As we move into 2024, online shoppers want faster and cheaper (or even free) shipping. While they might accept higher fees for large packages, they expect free shipping for small items. To keep your customers happy, you need to reduce the cost of shipping small packages so you can offer cheaper or even free shipping. Finding the cheapest way to ship a small package is key to attracting budget-conscious shoppers, staying competitive, and making a profit. In this article, we’ll compare the top carriers, give you free tools to calculate shipping costs, explain what affects these rates, and share tips to help you save money and increase your profits. Keep reading to learn how to improve your shipping strategy and meet your customers’ expectations!
First thing first, to save money, you must understand why it costs, starting with the package’s dimensions and weight. Shipping costs are calculated by both actual weight and dimensional weight (DIM weight), which is the size of the package. DIM weight is found by multiplying the package’s length, width, and height, and then dividing by a set number. If the DIM weight is higher than the actual weight, you pay for the DIM weight. Accurate measurements help avoid extra fees for incorrect sizes.
Next, different services have different limits. Smaller, lighter packages often qualify for cheaper rates. So knowing your package details helps you pick the best shipping option and choose the most cost-effective shipping method.
Lastly, following carrier size guidelines prevents penalties and delays. Carriers have specific rules, and following them can save you money and speed up delivery. Here are the limits from USPS, UPS and FedEx:
For example, a box measuring 10 inches x 7 inches x 4 inches and weighing 2 pounds is typically considered a small package for most standard services. Now you have understood the basics, let’s move to its actual costs!
The cost of shipping a small package can vary a lot based on several factors. Generally, shipping a small package can range from $4.15 to $30, depending on the carrier, package weight, size, shipping speed, and destination. Here’s a simple breakdown of the typical costs of the most popular carriers like USPS, FedEx, and UPS for shipping small packages:
| Carrier & Service | Cost | Delivery Time | Best For |
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USPS |
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| First-Class Package Service | Starts at $4.15 | 1-3 business days | Lightweight packages (e.g., clothing, books) |
| Priority Mail | Starts at $9.65 (small flat-rate box) | 1-3 business days | Packages up to 70 pounds, flat-rate options |
| USPS Ground Advantage | Starts at $3.79 (commercial rates) | 2-5 business days | Non-urgent deliveries of larger items |
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UPS |
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| UPS Ground | Starts at around $10 | 1-5 business days | Cost-effective delivery with reliable tracking |
| UPS 3 Day Select | Starts at $12-$15 | 3 business days | Faster delivery without high overnight costs |
| UPS Next Day Air Saver | Starts at $25-$30 | Next business day (end of day) | Urgent, time-sensitive deliveries |
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FedEx |
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| FedEx Ground | Starts at around $9-$10 | 1-5 business days | Affordable, reliable non-urgent deliveries |
| FedEx Express Saver | Starts at $15-$20 | 3 business days | Faster delivery at a moderate cost |
| FedEx Standard Overnight | Starts at $25-$30 | Next business day | Urgent deliveries needing next-day arrival |
To find the cheapest way to ship a small package, calculating shipping costs is crucial, consider key factors like the package’s weight and size, shipping distance, delivery speed, carrier and service level, and any additional services you might need, such as insurance, tracking, and signature confirmation. You can also use online tools to calculate shipping costs. Here are 3 tools that support various carriers and provide accurate estimates:
ShipStation is a comprehensive shipping software that integrates with USPS, UPS, FedEx, and DHL. It offers real-time rate calculations to help you compare costs and choose the best option.
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EasyPost provides a powerful API for accessing shipping rates, printing labels, and tracking packages across multiple carriers.
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ShippingEasy is a user-friendly platform offering discounted shipping rates and integrations with various carriers.
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For most small packages, like boxes or mailer bags, USPS is usually the cheapest way to ship a small package.
Each shipping carrier has its own rules about what counts as a “small package”. The cost depends on the size and weight of your package, where it’s going, and how fast you need it delivered.
