10 Proven Ways to Reduce Shipping Costs by 15% in eCommerce (Backed by Real Operations Data)

10 Proven Ways to Reduce Shipping Costs by 15% in eCommerce (Backed by Real Operations Data)

If you’re paying too much for shipping, it’s usually due to three things: limited carrier choice, inefficient packaging, and manual processes. Fix those—and add smarter return policies and invoice audits—and you can reduce shipping costs by ~15% without slowing delivery.

1) Rate-Shop Across Multiple Carriers—Automatically

Relying on a single carrier leaves money on the table. Different carriers win on different lanes, weights, and service levels.
How to do it: Connect multiple carriers (e.g., DHL, DPD, InPost, GLS, FedEx, UPS, USPS) and let an algorithm select the cheapest eligible option per order in real time.
In OrderNXT: The platform auto-selects the cheapest eligible service, and your automation rules keep every decision under your control.

2) Bring Your Negotiated Contracts (and Use Tiers Wisely)

As your volume grows, your rates should improve—often materially.
How to do it: Negotiate volume-based discounts, add surcharges caps, and upload your own carrier contracts so they’re always applied at label time.
Pro tip: Revisit contracts quarterly; small changes in fuel or DIM rules can swing your costs.

3) Right-Size Every Parcel (Beat DIM Weight)

Dimensional (volumetric) weight pricing punishes empty space.
How to do it: Audit your top 20 SKUs and map them to optimal box sizes; swap boxes for mailers where feasible, and introduce “box-on-demand” for irregular shapes.
Expected impact: Frequently 5–10% savings just from reducing box volume.

4) Ship the Service, Not the Habit (Smart Service-Level Selection)

Many stores default to faster services “just in case.”
How to do it: Offer delivery-date promises at checkout and route orders to the lowest-cost service that still meets the promise.
In OrderNXT: Use rules like “If zone ≤ 3 and weight ≤ 2kg, prefer Economy; else compare Express/Economy by ETA.”

5) Eliminate Avoidable Surcharges (Address, Re-attempts, Oversize)

Address corrections, residential surcharges, and re-deliveries erode margin.
How to do it: Address validation and residential/commercial detection; add pre-shipment checks against carrier rules (max length, girth).
Expected impact: Lower surcharge incidence and fewer manual support tickets.

6) Consolidate and Batch Orders (One Label, One Pickup)

Multiple orders to the same customer within a short window? Combine them.
How to do it: Implement a short hold-and-merge window (e.g., 2–6 hours) for back-to-back orders; batch label creation and pickups to cut handling time.
Bonus: Fewer packages = fewer DIM surprises.

7) Use Pickup Points & Lockers for Returns (and Forward)

Out-of-home delivery and returns can be dramatically cheaper.
How to do it: Offer InPost lockers or local pickup points at checkout and for returns. Customers love the flexibility; you save on last-mile and failed delivery costs.
In OrderNXT: Enable pickup-point selection in checkout and auto-route returns to lockers where available.

8) Regionalize Fast Movers (Zone Skipping & Micro-Fulfillment)

Long zones drive costs.
How to do it: Place your top 10–20% fastest-moving SKUs closer to demand centers; use 3PL nodes or micro-fulfillment to shorten zones and transit times.
Expected impact: Low-teens % per-parcel reductions on affected lanes, plus better delivery SLAs.

9) Automate Return Outcomes (Label, Exchange, or “Keep the Item”)

Not every return needs a label—and sometimes the cheapest path is no return at all.
How to do it: Set rules by price, weight, category, and condition:

• Auto-exchange for size/style

• Instant refund to store credit below a threshold

• “Keep the item” for low-value products where shipping beats margin
  In OrderNXT: Configure Return Policies with thresholds and auto-approval to cut reverse-logistics spend and speed resolution.

10) Audit Invoices & Watch Fuel/DAS Trends

Hidden fees and misratings happen.
How to do it: Reconcile carrier invoices weekly, flag discrepancies (address corrections, billed vs. quoted weight, DAS changes), and trend fuel surcharges to adjust pricing.
In OrderNXT: Use the Invoice Analyzer to surface anomalies by lane, carrier, and fee type—then feed learnings back into your routing rules.

Mini Playbook: Quick Wins in One Week

• Day 1–2: Turn on address validation + multi-carrier rate shopping.

• Day 3: Map top SKUs to right-sized packaging; replace 2–3 box sizes with mailers.

• Day 4: Add pickup-point option at checkout.

• Day 5: Create return-rule thresholds (e.g., “keep the item” under €15).

• Day 6–7: Run first invoice audit; fix the biggest surcharge pattern.

Metrics That Matter (Track These Monthly)

• Shipping cost as % of revenue (target stable or trending down)

• Average cost per parcel by zone/service

• Surcharge rate (count and € per order)

• Return rate and cost per return

• On-time delivery % (don’t save at the expense of CX)

Final Thoughts

Reducing shipping costs isn’t about cutting corners—it’s about operational precision. Combine multi-carrier rate shopping, right-sized packaging, smarter service selection, and automated return outcomes, then close the loop with invoice audits. The result: ~15% lower costs on the same (or better) delivery experience.

Ready to see it in action?
Connect your sales channels and carriers to OrderNXT, turn on rate shopping and return rules, and measure savings from week one.