Can You Lower Shipping Costs by Reducing Package Sizes? A Comprehensive Guide on Ways to Reduce Sizes of Package For eCommerce Shipping [2024]

Pavel D’silva

By Pavel D’silva

October 10, 2022

Shipping costs form a significant part of the overall expenditures that eCommerce businesses need to incur to successfully fulfill orders. While it is a necessary and unavoidable cost, practising a few sensible strategies can enable sellers to save a large amount of money, which is especially crucial for small and medium-sized businesses that are already operating on thin profit margins. We can reduce shipping costs in a variety of ways, but one of the most attainable ones is by reducing package sizes for every shipment.

It may not seem like an obvious solution but if every package comprises a reduced footprint on the delivery vehicle, more parcels can be added and delivered in the same shipment, rather than needing multiple attempts. A large portion of shipping costs is calculated depending on the size and weight of the shipment. By having small package sizes, retailers can offset additional costs by either having smaller package sizes or using the extra space to ship more orders. In this blog, we will take a more detailed look at the importance of reducing package sizes, how it can help lower shipping costs and 5 ways to enable small package sizes.

Table Of Contents
  1. Importance of Reducing Package Sizes in eCommerce
  2. 3 Areas Where Reducing Package Sizes Can Lower Shipping Costs
  3. 5 Ways to Successfully Reduce the Package Sizes of Your eCommerce Business
  4. Conclusion: Can WareIQ’s Services Help Reduce Package Sizes for Your Company?
  5. Reduce Packaging Sizes: FAQs

Importance of Reducing Package Sizes in eCommerce

Lowers Shipping Costs

The primary reason for reducing package sizes is to lower shipping costs. Since shipping costs are largely determined by the size and scale of the shipment, having small package sizes can be beneficial to retailers by saving them a significant amount of money that they can then reinvest in other aspects of the business, such as product development and marketing. For eCommerce sellers that are in the process of expanding their services to other regions, having lower shipping costs due to reduced package sizes will enable them to offer lower prices to their customers, ship more orders in bulk and attain positive customer feedback as a result.

Reduces the Amount of Packaging Material Needed

By optimizing all the processes involved in packaging, retailers can reduce the amount of material they need for each delivery. eCommerce packaging generally requires many layers to keep the product safe and intact in transit, such as the product box, bubble wrap, plastic covers and the outer box. If the entire package is stripped of any unnecessary materials and is only delivered with the components that are needed, it will not only reduce shipping costs by creating smaller, less weighty shipments but will also reduce the amount of wastage that customers need to get rid off when they unpackage their order. 

Related Article: Eco-Friendly Shipping for eCommerce Companies in 2024 to Go Green & Be Sustainable

Takes up Less Space in Storage and Transit

We have already established that reducing package sizes enables lower shipping costs but the central way that this is achieved is through the use of lighter and smaller packaging. For instance, 1 large television will cost more to ship than 2 smartphones, even though the value of the smartphones may be higher. This is due to the fact that the television will take up more space in transit, thereby reducing the storage capacity of the eCommerce shipping company. Additionally, heavy items are more challenging to load and unload which increases labour costs. Therefore, it is important to try and store as many items as you can while shipping out orders.

WareIQ – Amazon-prime Like Logistics for Modern Brands in India

WareIQ, an eCommerce fulfillment company, empowers online brands with a superior-tech platform to compete with Amazon like service levels by bringing their average delivery timelines from 5-10 days to 1-2 days.

"With WareIQ, UTH is able to consolidate common inventory for all platforms and get much closer to the customer through access to WareIQ’s strong nationwide network of fulfilment centres, and last mile & hyper-local courier partners. We are excited about being able to offer same day delivery in several pin codes due to WareIQ."
- Samit Mehta, Founder, UTH Beverages

3 Areas Where Reducing Package Sizes Can Lower Shipping Costs

Weight 

One of the biggest trends in eCommerce shipping is the effort companies are making to reduce the weight of their packages, which can be done by removing certain elements such as bubble wrap or plastic. The heavier the package, the more costs they inspire due to the difficulties associated with loading and unloading them, shifting their position, and additional strain they put on the delivery vehicle, causing higher wear and tear, and lower fuel efficiency, not to mention the increased risks of them damaging other, more petite products.

