Shipping costs are crucial because they affect whether or not a customer purchases your products. It’s critical to conduct thorough research before making any expensive decisions in light of the current inflation, especially if you’re a small business developing your shipping approach for the first time.
An eCommerce research organization reported that approximately 50% of all online customers give up their carts because of additional costs such as taxes and expensive shipping. Customers expect quick and affordable delivery options during checkout, so maintaining low prices will undoubtedly be advantageous to your business. But how can you be sure that you always have the best shipping rates?
Well, we have got you covered. In this article, we talk about the cheapest ways to ship a package based on size, weight, delivery speed, and delivery destination. Read along!
Different Types Of Shipping Options
There are many different types of shipping options which depend on where you want the package delivered and how quickly you want it to be delivered.
- Free Shipping: If the order size is big and the items need to be delivered in the same country, then vendors can offer free shipping to their customers.
- Local Shipping: If the location of the delivery is local, then the vendor can send the item to the customer directly without using a shipping service.
- Flat-rate Shipping: In this type of shipping option, customers need to pay a flat-rate shipping price, and the shipping rates do not depend on the type and weight of the item.
- Pick-Up: The customer places an order and chooses to pick it up themself, and in this type of shipping option, they don’t need to pay any shipping or delivery charges.
- Real-time Carrier Rates: In this shipping option, the shipping rates get automatically calculated depending on the weight, size, distance, and dimension of the package.
- International Shipping: In this type of shipping option, vendors ship packages from one part of the world to another. The prices of this type of shipping are usually high compared to other types of shipping options.
- Same-day Delivery: In this type of delivery, the customer gets their item delivered on the same day; they make the purchase.
Cheapest Way To Ship Based On Package Size
The shipping costs are heavily influenced by the package size. The larger the package, the more room it takes up in a truck, and the more expensive shipping is.
Since large packages are much more likely to be transported by forklift, your packaging must be adept in handling heavy loads while enduring the strenuous carrying practices required by these packages. Always use new, well-made boxes, preferably with seamed or staples.
Additionally, large packages are much more likely to move during shipping, and traditional packaging materials like scrunched-up paper or bubble wrap might not be enough to stop damage. You could instead use enclosures made of engineered foam or corrugated board, but they can occasionally raise your shipping costs. Alternatively, shipping costs might be more manageable if you choose flat-rate shipping.
Many shipping companies, including FedEx, UPS, DHL, and United States Postal Service (USPS), will certainly satisfy your requirements, irrespective of your package size. The least expensive option for sending small packages is typically USPS. On the other hand, UPS and FedEx offer the most affordable prices for large packages. Both carriers let you use their standard shipping services to send oversized packages weighing up to 150 pounds.
Furthermore, in many cases, you might not need a second box because many products already come packaged. In these situations, you must make sure that the products have accurate labels. This can include any notices that are needed based on what’s inside and the appropriate shipping labels. Barcodes must be readable in order to be scanned, so they must also be shielded from harm.
Cheapest Way To Ship Based On Weight
The cost of shipping a package is also sometimes determined using dimensional (DIM) weight. The length, width, and height of the package are multiplied, followed by dividing it with the carrier’s DIM variable to determine the package’s weight.
DIM weight can raise your shipping costs if you’re sending an oversized package. For example, if a package weighs 10 lbs but the DIM weight is 15 lbs, then you will be billed for 15 lbs.
If the DIM weight of your parcel is lower than the original weight, the cost of shipping is determined by the real weight. DIM factors are used by FedEx, UPS, and USPS to calculate the weight of overly large packages.
The weight that can be carried by the majority of shipping companies is capped. For instance, USPS is unable to transport packages weighing more than 70 lbs. Although FedEx and UPS have weight restrictions for flat-rate shipping, other shipping options allow for the delivery of heavier packages.
With a starting fee of $6.25, USPS offers an easy way to send light packages with shipments made within one to three days, anywhere in the US. The next two options are FedEx Ground and UPS, with starting prices of $12.78 and $13.18, respectively, and delivery times of 1-3 days.
FedEx and UPS services have the most affordable rates for packages weighing more than 10 lbs. UPS and FedEx Ground services have the most affordable rates for packages weighing more than 10 pounds. This service offers guaranteed same-day delivery within 1–5 days and is among the cheapest ways for domestic shipping in the US.
