If you offer fast delivery to customers, you might not need to pay extra for express shipping. In this blog, we’ll explore how to choose the most cost-effective shipping options while still ensuring timely deliveries.
Shipping can be one of the largest expenses for an eCommerce business. Without a strategic approach, businesses often end up overpaying. Major carriers like USPS, UPS, and FedEx use cubic weight (or dimensional weight) pricing, which means that the size of the package matters just as much as its weight.
Many businesses overlook this and unknowingly pay significantly more for shipping by using larger-than-necessary boxes. Optimizing your packaging can lead to substantial cost savings.
Cubic weight is a pricing method that charges based on how much space a package occupies, not just its weight. The calculation follows this formula:
(length × width × height) ÷ carrier factor
Each carrier uses a different carrier factor, but the standard is typically 139 for domestic shipments and 166 for international shipments. The higher of the two weights—actual or cubic—is what determines your shipping cost.
Consider a package with the following dimensions:
Using the formula:
(20 × 10 × 8) ÷ 139 = 11.51 pounds
Even though the actual weight is 5 pounds, the carrier will charge you for 11.51 pounds because of the cubic weight pricing model.
Since carriers charge more for larger packages, choosing the right-sized box can significantly reduce costs. If you offer free or flat-rate shipping, optimizing package size is even more critical.
Some businesses attempt to save money by underreporting package size or weight when purchasing shipping labels. However, carriers weigh and measure every package at distribution centers. If your information is inaccurate, they will issue a chargeback, increasing your costs instead of lowering them.
Certain carrier services offer cost-saving options specifically designed for cubic weight pricing:
If you ship small but heavy items (such as canned beverages), these services can help you save significantly on shipping costs.
For businesses fulfilling hundreds of orders per day, manually selecting the best package size for every order can be time-consuming. However, avoiding oversized packaging whenever possible can still result in substantial savings. Striking the right balance between efficiency and cost reduction is key.
Choosing the optimal package size and carrier service manually is challenging, especially at scale. String automates this process by:
If you use platforms like ShipStation, Shippo, Extensiv, or Ship Hero, String can save you thousands of dollars each month by optimizing your shipping strategy.
Want to see how much your business could save on shipping? Get a free shipping cost analysis at www.meetstring.com.