How to Reduce Shipping Costs for Your Business in Canada

Shipping costs can eat into profits. Here are proven strategies to reduce your shipping costs without sacrificing service quality.

1. Negotiate Volume Discounts

The more you ship, the better rates you can negotiate. Commit to volume for better pricing.

2. Optimize Packaging

Use the right box size. Too much empty space means paying for weight you don’t need.

3. Offer Multiple Shipping Options

Let customers choose between cheap slow shipping and expensive fast shipping.

4. Use Dimensional Weight Pricing

Understand how carriers calculate rates and optimize accordingly.

5. Consolidate Shipments

Batch multiple orders going to the same area into single shipments.

6. Use Regional Carriers

Sometimes cheaper than national carriers for specific routes.

7. Set Free Shipping Thresholds

Encourage larger orders to spread fixed shipping costs.

8. Partner with a 3PL

Third-party logistics providers often have better rates due to volume.

9. Use Flat-Rate Shipping

For standard packages, flat-rate can save money.

10. Review Your Carrier Mix

Use different carriers for different routes to get the best rates.

Get a Shipping Cost Review

Contact GBX Distribution for a free analysis of your shipping costs and potential savings.