Cahoot vs Veeqo: A Value-Driven Comparison for Modern Ecommerce Sellers

At a Glance: Cahoot vs Veeqo
Pricing Models & Carrier Rates
Order Routing & Workflow Automation
Multi-Channel Capabilities
Inventory & Warehouse Management
Support & Learning Curve
Amazon Buy Shipping & SFP
Data You Can Actually Use
Built for Amazon Sellers, but Not Owned by Amazon
Pros & Cons
Cahoot vs. Veeqo: What Sellers Are Saying
Final Verdict
Frequently Asked Questions

When ecommerce sellers start scaling across marketplaces like Amazon, eBay, Walmart, and Shopify, their shipping software can either accelerate that growth or slow them down. Two platforms built to handle multi-channel shipping are Veeqo and Cahoot. Both offer discounted shipping labels and order management tools, but the similarities end there. This in-depth comparison will explore what each software delivers, what it lacks, and which one ultimately supports fast-moving ecommerce teams better.

At a Glance: Cahoot vs Veeqo

Feature	Cahoot	Veeqo
Multi-Channel Order Import	Yes	Yes
Discounted Carrier Rates	Yes	Yes
Rate Shopping Across Carriers	Yes (Autonomous)	Yes (Basic)
Bulk Label Printing	Yes (Autonomous)	Yes (Traditional)
Support for Own Carrier Accounts	Yes	Yes
Automation Rules & Order Routing	Yes (Highly Configurable)	Limited to Presets
Intelligent Package Selection (Cartonization)	Yes (AI-powered)	No
WMS Features	Yes	Partial
Inventory Visibility	Yes (real-time)	Yes (limited granularity)
Returns Workflow Integration	Optional Peer-to-Peer Returns	Basic RMA
Live Customer Support	Yes (Help Desk, Phone)	No phone support
Amazon Buy Shipping API Certified	Yes	Yes
Supports Amazon SFP	Yes	No
Open to 3PLs	Yes	No

Pricing Models & Carrier Rates

Both Cahoot and Veeqo offer access to discounted shipping rates from major carriers like UPS, FedEx, and USPS. Veeqo highlights its access to Amazon-negotiated carrier rates, especially beneficial for FBM sellers. However, it’s worth noting that Cahoot also offers deeply discounted rates through its aggregated carrier network, and unlike Veeqo, sellers aren’t required to be Amazon merchants to access them.

Users have praised Veeqo’s rates in particular, though some feel that the real-world savings depend on volume and location. One user on Trustpilot noted, “Veeqo offers good rates, but it doesn’t always beat what I negotiated directly with FedEx.” That said, having an option for both Veeqo and using your own account provides flexibility.

Cahoot lets sellers compare real-time rates across carriers, or even better: automate all the rate shipping and bulk shipping label generation based on the desired logic (cheapest, fastest, delivery promise, signature-required, etc.). This level of autonomous support (removing the human) goes a step further than Veeqo’s more manual workflows.

Order Routing & Workflow Automation

This is where the gap between the two platforms widens. Cahoot excels at automation.

Cahoot’s rule engine lets sellers automatically assign orders to specific warehouses, select packaging based on product dimensions, and pick carriers based on dynamic rules. It includes AI-powered cartonization, reducing overpackaging and optimizing label selection at scale. This feature alone can save high-volume shippers thousands per month.

Veeqo supports some automation, but according to multiple reviews, the rules engine lacks flexibility. As one user put it: “You can automate some parts of the shipping process, but complex routing logic just isn’t possible.” Another noted on G2, “Our warehouse team constantly has to manually override presets in Veeqo to get the right shipping option.”

Cahoot also offers the option to import product master data, assign SKUs to multiple warehouses, and automate routing for distributed fulfillment. These features are especially helpful for sellers managing multiple sales channels and warehouse locations.

Multi-Channel Capabilities

Both platforms support multi-channel order import from Amazon, eBay, Shopify, Walmart, Etsy, and more. Veeqo is tightly integrated with Amazon (it’s owned by Amazon), which brings advantages for FBM sellers, like access to Buy Shipping and automated order syncing.

However, some sellers note that Veeqo prioritizes Amazon workflows and that the support for non-Amazon channels lacks depth. A Trustpilot reviewer stated, “It’s clearly built with Amazon in mind. Shopify orders don’t always sync correctly, and the custom mapping is limited.”

Cahoot offers native integrations with all major ecommerce platforms, with equal priority across sales channels. That neutrality is useful for brands expanding beyond Amazon and looking to centralize operations across multiple storefronts.

It also means Cahoot isn’t limited by Amazon policy shifts or ecosystem changes. For businesses hoping to grow a multi-platform brand, that independence matters.

Inventory & Warehouse Management

Veeqo includes basic inventory tracking tools but doesn’t offer a full warehouse management system (WMS). Its UI shows available stock and syncs between platforms, but lacks pick/pack workflows, barcode scanning, and location-based inventory management.

Cahoot includes WMS features as part of the platform, with no need for third-party plugins. Sellers can assign bin locations, manage cycle counts, and generate pick lists automatically. One Cahoot user shared, “We reduced picking errors by 60% after switching from ShipStation to Cahoot because the WMS features are built in.”

For growing brands with even modest warehouse operations, this difference is key. It consolidates tech stack complexity and reduces reliance on disconnected tools.

Support & Learning Curve

Cahoot provides live onboarding, in-platform chat, and phone support. Multiple users note how responsive the support team is. One review on G2 says, “Every time I had an issue, Cahoot got back to me within minutes. I never felt like I was waiting around.”

Veeqo, on the other hand, has no phone support, and several users on Trustpilot and Reddit cite frustrating support delays. One review read, “You submit a ticket and wait… sometimes for days. It’s not great when your entire shipping flow is paused.”

Veeqo also has a steeper learning curve for non-Amazon users. The dashboard is robust but not intuitive for sellers focused on Shopify or direct-to-consumer models.

