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Simple Ways To Reduce E-commerce Costs

By Last updated on: June 22, 2023

While Alibaba and Amazon dominate the marketplace industry, it’s not just these two online giants that capture consumer dollars. In addition to helping strengthen the parcel business along the way, it’s fair to say that the shipping business has been dramatically influenced thanks to marketplace sales. As a result, ways to reduce e-commerce costs steps are critical. React and ultimately respond to the dynamic impact shipping has on their company overhead.

Let’s look at packaging materials, capturing shipping analytics, and gaining refunds from shippers such as UPS and FedEx when deserved. There is no shortage of ways for marketplace sellers to control their parcel spending better. To help, consider these three tips.

1. Reduce E-commerce Costs – Analytics

The reality is that when it comes to saving time, increasing efficiency, and reducing e-commerce costs, the human touch alone cannot accomplish these goals. However, the human touch combined with analytics and automation makes for a powerful combination of precise business management. And when it comes to shipping, this is no exception.

For e-commerce cost reduction, introducing analytics and automation into the shipping strategy is a great way to begin reducing parcel spend. A starting point for companies who have yet to do this in any way should include a report based on their shipping history. Generally, help identify past and current needs, opportunities, weaknesses, and more are – ultimately delivering clarity, improving internal accountability, and helping companies make more informed decisions. To introduce this type of analysis of your shipping history, click here.

Once this report has been reviewed and understood, welcoming automation into your shipping strategy is a natural next step. This automation can come in a variety of ways. But the main takeaway is that you want to capture and review shipping analytics more efficiently. This will streamline parcel efforts while reducing parcel spend along the way. Trusted shipping resources – many of which provide automated services specific to online sellers – to consider for your business can be found here.

2. Review Your Packaging Process

From the materials you use, to package inventory sold, to the consideration of drop-ship options in your existing inventory management to automating your shipping process from start to finish. There are many options to consider when it comes to e-commerce cost reduction as part of your packaging process. To start, make sure you know your parcel size and weight then likewise, know what the rate differences are between the carriers you choose to ship with. These packaging details impact your bottom line – plain and simple.

DIM Weight Calculations to Reduce E-commerce Costs
DIM Weight Dimensional FedEx UPS Refund Retriever Calculations

Additionally, consider the packaging materials you use. While their purpose is to secure items being shipped safely, also consider where you purchase them from. Buy in bulk to reduce your costs. Additionally, try to use carrier-supplied materials. With 93% of online buyers saying shipping options are part of their purchase decision, you want also to consider how fast you can pick, pack and ship your goods. Reviewing this process is another way to help streamline your shipping options and reduce e-commerce costs.

3. Introduce an Auditing Service into Your Shipping Strategy

Let’s face it… you’re busy. But introducing a shipment auditing service takes very little time and gives you so much in return. More specifically, an auditing service gives you money back on shipments based on a review of overcharges, late deliveries, damaged packages, and more from popular shipping carriers UPS and FedEx.

FedEx invoice history money-back guarantee credit

The best part is that an auditing service charges a percent of refunds applied to your business. Therefore costing you nothing upfront and helping e-commerce cost reduction. This automated and easily managed service allows you to do what you do best – sell. While allowing your parcel spend to get reduced along the way. Explore more about auditing services for online sellers here.

Finally, remember that when it comes to selling online, you are only successful based on your profits. Identifying the right inventory, the right selling platforms, and the correct shipping processes all contribute to your selling success! Contact Refund Retriever to reduce e-commerce costs.

Brian Gibbs

Author Brian Gibbs

More posts by Brian Gibbs

Brian Gibbs | President of Refund Retriever

Brian Gibbs founded Refund Retriever in 2006 while running his first eBay-based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur, and other publications discussing parcel auditing, shipping, e-commerce, and more. Learn more at or call (800) 441-8085 for more information.

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