Dimensions

When it comes to eCommerce, bigger does not always mean better. Larger packages are always more expensive to ship than their smaller counterparts. Therefore, it is important for retailers to find ways to reduce their package dimensions. A relatively well-known example of this would be the recent trend of smartphone manufacturers opting to ship their phones without headphones or chargers, initially pioneered by Apple. This has enabled box sizes to reduce dramatically, while devices themselves continue to get bigger. This allows companies to ship more of their products in the same cycle, reducing the number and frequency of shipments they require to fulfill a certain amount of products.

Handling

Packages that are larger in size translate to many physical constraints such as more workers required to load or unload them, or heavier vehicles needed to transport them. For instance, maybe 50 boxes of a small product, such as AirPods, could be loaded onto a vehicle by the time it takes to load 5 washing machines. This is one area value isn’t directly associated with size as smaller products are often more expensive than larger ones. To make product handling easier, faster and cheaper, consider investing in lightweight and more durable packaging materials so that products can have the same protection, without the added bulk.

5 Ways to Successfully Reduce the Package Sizes of Your eCommerce Business

Optimise Your Product Placement

The way a product is placed inside a box can have massive implications on its overall footprint. Analyse your product’s dimensions and figure out the most efficient way to place it inside of its original box. This will automatically reduce the size of the outer storage layers. Practices like vertically stacking product elements on top of each other instead of side by side can have a positive impact on reducing package sizes.

reducing package sizes_product placement
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Bundle Similar Products / Orders Together

One way to reduce shipment sizes is by placing similar products or orders together. For instance, if a shipment comprises multiple beauty products, they can all be packaged together in the same overall consignment. Similarly, if many orders are placed from the same location, all the products needed to fulfill those orders can be bundled together (also known as product bundling), which will result in a reduced shipment size as opposed to having scattered packages for the same order location.

reducing package sizes_bundle products / orders
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Use Custom Packaging Solutions

Custom packaging services offered by 3PL companies can immensely help in creating small package sizes. In contrast to companies like Amazon that just have a standard package design for every order, regardless of the nature of the product, customized packaging can tailor every aspect of the package to your liking. This will enable products to be packaged more optimally, taking into consideration the design and dimensions of the product. Additionally, you can have more control over how you highlight your brand.

reducing package sizes_custom packaging
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Reduce the Use of Plastic

Plastic packaging materials in the form of bubble rap and protection film can significantly increase the size and bulk of shipments. While products do require some amount of protection from mishaps that can occur in transit, a large amount of space can be saved by only cutting it down to the bare essentials. You can also conduct research into how to make boxes stronger so that they will be able to withstand more pressure rather than relying on heaps of plastic materials within the box.

reducing package sizes_reduce plastic use
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Opt for Multi-Function Packaging

If you sell a wide range of products with similar sizes, consider having one standard box design that you can use among all of them, with just the design and product information varying based on the product. Additionally, you can make your packaging itself double as the brochure instead of including a separate one. There are also a wide variety of box designs that can fold in when stored and expand when unpackaged.

reducing package sizes_multi-function packaging
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Conclusion: Can WareIQ’s Services Help Reduce Package Sizes for Your Company?

If you need to reduce your logistical and operational costs, shipping expenses would be a good place to start. To enable significant savings on shipping and last-mile delivery, reducing package sizes to their smallest possible occupancy is essential. eCommerce packaging generally comes with a lot of bloatware that is ultimately wasted once the product is unpackaged. It is important to ascertain what materials are essential to keep the product safe and what materials can be removed to save space.

Additionally, how a product is placed in a box can also have an impact on its size. By having small package sizes, you will be able to reduce the amount of space that is taken up by each SKU, resulting in lower shipping costs and additional space to place more items. If you are an eCommerce retailer that needs assistance with reducing package sizes to lower shipping costs, WareIQ can be the answer you are looking for. 

reducing package sizes_WareIQ services

WareIQ is one of the fastest-growing eCommerce fulfillment companies in India. We provide a swathe of solutions encompassing every aspect of eCommerce. In terms of reducing package sizes and lowering shipping costs, we offer the following solutions:

Custom Packaging

We provide all our customers with custom packaging facilities so that they can offer a truly personalised experience to their customers. You can choose to highlight your brand, choose your design, colour, materials, product placement and much more. We can help offer your customers a one-of-a-kind unboxing experience while also reducing package sizes to help you generate more space in storage and transit.

