Cheapest Way to Ship a Small Package in 2023

Cheapest Way to Ship a Small Package in 2023

The need for affordable shipping options remains constant in the eCommerce realm. High shipping costs are a major hurdle for many eCommerce business owners, and the complex arrangement of logistics, carrier rates and surcharges can make the shipping scene difficult to navigate . If you’re an eCommerce business owner, you’ve surely faced cart abandonment problems in the past. Did you know that more than half of online shoppers abandon their carts, most often due to unexpectedly high shipping costs? As such, finding cheap and effective shipping solutions should be a top priority for all eCommerce business owners.

Studies show that the primary reason people abandon their carts is due to the shock of high shipping rates, which can be a major turnoff for prospective customers. Even consumers who felt set on a buying decision will opt out of the final purchase if the shipping cost feels unexpectedly high. In short, shipping charges can be prohibitive for some customers, and for others, they can simply act as a deterrent.

That being said, the landscape of shipping isn’t always simple to navigate, and there are various factors involved that can make it difficult to ship small packages cheaply. Business owners must strike a balance between competitive pricing and covering shipping expenses. The goal is to satisfy customers, without compromising profitability.

In order for eCommerce businesses to remain competitive and coveted, it is imperative that company leaders focus on reducing shipping costs, and examining cost-effective solutions to ensure customer retention and satisfaction, as well as overall business growth. In this article, we’ll underscore valuable insight into the cheapest ways to ship small packages in 2023. Based on our own experience and extensive research, we’ll provide you with a comprehensive understanding of the obstacles surrounding shipping costs, and smart and effective strategies to alleviate the stress. We will also shed light on the latest trends in shipping solutions, new innovations in the field, and alternative shipping options worth embracing. Whether you’re an eCommerce business owner, logistics manager, or someone who is genuinely curious, by the end of this article, you’ll be well-equipped with important information to help you navigate the complicated world of shipping with ease. Say goodbye to abandoned carts, and hello to sustained growth and better business.

Factors Determining Shipping Costs

When it comes to shipping costs, there are a number of key factors at play that will determine final rates. Understanding these influences is essential, as it will allow for better decision-making and more cost-effective management.

Although there are a multitude of potential factors at play, we’ve narrowed it down to four key considerations that have a direct impact on shipping costs:

Weight : The weight of a given package plays arguably the biggest role in determining shipping costs. Naturally, denser packages demand more resources to be transported. As a result, shipping carriers tend to use weight as a central barometer for pricing. For instance, while a one-pound package might cost $2 to ship, a 5-pound package would cost closer to $10.
Dimensions : Weight isn’t the only consideration when it comes to size. The package’s dimensions matter, too. For instance, some small items are shipped in larger packages—which end up taking up significant space on transport vehicles. Similarly to weight, the bigger the dimensions of a parcel, the more costly it is to ship.
Distance : Of course, the farther a package needs to travel, the more expensive it will be to ship it. Longer distances require more resources, including: higher fuel consumption, as well as increased handling and management fees.
Delivery speed : Speed is also a fundamental factor in determining the cost of shipping of a particular item. As you can probably guess, expedited shipping options generally cost more, as they demand additional resources (such as faster handling and different transportation arrangements) in order to meet tight deadlines.

In addition to the four factors outlined above, there are a number of other relevant elements at the play, including: external factors, such as fuel prices, natural disasters and global events, all of which can directly influence shipping costs; mode of transportation, since—for example—air freight is more costly than rail or sea transport; additional services, such as tracking, insurance and certain handling equipment can also contribute to the cost of shipping.

