM weight. Consider poly mailers for soft goods (no dimensional weight).
- Most businesses reduce shipping costs 40-60% through combined optimization. A business spending $10,000/month can typically reduce to $4,000-$6,000/month.
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Hear from Our Customers
Join thousands of satisfied customers who are saving money and time with ShipWave.
Sarah Johnson
Saved $2,400Handmade Crafts Co.
"ShipWave has saved us thousands on shipping costs. The interface is so easy to use, and the savings are incredible. Highly recommend!"
Mike Chen
Saved $5,600Tech Gadgets Store
"As an e-commerce business, shipping costs were killing our margins. ShipWave changed everything - we now save 45% on every shipment."
Lisa Rodriguez
Saved $1,800Boutique Fashion
"The rate comparison feature is amazing. I can see all options at once and choose what works best for each customer. Game changer!"
David Thompson
Saved $8,200Home Goods Direct
"Customer service is outstanding and the platform never goes down. We process hundreds of labels weekly without any issues."
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