5 Ways to Reduce Print-on-Demand Shipping Costs
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Shipping costs can eat into your profits and frustrate your customers. Here are five practical ways to cut these costs:
- Optimize Packaging: Use the right-sized packaging, lightweight materials, and consider eco-friendly options to lower DIM weight fees.
- Leverage Volume Discounts: Negotiate better rates with carriers or use platforms like Pirate Ship and Printify for instant savings.
- Choose the Right Carrier: Compare USPS, UPS, FedEx, and regional carriers to find the best rates for your shipments.
- Use Zone Skipping: Consolidate shipments to regional hubs to save on long-distance delivery costs.
- Adjust Customer Shipping Options: Offer free shipping thresholds, flat-rate shipping, or in-store pickup to balance costs and customer expectations.
Quick Comparison of Strategies:
| Strategy | Key Benefit | Example Savings |
|---|---|---|
| Package Optimization | Reduces DIM weight charges | Save 53% using ShipDim.com |
| Volume Discounts | Lower per-package costs | Up to 88% off USPS Priority rates |
| Carrier Selection | Find the cheapest option for each shipment | USPS: $5.15 for a t-shirt shipment |
| Zone Skipping | Lower overall shipping costs | Save $6,000 on 3,000 packages |
| Customer Shipping Options | Encourage higher cart values | 59% of shoppers spend more for free shipping |
These strategies can help you save money while keeping customers happy. Let's dive into the details.
Best Shipping Strategies for eCommerce + POD in 2024
Package Size and Materials
Smart packaging can lower shipping costs while keeping products safe. Let’s dive into some practical strategies that balance protection and cost savings.
Choose the Right Package Dimensions
Start by ensuring your package dimensions are optimized. Dimensional weight pricing can add up quickly, especially if you're paying for unused space. This is particularly important for businesses shipping items like t-shirts or hoodies, which don’t need rigid boxes.
"Ridiculous! Just ridiculous that amount of money that ShipDim has saved us. Our lights are very large and bulky. But somehow ShipDim.com was able to save us over 53% on what we were paying." - Malik Brown, SonoFarm.com
SonoFarm’s experience highlights how matching the package size to the product can help avoid unnecessary dimensional weight charges.
Use Lightweight, Durable Materials
The materials you choose for packaging also play a big role in reducing shipping costs. Lightweight yet durable materials can lower shipping weight without compromising protection. For example, polypropylene (PP) nonwoven bags are a great option for shipping apparel. These bags weigh about 60% less than cotton, making them both cost-effective and protective.
Why PP nonwoven bags work well:
- Water-repellent to protect products
- Breathable to prevent moisture buildup
- Non-toxic and safe for handling
- Reusable more than 10 times
For heavier or fragile products, HDPE woven fabrics provide extra durability without adding much weight, making them a solid choice for a variety of industries.
Explore Eco-Friendly Packaging
Sustainable packaging isn’t just good for the planet - it can also reduce costs and enhance your brand image. Eco-friendly options often combine practicality with environmental responsibility. Data from EcoPackables in 2024 shows the impact of green packaging:
- Saved 156,431 kg of greenhouse gases
- Conserved 197,650 gallons of fuel
- Preserved 24,235 trees
- Prevented 1,434,098 plastic bottles
- Removed 42,382 ocean-plastic bags
Custom packaging can also help reduce waste and shipping weight by optimizing material usage. Look for recyclable or compostable materials that may qualify for discounts from suppliers and help you comply with environmental regulations. These steps can lead to further cost savings while supporting sustainability goals.
Get Volume-Based Shipping Discounts
Cutting shipping costs is crucial for print-on-demand businesses, and volume-based discounts can make a big difference.
Work with Carriers for Better Rates
Building strong relationships with carrier account managers can lead to better shipping rates. Most major carriers offer programs specifically for high-volume shippers:
-
USPS Options:
- Commercial Plus Pricing: Designed for businesses with high shipping volumes.
- Negotiated Service Agreements (NSA): Custom discounts based on your shipping needs.
