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How Can Ecommerce Companies Cut Shipping Costs Without Sacrificing Speed?

Ecommerce customers have certain expectations about the service that you provide. Fast shipping is the norm for ecommerce companies and it is an important part of the customer experience. If you can’t get products to the consumer within a few days, they are not likely to use you again. People also don’t like to pay too much for shipping because there are plenty of sites that offer free delivery. Unfortunately, many small companies struggle to manage their shipping costs while also maintaining a good level of service, so they end up charging too much for shipping or sacrificing speed. However, you can have the best of both worlds if you find ways to manage the cost of shipping. These are the best ways for ecommerce companies to cut shipping costs without sacrificing speed.

Adjust Your Product Prices

The easiest way to offer free shipping is to adjust your product prices to absorb the delivery costs. It’s a simple psychological trick that makes consumers think that they’re getting a better deal, even though they are paying the same overall cost. For example, if you price a product at $10 with $5 shipping, people will be concerned that the shipping is too expensive and they will be less likely to buy. But if you price it at $15 and offer free shipping, it seems like a better deal. Alternatively, you can absorb part of the shipping costs and still charge a small amount for delivery. For example, charge $13 for the product and charge $2 for shipping.

Change Your Courier

Using a courier service to manage all of your deliveries for you makes life a lot easier, but it is important that you find the right courier to partner with. If your courier is expensive, that cost is passed on to the consumer, so you should consider looking at the other options. Shop around and compare prices and if you can find a better deal, ask your current courier for a discount or change providers.

Manage Your Own Deliveries

Alternatively, you can manage your own deliveries instead of using a courier company. As long as you handle it in the right way, this can be a good way to save money. However, running a fleet of vehicles can get expensive, especially if you don’t keep them well maintained. Using good quality coolants from sites like will increase the lifespan of your vehicles and reduce your maintenance costs in a big way. You should also invest in route planning software so you can find the most efficient route for your drivers. As long as you manage your fleet well, handling your own deliveries is one of the best ways to cut costs.

Reduce Returns

Product returns cost money and damage your relationship with the consumer, so it’s vital that you find ways to reduce them. If products are always arriving broken, that is a sign that you need to improve your packaging. If products are returned because they don’t meet the customer’s expectations, you may need to improve your product descriptions.

If you can make these simple changes in your business, you can cut the cost of shipping without sacrificing speed.

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