Amazon Buy Shipping & SFP

Both platforms are certified for Amazon Buy Shipping, meaning they help sellers remain compliant with Amazon’s policies and tracking requirements. However, only Cahoot supports Seller Fulfilled Prime (SFP).

For Amazon SFP sellers, this is a major differentiator. Cahoot’s compliance engine ensures same-day label printing, cut-off time enforcement, and late-delivery prevention. Veeqo does not support this, which rules it out for many brands trying to maintain the Prime badge.

Data You Can Actually Use

With Veeqo, many sellers are flying blind. Sales data is fragmented. Shipping costs aren’t always transparent. And pulling that data often means wrangling spreadsheets with missing headers or running into failed exports.

Cahoot makes it easy to analyze profits, understand shipping costs, and track eligible shipments in one dashboard. You get full access to real performance data without needing to bounce between platforms.

Built for Amazon Sellers, but Not Owned by Amazon

Veeqo is owned by Amazon. That means anything you do on the Amazon platform is potentially visible. For Amazon sellers trying to protect their strategy or operate across other channels, that’s a problem.

Cahoot is fully compatible with Amazon FBM, FBA, and Buy Shipping, but stays independent. You get the lowest rates available, without locking yourself in deeper with Amazon or giving up your leverage.

Pros & Cons

Veeqo Pros:

Owned by Amazon, with tight FBM integrations

Free to use (zero software cost)

Access to Amazon-negotiated carrier rates

Clean UI for basic shipping workflows

Veeqo Cons:

Limited automation rules engine

Inability to export meaningful data to inform decisions

No support for SFP

No phone support

Lack of cartonization or packaging optimization

No built-in WMS features

Support delays are frequently cited in reviews (think: Amazon-like Support)

Cahoot Pros:

Advanced shipping automation and AI-powered cartonization

Built-in WMS with pick/pack/scan tools

Full Help Desk and phone support with fast response times

Channel-agnostic approach supports real multi-platform growth

Fully supports Amazon SFP

Highly configurable rules engine for complex workflows

Cahoot Cons:

Not free (pricing is customized based on volume)

Currently optimized for the U.S. market only (international support expanding)

Cahoot vs. Veeqo: What Sellers Are Saying

“Using Veeqo costed us so much time. Exports kept failing, inventory didn’t match, and the UI was just confusing. Cahoot gave us back control.”

~ Multichannel seller, apparel industry

Speak to a fulfillment expert

“The only reason I stuck with Veeqo was because it was free. But once our shipping volume increased, we needed more, and Cahoot delivered.”

~ Electronics brand owner

Speak to a fulfillment expert

Final Verdict

Veeqo is a solid, free tool for Amazon-first sellers who want to print shipping labels and access decent rates with minimal setup. But it lacks depth in automation, support, and warehouse operations.

Cahoot, by contrast, is built for scale. It’s ideal for ecommerce brands that are serious about operational efficiency and growth. From smart automation to robust warehouse tools and superior customer support, Cahoot is the better long-term investment for sellers looking to streamline operations across multiple platforms.

If you’re running a high-volume ecommerce business that ships across multiple sales channels, handles inventory in multiple locations, or simply wants to reduce costs and errors at scale, Cahoot is the clear winner.

Don’t settle for free if it slows your business down.

Choose smarter. Explore how Cahoot can simplify your shipping and scale with your brand.

Frequently Asked Questions

Is Veeqo really free, and what’s the catch?

Yes, Veeqo is technically free, but many sellers report that key features like bulk shipping, inventory management, and reporting are limited. You may still need your own carrier accounts, and support can be slow.

How does Cahoot’s shipping software help reduce shipping costs?

Cahoot gives sellers access to discounted rates across major carriers like UPS, FedEx, and USPS, with no Veeqo credits or software bugs required. Plus, bulk shipping tools and data-driven insights help optimize your entire shipping process.

Can I use Cahoot if I sell on Amazon and other ecommerce channels?

Absolutely. Cahoot supports multiple sales channels, including Amazon, Walmart, eBay, and Shopify, while keeping inventory levels synced across all platforms. Unlike Veeqo’s integration, Cahoot’s system is fast, clean, and flexible.

What makes Cahoot better for inventory management than Veeqo?

Cahoot simplifies multi-channel inventory with real-time stock tracking, automated syncing, and alerts to prevent overselling. Veeqo users often struggle with managing inventory across platforms due to sync lags and poor data visibility.

Why do sellers leave Veeqo for Cahoot?

Many sellers switch when they realize Veeqo’s free model comes with trade-offs: limited support, Amazon ownership, clunky UI, and frustrating data export issues. Cahoot offers a full-featured, seller-first solution that saves time and drives smarter decisions.

Written By:

Indy Pereira

Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.

Turn Returns Into New Revenue

Convert returns into second-chance sales and new customers, right from your store.

Peer-to-Peer Returns Platform: How It Benefits Emerging DTC Brands

Returns are the terrible, horrible, no good, very bad part of running an ecommerce business. Not just for shoppers (waiting around for a refund) but for emerging ecommerce brands, especially DTC operations. Every return cuts into profit, eats up time, and piles up inventory no one wants to touch. But here’s the twist: what if returns didn’t go back to the warehouse at all? What if they went directly to a new buyer instead? That’s the magic behind the peer-to-peer returns platform. This model introduces key advantages for DTC brands, such as reducing costs, minimizing waste, and improving customer satisfaction.

Cahoot, known for shaking up ecommerce logistics, is leading the charge with this innovative approach in the peer-to-peer returns space. And no, it’s not a borrowing scheme like peer-to-peer lending or a financial product like personal loans. But it does borrow some DNA from those systems, distributed networks, smart matching, and skipping the middleman. Online platforms in the peer-to-peer space facilitate these direct connections, much like how they connect borrowers and lenders in financial contexts, streamlining the process for all parties involved. Think of it as the social lending of ecommerce returns, where the system connects returners directly with new buyers, just as peer-to-peer platforms connect borrowers directly with lenders.

