22 Proven Shipping Strategies You Should Be Using

Shipping is more than logistics; it's an essential part of your e-commerce operation. How well you manage shipping impacts customer satisfaction, operational efficiency, and profitability.

If done right, shipping can reduce cart abandonment, build customer loyalty, and give you a competitive edge. On the other hand, shipping issues—like delays, lost packages, or damaged goods—can erode profits and damage your brand reputation.

In this guide, we'll walk you through 22 detailed strategies that you should be using if you're looking to start 2025 strong, cut unnecessary costs, and improve the customer experience. You'll find actionable insights, real-world examples, tips for implementation, and key factors to consider for each strategy. Let's dive in!

Why Do You Need a Shipping Strategy?

An e-commerce shipping strategy isn't just about getting packages from point A to point B—it's about balancing speed, cost, and reliability to meet your customers' expectations while controlling your operational expenses.

It covers everything from carrier selection and packaging to address verification, refund claims, and returns.

With customer expectations rising, fast and reliable shipping is now essential. According to the Baymard Institute, over 70% of customers abandon carts due to high shipping costs, and 71% contact customer service over delivery issues.

Without a plan, your business can struggle with shipping errors, higher costs, and customer complaints. But with the right strategies, you'll cut costs, avoid common pitfalls, and make shipping an asset instead of a liability.

22 Shipping Strategies to Win the Shipping Game

Below are 22 essential strategies, each explained in depth with real-world examples, tips for implementation, and factors to consider.

1. Optimize Packaging Size

Using the right-sized packaging reduces shipping costs by minimizing dimensional weight (DIM weight), which carriers use to price shipments based on both size and weight. Even lightweight items can be costly if packed in oversized boxes.

Reducing your packaging size also decreases the amount of filler material required, lowering your environmental impact.

For example, one of our clients, a guitar retailer, saved $17 per shipment—cutting costs by 50%—just by reducing their box size by 2 cm. Across hundreds of orders, these savings added up quickly and significantly impacted their profit margins

Tips for Implementation

• Conduct a packaging audit to ensure each product uses appropriately sized boxes.

• Use custom-sized packaging or variable-size kits for a range of product dimensions.

• Monitor carrier dimensional weight policies to adjust packaging accordingly.

What to Consider

• Fragility: Ensure smaller boxes still protect products during transit.

• Customer experience: Well-fitted packaging looks more professional and creates a better unboxing experience.

2. Verify Box Strength

Choosing the right box strength prevents product damage during transit. Boxes have Edge Crush Test (ECT) ratings that indicate their load-bearing capacity. If you use a weak box for heavy products, it can tear or collapse, leading to damaged items and costly returns.

For heavier or fragile items, double-wall corrugated boxes offer better durability. Educating your team on how to select the right box strength ensures your shipments arrive intact, even after rough handling.

On your box there's a code that represents how much weight your box can carry! 

The weight-bearing capacity of your box should correspond to the weight of the packages you plan to ship.

Tips for Implementation

• Train staff to match ECT ratings with product weights.

• Use reinforced boxes for long-distance shipping.

What to Consider

• Shipping route: Packages traveling long distances may require sturdier boxes.

• Environmental conditions: In humid or rainy areas, boxes may weaken—opt for moisture-resistant options.

3. Reuse Boxes Cautiously

Reusing boxes helps cut costs and reduce waste, but it requires careful inspection. Old boxes with worn edges or leftover shipping labels can cause issues during transit. Additionally, some carriers may refuse reused boxes if they don't meet quality standards.

While sustainable packaging appeals to eco-conscious customers, it's essential that reused boxes still look professional. Damaged or dirty packaging can leave a poor impression on customers, potentially affecting your brand's image.

Tips for Implementation

• Inspect reused boxes for damage and remove all old labels.

• Reinforce seams with extra tape to ensure secure packaging.

What to Consider

• Product type: Avoid reused boxes for fragile or high-value products.

• Carrier policies: Some carriers may reject reused boxes, so check their guidelines.

4. Use the "H" Taping Method

The "H" taping method ensures that packages stay sealed and secure during transit. This technique involves applying tape along the seam of the box and across both edges, forming the shape of an "H." It's especially useful for heavy or bulky shipments that need extra support to prevent them from opening during handling.

By standardizing this taping method across your operations, you'll reduce the risk of packages opening mid-shipment, which can lead to damaged goods and customer complaints. Training staff to use this method consistently will improve packaging quality.

Tips for Implementation

• Use water-activated or reinforced tape for heavier packages.

