Businesses can reduce shipping costs by 20-50% through four core strategies: comparing carriers before every shipment, optimizing box size to reduce volumetric weight charges, consolidating multiple orders, and using a multi-carrier platform like ShippingToGo to access pre-negotiated rates from DHL, FedEx, UPS, and 250+ carriers. Based on ShippingToGo's shipping data, customers who compare at least two carriers save an average of 18-25% per shipment.
Shipping expenses can be a significant part of the budget—especially for online stores, importers, exporters, and even individuals sending gifts or products abroad. Differences between shipping methods, the weight and size of the package, the selected carrier, and the destination country can all dramatically affect the cost.
And yet, most people don't realize how much money they could save—without compromising on speed, service, or reliability.
In this article, we'll walk you through, step by step, how to reduce shipping costs wisely. Whether you're sending documents, electronics, fashion items, or personal belongings, the tools you'll find here could save you hundreds of dollars on every shipment. ShippingToGo is here to make international shipping much simpler—and a lot more affordable.
Why Do Shipping Costs Vary So Much?
The cost of shipping is determined by several key factors—some of which are entirely out of your control. First, the shipping method—air, sea, express, or standard—has a direct effect on price. Faster shipping usually costs more, sometimes significantly.
Second, the distance to the destination matters. Shipping to Europe is generally cheaper than to Australia or South America. Some countries with strict customs regulations may also incur additional fees.
Weight and volume also determine whether you're charged based on physical weight or volumetric weight. For example, a large but light box may be priced higher due to the space it occupies on a plane.
Finally, the contents of your shipment matter. Alcohol, lithium batteries, food items, and high-value goods may require special permits, extra taxes, or specific packaging requirements.
According to Statista, shipping and logistics account for 5-15% of total operating costs for small to medium e-commerce businesses. Based on ShippingToGo's shipping data, the majority of businesses overpay because they rely on a single carrier without comparing alternatives — even when better options are available for their specific routes.
Tips to Reduce Shipping Costs
1. Compare Prices Before Every Shipment
One of the most common mistakes is sticking with a single shipping provider without comparing. Even if you usually ship with DHL or FedEx, for certain destinations UPS or another carrier might offer a better deal or a service that better fits your needs.
With ShippingToGo, you can compare all your options in real time, through a simple interface with clear pricing and no surprises. The system shows you rates, pickup times, expected taxes, packaging options, and more—so you can make informed decisions without wasting time on phone calls or emails.
2. Proper Packaging = Savings
Many people overpay for shipping because they use oversized boxes. Carriers often calculate rates based on "volumetric weight," meaning the size of the box is just as important as the actual weight.
Using a properly-sized box with minimal empty space and no unnecessary padding can save you a lot. Use sturdy boxes that protect your shipment without adding extra bulk. This balance of protection and efficiency results in lower costs and safer deliveries.
Remember: Each country has its own rules on what can be shipped and how. Be sure to comply, especially when shipping electronics, food, or liquids.
3. Consolidate Shipments
One of the smartest cost-saving strategies is to combine shipments. If you have multiple orders going to the same client or region, consider consolidating them into a single package.
For example, sending one 5 kg package is usually cheaper than sending three 1.5 kg boxes. It also saves on paperwork, taxes, customer coordination, and other logistics.
Business customers using ShippingToGo can optimize their shipping system to group packages by destination, client, or shipping day—saving both time and money every month.
4. Ask About Business Discounts
Do you ship at least once a week? You may be eligible for business-rate discounts. Even small to medium-sized businesses can save 20%–40% on shipping costs.
ShippingToGo offers tailored business plans, with dedicated reps, special pricing, fast support, and service adapted to your workflow. Signing up is easy, with no commitment—and can save your business thousands of dollars per year.
5. Use an Online Shipping Platform
Besides saving money, digital platforms save you time. Instead of calling couriers or typing addresses repeatedly, you can pull orders directly from your online store, enter weight and volume, and choose your courier.
ShippingToGo integrates with Shopify, Etsy, WooCommerce, and Wix, so all your orders appear automatically. You won't need to copy addresses or estimate rates—the system does it for you.