The Real Pain of Traditional Returns

Traditional returns work like this: a customer changes their mind, prints a label, ships the item back to you, and then you have to receive, inspect, restock, maybe repackage, and eventually resell it, often at a steep discount. Add in return shipping costs, warehouse labor, customer service tickets, and even potential late fees for delayed processing, and it’s a recipe for negative ROI.

For a small ecommerce business or a founder running lean, this isn’t sustainable. Shipping every return back to your warehouse is like using a bank account with constant fees and zero interest. It drains your cash flow. You could compare it to funding loans with higher risk and low return, much like the challenges faced with traditional loans when penalties and late fees add up. Frankly, it’s a bad deal.

Enter Peer-to-Peer Returns

Instead of sending the returned item to your fulfillment center, Cahoot’s peer-to-peer returns platform lets the original customer ship it directly to a new buyer. Here’s how it plays out:

1. A customer initiates a return.

2. The platform asks them to upload photos, confirm the condition, and hold the item for a few days.

3. AI kicks in, verifying the item’s resale quality, analyzing the returner’s history, and scanning for fraud (risk management). The platform’s technology enables streamlined processes, making the entire experience faster and more user-friendly.

4. Meanwhile, the item is automatically relisted on your store as open-box in real-time, discounted slightly, but still your branded product. The relisting and resale process is transparent and clear, much like how peer-to-peer lending platforms provide comparable loan terms, so both buyers and sellers know exactly what to expect.

5. When a new customer buys it, the returner gets a label to ship it out directly.

6. They’re refunded once tracking confirms it’s on the way or received. In terms of risk management, the risk of a single failed return transaction can be compared to a single default event in lending, highlighting the importance of robust verification and diversification strategies.

Now, instead of a refund eating your margins, you’re reselling the item at 85–95% of retail, skipping warehouse handling and double shipping. It’s fast. It’s efficient. And yes, it saves money.

Why This Works (Especially for Small Businesses)

This isn’t just a fun gimmick. Cahoot’s peer model addresses real ecommerce challenges:

Shipping Costs: You skip the return leg to the warehouse.
Inventory Management: The item never clogs up your system.
Speed: New customers get the item faster. Returners get refunded sooner.
Customer Satisfaction: Everyone feels good helping the planet and their wallet.

For small businesses, this model is similar to how small business loans and business loans provide alternative financing options to cover major expenses, supporting growth and development when traditional funding is limited.

It’s like a micro version of peer lending. Instead of funding loans with capital, you’re moving product through customer participation. Instead of worrying about borrower defaults, you’re focused on buyer satisfaction and ensuring compliance through verified transactions. The platform also helps brands achieve their financial goals by offering accessible and flexible solutions. Other benefits of the peer-to-peer returns model include improved business insights, better payment terms, and fostering a supportive community for both buyers and sellers.

The Financial Angle

Okay, let’s talk money. The traditional return process? It’s basically like investing in traditional savings accounts, low return, high friction. With peer-to-peer returns, you’re now in the world of alternative investments. You’re getting more value, faster turnover, and lower risk.

Just as peer-to-peer (P2P lending) platforms allow individual and institutional investors to invest in loans, with returns shaped by interest rates and regular interest payments, our model lets you realize value more efficiently. On lending platforms and lending sites, loan offers are determined by factors like minimum credit score, good credit, and the borrower’s profile, much like how our platform assesses transaction eligibility and risk.

Your effective recovery rate improves. That espresso machine that used to cost you $50 to restock and repackage? Now it’s resold in 72 hours at 90% retail with no warehouse touch. That’s the kind of turnaround most lending sites or lending platforms would kill for.

Built-In Risk Management

Cahoot doesn’t wing it. Our P2P returns platform is built with risk tolerance settings, fraud detection layers, and condition verification, all using AI. That means you’re not just trusting your customers blindly. These tools empower brands to make informed decisions about approving returns and managing risk.

It’s like when institutional investors assess borrower defaults, they don’t rely on vibes. They crunch data, assess credit risk, and build safeguards. Cahoot’s doing the same for your returns: historical data, photo analysis, shipping trends, and user history all factor into who gets approved for peer-to-peer returns.

Customer Experience

Customers like this model. It’s interactive. It feels more personal. They get to feel like part of a sustainability loop. It’s like when borrowers connect with individual lenders on lending platforms, there’s emotional value. A product gets rehomed instead of returned to some faceless warehouse.

Returners are rewarded with small credits or perks for participating. Buyers get a deal. You recover more revenue. And the planet breathes a little easier. That’s what we call attractive returns.

Wrapping It Up

Peer-to-peer returns aren’t just a clever workaround; they’re a full-on rethinking of ecommerce reverse logistics. For small business owners, they offer a practical way to save money, improve customer satisfaction, and align with sustainability goals. For larger brands, they unlock serious cost savings and scalability.

So, whether you’re selling sneakers, smart home gear, or skincare, if returns are eating your margins, it might be time to make a move.

Because unlike traditional financial institutions, this isn’t built on bureaucracy. It’s built on agility, innovation, and a willingness to rethink the rules. Sound familiar?

That’s ecommerce done smarter.

Frequently Asked Questions

What is a peer-to-peer returns platform, and how does it work?

A peer-to-peer returns platform connects the original buyer of a product with a new customer who wants to purchase it, avoiding the need to ship the item back to the brand’s warehouse. Instead of returning it to a traditional logistics hub, the returner ships the item directly to the next buyer. This innovative approach reduces return costs, speeds up resale, and supports sustainability goals for small businesses.

How is a peer-to-peer returns model different from traditional returns?