Partnership With Multiple Shipping Companies

We have partnered with 20 of the largest shipping aggregators in India. We will automatically assign the fastest route and most cost-effective delivery option for every order. If there is a delay with any provider on any route, we will transfer the order to the next-best option, ensuring that your orders are always delivered on time. Additionally, you can avail of bulk discounts if your orders are over a certain threshold.

No Order Restrictions

We do not impose any minimum or maximum restrictions on your inventory, either in storage or transit. You can simply opt for the amount of space you need in any of our fulfillment centers or transport vehicles and pay for what you use. Additionally, you can add or remove space according to your requirements.

Reduce Packaging Sizes: FAQs

Supercharge your fulfilment with WareIQ now, contact our team.

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Pavel D’silva
Author

Pavel D’silva

Pavel is a content marketing analyst at WareIQ. He has more than 3 years of content marketing experience. His key responsibilities include writing SEO-based blogs, guides, guest posts, and other types of content on a plethora of topics related to eCommerce fulfillment, operations, supply chain, warehousing, shipping etc.

Read all of Pavel D’silva's Posts

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Is e-SANCHIT Safe in India? e-SANCHIT, short for Electronic Storage and Computerised Handling of Indirect Tax documents, is a platform introduced by Indian Customs to facilitate paperless processing and uploading of supporting documents and to promote ease of doing business and transparency in the import-export process. Regarding its safety, e-SANCHIT is designed with robust security measures to protect the confidentiality and integrity of the data submitted by users. Here are key points highlighting the safety aspects of e-SANCHIT in India: 1. Government-Backed Platform As an initiative by the Indian Customs, part of the Central Board of Indirect Taxes and Customs (CBIC), e-SANCHIT is a government-backed platform. This implies adherence to stringent data protection standards and regular audits to ensure the security of the system. 2. Secure Data Transmission e-SANCHIT uses secure protocols for data transmission, ensuring that all information uploaded by users is encrypted. This minimises the risk of unauthorised access or data breaches, safeguarding sensitive business documents. 3. Authentication Measures Access to the e-SANCHIT platform requires user authentication, typically through a combination of a username and password and, in some cases, digital signatures. These measures ensure that only authorised individuals can upload or view documents, enhancing the platform's security. 4. Regular Updates and Monitoring The platform is continuously monitored and updated regularly to address vulnerabilities and adapt to the evolving cybersecurity landscape. This proactive approach to security maintains the platform's defence against potential cyber threats. 5. Compliance with IT Regulations e-SANCHIT operates in compliance with India's information technology and cybersecurity regulations, aligning with legal standards for digital platforms and data protection. While e-SANCHIT is built with safety and security in mind, users are also advised to follow best practices for cybersecurity, such as using strong, unique passwords, keeping their login credentials confidential, and ensuring their computers are protected against malware. By combining e-SANCHIT’s robust security measures with vigilant personal cybersecurity practices, users can confidently utilise the platform for their import-export documentation needs. How IEC Code Tracking Works? IEC code tracking is a process that allows businesses and individuals to monitor the status of their Importer Exporter Code (IEC) application or to verify the validity of an existing IEC. This tracking capability is essential for ensuring that the IEC application process is progressing smoothly or for conducting due diligence in trade transactions. Here's how IEC code tracking typically works: 1. Online Tracking through DGFT Portal The Directorate General of Foreign Trade (DGFT) provides an online facility for IEC code tracking on its official website. This service enables applicants to check the status of their IEC application after submission. 2. Application Reference Number To track the status of an IEC application, the applicant needs the application reference number, which is provided at the time of submitting the IEC application. This reference number is crucial for accessing the application's status. 