Understanding Different Types of Shipping Options

In order to decipher the cheapest way to ship a small package, it’s important to understand the different types of shipping options available. We’ve summarized a brief overview of the most popular shipping options, and the potential cost-saving benefits of each:

Flat-rate shipping: In short, flat-rate shipping charges a fixed shipping fee, regardless of the package size. This is a great option for shipping carriers and businesses alike, as it simplifies pricing for customers, and can be cost-effective for shipping heavy items over long distances. For instance, sending a dimensionally small but nonetheless weighty package across the country with flat-rate shipping is undoubtedly a cheaper alternative to weight-based pricing.
Free shipping: The concept of “free shipping” is a bit of a misnomer, because sellers do, in fact, pay for it. In the eyes of the consumer, though, it’s free. Understandably, it’s the most attractive option to customers, and generally works to increase sales.
Local shipping: As mentioned above, the longer a package must travel, the more expensive it costs to ship (at least that’s usually the case). Local shipping involves sending packages within a confined geographic area, and it tends to be faster and more affordable.
Real-time carrier rates: This shipping option involves calculating costs based on the package’s weight, dimensions and destination—taking into account the carrier’s current rates. Real-time carrier rates are ideal for businesses hoping to provide consumers with accurate shipping costs during the checkout process.
Pick-up point: Rather than having a parcel directly delivered to a customer’s home, some businesses offer a pick-up option, through which a consumer can grab their order from a specific location, such as a brick-and-mortar store, centralized warehouses or other designated spots. This option typically eliminates shipping costs altogether, which is cost-effective for both businesses and consumers.
International shipping: Crossing borders can get complicated, which is why it can cost considerably more money to ship a package internationally. Most often, shipping internationally requires additional documentation and customs clearance, and requires more paperwork and policy adherence.
Same-day delivery: In the age of Amazon, same-day delivery options have become widely coveted. Same-day delivery guarantees that a parcel will be delivered on the same day that it is shipped. This requires expedited and efficient logistics, and as such, it is usually the most expensive shipping option.
Overnight delivery: Similarly to same-day shipping, overnight deliveries are time-sensitive, and therefore can come at a higher shipping cost.
Expedited shipping: Unlike same-day delivery and overnight delivery, expedited shipping doesn’t necessarily guarantee when the package will be delivered on a specific day. Still, speed is prioritized, making it more costly than standard shipping.

Ultimately, the most cost-effective option is highly dependent upon the circumstances, including what is being shipped—and how quickly it needs to arrive. Whether you’re an eCommerce business owner or a logistics manager, it’s always best to provide multiple shipping options to enhance overall customer satisfaction.

Shipping Providers and Their Pricing

There are a slew of major shipping providers out there, and each operates with its own services, networks and pricing structures. Some of the big names in the global logistics industry include Canada Post, USPS, UPS, DHL Express and FedEx—among others. Shipping providers often adjust their pricing systems to account for external factors, including taxes, surcharges and inflation. Here’s a brief guide to the six major shipping providers in the global field:

Canada Post is Canada’s government-owned postal service provider, offering a wide array of mail and parcel delivery services to individuals and corporations across the country. Like most shipping services, Canada Post adjusts its rates to adapt to economic conditions and operational expenses. These adjustments typically occur on an annual basis in order to ensure that pricing stays competitive, and accounts for external factors that impact operational costs. Canada Post conveniently has an online shipping calculator on its website, which allows customers to estimate shipping costs based on various factors—such as package weight, dimensions, origin and destination.
United Parcel Service (UPS) is a multinational courier, which offers shipping and receiving services around the world. UPS has an online shipping calculator on its site.
DHL Express also offers worldwide shipping services. Since the company works globally, it adjusts its shipping costs depending on the economic conditions of the country in which it is operating. In addition to inflation and taxes, UPS also considers currency exchange rates when calculating shipping costs.
Like other carriers, FedEx—which offers global courier delivery services—adjusts shipping prices periodically to align with external economic factors.

Different shipping providers have different pricing, so it’s important to check out all of them before making a decision about which to use for shipping services. By using the readily available shipping calculators offered by the above shipping providers, eCommerce business owners and logistics managers can make informed decisions, always keeping their delivery requirements and budgets in mind. It’s important to note that some shipping providers offer promotions and loyalty programs that are worth considering when choosing which company to ship with.

Cheapest Domestic Shipping Options for Small Packages

While all the shipping providers outlined above offer similar services, it’s important to comparatively analyze the differences, in order to determine the cheapest option for shipping small packages domestically. Below, we share important information about the best providers in Canada, specifically, including delivery times, starting price and services.