Traditional returns involve sending the product back to a brand or warehouse, where it’s inspected, restocked, and resold. A peer-to-peer system skips that step. The original buyer holds the item temporarily while the platform finds a new buyer. Once sold, the item ships directly to the new customer, eliminating an entire shipping leg and creating a more efficient, cost-saving process similar to how peer-to-peer lending eliminates middlemen in finance.

Are peer-to-peer returns safe for ecommerce businesses and customers?

Yes. Platforms like Cahoot use advanced fraud detection, data analytics, and AI verification to ensure the returned item matches quality standards before resale. Buyers can review photos, condition grades, and return policies. Just like in peer lending, where borrower defaults are managed through credit checks and risk scoring, P2P returns include safeguards to protect both original and new customers.

What types of ecommerce brands benefit most from peer-to-peer returns?

Virtually any ecommerce brand can benefit from peer-to-peer returns as long as the products aren’t perishable, dangerous (hazmat), or otherwise require a tighter level of control (contamination concerns). From emerging DTC brands and small businesses to large enterprises, companies offering fast-moving consumer goods see the biggest gains. Peer-to-peer returns help reduce operating costs, improve cash flow, and increase customer satisfaction, especially for businesses without access to traditional loans, large warehouses, or institutional investor backing.

How can I start using a peer-to-peer returns platform?

To get started, ecommerce sellers can partner with a platform like Cahoot that offers peer-to-peer returns as part of its fulfillment solution. The platform handles the tech, including photo-based grading, shipping logistics, and fraud prevention. It’s as simple as integrating the system, setting product eligibility rules, and letting the platform connect returns with new buyers, streamlining processes, and unlocking attractive returns on previously lost sales.

Written By:

Indy Pereira

Turn Returns Into New Revenue

Convert returns into second-chance sales and new customers, right from your store.

How AI-Powered Cahoot Returns Management Reduces Ecommerce Fraud

The Real Cost of Returns Fraud
How AI Detects Fraud in the Returns Process
How Cahoot Uses AI to Catch Return Fraud Before It Hits Your Warehouse
How AI Preserves Customer Trust
Behind the Scenes: What AI Actually Looks At
The Business Benefits
Final Thoughts: AI Is the Future of Fraud Prevention
Frequently Asked Questions

Fraudulent returns and refund abuse are eating into ecommerce profits like termites in a timber shack. We’re not just talking about a few bad actors. This is a systemic issue. Every time someone pulls a fast one, returning a used dress, faking a receipt, or claiming a package never arrived, ecommerce businesses bleed money. But here’s the good news: AI is finally catching up.

Businesses that implement AI-powered fraud detection tools gain a competitive advantage in the ecommerce space, reducing losses and improving operational efficiency.

This article explores how AI-powered returns management is giving merchants the upper hand, using machine learning and advanced fraud detection tools to sniff out shady behavior while keeping the experience smooth for legitimate customers. The tech is here, it’s learning fast, and it’s reshaping how we handle ecommerce returns.

The Real Cost of Returns Fraud

Returns fraud isn’t just annoying, it’s financially devastating. Think about:

Wardrobing: Wear once, return as “new”.
Switch fraud: Return a knockoff and keep the real thing.
Empty box scams: Return a box with no item inside, claim it’s there.
Refund fraud: Claim the item never arrived, even when it did.

Customers exploit return policies by making false claims about product defects or delivery issues, manipulating the system for personal gain. Fraudulent return activities also include stolen merchandise returns and targeting high-value items such as luxury goods.

All of these fall under fraudulent returns and refund fraud, and they’re on the rise. According to the National Retail Federation, ecommerce losses from return abuse now top tens of billions of dollars annually.

AI analyzes return data and return patterns to identify patterns and fraud patterns in return transactions, helping businesses detect and prevent evolving forms of return fraud.

The old methods, manual checks, strict return policies, and restocking fees, aren’t cutting it anymore. They hurt genuine customers and barely scratch the surface of sophisticated scams. That’s where AI fraud detection for ecommerce returns steps in.

How AI Detects Fraud in the Returns Process

AI-powered returns management combines machine learning algorithms, transaction data, returns data, and customer behavior to spot bad actors before they strike. AI-powered systems are designed to prevent fraud throughout the returns process. Here’s how:

1. Photo Verification & Image Recognition

AI can evaluate customer-submitted images of returned items to:

Detect box fraud or item switching.
Compare the product’s appearance to a verified new version.
Identify wear, missing parts, or damage that contradicts the return reason.

This allows brands to detect fraudulent activity before it’s even shipped back.

2. Pattern & Anomaly Detection

Machine learning excels at spotting unusual patterns in behavior:

Return frequency: Has the customer returned too many high-value items?
Geolocation: Is the return request coming from a region known for return scams?
Purchase timing: Did they buy during a sale and return right after peak season?

These patterns raise fraud risks and trigger review or denial workflows.

3. Cross-Platform and Channel Monitoring

AI systems can check across multiple returns and ecommerce channels, identifying if a return was initiated:

For the same item on multiple platforms.
Using fake receipts.
From a buyer who already claimed store credit somewhere else.

AI can also monitor for account takeover attempts by detecting unusual account activities, such as frequent address changes, excessive returns, or high-value purchases. When suspicious account activity is detected, AI can recommend enabling multi-factor authentication to add an extra layer of security and prevent unauthorized access.

This multi-touch intelligence is a game-changer for fraud prevention goals.

4. NLP for Reason Analysis

Natural language processing (NLP) can analyze written return reasons and flag:

Repeated use of vague claims like “defective”.
Scripted language that suggests fraud rings.

It’s subtle, but over time, it sharpens fraud detection and helps businesses adapt.

5. Smart Risk Scoring

With returns management systems like Cahoot, each return is assigned a fraud risk score based on:

Customer history
Returns data
Known red flags like frequent returns, high-value items, high-risk transactions, or mismatched shipping info

High-risk returns may trigger:

Photo verification
Manual review
Limited refunds (e.g., store credit only)

How Cahoot Uses AI to Catch Return Fraud Before It Hits Your Warehouse

Here’s the short version: Cahoot’s AI-powered returns system sniffs out sketchy returns before they even hit your dock. No detective hats or magnifying glasses required. It’s proactive fraud prevention baked right into the returns process, built for ecommerce teams who don’t have time (or money) to waste on refund fraud and box scams.

