73% of online shoppers expect their order to be delivered quickly and with reasonable shipping costs. It is a difficult question of how to reduce shipping costs.  It can be really appealing to offer your customer the lowest shipping costs, but still protect your profit. 

In this guide, we’re showing how to lower your shipping costs without hurting your business. 

How Do I Calculate Shipping Costs?

Before you are looking for how to reduce shipping costs, don’t forget to calculate your shipping costs. Come with Magento Shipping Cost Calculator Extension. You can see more How To Help Customers Calculate The Shipping Cost Before Checking Out? and Now, Let’s take a look at some factors that determine how much you spend on shipping packages to your customers. 

Factor #1: Package Dimensions

The carriers use a unique pricing technique called dimensional weight to calculate the shipping costs for the package. The size of the package in order to determine how much shipping costs. It is done by multiplying the width, the height, and the length of the package and dividing the figure by a standard division.

Factor #2: Package Weight

The packaged weight is one of the factors to determine shipping costs. The heavier a package is, the more expensive it is to ship it. 

Factor #3: Shipping Destination

Another factor for determining the shipping costs is the destination. The farther the shipping destination, the more you have to pay. The calculation is made by calculating the package’s pickup point and its recipient’s location

Factor #4: Value of Package Contents

In eCommerce shipping, the value of a package also plays a huge role in how much shipping costs. For those high-value products, you will always need to ensure your packages, and this increases the shipping costs. Although it has a high cost, it protects you in case of theft, loss...

Other factors that go into the cost of shipping packages include delivery times and unexpected problems.

How to Reduce Shipping Costs

shipping costs

One of the biggest challenges many online businesses have to deal with is shipping costs. Many savvy Ecommerce shops are finding ways to reduce shipping costs. Some strategies include:

1. Negotiate with Several Carriers

Too many eCommerce sellers stick with the first shipping carrier. But it is a bad idea. You can visit the carrier offices or talk to them over the phone. Familiarize with your product’s factors such as size and weight, use this information to negotiate to get better shipping costs

2. Efficient Packaging

Ecommerce sellers don’t understand the importance of efficient packaging. You need to make sure your package size are optimal. Avoiding your package is considered a Large package. Large packages have high shipping costs. Let's see through your bill. If your package size is being billed as a large package, you can experiment with several packaging strategies to figure out what works best in terms of safety until delivery and cost optimization

3. Make Use of Free Packaging

Another great tip for how to reduce shipping costs is to use free packaging from shipping supplies. Most carriers offer free boxes to their customers. so you can access these. It not only save your money on packaging but also avoid paying additional dimensional fees if your packages exceed size. You could save up to 20% this way.

4. Understand Your Shipping Destination

One of the factors to reduce shipping costs is having a clear understanding of the location you are shipping your packages. If you understand it, it will help you negotiate good rates with the regional carriers.

5. Know All Your Shipping Fees

To ensure you don’t lose money (or customers) by calculating all your shipping costs before you charge your customers. There are more than 75 charges that could apply to each of your shipments, including Saturday delivery fees, fuel surcharges, and signature fees. If the shipping cost is on your client, ensure this is remembered for their last bill or you'll be compelled to ingest them.

6. Know Your Package Sizes

shipping costs

The shipping cost calculator takes into factors like package weight, size, and destination. That's why it is important that you use boxes that are exactly the right size for your shipments. If you use large boxes for shipping products, you will spend more money on eCommerce shipping. Try to use fitted perfectly boxes, smaller boxes, or even bubble mailers, it will help you reduce shipping costs. 

7. Get Help from the Pros

When you think about reducing your shipping costs, you should more economical to handle your own fulfillment. However, much online companies find the save money by outsourcing their fulfillment.

  • Flexible warehouse space:  You don’t need to lease on your own warehouse. 

  • Packaging pros. It means your products are less likely to arrive damaged. In addition, their pro can help you avoid or reduce DIM weight pricing.

  • Discounts. As referenced above, 3PL administration organizations may have diminished delivery rates. Now and again, they might have the option to give these limits to you. Request satisfaction stockrooms additionally purchase encloses and other pressing materials enormous amounts. You might have the option to save money on bundling through your outsider coordination organization.

  • Inventory management. Influence the experience of the supervisors at your satisfaction place. They can help you set restock levels and get you closer to ideal stocking levels. Master stock administration help will help you stock is sufficient to dispatch every one of your requests without tying up an excess of capital in your stock.

8. Check out the marketplaces and platforms where you sell on

See the eCommerce platform where your store is selling on offer any bulk discount shipping services. They may have shipping apps, build in features that can provide you with better shipping costs.


Saving money on your shipping costs isn't too complicated. Just a few things can make a big impact. But first, let's see the demo and install Magento Shipping Cost Calculator Extension

If you have any questions about the shipment, leave a comment below and let us know how we can help you