High shipping costs can turn potential buyers away. Research shows that nearly half of abandoned carts are due to extra shipping and tax fees. So, how can small businesses create affordable shipping strategies that don’t pass the cost onto customers, and how can they find the best rates?
Fortunately, this article breaks down the current shipping prices from top carriers. This information will help businesses compare prices based on package size, weight, delivery speed, and whether they are shipping domestically or internationally, helping them choose the cheapest ways to ship a package in 2025.
Table of Contents
Different types of shipping methods
The cheapest ways to ship different packages
What to consider when choosing a shipping provider
4 best practices to help keep shipping costs down for consumers
Rounding up
Different types of shipping methods
Businesses have several shipping options to add to their online stores. However, these options depend on the location and how fast consumers need the package to arrive.
Here are a few of the main options available:
1. Flat-rate shipping: A set price based on weight and size, no matter where it’s going.
2. Free shipping: Costs are part of the product price, so customers don’t pay extra.
3. Real-time carrier rates: This shipping option shows the shipping cost based on package details and distance at checkout.
4. Local delivery: The business can deliver items directly without a shipping service.
5. Pick-up: Customers collect their packages from a designated spot.
6. International shipping: The shipping method for across-border options.
7. Same-day delivery: Businesses deliver the package on the same day as purchase.
8. Next-day delivery: Customers will get their package the next business day.
9. Expedited shipping: Faster delivery than standard shipping.
Remember, no perfect shipping strategy works for every business, so it’s a good idea to give customers a few choices at checkout. Options like flat-rate or free shipping help set clear expectations and keep things simple.
On the other hand, premium shipping lets customers get their products faster when they need them. Mixing both offers a better overall shopping experience.
The cheapest ways to ship different packages
1. The cheapest way to ship a small package
USPS is usually the cheapest option for small packages, like a box or mailer bag. Each shipping carrier has its rules about what counts as a “small package,” the cost depends on the size, weight, destination, and how fast consumers want it delivered.
Here’s an example of what it costs to send a small box from Chicago to New York using standard shipping from major carriers to help businesses compare:
Provider | Service | Estimated delivery time | Rate |
DHL | Express Domestic | 1 business day | US $72.18 |
UPS | Ground | 2 business days | US $14.25 |
FedEx | Ground | 2 business days | US $15.02 |
USPS | Priority mail | Three business days | US $10.40 |
2. The cheapest way to ship a large package
Similarly, USPS is usually the cheapest option for personal and retail shipping. However, what qualifies as a large package varies depending on the type of service businesses offer, like ground or air shipping. Here’s a quick look at the weight and size limits for major shipping companies:
Provider | Weight requirements |
USPS | Max weight and length: 70 lbs (32 kg) and up to 108 inches (274 cm) in combined girth and length. |
Sendle | Max weight and length: 50 lbs (22 kg) and 48 inches (122 cm). |
DHL | Max weight and length: 154 lbs (70 kg) and 47 inches (120 cm). |
UPS | Max weight and length: 150 lbs (68 kg) and 108 inches (274 cm). |
FedEx | Max weight and length: 150 lbs (68 kg) and 119 inches (302 cm). |
Note: Businesses can use freight services for packages bigger than these requirements.
Here’s an estimate of how much it costs to send large packages from Chicago to New York using standard mailing services:
Provider | Service | Estimated delivery time | Rate |
DHL | Express Domestic | 1 business day | US $116.69 |
UPS | Ground | 2 business days | US $26 |
USPS | Ground | 3 business days | US $19.15 |
FedEx | Ground | 2 business days | US $23.74 |
3. The cheapest way to ship international packages
Most couriers base their international shipping rates on distance and global import rules. For U.S. merchants, shipping to Canada usually offers the cheapest rates for international deliveries. However, duties and import taxes can vary greatly depending on the destination and the value of the package.
Merchants must decide whether to have customers cover these fees or offer an alternative solution to help their international buyers. Here’s a look at the lowest international rates for shipping small packages from the US to Canada.
Provider | Service | Estimated delivery time | Rate |
DHL | DHL Express Worldwide | Next day | US $96.78 |
UPS | UPS Worldwide Economy (business account required) | 5-12 business days | US $20.63 |
USPS | Priority Mail International | 6-10 business days | US $32.20 |
FedEx | International Ground | 2 business days | US $31.71 |
4. The cheapest way to ship packages based on delivery speed
Sometimes, businesses must deliver a package ASAP, regardless of size or weight. Here are the best options for fast delivery of standard packages.
Best rates for 2- to 3-day delivery
USPS Priority Mail is usually the most affordable option for faster shipping. Delivery in one to three days starts at US $10.40, depending on the package size and destination. The best part? Their flat-rate boxes are an easy and budget-friendly choice. For bigger packages, UPS and FedEx also offer good rates for delivery within three days.
Best rates for next-day delivery
Consumers often opt for next-day delivery when they must receive their packages quickly. While all major carriers offer this service, USPS Priority Mail Express offers the most affordable rates, starting at US $30.45. Similarly, UPS Air Saver and FedEx Standard Overnight guarantee next-day delivery for domestic shipments.
Note: Next-day delivery rates can vary based on package size, destination, and any special delivery needs, such as specific timing or signature requirements.
What to consider when choosing a shipping provider
Shipping providers adjust their rates every year, making it tricky to pick the right carrier. Staying updated on these changes is key to keeping costs in check and avoiding unexpected fees.
Additionally, shipping prices depend on several factors, like distance, package size, weight, and delivery speed. Thankfully, more carriers have shipping calculators to help their clients determine the costs before shipping. Here are some links to popular calculators:
4 best practices to help keep shipping costs down for consumers
Businesses can build a solid shipping strategy by negotiating rates and researching couriers. But that’s not all small businesses can do. Here are a few tips they can take advantage of to keep shipping costs down.
Choose the right packaging
Businesses must avoid shipping empty space. It’s costly and simply bad for the environment. Instead, they should consider reducing size and weight by choosing eco-friendly packaging that fits the product snugly.
Use flat-rate shipping
Flat-rate shipping is usually the most cost-effective choice, particularly for domestic deliveries. It also makes pricing more predictable since the cost will remain the same, regardless of package size or weight. This way, businesses can avoid issues and easily plan their shipping budget.
Offer local delivery and pick-up
The most affordable option is usually local delivery or customer pick-up. For small businesses, offering local delivery will help connect with nearby customers, boost sales, and add a personal touch to the customer experience.
Change package material
Cardboard can be bulky and heavy, so consider switching to lighter materials like poly mailers whenever possible. Businesses can also use lightweight options like air pillows, bubble wrap, wadding rolls, foam inserts, or packing paper to protect the items without adding extra weight.
Rounding up
The cheapest way to ship a package depends on various factors. Businesses must consider package size, weight, delivery distance, and speed. Retailers must also choose who they will partner with, with USPS Ground and Priority Mail offering the most affordable rates. However, they can also use shipping rate calculators to find the best rates before adding them to their online stores.