The smarter holiday shipping playbook: 3 ways to reduce costs

Between carrier rate increases, demand surcharges, residential fees and additional handling charges, costs can add up quickly. And when you’re trying to get packages out the door on time, it can be tempting to simply stick with the carrier, service and shipping process you’ve always used.

But convenience can come at a cost.

The good news? You may have more control over your shipping spend than you think. Before peak season gets into full swing, here are three practical strategies that can help reduce costs. During our recent webinar, Beat the peak: 3 strategies to control holiday shipping costs, we discussed three significant ways you can help reduce your shipping costs during peak season – and all year round.

Strategy 1: Stop relying on a single carrier

Relying on a single carrier can leave you with little choice but to absorb its rate increases and peak-season surcharges.

A multicarrier approach gives you more flexibility by letting you compare rates and estimated delivery times before you ship.

Instead of asking, “What does my carrier charge?” you can ask:

“What’s the best way to get this package where it needs to go, when it needs to get there?”

Multicarrier shipping software can help match each shipment to the right carrier and service based on package size, destination, delivery timing and total cost.

Pitney Bowes has seen organizations achieve a 12% to 20% reduction in shipping spend by expanding their carrier options and choosing the best service for each shipment.

The takeaway: Don’t default to the same carrier every time. A quick comparison before printing the label could uncover meaningful savings.

2. Move eligible USPS packages from meter tape to shipping labels

If you use a postage meter to send USPS Priority Mail®, Ground Advantage® or Priority Mail Express®, you’re leaving money on the table.

By printing an IMpb shipping label with shipping software like PitneyShip, you can unlock discounted USPS commercial rates, with no minimum shipping-volume requirement.

The webinar highlighted examples including:

A four-pound package dropping from a retail price of $13.65 to $5.83
A 12-pound Ground Advantage package dropping from $21 to $7.22
A six-pound Priority Mail package dropping from $18 to $10.95

Shipping labels can also provide additional benefits, including tracking and notifications, address validation and access to USPS cubic pricing for qualifying packages.

Cubic pricing can be especially valuable for smaller, heavier shipments because the rate is based on package dimensions rather than weight alone.

The takeaway: Review what you’re currently shipping through your postage meter. Moving eligible packages to shipping labels could create an immediate savings opportunity.

Strategy 3: Use your shipping data to find the costs hiding in plain sight

A negotiated carrier discount can look impressive on paper.

But it doesn’t necessarily tell you what you’re actually spending.

Fuel surcharges, residential fees, address corrections, additional handling and premium services can significantly increase your actual cost.

That’s why visibility matters.

Look at your shipping data to answer questions like:

Are employees using overnight shipping when ground shipping would arrive on time?
Which locations or services are driving the most spend?
How much are surcharges adding to your costs?
Which carriers are actually meeting expected delivery times?
Are you paying for labels that are never used?

The webinar shared one example where overnight labels were being created, but packages weren’t handed to the carrier until days later, meaning the business was paying a premium without receiving the benefit.

Data can also help you put guardrails around shipping decisions.

For example, organizations can restrict expensive early-morning or overnight services, require authorization for premium shipping options or create rules that guide employees toward preferred services.

Centralizing shipping data across locations also gives you a clearer picture of total spend and can give you better information when it’s time to negotiate with carriers.

The takeaway: Don’t just look at your rates. Look at how your organization is actually shipping.

Bonus strategy: Go digital with Certified Mail

Packages aren’t the only place to look for savings.

If your organization regularly sends Certified Mail with Return Receipt, there may be another simple savings opportunity.

Switching from the traditional paper green card to Electronic Return Receipt (ERR) can save $1.74 per Certified Mail piece.

For organizations sending significant volumes of legal notices, resident communications or other important documents, that can add up quickly.

The electronic process can also reduce manual work by giving you digital signature records that are easier to search, retrieve and store.

The takeaway: You’re not just saving on postage, you’re simplifying the process at the same time.

More control starts with more visibility

Peak-season carrier increases may be unavoidable. Simply absorbing every increase doesn’t have to be.

By comparing carriers, taking advantage of discounted USPS shipping labels and using your own shipping data to guide decisions, you can find opportunities to reduce costs without sacrificing delivery performance.

And sometimes, the smartest savings start with one simple question:

Is there a better way to ship this?