You'll also enjoy real-time tracking, customer updates, invoices, and reports—all in one place. Fewer errors, less wasted time, and more control.
6. Choose the Right Service Level
Not every shipment needs express delivery. Switching from express to a standard service can reduce costs by 30-70% for non-urgent shipments. Save express services for genuinely time-sensitive items, and use economy or standard options for everything else.
Shipping Company Comparison
| Company | Pros | Cons | When to Use |
|---|---|---|---|
| DHL | Ultra-fast, professional service, global reach | High cost for small shipments | Urgent deliveries, important docs |
| FedEx | Precise tracking, highly reliable | Less available in remote areas | Medium-size U.S./Canada shipments |
| UPS | Great for U.S., lower fees | Registration can be cumbersome | Europe to U.S. shipments |
| ShippingToGo | Compares all carriers, personal service | Fully digital, no physical branches | Anyone who wants to save smartly |
How to Calculate If You're Overpaying on Shipping
A simple audit can reveal whether your current shipping costs are competitive:
- List your 5 most common shipping routes (origin, destination, average weight/dimensions).
- Get quotes for each route on ShippingToGo using your current carrier and two alternatives.
- Calculate the price difference multiplied by your monthly shipment volume.
- If the gap is more than 15%, it's worth switching or negotiating with your current carrier.
Based on ShippingToGo's shipping data, businesses that run this exercise save an average of 22% in the first month by switching at least some routes to a more cost-effective carrier.
Q&A
Can I really save on every shipment?
Yes. In many cases, you'll see price differences of 20%–50% depending on service type and destination.
What if I'm not sure about the weight?
ShippingToGo allows estimated input, but accuracy is important to avoid surcharge penalties. You can weigh with a home scale or consult our support team.
Is this service suitable for individuals too?
Absolutely. Even if you're not a business, you can use ShippingToGo to send packages, documents, gifts, or personal items abroad.
Conclusion
Shipping doesn't have to be expensive or complicated. With a bit of awareness, smart packaging, digital tools—and above all, smart price comparisons—you can reduce your shipping expenses immediately.
ShippingToGo was built to give you the tools to succeed—whether you run an online shop, a large company, or are just shipping abroad for the first time. Our platform is smart, user-friendly, and most importantly—cost-effective.
The information in this article is for guidance only and does not constitute any guarantee of service or pricing. For an accurate quote, please use our system or contact a representative.
For further guidance, see how to save money on international shipping, how to pack fragile items, and express shipping methods compared.
Frequently Asked Questions
How much can I save by comparing shipping carriers?
Based on ShippingToGo's shipping data, businesses save 20-50% by comparing carriers before each shipment rather than using a single provider. For certain routes and package sizes, savings can reach 91% versus walk-in retail rates. The largest savings are typically found on international shipments over 5 kg and on routes served by multiple competitive carriers.
What is volumetric weight and how do I reduce it?
Volumetric (dimensional) weight is calculated as length × width × height divided by a carrier factor (typically 5,000 for air). Carriers charge based on whichever is higher — actual or volumetric weight. To reduce it: use the smallest possible box that still protects your item, remove unnecessary packaging, and consider vacuum bags for soft goods like clothing and textiles.
Is it better to consolidate shipments or send them separately?
Consolidation is usually cheaper for multiple non-urgent items going to the same address, as one 5 kg package is almost always cheaper than three 1.5 kg packages. However, splitting can be smarter when a combined shipment would cross customs duty thresholds, or when part of the shipment is time-sensitive.
Do small businesses qualify for carrier discounts?
Yes. Small and medium businesses that ship at least once a week typically qualify for negotiated business rates of 20-40% below standard prices. ShippingToGo's business plans offer pre-negotiated volume discounts from DHL, FedEx, and UPS, with dedicated support and no minimum commitment required.
Which is cheapest for international shipping — DHL, FedEx, or UPS?
There is no single cheapest carrier — it depends on the specific route, weight, dimensions, and service speed. Based on ShippingToGo's data, FedEx tends to lead on U.S.-to-Europe routes, DHL on Middle East and Asia-Pacific routes, and UPS on heavy B2B shipments to North America. Use ShippingToGo to compare all three for your specific shipment.