• Provide training sessions for your fulfillment team to ensure proper taping.

What to Consider

• Package weight: Heavier packages may require additional layers of tape.

• Weather conditions: In humid climates, use moisture-resistant tape to avoid adhesive failures.

5. Choose Strong Tape

Tape is more than just a way to close boxes—it's essential to secure shipments. Clear plastic tape may work for lightweight shipments, but for larger or heavier shipments, opt for Kraft paper tape or reinforced filament tape. These options provide a stronger bond and are more resistant to tampering.

Certain tape types, like water-activated tape, bond directly to the fibers of the box, creating a tamper-evident seal. This adds an extra layer of security, especially for valuable shipments.

Tips for Implementation

• Keep a supply of multiple types of tape to match different packaging needs.

• Test tape durability in varied climates—some adhesives perform better in cold or humid conditions.

What to Consider

• Weight and size: Larger packages may require extra-wide tape.

• Environmental factors: Choose adhesives that withstand humidity or freezing temperatures.

6. Report Accurate Package Weight

Accurate weight reporting is a crucial step in order fulfillment to avoid overpaying for shipping or facing penalties from carriers. Carriers will charge based on the weight they measure—so if your estimate is too high, you'll overpay. Too low? Your package could get delayed.

To avoid discrepancies, invest in high-precision shipping scales and regularly calibrate them. Train your team to include the weight of the box, filler material, and product when calculating total weight to ensure accuracy.

Tips for Implementation

• Set up a quality control process to double-check package weights.

• Use carrier guidelines to account for both actual and dimensional weight.

What to Consider

• Carrier billing systems: Different carriers may handle discrepancies differently.

• Package consistency: Make sure all items are weighed with packaging included.

7. Print Clear Shipping Labels

Shipping labels are essential for tracking packages and make sure you respect your delivery times. Blurry or smudged labels can lead to misrouted packages or void delivery guarantees, leaving you responsible for late deliveries.

Use thermal printers for clear, smudge-free labels that withstand moisture. Protect the label by placing it on a flat surface of the box and covering it with clear tape if needed to prevent damage.

Tips for Implementation

• Use high-quality label paper that won't fade or smudge.

• Regularly maintain and clean your printers to avoid printing issues.

What to Consider

• Volume of shipments: For high volumes, invest in thermal printers for efficiency.

• Carrier scanning systems: Ensure labels are compatible with your carrier's barcode readers.

8. Verify Customer Addresses

Incorrect addresses are a leading cause of failed deliveries. Packages sent to the wrong location result in additional shipping fees, delays, and unhappy customers. Implementing address verification tools helps catch mistakes before they happen.

Tips for Implementation

• Use address verification tools at checkout to minimize errors.

• Make apartment or unit numbers mandatory for urban addresses, and consider double-checking high-value orders.

What to Consider

• Validation software: Invest in software that integrates with your e-commerce platform to verify addresses.

• Manual checks: For very high-value items, consider a manual review process.

9. Avoid Shipping Label Fraud

Attempting to reuse a shipping label or manipulate it is illegal and can lead to carrier penalties. Fraudulent practices may result in packages being held, delayed, or returned—and carriers may even blacklist your account.

Ensure your staff understands the importance of generating unique labels for every shipment. Implement a tracking system to monitor label usage and avoid accidental duplication.

Tips for Implementation

• Use software solutions to track label generation and usage.

• Educate your team about the consequences of label fraud to ensure compliance.

What to Consider

• Carrier policies: Familiarize yourself with the carrier's rules on shipping label use.

• Monitoring systems: Regular audits can help identify any irregularities in label usage.

10. Ensure Complete Documentation

Proper documentation is crucial for international shipping and customs clearance. Missing or inaccurate documents can result in delayed or returned packages, costing you time and money.

What to Include

• Commercial Invoice: A legal document that provides a detailed description of the goods being shipped, including their value, quantity, and country of origin.

• Customs Forms: Forms like CN22 or CN23 that declare the contents of your shipment and their value.

• Certificate of Origin: A document certifying the origin of the goods being shipped.

• Export License: Required for certain restricted or controlled items.

• Other specialized documents: Such as Material Safety Data Sheet (MSDS) for hazardous materials, Phytosanitary Certificate for plants and plant products, or Health Certificate for food and agricultural products.

Tips for Implementation

• Research specific documentation requirements for each destination country and product type.

• Consult with your shipping carrier for guidance on documentation and customs procedures.

• Utilize online resources and tools provided by customs agencies or international trade organizations.

