Skip to main content

5 smart ways to cut shipping costs without compromising customer service

We all know that shipping costs can be a real headache for our businesses, eating up a significant chunk of our expenses—up to 25% of an order’s total cost. But don’t worry, we’ve got your back!

In this blog post, we’ll share five brilliant strategies to slash those shipping costs without compromising the top-notch customer service your clients deserve!

Handpick the Perfect Shipping Carrier: First things first, finding the right shipping carrier is like discovering a hidden treasure! Every carrier offers different rates and perks. So, take your time comparing and choosing one that offers the best value for your business. If you deal with hefty items, consider carriers with dimensional weight pricing. This means you’ll only pay for the actual weight and the package size—no more, no less!

Master Efficiency with a Shipping Management System (WMS): Let’s face it, manual shipping processes are time-consuming and costly. Enter the Shipping Management System (WMS), your knight in shining armor! This nifty tool automates your shipping process, saving you both time and money. Plus, it keeps a hawk eye on your shipments, minimizing the chances of lost or damaged packages. With a WMS, generating shipping labels and tracking deliveries becomes a breeze, ensuring your customers receive their goodies on time and in pristine condition.

Establish multiple warehouses for swift & cost-effective shipping: Picture this: having multiple warehouses strategically scattered across the map, like a network of superheroes ready to save the day! It’s a genius way to significantly cut shipping costs while delighting your customers with faster deliveries. How? Let’s break it down!

Imagine you’re selling products in the vast expanse of the United States. Having warehouses in key locations like California, Texas, and New York is a game-changer. Why? Because being closer to your customers means shipping becomes a breeze! Customers in these regions will receive their orders swiftly, and you can do it all more economically too. When an order comes in, it’s dispatched from the nearest warehouse, slashing those pesky shipping distances and expenses. By distributing your inventory strategically, you’ll efficiently cater to customers nationwide (or globally), making your brand stand out like a beacon of speed and reliability.

Having multiple warehouses also provides a smart buffer against unexpected situations. If one warehouse experiences a hiccup or delay, the others can pick up the slack. It’s like having a superhero team with backup plans and contingencies in place. The result? Satisfied customers who receive their orders promptly and are more likely to return for future purchases. It’s a win-win situation for both you and your loyal clientele!

Prime Penguin’s Inventory Planner – A Game-Changer: Ah, now it’s time to level up with Prime Penguin’s Inventory Planner! Powered by machine learning, this planner tracks your sales data and predicts future demand with uncanny accuracy. Say goodbye to overstocked items and discontinued products lurking in the shadows!

The Prime Penguin platform also alerts you to potential order issues and lets you take action promptly. Lower prices for overstocked items or nixing orders for discontinued products are a breeze, ensuring your customers stay happy and satisfied.

Tempt Customers with Free Shipping and Discounts: Who doesn’t love a sweet deal? Offering free shipping for orders over a certain amount is a fantastic way to incentivize customers to spend more on your website. How about enticing them further with discounts for shipping to multiple addresses? Everyone loves a little treat, and these strategies can increase your average order value by a noticeable margin!


There you have it! With these five savvy tips, you can wave goodbye to sky-high shipping costs while keeping your customers delighted. Prime Penguin’s handy tools and support make the journey even smoother. So go ahead, implement these strategies, and watch your business flourish! To learn more about our cost-cutting solutions, click on the button below. We’re here to support you every step of the way!