Insights to Help Your Business
5 Ways SMBs Can Improve Shipping Without Breaking the Bank
Read on for five budget-friendly, high-impact ways to optimize your shipping strategy and boost your business in 2025.
For small and mid-sized businesses (SMBs), shipping isn’t just a backend operation—it’s a direct reflection of your brand. Whether you’re fulfilling Etsy orders or scaling a Shopify storefront, the stakes are high. Customers expect fast, reliable deliveries, and if you fall short, your competitors are just one click away.
But let’s face it: SMBs don’t have the luxury of enterprise-level logistics budgets. 73% of surveyed merchants pay for delivery-related losses out of pocket. This happens because of disputes or lack of insurance—meaning the financial strain is real.
The good news? You can improve your shipping process, reduce costs, and deliver a better customer experience—without breaking the bank.
Here are five budget-friendly, high-impact ways to optimize your shipping strategy and boost your business in 2025.
1. Partner with Regional and Niche Carriers
National carriers like UPS and FedEx can reach many places around the world. However, their prices, extra fees, and strict rules may be too much for small and medium-sized businesses.
Solution? Go local. Regional carriers often:
- Offer lower rates for shorter distances
- Provide faster delivery windows for specific zones
- Offer more flexibility in pickup/drop-off scheduling
Some even specialize in specific delivery types (like perishables or oversized items). Partnering with one or two regional couriers can significantly reduce shipping costs—without sacrificing speed.
Pro Tip: Use multi-carrier shipping platforms to compare pricing and delivery times in real time.
2. Invest in Delivery Coverage
Disputes over lost or damaged packages are more than just a customer service headache—they’re a financial drain. And unfortunately, 73% of SMB merchants report absorbing those losses themselves.* Coverage options like InsureShield® Shipping Insurance can help:
- Reimburse product loss or damage
- Protect against porch piracy, spoiled goods or concealed damage
- Provide peace of mind for both you and your customers
Providers like InsureShield offer affordable per-shipment coverage, often cheaper than the options bundled with carriers.
Pro Tip: Use your shipping platform to automate insurance integration. This will cover all eligible shipments and you can customize your backend rules for packages that have higher risk.
3. Use Shipping Software to Automate and Save
Shipping manually may seem like a cost-saving move—but it often leads to errors, inefficiencies, and missed savings. Platforms like Pirate Ship, EasyPost or The UPS Store help SMBs:
- Access bulk shipping rates
- Automatically generate labels and tracking numbers
- Sync with your eCommerce platform (Shopify, WooCommerce, Etsy, etc.)
- Compare carrier rates and delivery timelines
- Track deliveries in one dashboard
Even at entry-level pricing, these tools save time, reduce errors, and unlock discounted rates.
Pro Tip: Look for tools with built-in customer notification features to streamline communication.
4. Communicate Proactively with Customers
Late, missed, or unsafe deliveries are the top frustrations for 75% of consumers, and their tolerance is shrinking.
Worse still? In 2022, 83% of consumers blamed the shipping provider when things went wrong. In 2025, only 39% do—more shoppers now hold you, the merchant, responsible.
That means proactive communication is no longer a courtesy – it’s a requirement. Simple automations that you can enable are:
- Order confirmation email/text
- Shipment tracking link
- Out-for-delivery notification
- Delivery confirmation message (with photo if possible)
If a delay or error occurs, notify the customer before they ask. That one message could be the difference between a bad review and a loyal repeat buyer.
Pro Tip: Use templated messages via your eCommerce or shipping platform to stay consistent.
5. Learn from Your Data—Then Act on It
If you're not tracking delivery performance, customer complaints, and shipping costs, you're flying blind. Some KPIs you can set up to monitor include:
- On-time delivery rate
- Number of delivery-related support tickets
- Average cost per shipment
- Repeat shipping issues (by location, product, or carrier)
Look for patterns. Are certain ZIP codes driving more losses? Is one carrier underperforming? Do certain products have a higher likelihood of sustaining damage?
Once you know what’s going wrong, you can start fixing it—with small, measurable improvements that add up.
Pro Tip: Survey your customers post-delivery to identify gaps in experience.
Bonus: Offer Shipping Transparency on Product Pages
Want to boost conversions and reduce support tickets? Be upfront about your shipping policies. Display estimated delivery windows, shipping costs, and return options before checkout.
This builds trust, sets expectations, and shows customers that you take their delivery experience seriously.
Paving the Path to Success
Shipping doesn't have to break the bank—but poor shipping can break your business.
Consumers have grown more demanding, and their patience for delivery hiccups is wearing thin. With 75% of people saying missed or unsafe deliveries are a top source of frustration, it’s important to get this right. More people than ever are holding you accountable now.
Luckily, with the right tools and smart strategies, SMBs can punch well above their weight.
Start small. Focus on the fixes that bring the biggest impact:
- Choose the right carriers
- Protect your shipments
- Automate and simplify
- Communicate clearly
- Learn and improve
These five steps will not only save money—they’ll turn your shipping experience into a competitive advantage.
Need help optimizing your shipping without going over budget?
We work with growing brands to improve fulfillment and delivery experiences—while keeping margins in check.
