Now more than ever, it has become imperative to determine the cheapest way to ship a package to your customers. Why? Because the effect of shipping costs on shopping habits is quite enormous. Buyers’ behaviors have changed, and online shoppers have come to expect quicker low-cost shipping options.
In a recent study by Convey, of 2,500 U.S. consumers, 64.3% of respondents said that price is the most critical factor related to shipping. High shipping costs could turn away potential buyers costing your business a lot of sales down the line.
Again, leveraging the cheapest way to ship your packages will help you convert shipping-cost-sensitive shoppers and stay ahead of the competition. Plus, it will also improve your margin.
But then, what is the cheapest way to ship a package? The truth is, there is no one-size-fits-all answer to this question. However, this article will explain the factors that affect the shipping rates and ways you can leverage available shipping options.
Let’s dive in.
4 Critical Factors to Consider when choosing the cheapest way to ship a package
There is no unique, universal shipping method regarded as the gold standard for shipping a package inexpensively. You will need to consider the weight and package size, how fast your package needs to reach your customer, and finally, the shipping destination.
Here, we will look at the four critical factors to consider when deciding the cheapest way to ship packages. With this information, you can compare shipping costs using a shipping cost calculator.
The Package Dimensions
The size of your package will remarkably affect your shipping cost. The more space your package takes up, the more you will have to pay. Different shipping companies offer several options to enable you to optimize your package size for shipping.
Dimensional weight is the length of the package x width x height. Using dimensional volume is effective for bulky and strange shapes. Couriers often use dimensional weight and product weight to calculate shipping costs. The goal is to estimate the space that the package will take up in the delivery truck to make your deliveries more efficient.
Using shipping weight dimensions might be cheaper for some packages. But not in all cases. Purchasing a variety of shipping box sizes might help reduce the overall volume of the item and reduce shipping costs.
The Delivery time
Delivery times are usually directly related to your service offering. Therefore, if you offer one-day delivery, you might need to use a nightly service. Alternatively, you can give multiple shipping service options for the customer to choose- based on how quickly they need the product. Some shoppers need their packages to be delivered overnight. Others may prefer to get their parcels delivered within 3 days, and others can wait up to 7 days.
The faster you want your package delivered to its destination, the higher you’ll pay. For example, overnight shipping costs up to five times five shipping days.
The Shipping Destination
In general, the further the package travels, the higher the shipping cost. This is particularly true for international shipping rates. For example, shipping a parcel to New York will cost less than sending the same item to Nigeria.
Read also: The Cheapest Way to Ship to Nigeria
If you are shipping within the U.S. territory, know that shipping rates are based on shipping zones. First, think about which shipping zone your package is shipped from. Couriers such as FedEx, USPS, USP, and DHL use these zones to calculate shipping costs.
Couriers divide the U.S. into 8 shipping zones based on how far your package has to travel from the mailing address or zip code. The further the shipping zone, the higher the shipping cost.
The Package Weight
The last variable that determines the shipping rate is the weight of the package. The total weight encompasses the product, the packaging material (wrapper and tape), and the box used for shipment.
Calculating the cost of shipping a package based on weight is a straightforward process. After weighing the package, use a shipping cost calculator to get a shipping rate. Heavier packages will attract a higher shipping rate.
If the package is small but heavy, use a shipping cost based on dimensions because that may be more economical.
Additional Factors to Consider when choosing the cheapest way to ship a package
There are also additional factors to consider in addition to the cost. A cheap option that does not offer excellent tracking services, insurance, or is not committed to delivery times may have some disadvantages beyond the attractive price.
Here are some additional factors to consider:
Insurance: Insurance provides security for your goods during transport. In addition, it helps to alleviate the risks associated with lost or damaged packages. As you research the cheapest way to ship boxes, it is wise to check if the most competitively priced carrier offers security for your packages. While it may cost more, it may make sense to use a courier that includes insurance against a cheaper option that does not cover it and requires a separate insurance purchase.
Tracking: Tracking helps you optimize your customers’ shipping experience and build trust by providing package visibility during its journey. The cheapest way to send a package may come with a spotty tracking service. You may need to evaluate your options properly to ensure you choose a courier with an excellent tracking service.
Handling charge: Sometimes, depending on how delicate your shipment is, handling charges apply. When choosing the cheapest shipping method, you should always check if you will have to pay separate handling fees.
Additional fees for housing and fuel: Cheap shipping plans often have hidden costs, such as last-mile delivery fees, such as residential or fuel surcharges. When making a shipping option, be sure to verify these additional charges.
Delivery guarantee: You should check if the cheapest shipping option has a good track record with the delivery times. You do not want to disappoint your customers. After all, it’s always your customer service.
Cheapest Shipping Services for the Major Couriers
Remember to make sure you are getting the cheapest rates you need to compare couriers. Using a shipping rate calculator can help. You can compare rates based on your package size, weight, destination, and delivery speed.
Let us look at the cheapest way to send a 9in × 6in × 2in the package from Connecticut to Hong Kong using the major couriers.
|Courier||Shipping time||Shipping cost|
|USPS Priority Mail International||8 days||$86.45|
|UPS Worldwide Expedited||2-5 days||$210.05|
|FedEx International Economy||4-6 days||$212.95|
|DHL Express Worldwide||$83. 30|
When Shipping Discounts Apply
Receiving shipping discounts from shipping companies can be a game-changer for your e-commerce business. For starters, they can help you reduce shipping costs per package. Plus, they help maintain a steady margin. Carriers will reduce their prices depending on the volume of parcels you send. The more you buy, the better your prices.
But what if you are not sending a bulk package and do not qualify for discounts?
Here is how Konveyo can help.
Find Out the Cheapest Way to Ship a Package with Konveyo
Although Konveyo is not a traditional shipping company, it provides the best option for shipping packages Konveyo taps into unused spaces in vehicles already heading your way to deliver your items. Hence you can spend less to ship your packages to their destinations without needing to pay premium prices.
Also, we do not require extra packaging for your items like the traditional delivery companies do. So you can save on the additional cost needed for oversized boxes. Plus, a single konveyo is responsible for handling your parcel, meaning there is no truck-to-truck transfer.
When you ship with Konveyo, you can determine with certainty when your items will arrive at their destination with real-time tracking from the point of pick-up to drop-off. So no need to wait endlessly for a delivery company to tell you a wispy time window.
If your business is looking for innovative ways to deliver goods or you simply want to reduce the stress of door-to-door e-commerce delivery, Konveyo is here to solve those problems. We take care of complex e-commerce shipping for businesses with hundreds of stores.