What Is the Cheapest Way to Ship? Logistics Guide
A lot of ecommerce brands ask us at Phase V Fulfillment the same thing: What’s the cheapest way to ship products?
Shipping costs are one of the biggest ways to eat your profits. If they get too high, even really good sales won’t overcome this obstacle. Also, you have to balance good service with saving money on your shipping.
There are many factors, like package size, distance, delivery speed, and what carrier you choose, that determine the cheapest way to ship. Every shipment is unique. In this guide, we’ll look at the cheapest ways to ship packages, explain how carriers set shipping costs, and give some tips on how ecommerce businesses can save on fulfillment.
What Determines Shipping Costs?
Shipping costs can be harder than you realize to figure out.
Here are the main factors that go into the cost of each shipment.
Package Weight
Heavier packages are generally more expensive to ship. Even slightly more weight can increase cost, especially with air shipping.
Dimensional Weight
Carriers often use what is called dimensional weight to set prices, meaning they consider the package’s size, not just its weight.
For example, shipping large but light packages can cost more than you’d think, because they take up more space in delivery trucks.
Shipping Distance
Shipping providers have zones, which divide shipping routes. Usually, the farther your package travels, the higher the price.
It makes sense then, that shipping a package across the country costs more than sending it within the same zone or maybe the next one over..
Delivery Speed
If you want faster shipping, you’re going to pay more. And if you want something like overnight or two-day delivery, it’’ll be much more than standard ground shipping.
Each shipment is its own thing, so be sure to research the cheapest shipping option consistently.
Cheapest Shipping Options for Small Packages
Standard carrier services (e.g., USPS, UPS, FedEx) for lightweight shipments are usually the cheapest way to send small packages.
Here are some of the most common and cheap shipping options:
| USPS First-Class Mail | Packages under 1 lb | Very low-cost shipping |
| USPS Priority Mail | Small packages | Flat-rate options |
| UPS Ground | Heavier packages | Reliable and affordable |
| FedEx Ground | Business shipments | Competitive pricing |
USPS First-Class Mail is usually the cheapest way to ship very light packages, but it only works for packages under one pound.
USPS Priority Mail or ground shipping with UPS or FedEx can be the best for heavier ones.
Our Ecommerce Shipping Costs: Guide For Every Brand walks you through the various choices.
Cheapest Way to Ship Heavy Packages
Shipping heavy packages requires a different approach.
Ground shipping is almost always cheaper than air. It’s usually best to skip overnight shipping unless you really need it.
For heavier packages, these are usually the best chance of having the lowest rates:
- UPS Ground
- FedEx Ground
- Regional carriers
Ground shipping usually takes one to five business days, depending on how far you’re sending your item. Still, it’s much cheaper than faster options.
Many companies cut costs by having fulfillment centers closer to customers. This can lower shipping expenses and speed up delivery.
Flat Rate Shipping Options
Flat rate shipping can also help you save money.
Some carriers offer fixed prices for certain box sizes, no matter how far the package goes or how much it weighs, as long as it’s within their limits.
USPS Priority Mail Flat Rate boxes are a popular example.
| Small Flat Rate Box | Affordable nationwide shipping |
| Medium Flat Rate Box | Good for heavier items |
| Large Flat Rate Box | Best for dense shipments |
Flat rate shipping is a good deal if your package is heavy but still fits in the carrier’s box. It’s a good idea to compare flat-rate prices with regular rates to see which is cheaper.
Regional Carriers Can Lower Costs
Many brands stick to national carriers, but regional carriers can offer better prices. Regional carriers deliver within specific areas and can charge less for local deliveries.
Examples include:
- OnTrac
- LaserShip
- Spee-Dee Delivery
These carriers can deliver faster and for less in their service areas.
If a company ships large volumes, it can negotiate better rates with regional carriers.
Packaging Can Reduce Shipping Costs
How you package your products can really sway shipping costs. Many businesses miss this, but it can be a big difference.
Use Smaller Boxes
Using smaller boxes lowers dimensional weight and helps keep shipping costs down.
You can read more about this topic in our article about Box dimensions for shipping.
Reduce Packaging Materials
Too much packaging adds weight and bulkiness.
Use Poly Mailers
For non-fragile items, poly mailers usually cost less than cardboard boxes.
Many ecommerce companies save money simply by improving their packaging design.
Shipping Software Helps Find the Cheapest Rates
Shipping software can help you quickly compare carriers and get a shipping cost comparison.
These tools automatically find the cheapest shipping option for your package and its destination.
Popular shipping platforms include:
- ShipStation
- Shippo
- EasyPost
Many fulfillment providers use these systems directly in their warehouses.
At Phase V Fulfillment, we use these tools to find the lowest shipping cost for every order.
Our guide How to Reduce Small Parcel Shipping Costs and Improve Customer Experience explains how companies manage shipping expenses at scale.
How Fulfillment Centers Reduce Shipping Costs
Professional fulfillment providers can lower shipping costs in several ways.
Carrier Rate Negotiation
Large fulfillment operations negotiate discounted carrier rates based on shipping volume.
Warehouse Location Strategy
Having strategically-placed warehouses in the right spots reduces shipping zones and lowers transportation costs.
Packaging Optimization
Fulfillment centers use standard packaging sizes to help reduce dimensional weight fees.
Multi-Carrier Shipping
Working with several carriers lets your company choose the cheapest option for each shipment.
These strategies help your ecommerce brand keep shipping costs low and delivery times fast.
Final Thoughts
Finding the cheapest shipping method is worth every second of your time researching. You’ll discover that multiple factors impact the cost of shipping different packages, but ground shipping is usually the best for ecommerce companies. USPS is good for light packages, wile USPS or FedEx Ground are best for heavier items.
Your business can save a lot by comparing carriers, streamlining packaging, and being strategic with their fulfillment locations. At Phase V Fulfillment, we can help you figure out the best and cheapest ways to ship packages of all sizes