- Connect eCommerce Pricing: Available through Pirate Ship since 2022.
-
FedEx Advantage Program:
- 50% off eligible FedEx Express shipments.
- 40% off eligible FedEx Ground shipments.
- Up to 20% off FedEx Office services.
Here’s an example of how these discounts can impact costs. Shipping a 20-lb package from Los Angeles to New York reveals the savings potential:
| Carrier | Retail Price | Discounted Price | Savings |
|---|---|---|---|
| USPS Priority | $86.85 | $10.85 | 88% |
| UPS Ground | $59.22 | $10.41 | 82% |
Use Platform Shipping Discounts
If negotiating directly with carriers isn’t an option, digital platforms can help you save. Shipping software and platform partnerships provide instant access to discounted rates, often cutting shipping costs by up to 80%. These tools also offer automated rate comparisons to ensure you’re getting the best deal.
- Pirate Ship: Offers Commercial Pricing with no extra fees, giving you access to high-volume discounts.
- Print-on-Demand Platforms: Services like Printify include built-in savings. One customer shared their experience:
"Printify Premium has helped my profit margins tremendously, and spending $20 a month has probably saved me over $200 a month." – Christopher, Dog Ross Pet Painting
For the best results, combine multiple strategies: compare rates with shipping software, use platform discounts, and place bulk orders when possible.
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Pick the Best Shipping Carriers
Choosing the right shipping carrier can significantly cut costs, especially with recent rate increases. For example, UPS and FedEx raised rates by 5.9%, while USPS increased rates by 3.2% for 2025. This makes careful carrier selection more important than ever.
Compare Rates Between Carriers
Each carrier has its strengths depending on the shipment type. USPS handles 32% of U.S. parcel shipments, UPS covers 24%, and FedEx accounts for 19%. Here's how shipping costs compare for common print-on-demand items:
| Package Type | Best Carrier | Cost | Delivery Time |
|---|---|---|---|
| T-shirt (12 oz) Nashville to Austin | USPS Ground Advantage | $5.15 | 3 Days |
| Sweatshirt (2 lbs) Sacramento to Columbus | UPS Ground Economy | $9.20 | 5 Days |
| Bulk Order (65 lbs) Atlanta to Salt Lake City | FedEx Ground Economy | $65.13 | 5 Days |
Shipping expert Kevin Hernandez notes:
"Choosing between UPS, FedEx, and USPS depends on various factors, such as shipment destination, the weight, the size, the speed, and, ultimately, the budget of the client."
For shipments concentrated in specific areas, exploring regional carriers can offer even more savings.
Consider Local Carrier Options
Local carriers often provide competitive rates for region-specific deliveries. Using shipping software can make comparing rates easier while unlocking commercial discounts. These discounts can save up to 63% compared to retail rates. For example, shipping a 5-pound package from Los Angeles to New York through ShippingEasy reveals the following:
- USPS Priority: $29.35 retail vs. $10.85 discounted
- UPS Ground: $23.38 retail vs. $10.41 discounted
Use Zone Skipping for Cost Savings
Zone skipping is a way to cut shipping costs, especially as carrier rates continue to climb. It works by consolidating multiple packages into a single truckload shipment sent to a regional sorting hub. This approach reduces the cost per package.
Understanding Zone Skipping
Let’s break it down with a print-on-demand example:
| Shipping Method | Cost Breakdown | Total Cost | Transit Time |
|---|---|---|---|
| Traditional Shipping (3,000 packages GA to CA) | $10 per package | $30,000 | 5–7 days |
| Zone Skipping | $3,000 truckload + $7 local delivery per package | $24,000 | 4–5 days |
In this scenario, zone skipping saves $6,000 and even shortens delivery time by 1–2 days. It’s a win for both your budget and your customers.
Starting Zone Skipping
Ready to try zone skipping? Here’s how to get started:
- Volume: You’ll need to ship at least 3,000 packages to make this method worthwhile.
- Cost Analysis: Compare the combined cost of a truckload shipment and local delivery rates to the cost of shipping each package individually.
