April 22, 2026 · Guide · 6 min read

Reducing Shipping Costs: 6 Concrete Strategies for Online Retailers

Shipping costs are one of the largest variable cost blocks in e-commerce – and simultaneously one of the most frequently underestimated levers for margin improvement. Many retailers pay more than necessary because they use only one carrier, haven't optimized their packaging, or don't use automatic carrier selection.

Here are six strategies for systematically reducing shipping costs.

1. Multi-Carrier Strategy Instead of Single Carrier

Those using exclusively DHL forgo competition and price optimization. DPD, GLS, Hermes, and UPS offer cheaper rates in many weight and destination classes. A multi-carrier strategy means: automatic selection of the cheapest carrier per shipment, based on weight, dimensions, and destination region.

In practice, this often saves €0.50–1.50 per package in the 2–5 kg range – at 200 shipments daily, that's €100–300 daily.

2. Understanding Dimensional Weight as a Cost Driver

Carriers calculate not just actual weight but volumetric weight (length × width × height / 5,000). Those shipping large but light items in oversized boxes pay for air.

An analysis of your own shipment data quickly reveals which items have dimensional weight exceeding physical weight. The solution is often simple: smaller box sizes or adjusted packaging recommendations per item.

3. Actively Negotiating Volume Discounts

From around 500 shipments monthly, individual carrier rates are negotiable. Most retailers negotiate once and never revisit the terms. Carrier terms should be reviewed at least annually – especially when shipment volume has grown significantly.

4. Regional Carriers for Short Distances

For shipments within a region (e.g., Bavaria, NRW), regional courier services can be 20–40% cheaper than national carriers. This works especially well for retailers with a concentrated customer base in one region.

5. Automatic Carrier Selection

Manual carrier selection costs time and leads to suboptimal decisions because no employee has all price matrices in their head. Automatic carrier selection in fulfillment software compares all available options in milliseconds and selects based on configured priority (cheapest price or fastest transit).

6. Actively Managing Return Costs

Those issuing return labels without controls pay for every return – whether the item comes back or not. Rules for return label issuance (from which order value, for which item categories) help control return label costs without impacting customer satisfaction.