How Packaging Design Can Lower Your Shipping Costs

Every business wants to make a perfect impression during unboxing, and this is why ensuring product safety during shipping is essential. However, shipping costs can eat into business profits faster than you think. How to save money without compromising product safety or customer satisfaction? Luckily, the packaging design is one of the smartest ways to lower shipping costs. Let's discuss this further!

How Much Does Packaging and Shipping Cost?

Packaging & shipping costs vary depending on the size, weight, destination, and carrier. On average, businesses spend between 10% to 20% of their product price on shipping. 

For example:

• A lightweight product shipped domestically might cost between $5 and $10.
• Heavier or oversized products may incur a cost of $20 or more.
• International shipping can range from $15 to $50+, depending on the region.

Overall, these costs add up quickly, especially if your packaging isn't optimized.

What Drives Shipping Packaging Costs?

Several factors can quickly drive up the packaging shipment cost. 

What are they? 

• Your package weight
• Box dimensions
• Shipping zones
• Delivery speed

Each of these factors affects the shipping rate you pay, and even small changes can result in significant savings.

How to Lower Your Shipping Cost?

If your business frequently delivers products, you know that lowering shipping costs is essential to increasing profits. Is it possible? 

Below are some ways to lower your high shipping costs!

Choose Cost-Saving Packaging

Cost-saving packaging doesn't mean cheap—it means efficient. In fact, a smart packaging design can save you money. 

Here's what you should do:

• Avoid double-boxing 

Instead of double-boxing, you can choose custom printed mailer boxes, which are highly durable to ship your products safely. After all, if your products aren't packaged correctly, they may get damaged on the way to your customers. This will incur revenue loss, both from replacing damaged products and potentially losing customers. 

• Use lightweight materials

Choose from lightweight packaging materials, such as paperboard, to ship your products safely without incurring a huge expense. 

• Customize the packaging size

Yes, you can customize and optimize your packaging size. Even better, having precisely sized packaging helps lower your shipping costs.

Reduce DIM Weight Costs

DIM weight costs are the shipping expenses calculated based on a package's dimensional weight rather than its actual weight. These days, the carrier calculates the size of your box and determines the shipping cost based on the exact space it takes up in the truck. 

How to reduce DIM weight?

• Use smaller boxes that will fit your product snugly.
• Avoid unnecessary fillers that can increase the box size.
• Choose packaging that compresses well without damaging your product inside.

Don't Overpack

Undoubtedly, overpacking can increase both weight and size, resulting in higher shipping costs. 

Here are some packaging strategies to avoid it:

• Use enough padding to prevent your product from moving. 
• Avoid using an oversized box for shipping small products.
• Follow standardized shipping guidelines in your region. 

Remember, minimalist packaging design is often safer and cheaper.

Split Larger Orders into Multiple Shipments

Many times, splitting a large order into smaller packages is the best way to reduce costs. Why?

First of all, smaller packages may avoid oversized fees. Moreover, you can use cheaper shipping methods for lighter parcels as they improve delivery speed and reduce damage risk. Also, consider whether multi-shipment logistics work for your business model.

Opt for Negotiated & Discounted Rates

With the boom of e-commerce shopping, so many carriers on the market today. Thus, it will be worth browsing around to find negotiated and discounted rates. For example, in addition to UPS, FedEx, DHL, and USPS, you can check out smaller local companies, too. Depending on your shipping location, local carriers may offer discounted rates or other shipping options that support the local economy. 

Use Flat Rate Shipping Packages

Flat rate packages can help you save on shipping heavier products at an inexpensive cost. FedEx is one of the most popular options, offering flat-rate, two-day shipping anywhere in the US for packages weighing 50 lbs or less. 

Alternatively, the USPS offers multiple flat rate options, including Priority Mail flat rate envelopes and boxes, which come in varying sizes and rates. Be sure to explore all the available options to find the one that best suits your needs and budget.

Summing Up

Indeed, shipping costs can eat into business profits faster than you think. Packaging & shipping costs vary depending on the size, weight, destination, and carrier. The factors that influence the shipping cost include your package weight, box dimensions, shipping zones, and delivery speed. 

However, there are several ways to lower those high shipping costs, including reducing DIM Weight Costs, choosing cost-saving packaging, avoiding overpacking, splitting larger orders into multiple shipments, opting for negotiated & discounted rates, and using flat rate shipping.

So, if you really want to lower your shipping costs, start by auditing your packaging design and applying the tips above. Your business budget—and your customers—will thank you.