To compare shipping rates for small packages, here’s an example of how much it costs to send a small box from New York to California using standard services:
| Carrier | Service | Cost | Delivery Time |
| USPS | Priority Mail | $10.00 | 1-3 business days |
| UPS | UPS Ground | $12.00 | 1-5 business days |
| FedEx | FedEx Ground | $13.00 | 1-5 business days |
Reducing the size of your package is the cheapest way to ship a small package. Carriers often use dimensional weight pricing, which means they calculate costs based on the package’s size and weight. So, smaller packages cost less to ship. Here are some suggestions for you:
Negotiating discounted rates with carriers can save your business a lot of money, especially if you ship items frequently. To find the cheapest way to ship a small package, there are 3 options:
Carriers are often more willing to offer discounts to businesses that ship a lot of packages. It’s also smart to check out rates from different carriers and negotiate with several to make sure you’re getting the best deal possible.
Carriers often have special programs that offer significant discounts to businesses. These programs are designed to make shipping more affordable for high-volume shippers.
For example, UPS has a program called the Digital Access Program, which gives businesses significant discounts on shipping. Overall, negotiating rates can lead to substantial cost savings, particularly for businesses that ship large volumes of packages regularly.
Why? Well, carriers and third-party services often offer discounts to new users, for bulk shipments, or during special promotions. Keeping an eye on these deals can help you save a lot of money. We’ll explain more about this in the next part.
If you want to save money on shipping, using third-party shipping services like ShipStation and Pirate Ship can help a lot. These services get special deals with shipping companies, so you pay less. For example, with Pirate Ship, you can save up to 89% compared to regular rates.
Further, these tools can help you manage all your shipping in one place. It connects with many online stores and lets you print shipping labels in bulk. However, it mainly works with USPS and UPS, so you won’t have as many carrier choices. So give it a try!
Did you know many store owners have a team to check the shipping costs over time? It helps them see which carriers offer the best deals and where they might be overspending. Then, finally, they made their shipping decisions. Also, tracking costs can help you spot billing mistakes, ensuring you only pay for what you actually use.
For example, every month, you can review how much you spent on shipping. If you notice one carrier is cheaper for certain types of packages, adjust your shipping strategy to use that carrier more often. This continuous adjustment can lead to more savings over time.
Using flat rate shipping whenever possible can make shipping easier for both you and your customers. With flat rate shipping, the cost is based on factors like size, weight, or destination, making it easier to predict. This straightforward approach reduces uncertainty at checkout and lowers the chances of abandoned carts.
Carriers like USPS and UPS offer flat rate shipping options, which have set prices for specific box sizes. This simplifies cost estimation, especially if you often ship items of similar sizes. With flat rate shipping, you’ll know upfront exactly how much shipping will cost, making it easier to manage expenses.
Shopify allows you to set flat shipping rates for your customers either. You can create flat rates for orders within shipping zones, as well as for orders within specific price or weight ranges. For example, you could charge a flat rate of $5 for domestic orders and offer a discounted rate of $3 for orders over $50.
Poly mailers are a great option for shipping lightweight, non-breakable items. They’re durable, waterproof, and cheaper than boxes, making them perfect for items like clothing, accessories, and small electronics.
To prevent delays or misdeliveries, make sure your shipping labels are clear and securely attached. For a personalized touch, use custom-printed poly mailers with your logo and brand colors, or branded stickers or labels if custom printing isn’t possible. This adds a personal touch to your packages without breaking the bank. Also, you can buy poly mailers in bulk, save money and ensure you always have enough on hand for your shipping needs.
Reducing returns is important for businesses to make more money and keep customers happy. But there are some problems to overcome, like meeting customer expectations, getting the right size for products, and making sure things get delivered on time and in good shape. Everything has a solution! Here are our recommendation:
Synctrack Order Tracking by Omega is a handy tool that keeps customers up-to-date about their order status, making it easier to manage delivery expectations and cut down on returns.
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Now that you’ve discovered the cheapest ways to ship a small package, it’s time to put these tips and tricks into action. Use our strategies to minimize costs, then utilize free online tools to calculate your shipping expenses. Shipping small packages affordably requires smart strategies and choosing the right carriers. These methods not only save you money but also enhance your overall shipping efficiency and customer satisfaction. Start optimizing your shipping process today to enjoy the benefits of lower costs and happier customers!