Cheapest Way to Ship Based on Delivery Speed
The cheapest shipping option for heavy boxes is ground shipping, but it might take more time to ship your packages. Ground shipping usually requires 3-5 working days after pickup to deliver the package. Therefore, if you need speedy delivery, you’ll have to use air freight, which might significantly raise the cost of transporting heavy items.
Most customers want their orders delivered quickly. Therefore, it’s crucial to take a carrier’s shipping speed into account.
For 2-3 day shipping, USPS is the most affordable option. Despite having comparable delivery times to USPS, UPS and FedEx charge more for shipping. However, one benefit of using these two services over USPS is that they always provide delivery guarantees.
Furthermore, UPS and FedEx are also the best options for next-day delivery. UPS Next-Day Delivery guarantees nighttime delivery to offices between 3 and 4 p.m. and same-day shipment to residences. Additionally, for sites within 150 miles, FedEx promises next-day shipment by 4.30 p.m. The two items cost, respectively, $29.66 and $31.22.
For time-sensitive deliveries, UPS also ensures delivery in the morning. It guarantees shipment by 8 a.m. to all metropolitan areas and before 9 am to a majority of cities. Additionally, some locations can also receive shipments on Saturdays.
FedEx, on the other hand, offers assured overnight delivery starting at 8 am the next day.
What Is The Cheapest Way To Ship Packages Internationally?
International shipping is the shipment of goods across countries by air, road, or sea. Cross-border freight transportation is a very complicated form that involves adhering to a variety of rules and regulations. Companies must know and follow stringent international inspections in order to ship goods without problems. They must also collect paperwork for their cargo in order to get customs clearance.
Aside from other factors, the mode of shipment has a significant impact on the speed with which your shipments cross the border. The mode of transport you select also has a significant impact on how long the delivery will take. For example, air freight moves at a faster rate than sea freight, but speed comes at a cost. Sea, in contrast, hand, is less expensive but slower. If you are shipping fragile items that cannot be kept safe in confined containers over long distances, sea freight is not suitable for you.
If you’re dealing with small packages, USPS is an excellent international shipping option. It is the most cost-effective way to small parcels weighing under 4 lbs to over 180 nations. However, remember that the company does not provide a delivery ETA—final shipment can take a while. There is no insurance coverage which is included, but you can buy insurance on your own.
FedEx is another well-known brand for international shipping. The services they provide for international orders enable you to deliver to over 200 countries worldwide, including the United States, Europe, Canada, and many others. Their delivery time is 2-3 working days, based on the type of shipment.
Tips To Keep Shipping Costs Down
One of the biggest concerns for businesses is to keep their shipping costs to a minimum because it can impact profit margins significantly. Here are some tips that can help you reduce shipping expenses:
- Compare Carriers: Compare rates from different shipping carriers, which can vary depending on the package size, destination, weight, and delivery speed.
- Use Discounted Shipping Supplies: There are many shipping carriers that offer discounted shipping supplies to their account holder.
- Optimize Packaging: Use the best possible packaging to protect the products without adding unnecessary weight. Custom packaging can help you save money in the long run.
- Prepay for Shipping: Some carriers offer discounts if you pay for shipping labels in advance. This can be beneficial if you estimate your shipping volume with some accuracy.
- Negotiate Rates: If you have a consistent shipping volume, then you can negotiate pricing with shipping carriers. You should ask for discounts or better terms if you are committing to a certain volume of business.
- Automate Shipping: You can use shipping software to automate the process of purchasing labels, tracking shipments, and managing orders. This can free up your time and reduce errors.
More On Dropshipping:
- Best Dropshipping Courses
- Best Dropshipping Suppliers In The USA
- How To Start A Dropshipping Business
Conclusion: Compare Different Shipping Carriers To Find The Cheapest One
While USPS, UPS, and FedEx each have their own benefits and drawbacks, you are the best person to decide which is the most appropriate for your company in terms of both price and services.
You must select your shipping partner based on the nature of your business, its vision, and objectives, along with your customer’s preferences. Simply put, choosing something cheaper shouldn’t reduce your customer retention or turn away repeat customers.
Therefore, the best way to decide is to have a thorough understanding of who you are, what your company stands for, and what your clients want from you. Look for a partner you can trust. Check that labels are applied correctly and go over the carrier and warehousing and carrier selection methods to make sure you’re shipping goods in the cheapest while minimizing the risk of return.