• Consider using shipping software that automates the documentation process.

• Develop checklists or templates to ensure all necessary documents are included with each international shipment.

What to Consider

• Destination country regulations

• Product type and any associated restrictions

• Value and quantity of goods

• Shipping carrier requirements

• Incoterms (International commercial terms)

11. Evaluate Express Shipping Needs

Express shipping guarantees fast delivery, but it can lead to early deliveries and missed packages if customers aren't ready to receive them. Customers may be unhappy if their package arrives before they can accept it.

Implementation Tips

• Communicate expected delivery windows clearly to customers at checkout.

• Use express shipping selectively for time-sensitive orders or high-value items.

What to Consider

• Customer availability: Consider offering options for rescheduling deliveries to ensure someone is home.

• Cost implications: Evaluate if the benefits of express shipping outweigh the additional costs.

12. Establish a Clear Return Policy

Managing returns is also part of your strategy. A well-structured return policy builds trust and can reduce cart abandonment rates. Customers are more likely to complete their purchase if they know they can return items easily.

What to Include

• Clearly define the return window, conditions for returns, and any restocking fees.

• Offer prepaid return labels to streamline the return process and improve customer experience.

Tips for Implementation

• Ensure your return policy is easily accessible on your website and included in order confirmations.

• Consider automating your returns process with software that handles return requests efficiently.

What to Consider

• Customer communication: Keep customers informed throughout the return process to maintain trust.

• Product types: Different products may require different return policies—adjust accordingly.

13. Claim Service Failure Refunds

Carriers often owe refunds for late deliveries, but only if you take the time to claim them. Not filing claims means you leave money on the table.

• Learn how to claims for a refund from FedEx

• Learn how to claim for refund from Canada Post

• Learn how to claim for refund from Purolator

• Learn how to claim for refund from UPS

One of our client saved 57% of their shipping costs in a single month by actively pursuing refund claims for late deliveries. Buster Fetcher can automate this process for you so you receive refunds directly in your account.

Tips for Implementation

• Use shipping software to track shipments and automate the refund claim process.

• Regularly review your shipping performance to identify late deliveries eligible for refunds.

What to Consider

• Carrier policies: Understand your carrier's refund policy and claim procedures.

• Monitoring systems: Establish a system for tracking shipment statuses and managing claims efficiently.

14. Cancel Unused Labels

Don't pay for labels that you never used. Many carriers allow you to cancel unused labels within a certain timeframe, so take advantage of this to avoid unnecessary charges.

Tips for Implementation

• Set up automated reminders to cancel unused labels within the carrier's time limit.

• Regularly audit your label usage to identify any discrepancies.

• Use a tool like Buster Fetcher to automatically file for a refund for unused shipping labels.

What to Consider

• Carrier guidelines: Each carrier has different policies regarding label cancellations—be aware of these rules.

• Cost recovery: Keep track of the amounts saved by canceling unused labels to monitor their impact on your overall shipping costs.

15. Monitor Refund Applications

Claiming a refund is just the first step—make sure it's credited to your account. Many businesses overlook this step, losing money in the process.

Tips for Implementation

• Reconcile carrier invoices regularly to catch any missed refunds.

• Use a dedicated financial tracking system to monitor refunds and identify patterns.

What to Consider

• Audit trails: Keep records of all claims filed and refunds received for future reference.

• Carrier responsiveness: Understand how quickly your carrier processes refund claims.

16. Offer Free Shipping

Free shipping is a powerful incentive that can increase conversions, but it must be balanced with profit margins.

Offering free shipping can lead to increased cart values, as many customers are willing to spend more to qualify. A study showed that 18% consider free shipping as the most important factor when buying online.

Tips for Implementation

• Set a minimum order threshold for free shipping that encourages larger purchases. This can be beneficial for your average order value (AOV).

• Consider offering free shipping during promotional periods to drive sales.

What to Consider

• Cost analysis: Regularly evaluate the financial impact of offering free shipping and adjust thresholds accordingly.

• Customer segmentation: Consider different free shipping thresholds for different customer segments.

17. Evaluate Flat-Rate Shipping

Flat-rate shipping simplifies pricing but may not cover all costs effectively. It's essential to analyze whether flat-rate shipping benefits your business model. It’s also important to determine your shipping cost to make sure they're covered and they are not hurting your profit.

Tips for Implementation

• Use tiered flat rates based on order weight or value to cover a wider range of costs.

• Analyze historical shipping data to set appropriate flat-rate amounts.