Here’s how it plays out in real life: a customer clicks “return,” and instead of handing them a prepaid label like candy at a parade, Cahoot asks for photos. Item, packaging, maybe even the serial number. That’s when the AI kicks in, checking everything against the original order. Does the item match what was sold? Is the box suspiciously light? Are they trying to return a broken knockoff instead of the actual product? The system flags anything that smells off. No human has to squint at a blurry JPEG; AI’s doing the heavy lifting.

And if things look really fishy? Cahoot assigns a fraud risk score based on the customer’s history, return frequency, location, and transaction data. Say this person’s been sending back a lot of high-value items or triggering patterns tied to refund fraud, Cahoot might put the brakes on the refund, sending it to manual review or straight-up denying it. It’s like having a savvy fraud analyst on call, 24/7, who doesn’t need coffee breaks.

But that’s not all, it gets sharper with every return. The system learns what fraud looks like. Maybe it flags addresses linked to repeat offenders. Maybe it notices “this person always returns luxury goods two days before the return window closes.” The more it sees, the smarter it gets. Over time, it recommends policy tweaks that actually make sense, like tightening windows for excessive returns or requiring restocking fees on high-risk items.

Cahoot also checks serial numbers in real time. That means box fraud, where someone swaps the product and sends back a decoy, gets stopped cold. If the serial number doesn’t match what was sold? Game over. No refund. No restock. Just one more fake return that never made it through the door.

All of this happens quietly in the background, streamlining the returns process for good customers while catching the bad ones red-handed. That’s the beauty of machine learning in ecommerce returns: it doesn’t just react, it predicts. And when refund fraud can bleed your margins dry faster than a flash sale, that kind of protection isn’t just nice to have, it’s essential.

Cahoot’s AI isn’t trying to micromanage your returns team; it’s giving them superpowers. So your operations run leaner, your legit customers stay happy, and your profits stay where they belong. In your pocket.

How AI Preserves Customer Trust

One of the trickiest parts of returns fraud is not alienating loyal customers. Efficient returns processes powered by AI improve customer satisfaction by reducing friction and delays. A good AI doesn’t just block fraud, it enables a positive customer experience by:

Fast-tracking legitimate customers
Preventing false positives through layered detection
Using customer verification sparingly and intelligently

In short, it finds the right balance between fraud prevention and a frictionless returns process.

Behind the Scenes: What AI Actually Looks At

This isn’t black magic, it’s smart automation trained on mountains of data:

Historical data: Past behaviors of repeat offenders and loyal shoppers
Data points: Shipping speed, order value, return time frame
Customer data: Addresses, accounts, payment histories
Delivery tracking: GPS drops vs. “item not received” claims

Together, these inputs help detect fraud across a spectrum, from empty box fraud to money laundering via returns.

The Business Benefits

When ecommerce companies implement AI-powered returns management, they see results fast. These benefits contribute to the long-term success of ecommerce businesses:

✔ Reduced Operational Costs

Less need for manual review
Faster returns management process

✔ Improved Customer Loyalty

Quicker refunds for genuine customers
Confidence that return policies are fair

✔ Higher Margins

Fewer fraudulent returns and chargebacks
More high-value items are resold instead of being written off

✔ Smarter Policy Decisions

AI insights guide better rules
Target return abuse without punishing everyone

It’s a full-circle win for ecommerce businesses who want to scale securely.

Final Thoughts: AI Is the Future of Fraud Prevention

Return fraud is constantly evolving. So are the tools to fight it. By leveraging AI and machine learning in the returns management space, sellers are turning what used to be a liability into a competitive edge.

With platforms like Cahoot, advanced technology no longer belongs only to the big guys. Even mid-size online stores can now fight receipt fraud, friendly fraud, and return scams with precision.

So next time someone tries to game the system with a personal gain hustle, just remember: AI sees all. And it doesn’t blink.

Frequently Asked Questions

How does AI detect fraudulent returns in ecommerce?

AI fraud detection for ecommerce returns works by analyzing returns data, customer behavior, and product images to identify suspicious patterns. It can flag issues like empty box fraud, receipt fraud, or mismatched serial numbers by comparing return requests against historical transaction data and trained machine learning algorithms.

What is the difference between return abuse and friendly fraud?

Return abuse often involves intentional schemes like wardrobing or box switching for personal gain, while friendly fraud includes tactics like claiming an item was never received to get a refund. Both forms of fraudulent activity are increasing in ecommerce returns, and AI-powered systems help detect these behaviors quickly.

Can AI-powered returns management improve customer satisfaction?

Yes. By separating legitimate customers from bad actors, AI-powered returns management allows genuine customers to experience faster processing, easier refunds, and less hassle, while fraudsters face more scrutiny. This helps maintain customer loyalty, customer trust, and a positive customer experience.

What types of ecommerce return fraud does AI help prevent?

AI helps identify and prevent a range of fraud types, including stolen merchandise returns, false claims, empty box fraud, refund fraud, and return scams. It uses data points like return frequency, image analysis, and customer history to flag high-risk transactions for further review.

Why is AI better than traditional fraud prevention methods?

Unlike manual reviews or blanket return policies that can frustrate loyal customers, AI fraud detection tools use advanced technology to spot fraud patterns in real-time. This results in lower operational costs, stronger fraud defenses, and better long-term success for ecommerce businesses.

Written By:

Indy Pereira

Turn Returns Into New Revenue

Convert returns into second-chance sales and new customers, right from your store.