Canada Post

As the country’s primary shipping service, Canada Post offers a number of services for domestic shipping, including Regular Parcel, Expedited Parcel and Xpresspost. Canada Post also offers Lettermail services for small, lightweight parcels.

Delivery time depends on the selected service. Regular parcels can be delivered within two to 13 business days, while expected parcels can be delivered within one to seven business days. Meanwhile, Xpresspost (the speediest option) can be delivered within three business days.

The cost of shipping small packages with Canada Post is directly dependent on the weight of the package, as well as the service selected. That being said, the price for sending a small flat-rate box across Canada starts around $17.99.

UPS Canada

Like Canada Post, UPS Canada offers a variety of domestic shipping services, including UPS Standard, UPS Express Saver, and UPS Expedited—which is specifically for small packages.

Delivery times vary depending on the service. UPS Standard delivery is within seven business days, while UPS Express Saver and UPS Expedited both deliver within three business days.

While shipping cost is tied to the package weight, the shipment fee for small packages typically starts around $10.

FedEx Canada

FedEx offers domestic shipping options, including FedEx Express Saver for small packages. Ground shipping typically takes one to seven business days, while small packages can usually be delivered within three business days.

As is the case with most shipping providers, the price of shipping depends on the weight of the package and the selected service. Generally, small packages can be shipped for between $10 and $15.

Purolator

Puralotor is similar to FedEx Canada, specifically in regards to its delivery times and starting price. Ground shipping takes between one and five business days, while express shipping takes between one and three business days. The starting price for small packages is $10.

When comparing Canada’s central shipping services, it’s important to note that Canada Post has the most extensive network, and can reach even the most remote places in the country. It’s always best practice to check out the shipping calculators for each service, in order to choose the cheapest option for you.

Cheapest Shipping Options for Large Packages

Naturally, shipping large packages is more expensive than shipping small packages in Canada. Different shipping services offer different pricing options, so it’s helpful to investigate which company is offering the most competitive price. Most of the above information regarding small packages applies to large packages, with a few caveats.

Canada Post

In addition to the aforementioned service options, Canada Post also has a Freight service for bulkier items. Delivery times depend on the distance, as well as the type of freight service chosen. The starting price for shipping medium-to-large packages is around $22.

UPS Canada

Like Canada Post, UPS also has freight options for heavier items. Although shipping costs depend on weight, dimensions and selected service, the starting price for shipping a large package is around $20.

FedEx Canada

FedEx offers freight services, too, but prices for shipping large packages domestically are a little bit steeper. Starting prices typically range from $20 to $30.

Purolator

Although distance plays a part in determining the cost of freight services, Purolator can generally ship large packages within Canada for roughly $30—depending, of course, on size and weight, as well as selected service.

International Shipping: Finding the Best Rates

International shipping is far more complicated than domestic shipping, and that’s because various factors are at play—and they differ from country to country, which makes things considerably more confusing to navigate.

That said, we’ve distilled the basic elements for international shipping, so you can find the cheapest options available. Here are some key points that directly influence international shipping rates:

Weight and dimensions: Unsurprisingly, the size of a package is a key determinant in shipping costs, especially internationally. Heavier and larger packages require additional handling services and space, which lead to steeper shipping costs.

Distance

Given that we’re discussing international shipping, distance is a major consideration. Here’s a general rule: the further a package must travel, the pricier the shipping fee.

Shipping speed

Faster shipping options often come with a heftier price tag. While economy or standard shipping are usually the cheapest options, expedited shipping generally comes at a high price—particularly for international shipments.

Shipping service

Whether you select express, priority or standard shipping plays a big role in determining the overall price of an international shipment. Every service comes with different pricing tiers.

Customs and duties

A major consideration when looking into international shipping is customs and duties, which are imposed by the destination country.

Carrier

Different carriers offer different international shipping services, so it’s important to consider all the options before making a decision.