3. Status Update Upon entering the application reference number on the DGFT portal, the system displays the IEC application's current status. This may include stages such as "Under Process," "Approved," "Rejected," or "Requires Additional Information." This real-time update allows applicants to take necessary actions if there are any issues or delays in the processing of their applications. 4. Verification of Existing IEC To verify an existing IEC, stakeholders such as banks, customs authorities, or business partners can use the DGFT portal or other authorised platforms to check the authenticity and validity of an IEC code. This is often done by entering the IEC number and, in some cases, additional details like the business name or PAN number. 5. Automated Alerts Some systems may offer the option to receive automated alerts or notifications regarding the status of IEC applications. This feature ensures that applicants are promptly informed of any updates, reducing the need for manual tracking. IEC code tracking is an important tool for businesses engaged in international trade, providing transparency and control over the application process and ensuring the validity of trade credentials. It facilitates smoother trade operations by minimising uncertainties and delays related to IEC acquisition and verification. Conclusion The Importer Exporter Code (IEC) emerges as a fundamental cornerstone for businesses engaging in international trade, encapsulating a broader narrative of global commerce facilitation. As delineated in this comprehensive exploration, the IEC not only serves as a regulatory mandate but also paves the way for enterprises to seamlessly integrate into the global market, highlighting its indispensable role in the architecture of international trade. From its application and verification process to the nuances of e-SANCHIT's secure digital document submission platform in India and the operational mechanics of IEC code tracking, each facet of the IEC ecosystem contributes to simplifying the complexities of global commerce. The IEC stands as a beacon of efficiency, security, and compliance, indispensable for businesses aiming to navigate the intricate landscape of international trade with agility and confidence. It underscores the evolving dynamics of global trade practices, emphasising the criticality of embracing digital advancements and adhering to regulatory frameworks to foster a conducive environment for trade and commerce. As businesses and individuals continue to leverage these tools and processes, the pathway to global market participation becomes increasingly accessible, underscoring the profound impact of the IEC in the broader narrative of international commerce. Frequently Asked Questions About IEC Code How long does it take to obtain an IEC Code?The processing time for obtaining an IEC Code can vary. Still, typically, the Directorate General of Foreign Trade (DGFT) issues the IEC within 3 to 7 working days after receiving a correctly filled application, provided there are no discrepancies or additional information required.Can an individual apply for an IEC Code, or is it only for businesses?Both individuals and businesses can apply for an IEC Code as long as they intend to engage in import or export activities. Freelancers and sole proprietors involved in international trade also need to secure an IEC.Is there an expiry date for the IEC Code?No, the IEC Code does not have an expiry date. Once obtained, it is valid for the lifetime of the entity unless revoked or surrendered. This makes it a one-time registration and compliance requirement for importers and exporters.What documents are required for the IEC Code application?The primary documents required include a PAN card (for the individual/business), proof of address, and a bank certificate or cancelled cheque bearing the entity’s name pre-printed on it. Additional documents might be required based on specific cases or updates in DGFT regulations.Can the IEC Code be cancelled or surrendered?Yes, if a business or individual decides to discontinue import/export activities or close the industry, the IEC Code can be surrendered. The DGFT provides a procedure for the cancellation or surrender of the IEC, which involves submitting a request along with necessary documents for deactivation.Is the IEC Code required for service exports, or is it just for goods?The IEC Code is required for the export of services as well as goods. Any earnings in foreign exchange, irrespective of the nature of the service, require the service provider to have an IEC.How does one verify the authenticity of an IEC Code?The DGFT portal offers an online IEC verification tool. Anyone can enter the IEC number to check its validity and view the details of the IEC holder. This tool is crucial for verifying the authenticity of business partners in international trade.

