Making Delivery Affordable – Offsetting Increasing Costs for Retailers

As the cost of living continues to rise, retailers are feeling the pressure to keep prices low while still maintaining profitability. One area where retailers can cut costs is by optimising their shipping rates.

There are a few tricks retailers can use to ensure bagging the best shipping rates; we are covering some of these:

1. Partner with a multi-carrier

This is a simple, plain-sighted win that many eCommerce businesses miss out on. Different parcel couriers offer different rates for different weight ranges and delivery speeds. So while it’s important to compare prices and choose the courier that offers the best deal, what if one partner could save you the trouble? To save yourself headache and hassle, partner with a multi-carrier delivery management service like GFS, who offer exclusive carrier rates thanks to the buying power. This saves you the overheads of multiple carrier contracts or processes, and cuts down cost effectively.

2. Offer free shipping

Another way to save on shipping costs is to offer free shipping. This can be a powerful marketing tool and can help increase sales, with 84% of shoppers making a purchase specifically because the shipping was free [1]. However, retailers should be aware that offering free shipping can also increase their costs if they’re not careful. To offset the cost of free shipping, retailers can increase the price of their products or offer free shipping by incentivising orders based on basket value.

3. Bundle shipping costs

Bundle your shipping with other costs to reduce the overall costs involved in eCommerce delivery. For example, combine shipping costs with handling or packaging costs. This can help retailers negotiate better rates with their carriers and can also help streamline the shipping process.

4. Rethink your packaging

Retailers can also save money on shipping by using more efficient packaging. By using smaller and lighter packaging, retailers can reduce the weight of their packages, which translates to significant savings on shipping costs.

5. Utilise multi-carrier shipping software

Lastly, retailers can also save money on shipping by using technology to automate and streamline the process. For example, using software that can generate shipping labels automatically and track packages can help retailers to save time and money. GFS offer a range of multi-carrier parcel shipping solutions to benefit businesses:


In conclusion, retailers can save money on shipping by partnering with a multi-carrier partner, offering free shipping, bundling shipping with other costs, using more efficient packaging, and using shipping software to automate and streamline the process. Implementing these strategies is a good start for retailers to lower their shipping costs and make delivery more affordable for both themselves and their customers.

Network & Connect 

These eCommerce Events & Webinars might interest you…