Based on our research, for smaller and lighter packages, USPS, Ascendia, Easyship and ePacket offer the most competitive rates for international shipping. However, prices fluctuate depending on carrier promotions and other factors, so it’s best to explore all available options before selecting one. Most carriers offer real-time shipping calculators on their websites, with the most accurate, up-to-date information on the cheapest way to ship a small package.

Tips to Keep Shipping Costs Down

There are a number of ways for eCommerce business owners to keep their shipping costs to a minimum—and doing so is important to offer competitive pricing to consumers. Here are some key tips for cost-effective shipping:

Perfect your packaging

Remember, a big determinant of shipping cost is weight and size, so making sure you perfect your packaging to fit products as tightly as possible will reduce shipping fees. Rather than using oversized boxes, try to find packages that are close to the size of the items you are shipping. Plus, sourcing cost-effective and lightweight packaging materials can make a big difference, too, and using environmentally friendly materials is a great selling point for customers.

Flat-rate shipping

Offering flat-rate shipping is a great way to simplify things for customers, and it also helps business owners manage costs. With flat-rate shipping, weight and size are not a worry—which can be a big relief for eCommerce business owners.

Strike a deal

If you are shipping regularly, it’s incumbent open business owners to negotiate the best possible price with shipping carriers. Depending on the volume of packages you ship, some carriers might offer you considerable discounts.

Real-time shipping calculators

Just as many major shipping carriers have real-time calculators on their websites, it’s helpful to integrate similar services on your business website. This type of transparency is valued by customers, who want to understand the factors that go into shipping costs. They’ll be less likely to be disgruntled if they understand what goes into the price they’re paying to receive their package.

Consolidate shipments

Given the cost of shipping singular packages, it’s best to combine multiple orders into one box. Not only is this a far more eco-friendly option, but it also reduces shipping costs.

Offer local delivery and pick-up options

To mitigate the sometimes steep cost of shipping, it’s helpful to offer pick-up options to local customers. This can also be an attractive offering for nearby customers who want to attain their items as quickly as possible.

Regional distribution centers

Depending on the volume of your shipments in certain regions, it’s helpful to set up regional distribution centers, as packages can be fulfilled closer to customer locations—thereby reducing shipping fees.

Monitor prices

Given that shipping services and prices are constantly in flux based on external factors, it’s important to constantly monitor and track shipping costs. It can be useful to lean on third-party shipping platforms, which often aggregate rates from multiple carriers, allowing you to find the best option available at any given time.

Offer free shipping

Last, but certainly not least, we urge you to consider offering free shipping to your customers. By building the cost of shipping into the product price, consumers will be far more inclined to complete a given purchase, knowing they are not paying for shipping. This will unquestionably mitigate cart abandonment problems.

When it comes to shipping, implementing these cost-saving strategies into your eCommerce business can make a big difference. Decreasing shipping costs will not only improve customer satisfaction, but it will also allow you to focus more on your bottom line.

Conclusion

As a business owner, understanding the confusing world of shipping is paramount in order to make smart decisions and ensure long-term profitability. Shipping costs play a major role in customer satisfaction, and directly impact the success of a given venture. Adopting a strategic shipping protocol is not only the most cost-effective consideration, but it is also a key driver for customer retention and overall business benefit.

As outlined above, there are many things you can do to bolster your business through improved shipping. Scouting out the cheapest shipping options will both entice new customers, and also allow business owners to manage costs efficiently and effectively.

It’s best to always make data-driven decisions, based on real-time shipping calculators and third-party shipping platforms. Remember, shipping prices are constantly evolving and shifting, so it’s important to be aware of the options available to you at any given time.

Once you have a smart shipping strategy in place, you’ll be able to focus on what matters most: growing your business. Business owners, specifically in the eCommerce space, must prioritize having a comprehensive understanding of shipping costs, and consistently adapt to the changing circumstances. While the product you are selling is the most important part of your business, fulfillment and logistics are a close second, since shipping is essential for creating a seamless and gratifying shopping experience for consumers. In sum, adopting effective shipping solutions are critical for creating a sustainable long-term eCommerce enterprise.