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Once registered, users can log in to their account and begin the document upload process, which includes attaching digital copies of all required documents, such as invoices, packing lists, and certificates of origin. Each uploaded document is assigned a unique Image Reference Number (IRN), which is used to reference the documents during customs clearance. The system automatically processes and verifies the documents, integrating them with the customs clearance process. Users can track the status of their submissions and receive notifications on any actions required, ensuring a smooth and continuous flow of information. The Uses of e-SANCHIT e-SANCHIT is leveraged for a multitude of purposes aimed at optimising the customs clearance process in India, making it an indispensable tool for importers, exporters, and logistics professionals. Primarily, it is utilised for the paperless submission of all key import and export documents, significantly reducing the time required for customs clearance. By enabling stakeholders to upload documents electronically prior to the arrival of goods, e-SANCHIT ensures faster processing at customs, thereby accelerating the overall supply chain flow. Furthermore, e-SANCHIT acts as a centralised digital repository for trade documents. This feature not only facilitates easy access and retrieval of documents for compliance and verification purposes but also minimises the risks associated with the loss of physical paperwork. The platform enhances transparency in the customs clearance process, allowing traders to track the status of their document submissions and receive timely updates on any required actions, which aids in the more effective planning and execution of logistics operations. Moreover, e-SANCHIT supports the integration with other digital platforms and government initiatives aimed at trade facilitation, creating a cohesive ecosystem for managing international trade transactions. This interconnectedness simplifies compliance with regulatory requirements, streamlines the documentation process, and promotes a more efficient, transparent, and user-friendly approach to customs clearance in India. The Safety of e-SANCHIT in India Concerns regarding the safety and security of digital platforms are paramount, primarily when they handle sensitive trade documentation. In the context of e-SANCHIT in India, the platform is designed with robust security measures to safeguard user data and ensure the integrity of the document submission process. Utilising advanced encryption protocols, e-SANCHIT protects the data exchange between users and the customs database, preventing unauthorised access and data breaches. The platform operates under the oversight of the Indian Customs authorities, adhering to strict data protection regulations and cybersecurity standards. Regular security audits and compliance checks are conducted to identify and mitigate potential vulnerabilities, ensuring that e-SANCHIT remains a secure environment for its users. Moreover, access to e-SANCHIT is restricted to registered users who must undergo a verification process, further enhancing the platform's security framework. Users are also encouraged to adopt best practices in data security, such as using strong passwords and keeping their login information confidential. Related reading: India's National Logistics Policy Conclusion e-SANCHIT stands as a beacon of India's commitment to digitising and streamlining the customs documentation process, significantly impacting how trade operations are conducted within the country. By facilitating the electronic submission of import and export documents, e-SANCHIT not only enhances the efficiency of customs clearances but also propels India towards a more integrated and transparent trade environment. This digital leap forward in the customs domain exemplifies the potential for technology to revolutionise traditional processes, ensuring that businesses can operate more smoothly and with greater compliance. The trading community's adoption of e-SANCHIT and its integration into the broader logistics and supply chain operations underscore its value in fostering a competitive and agile trade ecosystem. As we move further into the digital age, platforms like e-SANCHIT will continue to play a critical role in enhancing the ease of doing business and securing India's position as a key player in the global market. The success of e-SANCHIT paves the way for future innovations in trade facilitation, promising a more efficient, secure, and sustainable trade landscape for India. Related read: What Is an IEC Code and Why Do You Need It? Frequently Asked Questions About e-SANCHIT How do I register for e-SANCHIT?To register for e-SANCHIT, users need to visit the Indian Customs Electronic Gateway (ICEGATE) website and sign up for an account by providing the required business details and documentation. Once the account is verified, users can access e-SANCHIT through their ICEGATE login credentials.Can all types of documents be uploaded to e-SANCHIT?e-SANCHIT is designed to accept a wide range of trade-related documents, including commercial invoices, packing lists, bills of lading, certificates of origin, and more. However, it’s essential to check the latest guidelines on the ICEGATE portal for any document-specific requirements or restrictions.Is there a limit to the number of documents that can be uploaded to e-SANCHIT?While there may be technical limits on file size per upload, e-SANCHIT generally allows for the submission of multiple documents as needed for each shipment. Users should ensure that documents are clear and legible to avoid rejection.What should I do if my document uploads to e-SANCHIT fails?If a document upload fails, users should first check for any technical issues, such as file size or format compatibility. If the problem persists, contacting the ICEGATE helpdesk for assistance and troubleshooting is recommended.How does e-SANCHIT improve the customs clearance process?e-SANCHIT improves the customs clearance process by enabling the advanced electronic submission and verification of documents. This reduces the need for physical paperwork, speeds up the verification process, and allows for quicker clearance of goods at customs.Is training available for new e-SANCHIT users?Yes, the Indian Customs and Central Board of Indirect Taxes and Customs (CBIC) periodically offer training sessions and tutorials for new users. Additionally, resources and user guides are available on the ICEGATE portal to assist with the e-SANCHIT submission process.

April 16, 2024