How to reduce shipping costs in e-commerce

Shipping costs often represent a significant share of an e-commerce business's expenses. Whether you ship a few orders per month or several thousand, every parcel can eat into your margins if your logistics choices are not properly optimised.

The good news is that there are practical, proven strategies to reduce shipping costs while maintaining an excellent customer experience.

In this article, we review what really works for small, medium and large shipping volumes. You'll discover concrete tips and key metrics to track in order to keep your shipping costs under control.

Even with low shipping volumes, a few mistakes can be costly. Small e-commerce businesses need simple solutions that are quick to implement, without complex negotiations.

1. Choose the right carrier at the time of shipment

Quickly comparing carriers based on price, delivery times and delivery options (home delivery, pick-up points) allows you to select the most suitable solution for each parcel. The right choice can reduce costs, prevent returns and improve customer satisfaction.

National carriers: reliable for local and regional deliveries, with short lead times and competitive pricing. Easier to contact in case of issues (delays, lost parcels).

International carriers: essential for selling abroad, with expertise in customs formalities and services adapted to each country (fast delivery, accurate tracking).

Practical tip: even with just 20 parcels per month, having at least one national carrier and one international carrier allows you to compare and choose the best option for each order.

2. Optimise parcel size and weight

Shipping costs depend not only on actual weight, but also on volumetric (DIM) weight. Carriers charge based on whichever is higher: the actual weight or the weight calculated from the parcel's volume. In other words, a light but bulky parcel can cost far more than expected.

What you can do:

• Standardise 2 to 3 packaging formats for all your products to limit variation and avoid excess volume.
• Use modular inserts to protect products without oversized boxes.
• Check dimensions before shipping to anticipate volumetric weight and avoid extra charges.

Example: A 500g product shipped in a 30×30×30 cm box may be billed at a much higher equivalent weight, whereas the same product in a 25×20×10 cm box will be far cheaper to ship. The exact difference depends on the carrier and destination, but the logic is always the same: the larger the box relative to the product, the higher the cost.

✨ This simple optimisation is often one of the fastest ways to reduce shipping costs, especially as volumes start to grow.

3. Limit address and customs documentation errors

Even at low volumes, an incorrect address or an incorrectly completed HS code can lead to:

• returns,
• additional fees,
• customs holds for international shipments.

For a parcel shipped to the United States, an incomplete HS code (6 or 8 digits) may be considered insufficiently precise and trigger an inspection or a hold. Using the correct 10-digit code from the start makes customs clearance smoother and avoids unexpected costs. To learn more, read our complete guide on HS codes.

4. Favour pick-up points

Pick-up point deliveries are generally cheaper than home delivery and reduce failed deliveries. Even with just 20 parcels per month, this option can generate meaningful savings if you track the right indicators.

With higher volumes, savings become more visible. It's no longer enough to check each parcel individually: you need to structure your flows and automate certain tasks.

1. Compare and segment carriers

Identify each carrier's strengths: small parcels, express, international. Smart allocation of parcels based on cost and delivery time helps optimise margins.

2. Standardise packaging and processes

Reducing the number of formats lowers DIM weight, speeds up preparation and reduces errors. In most cases, 3 to 5 formats cover around 80% of orders.

3. Monitor additional costs

Beyond the listed price per parcel, you need to anticipate:

• address correction fees,
• returns or non-standard parcels,
• customs errors for international shipments.

4. Start negotiating your rates

Even medium volumes can justify adjustments:

• weight-band pricing,
• conditions for frequent destinations,
• discounts on specific services.

5. Automate documentation and tracking

• Automatic generation of invoices and customs documents
• Tracking of addresses, weights, HS codes and declared values
• Parcel tracking to quickly detect anomalies and resolve incidents before they escalate

Concrete example: an e-commerce business shipping 1,500 parcels per month can reduce its costs by 10 to 15% simply by automating label creation and segmenting carriers by destination, while detecting and resolving incidents faster.

For large e-commerce businesses, every euro counts and every process can have a major impact. A data-driven, strategic approach is essential.

1. Fine-grained flow segmentation

Geographical zones, product types, expected delivery times.

Smart routing = lower costs + increased reliability.

2. Full control of carrier contracts

• Structural discounts, surcharge conditions, SLA penalties.
• Continuous optimisation based on product mix and destinations.

3. Optimise logistics and packaging

• Industrial standardisation of formats
• Modular inserts to reduce DIM weight
• Full automation of picking, packing and shipping label printing

4. Anticipate returns and errors

• Automatic validation of addresses and customs data before dispatch
• Real-time incident detection and resolution
• Regular analysis of return rates by carrier and destination

5. Leverage your volume

At this scale, volume is your strongest negotiating tool. Use it:

• to obtain structural discounts on your main lanes,
• to negotiate SLA penalties with carriers,
• to access priority services reserved for high-volume shippers.

Compare DHL, UPS, DPD, FedEx and CTT rates in real time, automate your customs documents and track your costs per carrier from a single dashboard. No subscription, from €0.29 per label.

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