Strategies to Mitigate FedEx and UPS Surcharges 2025

Why Are These Surcharges Getting Worse?
What This Means for Your Ecommerce Operation
1. Know Your Surcharge Triggers
2. Reroute Using Distributed Fulfillment
3. Leverage Regional Carriers and USPS
4. Negotiate Like a Pro
5. Bundle Smart and Reduce Dead Weight
6. Offer Incentives to Offset Costs
7. Monitor, Adjust, Repeat
8. Stay Compliant: Commercial Invoice Requirements
Final Thoughts
Frequently Asked Questions

Let’s not sugarcoat it. The 2025 UPS and FedEx surcharges are hitting hard, and if you run an ecommerce business, you’re likely already feeling it in your margins. These aren’t just petty rate hikes; we’re talking residential delivery fees, large package surcharges, and peak season multipliers that could straight-up wreck your bottom line if left unchecked. New surcharges and additional fees can quietly inflate costs for ecommerce businesses if not monitored closely.

So what do we do? Panic? Raise prices? Light a candle? Nah. Let’s talk smart ecommerce shipping strategy. This article will help you identify and address these additional fees before they quietly eat into your profits.

Why Are These Surcharges Getting Worse?

Simple: higher costs for carriers, inflation, delivery network strain, and the never-ending Amazon arms race. Carriers know ecommerce businesses rely on them, and they’re capitalizing on that reliance with complex, hard-to-negotiate fees. To increase revenue, carriers are introducing new surcharges and modifying their pricing structure, resulting in additional revenue streams that shippers must monitor closely.

It used to be seasonal. Now it’s structural. UPS recently added a higher “Additional Handling” fee for packages over 30 pounds, and FedEx followed suit with new zone-based surcharges on bulky items. These changes are part of the evolving UPS surcharges landscape, reflecting how carriers are using new fees and pricing structure adjustments to drive revenue. If your business ships large packages (think fitness gear, small furniture, or bundled orders), you’re in the crosshairs.

What This Means for Your Ecommerce Operation

These aren’t line items you can just absorb. Surcharges and fees affect not just shipping costs but also other aspects of your business, including a new 2 percent payment processing fee on most charges. If you’re not actively working to reduce shipping costs with UPS and FedEx, you’re leaving money on the table, or worse, eating it. That “free shipping” promise starts to feel like a bad joke.

Changes in shipping rates and surcharges can significantly impact shippers’ bottom lines. This is where shipping strategy becomes a profit lever.

1. Know Your Surcharge Triggers

First up: audit your shipments. Where are the fees coming from?

Oversize or large package fees? (Services affected: typically ground and express shipments)
Residential delivery? (Services affected: home delivery and residential ground services)
Peak delivery windows? (Services affected: all expedited and time-definite services)
ZIP codes with higher fees (“extended area surcharge”)? (Services affected: rural and remote area deliveries; charges subject: extended area surcharges)

Understanding which charges are subject to surcharges for each package shipped is crucial for controlling shipping costs and optimizing your logistics strategy.

Use this data to model scenarios: “What happens if I split shipments differently? Consolidate? Change carriers regionally?”

2. Reroute Using Distributed Fulfillment

If you’re shipping coast-to-coast from a single warehouse, you’re stacking up zone charges. A 4 lb box from NYC to Oregon isn’t the same cost as one going to Jersey.

Using distributed fulfillment cuts zone distance, enables faster delivery, and reduces per-package surcharge exposure, including those related to domestic ground shipping services. This is especially important for large or heavy ecommerce products.

Additionally, consolidating shipments can further minimize surcharge costs.

3. Leverage Regional Carriers and USPS

Don’t let UPS and FedEx think they’re the only game in town. Regional carriers like OnTrac and LSO are expanding coverage and love ecommerce volume. For lighter shipments, USPS remains competitive and immune to many surcharge layers. However, keep in mind that services like UPS Ground Saver® and various air services, including UPS Next Day Air, UPS 2nd Day Air, and international air options, are also subject to changing fuel surcharges, which can impact your shipping costs.

Use carrier rate shopping logic to auto-select the most affordable carrier based on destination, weight, and dimensions, and consider how surcharges on UPS Ground Saver and air services may affect your total rates.

4. Negotiate Like a Pro

Yes, you can negotiate UPS and FedEx rates, but you need leverage. Demonstrating high shipping volume and effectively managing frequent shipments can provide significant bargaining power. Show them your volume growth, historical performance, and willingness to shift volume elsewhere. Push for:

Waived or reduced surcharges
Custom DIM divisor
Discounts for specific ZIPs or package types
Better terms on traditional shipping rates and all ancillary fees, not just base rates

And don’t just do this once a year. Re-negotiate quarterly if needed.

5. Bundle Smart and Reduce Dead Weight

Product bundling sounds simple until you realize you’re accidentally triggering dimensional weight charges or bumping into a surcharge tier. Optimizing packaging can provide value-added benefits and reduce the risk of incurring extra surcharges.

Use cartonization software or fulfillment logic to optimize what goes in each box. Small tweaks to packaging design or SKU mix can save you thousands.

6. Offer Incentives to Offset Costs

Let your customers help. Offer:

Store pickup or local delivery discounts
Extended delivery timelines for lower-cost options
Free shipping thresholds to encourage higher-margin AOVs

You’re not passing on fees, you’re framing value.

7. Monitor, Adjust, Repeat

Surcharges change quarterly, and as mentioned, fuel surcharges are especially important to monitor as they can significantly bump your shipping costs. Fluctuating fuel prices directly impact how carriers adjust fuel surcharges, so it’s essential to track these changes and adjust your strategies accordingly. Don’t wait for the damage to show up in your P&L. Set up automated reporting by carrier, SKU, zone, and surcharge type. Watch trends.

A client of ours shipping workout gear will trim \$40 K from their shipping budget by simply redesigning two SKUs to avoid “additional handling” fees. Total cost: \$3 K in packaging R&D.