What to Consider

• Profit margins: Make sure flat-rate shipping doesn't cut too deeply into your profits.

• Customer perception: Ensure that flat rates are communicated clearly to customers at checkout.

18. Use Real-Time Carrier Rates

Offering real-time shipping rates provides transparency and allows customers to make informed decisions during checkout. However, if the rates are too high, it may lead to cart abandonment.

Tips for Implementation

• Integrate real-time rate calculators into your e-commerce platform.

• Negotiate with carriers for better rates to improve competitiveness.

What to Consider

• Market conditions: Regularly review shipping costs and market changes to adjust pricing as needed.

• Customer feedback: Gather customer feedback on shipping costs to identify areas for improvement.

19. Offer Local Delivery or Pickup

Providing local delivery options or in-store pickup can significantly cut shipping costs and enhance the customer experience. Customers appreciate having flexible options, especially for urgent orders.

Tips for Implementation

• Use route optimization software to plan efficient local delivery routes.

• Promote in-store pickup as an option at checkout to save on shipping costs.

What to Consider

• Local market analysis: Understand your customer base to determine the feasibility of local delivery services.

• Cost management: Keep track of local delivery costs to ensure profitability.

20. Consider Shipping Insurance

Shipping insurance protects your business against losses from damaged or stolen packages. Investing in insurance can save you from significant losses, especially for high-value items.

Tips for Implementation

• Compare carrier insurance vs. third-party options to find the best coverage for your needs.

• Educate your team on the importance of declaring the correct value for items to ensure coverage.

What to Consider

• Cost of insurance: Weigh the costs against potential losses to determine if coverage is necessary.

• Policy details: Understand what is covered under your insurance policy to avoid surprises during claims.

21. Master International Shipping

International shipping involves navigating a complex landscape of regulations and paperwork. Proper documentation is essential to ensure smooth customs clearance, avoid delays, and prevent your shipments from being held or returned. The first step is to determine which shipping zones you’ll cover.

Benefits

• Compliance with international shipping regulations.

• Efficient customs clearance and timely delivery.

• Cost savings by avoiding customs delays or returns.

• Improved customer satisfaction for international orders.

Drawbacks

• Complexity of navigating international shipping regulations.

• Need for expertise in documentation requirements.

• Frequent changes in regulations requiring constant adaptation.

Tips for Implementation

• Thoroughly research documentation requirements for each destination country.

• Develop a system for accurately completing and organizing required documents.

• Stay updated on changes in international shipping regulations.

• Consider partnering with a customs broker or international shipping specialist.

• Consider currency conversion rates when selling to other markets.

What to Consider

• Specific requirements of destination countries.

• Types of products being shipped and associated regulations.

• Value and quantity of shipments.

• Carrier-specific documentation requirements.

If you’re importing good in Canada, you should have a look at our guide on the new CARM Client Portal.

 

22. Negotiate Parcel Rates

Negotiating your parcel contract with carriers is a strategic approach to securing the most favorable shipping rates for your business. It involves leveraging your shipping volume, business relationship, and market knowledge to negotiate discounts and optimize your shipping costs.

Benefits

• Significant cost savings on shipping expenses.

• Competitive advantage through lower shipping costs.

• Improved service levels and customized shipping solutions.

Drawbacks

• Time and effort required for research and negotiation.

• Need for shipping industry knowledge and negotiation skills.

• Limited leverage for smaller businesses with lower shipping volumes.

Tips for Implementation

• Track your shipping volume, spending, and destinations with different carriers.

• Research and compare rates from multiple carriers.

• Build relationships with carrier representatives.

• Define clear negotiation objectives and priorities.

• Use industry benchmarks to support your negotiation points.

• Be prepared to be flexible and consider alternative solutions.

What to Consider

• Your shipping volume and its impact on negotiating power.

• Characteristics of your typical shipments (size, weight, destinations).

• Your specific service requirements.

• Carrier capacity and demand in your shipping lanes.

• Contract terms, including length and volume commitments.

Conclusion: Optimize Shipping to Save Costs and Delight Customers

Implementing these 22 strategies will help you reduce shipping costs, improve efficiency, and boost customer satisfaction. From optimizing packaging size and choosing the right carriers to mastering international shipping and negotiating rates, these strategies cover every aspect of e-commerce shipping.

Remember, tracking and improving your shipping performance doesn't have to be complicated.

Buster Fetcher can help you automate refund claims and track shipping performance, saving you time and money. One client saved $4,188 in just one month! Contact us or call 1-844-311-3088 to learn more.