It’s natural to be curious about the cheapest way to ship a package when your customers want free rather than fast delivery.
The State of Ecommerce 2021 study confirmed that the average customer prefers free to fast. In fact, 59% of consumers said free shipping was key to a positive online shopping experience, while only 40% said the same about fast delivery.
However, eCommerce business owners have more to worry about than customer preferences. With the covid-induced logistics disruption and labor shortage, free deliveries are now slower and express deliveries more expensive.
As a business, you still need to keep your costs to a minimum. With that in mind, we’ll walk you through the cheapest way to ship a package so you can lower your costs while earning some points with your customers.
factors that affect shipping costs
cheapest ways to ship packages based on delivery speed
the cheapest way to ship a package based on weight
Final Thoughts: The Cheapest Way to Ship a Package for Ecommerce Businesses
factors that affect shipping costs
The cost of shipping your package depends on several factors, so there is no reference service that is the cheapest. You’ll need to consider these factors each time you want to ship a package to determine the most economical way to ship the package.
1. Delivery Speed
While many of your customers will choose free delivery over expedited delivery, a good portion of customers will still want your deliveries to be fast.
Naturally, the faster you want to deliver, the more you’ll pay. All shipping services offer multiple shipping options, including expedited delivery, so you can select one based on how quickly you want delivery.
for example, if you want to deliver a package under 10 pounds within 2-3 days, usps priority mail is your best option, but fedex or ups offer better rates for heavier packages.
2. weight
Heavier packages cost more to ship.
For example, for packages less than a pound, USPS First Class Mail or USPS Media Mail (if you sell physical media) is your best option. on the other hand, fedex and ups ground offer better rates for shipping a heavy package (more than a pound but less than 10 pounds).
3. size
Shipping prices for large packages are higher because they take up more space. That’s why a two-pound package can sometimes cost more than a three-pound package: you packed the goods in a bigger box.
usps priority mail, first class mail envelopes and flat rate envelopes cost less when you want to send small packages. Alternatively, you can select cube pricing with USPS Priority Mail (as long as the package weighs less than 20 lbs.) or pay by dimensional weight.
cubic rate price and dimensional weight are opposite. With cube rate pricing, you pay a reduced rate for heavy but small packages. instead, with dimensional weight, you pay more if the dimensional weight exceeds the actual weight.
These are the formulas for both metrics:
cubic feet = (length x width x height) / 1728
dimensional weight = (length x width x height) / divider
Carriers use a different divisor to calculate dimensional weight:
- usps divider: 166
- fedex divider: 139
- ups divider: 139
You may want to try using the fedex dimensional weight calculator to understand the concept a bit better.
Since USPS has the largest divider, it is the cheapest option in dimensional weight pricing.
4. distance
The United States has eight shipping zones. The further your zone is from the destination zone, the higher the shipping rates. shipping cost is even higher for international shipments.
You can save money on shipping by setting up warehouses in all shipping zones. A well-extended distribution center network also helps you deliver packages faster.
Naturally, establishing a network of distribution centers is generally only feasible for larger companies. If your sales volume is low, you won’t save enough on shipping to offset the costs of owning and maintaining multiple distribution centers.
5. other factors
Other factors such as insurance, handling fees and delivery guarantees are an additional cost. the price of these also differs between delivery services, so you may want to check their costs before deciding on a shipping company.
When figuring out the cheapest way to ship a package, there are several variables to consider, and things can get confusing quickly. so let’s break down the cheapest shipping option based on two of the most important factors: speed and weight.
cheapest ways to ship packages based on delivery speed
short delivery times translate into satisfied customers. however, you should find an affordable shipping method to keep your costs to a minimum.
To help you achieve this, let’s explore the cheapest way to ship a package based on delivery speed below.
the cheapest way to send a package for overnight delivery
Overnight deliveries are expensive, no matter which shipping solution you choose. The cheapest option among major carriers is the USPS Priority Mail Express service.
The service guarantees delivery within one day, but sometimes has a two-day delivery window. that means your customers won’t get delivery after one business day, even if they want to.
another problem with usps express priority mail is that they are not as reliable as fedex or ups with overnight delivery. the guarantee essentially means that they will refund the money for late delivery. that doesn’t help you much when you need to respond to your customers.
usps will save you money, but it’s up to you if the low cost makes up for some upset customers. you can also choose to decide based on your broader shipping strategy.
the cheapest way to send a package with a delivery window of more than two days
usps priority mail is the most economical option for two-day shipping or longer delivery times. however, it is better when you have more wiggle room in terms of delivery time. While USPS states typical delivery time is 2-3 days, delivery time can vary significantly in some cases.
if you can’t afford to deliver late, it’s better to spend a little more and send the package via fedex or ups.
the cost is considerably higher than what you would pay in the us. uu. postal service, but fedex and ups guarantee delivery times, which is excellent if you want to ensure complete customer satisfaction.
the cheapest way to ship a package based on weight
Weight is another factor to consider when determining the most economical way to ship a package. things get a bit more complicated when you factor in dimensional weight, but we explain everything you need to know below.
the cheapest way to ship a package that weighs less than two pounds
In general, USPS shipping offers the best rates for packages under two pounds. USPS First Class Mail will cost you the least when your item weighs one pound or lower. However, use USPS First Class Mail only if you’re not too concerned about reliability.
fedex and ups are cheaper for packages weighing between one and two pounds, as long as you can avoid the dimensional weight penalty. in other cases, you’ll find usps to be the most profitable.
the cheapest way to ship a package that weighs more than two pounds
fedex ground or ups ground are generally cheaper for heavy items. Between the two shippers, you may be able to save a bit more with FedEx because they generally offer a discount for registering online.
The only problem is when fedex and ups look at the dimensional weight of a package. for example, if you ship a 10 pound item in a large box (15 x 15 x 15), fedex or ups will assume the rate is 24.28 pounds, calculated as: (15 x 15 x 15) / 139
You may need to re-assess rates if you incur a dimensional weight penalty (which applies to packages over three cubic feet or 5,184 cubic inches).
but there are some other exceptions here. USPS flat rate shipping rates may be cheaper in some cases.
for example, you’ll save money with usps flat rate packages if:
- You may place a package weighing less than two pounds in a USPS Priority Mail Small Flat Rate Box.
- You may place a package weighing more than two pounds and less than three pounds in a USPS Priority Mail Medium Flat Rate Box.
- You can put a package weighing more than five pounds in a USPS Priority Mail Large Flat Rate Box.
In any other scenario besides those listed above, you’ll want to opt for fedex or ups ground.
Final Thoughts: The Cheapest Way to Ship a Package for Ecommerce Businesses
You want to ship packages quickly and for as little money as possible. But as a small business, margins are crucial to your survival and bottom line, so you need to strike the right balance between speed and cost.
In any case, it is better not to look only at the price. Finding a cheap shipping option can save you a lot of money, but you should also consider the costs of using an unreliable service.
Now that you know the cheapest way to ship a package, you’re in a better position to choose between the usa. uu. post office, fedex and ups according to the specifications of the package.
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