How to Reduce Shipping and Delivery Cost in eCommerce

Reduce eCommerce Shipping Cost

When it comes to eCommerce business, delivery costs may be a headache in the revenue. With the rising shipping costs, a significant amount of money goes away from the business. This is one reason why most businesses would want to have a delivery channel that is cost-effective and at the same time provides maximum reach and reception. As an entrepreneur, you need to have a proper strategy that ensures that your delivery costs are kept within a limit and do not shoot up. So let us have an idea as to how you can reduce your delivery costs and get profitable.

Follow These Steps to Minimize Your Shipping Cost in eCommerce:

1. Tie-Up with Right Courier Company

It is advisable that you negotiate with multiple shipping agencies and choose the ones that suit your preferences and budget. Each shipping and courier agency has its own terms and rates and you need to negotiate accordingly. Moreover, make the contract for bulk shipping over a long period of time. This way you always have the chance to get discounts and lower your delivery costs to a significant extent. It is of no use opting for a particular shipping company for six months and again switching to some other shipping company. It will eat up your profits to a great extent!

Packaging with Flat Rate Shipping

Another significant way to reduce delivery costs is to opt for the packaging provided by the shipping companies. If you opt for your own customized packaging, you have to pay more. Try to go for flat rate packaging prices that are not dependent on specific dimensions. If you are looking to deliver at locations that are nearby, you can opt for a local courier. Most of the local agencies have lower rates than the premier ones.

Opt for Shipping Insurance

A good way to reduce delivery and shipping costs is to opt for the right shipping insurance. This prevents you from a loss in case your shipment is damaged or lost. Try to opt for shipping insurance from third-party agencies that offer good rates. This way you can safeguard against untoward incidents. Moreover, third-party insurance companies track your shipping agency to ensure that the delivery process is free from risk.

Charge Customers for Delivery

Last but not the least; try to include the shipping costs in the price of the product. Most of the eCommerce businesses charge delivery fees below orders of a particular amount. This way you can recover your delivery costs from the customer.


Puneet Bhalla

Senior Marketing Manager at Shiprocket

7+ years of experience in growth hacking and product marketing. A passionate digital marketer with a great blend of technology. I spend most of my time upskilling and experimenting, for my love of doi ... Read more

Puneet Bhalla

Comments are closed.

Thank You for contacting us. Our executives will call
you shortly.