---
title: How Do I Reduce My Cost of Shipping?
description: Discusses steps, ideas and benefits of reducing your cost of shipping.
---

[Industry News and Articles by F. Curtis Barry & Company ](https://www.fcbco.com/blog)

# [How Do I Reduce My Cost of Shipping?](https://www.fcbco.com/blog/how-do-i-reduce-my-cost-of-shipping)

 Written by [F. Curtis Barry & Company](https://www.fcbco.com/blog/author/f-curtis-barry-company) | May 5, 2015

**Problems:**

Outbound **cost of shipping** now averages 6% to 8% of the average order (often much higher for somebusinesses), exceeding fulfillment labor costs. Carriers can also add over 90 accessorial charges, and there is no end in sight. Consumers take shipping & processing (S&P) rates into account in their purchasing decisions, with these charges among the top reasons for cart abandonment.

**Solutions:**

- Negotiate annually with multiple vendors in a competitive bidding process; an experienced transportation consultant conducting a [freight rate and contract analysis](https://www.fcbco.com/services/freight-analysis) can make sure you are getting the best possible negotiated rates and reduce your **cost of shipping**. Focus on accessorial costs.
- Implement best way shipping software in your [order management system](https://www.fcbco.com/services/order-management-systems).
- Look to use a UPS or FedEx billing program that combines small package inbound and outbound volumes and discounts.
- Charge customers a reasonable S&P charge to off set a portion of your pick, pack, labor, packing supplies and shipping costs. If you offer “free shipping,” make sure you have enough margin built into the product to pay it.
- For larger companies, regional fulfillment centers closer to customers lower your **cost of shipping** and days in transit.

**Benefits:**

- Experienced consultants can often increase your savings from between 10% to 25%, and can work on either a gain-share or project basis.
- You can proactively reduce both the rate of increase in your **cost of shipping** per customer order, and loss on your profit & loss (P&L) statement.
- If you currently charge for S&P, more efficient shipping allows you to use “free shipping” as an incentive to purchase.

 

[View full post](https://www.fcbco.com/blog/how-do-i-reduce-my-cost-of-shipping)

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