Recent changes include more frequent updates to fuel surcharges based on weekly fuel price indices, and new surcharge structures that can significantly bump costs if not closely monitored. The key takeaway: Stay proactive by tracking all surcharges, especially those affected by fluctuating fuel prices, and be ready to adjust your shipping strategies to minimize the impact on your bottom line.

8. Stay Compliant: Commercial Invoice Requirements

If you think surcharges only hit you at the shipping label, think again. Earlier this year, UPS rolled out a new “Paper Commercial Invoice Service Surcharge,” meaning every time you send a shipment with a paper commercial invoice, you’ll get dinged with an extra fee. For businesses still relying on traditional invoicing methods, this is one more way shipping costs can quietly inflate.

A commercial invoice isn’t just paperwork; it’s a required document for international shipments, detailing what’s in the box, its value, and who’s sending and receiving it. Get it wrong, and you risk delays, compliance headaches, or even more fees. Get it right, and you keep your shipments moving and your costs in check.

To avoid this new surcharge, start paying closer attention to your invoicing processes. Switching to digital form, electronic invoicing (e-invoices) not only helps you dodge the UPS paper invoice fee but also streamlines your shipping workflow and reduces manual errors. Make sure your shipping software or logistics provider supports digital commercial invoice generation and submission.

Bottom line: staying compliant with commercial invoice requirements isn’t just about avoiding penalties, it’s about keeping your shipping costs under control and your business running smoothly. Don’t let outdated invoicing practices add unnecessary fees to every shipment. Embrace digital, stay ahead of the surcharges, and keep your logistics costs lean.

Final Thoughts

The 2025 UPS and FedEx surcharge landscape isn’t going to let up. But ecommerce brands that treat shipping like a strategic function, not a static cost, will thrive.

To succeed, adopt a holistic approach to managing logistics costs across your entire supply chain. This means not only focusing on shipping rates, but also understanding how payment processes, payment habits, and payment fees impact your bottom line. Regularly review your payments strategy to optimize for efficiency and maintain healthy cash flow.

Be aware that late payment fees, processing fees, and payment fees on most invoice charges can quickly add up, disrupting cash flow and increasing overall expenses. Late payers face a steep 9.9 percent late fee, and prior late fees will be incorporated into your past-due balance, compounding the cost of overdue accounts. Tracking each transaction and understanding the fee per payment method, whether ACH payments, wire transfers, or paper invoices, is essential for cost control.

Traditional payment methods now often incur additional charges, so consider switching to ACH payments, which are typically fee-free and help streamline payment processes. Avoid extra costs by moving away from paper invoices and printed invoice copies, as these now come with a \$5 fee per invoice. Digital invoicing solutions can help you save money and improve efficiency.

Always check the effective date of new surcharges and payment policy changes to ensure compliance and avoid unexpected costs. For expert guidance on navigating these changes and optimizing your logistics strategy, consult with an expert.

Audit. Distribute. Negotiate. Automate. Adjust.

It’s not about fighting surcharges with brute force. It’s about outsmarting them.

So take a deep breath, pull up your shipping data, and start cutting where it counts. The savings are there. You just have to dig.

Frequently Asked Questions

What are the new UPS and FedEx surcharges for 2025?

UPS and FedEx have introduced increased surcharges in 2025 for large packages, residential deliveries, and fuel costs, significantly impacting ecommerce shipping expenses.

How can ecommerce brands reduce the impact of surcharges on large packages?

Brands can redesign packaging to meet dimensional thresholds, negotiate cubic pricing, or split shipments when appropriate to avoid oversized surcharges.

Can smaller ecommerce stores negotiate lower UPS and FedEx rates?

Yes, especially by leveraging third-party fulfillment networks or 3PLs that aggregate volume across multiple sellers, giving them stronger negotiating power.

Is it worth switching carriers due to the 2025 surcharge changes?

That depends on your shipping profile. Some regional carriers or hybrid services may offer better rates and fewer surcharges for specific zones or package types.

What role does shipping software play in managing surcharge costs?

Shipping software can help reroute orders, compare carrier rates in real-time, and optimize label selection to minimize surcharges and boost cost efficiency.

Written By:

Indy Pereira

Turn Returns Into New Revenue

Convert returns into second-chance sales and new customers, right from your store.

Reduce the Carbon Footprint of Ecommerce Returns Without Greenwashing

Returns: The Hidden Carbon Emissions Sustainability Sinkhole
The Problem with Offsets
The Role of Fast Fashion in Ecommerce Returns
What to Do Instead: Real Strategies for Sustainable Returns
The Importance of Transparency and Accountability
Reducing Environmental Impact through Education
The Bigger Picture: Returns as a Circular Opportunity
TL;DR: Stop Offsetting, Start Optimizing
Frequently Asked Questions

Let’s get one thing out of the way: buying carbon offsets isn’t a silver bullet. Sure, they might make a brand feel better. Throw some money at a reforestation project, slap a “carbon neutral” badge on the website, and call it a day. But customers? They’re not fooled anymore. The modern ecommerce shopper is savvier, more eco-aware, and has a nose for greenwashing from a mile away. With the rise of ecommerce, online returns have become increasingly common, adding new layers of complexity to sustainability efforts.

So, what can a brand actually do to make ecommerce returns more sustainable without hiding behind offsets and hope? Returns are the ecommerce world’s dirty secret. Returns significantly affect the environment by increasing emissions, packaging waste, and resource use due to the logistics involved in processing returned items.

Let’s talk about it.

Returns: The Hidden Carbon Emissions Sustainability Sinkhole

Returns are the ecommerce world’s dirty secret. That stylish jacket that gets sent back because the fit’s off? It’s not always going back on the shelf. Sometimes it’s rerouted halfway across the country, sometimes it’s trashed. Literally. Return parcels often travel long distances, sometimes internationally, adding significantly to carbon emissions.