- Carrier Selection: Partner with carriers that offer zone skipping services. USPS is a common choice for last-mile delivery.
Logistics expert Ayal Latz sums it up well:
"Zone Skipping can be advantageous by lowering the per package price for shipping. Instead of shipping individual packages across various zones, one truckload is shipped. It is easy to do the math and determine the potential savings. These savings can accrue to the shipper, the marketer, or the end user."
Since transportation costs typically make up 7–15% of the cost of goods sold, zone skipping can have a noticeable impact on your profitability. Just keep in mind that today’s consumers expect delivery within 4.1 days, so it’s important to strike a balance between saving money and meeting customer expectations.
Set Up Customer Shipping Options
Fine-tune your customer shipping options to save on costs and encourage more sales.
Add Free Shipping Minimums
Free shipping is a top priority for shoppers, with 85% of U.S. online buyers ranking it as the most important part of their experience.
Here’s how to set smart free shipping thresholds:
| Current Metrics | Suggested Threshold | Expected Outcome |
|---|---|---|
| $50 AOV | $65 minimum (30% above AOV) | Higher cart value |
| $75 AOV | $97 minimum (30% above AOV) | Improved profit margins |
| $100 AOV | $130 minimum (30% above AOV) | Better cost management |
Progress bars showing how close customers are to free shipping can encourage them to add more to their carts.
Create Flat-Rate Shipping
Flat-rate shipping simplifies costs and works well for businesses like print-on-demand services. Check out these examples:
| Carrier | Box Size | Rate | Transit Time |
|---|---|---|---|
| USPS | Medium | $13.75 | 2-3 days |
| FedEx | Medium | $12.95 | 2-3 days |
| UPS | Medium | $13.90 | 2-3 days |
Flat-rate options make pricing predictable and are especially useful for shipping bulkier items like multiple t-shirts.
Add Store Pickup
Offering store pickup can cut shipping costs while driving extra revenue. Research shows 35% of customers make additional purchases when picking up in-store.
Key benefits include:
- No shipping costs for local orders
- Increased sales, with 71% of pickup customers spending more than $50
- Faster fulfillment - same- or next-day pickup options
To make store pickup work smoothly:
- Set up clear notifications for order pickups
- Provide curbside pickup as an option
- Designate specific pickup areas in your store
- Train staff to handle orders efficiently
Store pickup also strengthens customer loyalty. Businesses with seamless online-to-store experiences retain 89% of customers, compared to 33% for those with less effective systems.
Steps to Lower Print-on-Demand Shipping Costs
Cutting down on shipping costs requires blending efficient operations with what customers expect. Research highlights that shipping fees play a major role in whether customers complete a purchase.
Here’s a practical guide based on proven strategies:
| Strategy | Implementation Steps | Expected Impact |
|---|---|---|
| Package Optimization | Use poly mailers for soft goods, reduce box sizes, and minimize void fill | Lower dimensional weight charges |
| Carrier Selection | Compare rates, use regional carriers, and consider hybrid shipping services | Save money on shipping |
| Volume Discounts | Negotiate bulk rates, use platform discounts, and combine shipments | Decrease per-package costs |
| Customer Options | Set free shipping thresholds 30% above the average order value, and offer flat-rate shipping | Encourage higher spending (59% of customers spend more to qualify for free shipping) |
| Logistics Planning | Optimize warehouse locations, use zone skipping, and consolidate shipments | Reduce transit costs |
These strategies provide a solid approach to managing shipping expenses effectively.
"Striking a balance between profitability and your customers' expectations for shipping fees cannot be taken lightly. Too often businesses lose out on valuable customers simply because shipping fees are beyond what they're willing to pay."
– Rick Nelson, Founder and CEO, The Fulfillment Lab
For even better results, consider these additional tips:
- Accurately calculate dimensional weight to avoid unexpected charges.
- Partner with third-party logistics providers to benefit from their expertise.
- Use prepaid shipping labels to simplify logistics.
- Implement real-time tracking to improve customer satisfaction.