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Top 5 ways to reduce fulfillment costs without slowing down orders

How small and midsize retailers can stay competitive in 2025

5 min read

RetailTechnology

Mature woman at online shop. She is owner of small online shop. Receiving orders and packing boxes for delivery.

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For online sellers, fulfillment is more than just shipping—it’s the backbone of the customer experience. But as order volumes grow, fulfillment costs can spiral out of control. Between rising carrier rates, inefficient workflows, and time-consuming manual tasks, eCommerce brands often spend far more than necessary to get orders out the door.

Retailers typically spend 5% to 20% of total sales on shipping alone, and frequent carrier rate adjustments make it difficult to forecast costs. Additionally, labor-intensive fulfillment processes slow down operations, drive up expenses, and divert focus from scaling the business. If you’re selling on multiple online channels, there’s a smarter way to manage all your orders and shipping in one place—reducing costs and improving efficiency.

To stay competitive in 2025, eCommerce sellers need smarter, automated fulfillment solutions that streamline operations, improve order accuracy, and control costs—without sacrificing delivery speed. ShipAccel empowers online retailers to optimize fulfillment from order to doorstep.

  1. Access discounted carrier rates without high-volume commitments

Small and midsize retailers often lack the volume to negotiate competitive carrier rates. As 2025 progresses, costs may also rise due to changes in carrier strategies and increased surcharges, experts say. Prices are expected to be higher than last year, with both lightweight and heavy packages seeing additional pressures.

Online sellers can benefit from a multi-carrier shipping and order management platform like ShipAccel, which allows them to access pre-negotiated rates from major carriers. This lowers shipping costs without the requirement for large order volumes.

  1. Reduce shipping delays and speed delivery

Manually comparing carrier rates per order is time-consuming and inefficient — and delays in fulfillment can cost you repeat customers. ShipAccel solutions can help online sellers with an automated delivery selection tool. 

Not only does ShipAccel offer discounted carrier rates, but it also allows you to set smart business rules to decide the best delivery option for each shipment without having to manually rate shop for each order. 

In some cases, your orders may need to be sent at a faster speed, and at other times, they can go the more economical route. Creating smart business rules removes the time it takes to make those manual decisions and helps get your orders out faster.

  1. Eliminate error-prone manual processes

Fulfillment mistakes aren’t just frustrating—they’re expensive.

  • Address errors: 1 in 5 shipments contains an address mistake, leading to $24 correction fees per package and delayed deliveries.
  • Incorrect package dimensions: Even a 1-inch size difference or a few ounces off can trigger costly adjustments.
  • Manual data entry: Inputting order details by hand increases the risk of errors and slows down processing.

ShipAccel syncs order and customer data from all your online selling channels, such as Amazon, Shopify, eBay and more, into a single dashboard. It also integrates with dimensioner devices to ensure accurate package weights and sizes are captured, eliminating human errors that drive up costs.

  1. Reduce operational costs 

When maximizing shipping cost-effectiveness, etailers often focus solely on shipping costs while overlooking labor and operational inefficiencies. Assessing these costs will be key this year, as companies are expected to see increased labor costs in supply chains.

“If you can lower your operational cost, then you’re ultimately lowering your shipping costs,” states, Clarisa Doone, Senior Product Marketing Manager at Pitney Bowes. Shipping software that automates label printing, package sorting, and workflow management saves time, reduces manual errors, and lowers operational head count and labor costs. It also lessens the amount of customer WISMO (where is my order) calls with automated text and email notifications for key tracking events. This, in turn, frees up customer experience reps to handle other customer issues.

  1. Optimize shipping with data-driven insights

Many businesses unknowingly overspend on shipping due to poor delivery selection and inefficient packaging processes. Additional costs, such as seasonal surcharges and address correction fees, can further drive up expenses.

One of the most common yet overlooked mistakes in supply chain management is failing to fully utilize shipping data to eliminate inefficiencies. Extracting meaningful insights can be challenging with data spread across multiple carriers and sales channels. ShipAccel simplifies this process by analyzing shipping trends, optimizing packaging strategies, and identifying cost-saving opportunities.

From detecting costly delivery service selections to pinpointing fulfillment inefficiencies based on warehouse locations, ShipAccel empowers businesses with actionable data to make smarter, more efficient shipping decisions.

Better shipping, better experience

Cutting shipping costs without compromising speed requires more than just discounted rates—it demands a streamlined approach to order fulfillment. SMBs can boost efficiency by eliminating manual errors, automating carrier selection, and unifying order management into a single system.

With ShipAccel, businesses can reduce the time it takes to deliver orders to their customers, improve order accuracy, enhance customer satisfaction, and automate key shipping decisions to save money and increase efficiency.

ShipAccel is backed by Pitney Bowes, which powered over $1 billion in shipping in 2024. Schedule a demo today to see how you can reduce fulfillment costs and scale smarter in 2025.