According to industry estimates, ecommerce returns generate over 15 million metric tons of carbon emissions per year. Return shipping is a major contributor to these emissions, as the logistics of moving products back through the supply chain are often more complex than the original shipment. That’s not counting the packaging waste, the reverse logistics, or the markdown losses that fuel overproduction. In fact, the emissions from returns can be up to 30% higher than those from the initial delivery, and the return process can take up to three times longer than the initial delivery time, further increasing environmental strain.

And it’s only getting worse.

Returns are expected to increase in volume as online shopping keeps growing. Which means if a brand is serious about sustainability, this is the battleground. This is where the carbon battle is won or lost. Optimizing the return process is essential to reducing environmental impact and achieving true sustainability.

The Problem with Offsets

First, what are carbon offsets? Carbon offsets are a way to compensate for greenhouse gas emissions by funding projects that reduce or remove those emissions elsewhere. They represent a financial instrument, often in the form of carbon credits, that can be bought and sold to offset a company’s or individual’s carbon footprint. Essentially, you pay someone else to reduce emissions so you can balance out your own impact. Some refer to this practice as “greenwashing,” that is, misleading marketing that creates a positive public image as it relates to sustainability efforts, when in reality, companies are simply throwing money at the problem.

Offsetting carbon emissions has become the default sustainability strategy for many ecommerce brands. But let’s call it what it often is: a shortcut. It’s easier to buy carbon credits than to rethink logistics. But it’s also increasingly under scrutiny.

Customers and regulators alike are asking hard questions:

Are these offset projects even real?
Are they additional (i.e., would they have happened anyway)?
Are they permanent?
Are they actually reducing emissions or just moving guilt around?

If the answer to any of those is fuzzy, that shiny “carbon neutral returns” badge starts to look more like PR theater than real progress.

The Role of Fast Fashion in Ecommerce Returns

Fast fashion is a major driver behind the mountain of ecommerce returns and the environmental impact that comes with it. The fashion industry records some of the highest return rates, thanks to a business model built on rapid trends, low prices, and disposable products. This cycle encourages customers to buy more, try more, and return more, often with little thought to the consequences.

The result? A huge environmental impact. Every returned fast fashion item means more transportation, more packaging waste, and substantially more emissions. Many of these items are made from low-quality materials, making them harder to resell or recycle and more likely to end up in landfills.

Online retailers in the fashion industry can help break this cycle by adopting sustainable return processes. This means making it easier for customers to get sizing and fit right the first time, offering detailed product information, and encouraging customers to think twice before making impulse purchases. By promoting mindful shopping and streamlining return processes, online retailers can reduce unnecessary returns and their associated emissions, helping to create a more sustainable future for fashion.

What to Do Instead: Real Strategies for Sustainable Returns

Let’s dig into actual solutions that reduce the carbon footprint of ecommerce returns without playing the offset game.

1. Don’t Ship What Doesn’t Need to Be Returned

Before we talk transportation, let’s talk logic. Some returns just… shouldn’t happen. For instance:

Low-cost items where shipping back costs more than the refund.
Used or damaged items are better suited for resale, donation, or recycling.

Free returns policies often encourage customers to return more products, even when it’s unnecessary. As a result, customers return a significant percentage of online purchases, especially in categories like clothing, leading to high volumes of returns. This means customers sending back items unnecessarily, which increases emissions, packaging waste, and environmental impact.

Amazon, Target, and others are experimenting with “keep it” policies. It’s not charity, it’s math. And it slashes emissions.

Pro tip: Offer refunds or store credit for certain items without requiring them to be shipped back. Flag these automatically by value or category.

2. Make Online Returns Local

Centralized return centers? Good for control. Bad for emissions. Every mile adds CO₂. When return parcels travel long distances to centralized locations, they significantly increase carbon emissions. Return shipping over extended routes not only raises costs but also has a substantial environmental impact.

Instead, build a distributed returns network using local micro-fulfillment centers, third-party dropoff points (like Happy Returns), or even store partners. Let returns travel shorter distances and restock closer to the next buyer, optimizing the returns process for local returns.

Pro tip: If you run a Shopify store, check out apps that integrate dropoff points or enable peer-to-peer returns.

3. Sell Returns Before They Ship

This one’s juicy. Some startups (yes, Cahoot is in this space) are enabling returns rerouted directly to the next buyer.

Say a customer in Dallas returns a pair of shoes. Instead of shipping them to a return hub in Ohio, list them instantly on your site as “open box,” and fulfill the next order right out of the first customer’s hands. The resale value of these products is a key economic consideration, as it may not always cover the expenses involved in the returns process. But in general, fewer miles, less waste, happier planet.

Pro tip: Market “returned but good as new” inventory as a value-conscious, sustainable choice for the next buyer.

4. Fix Fit, Friction, and Frustration

A huge chunk of returns aren’t defects; they’re disconnects.

“This doesn’t fit like I thought it would.”
“The color’s off.”
“I didn’t realize it needed batteries.”

These issues often arise when customer expectations are not clearly set or managed. Meeting or exceeding customer expectations through clear product information and communication is crucial to reducing returns.

Every return like that is a failure of expectation-setting. Use smarter sizing guides, AR try-on tools, richer product pages, and yes, better post-purchase communication to prevent avoidable returns altogether.

Pro tip: Track return reasons obsessively. Fix the upstream problem.

5. Consolidate Reverse Logistics

Every one-off return is a sustainability nightmare. Smart brands offer:

Scheduled return pickups
Bundled return shipments
QR-code dropoffs that batch items into optimized routes

Optimizing returns processes is crucial for sustainability; streamlining each step reduces waste and environmental impact.

Instead of one label, one box, one truck, turn returns into networked events. Fewer trips, fuller trucks, smaller footprint.

Pro tip: Work with 3PLs or carriers that offer consolidated reverse logistics as part of their service model.

6. Rethink Packaging and Waste

Packaging is often the first thing customers see, and the first thing they throw away. Rethinking packaging and waste is a powerful way to shrink the carbon footprint of ecommerce returns. Start by swapping out traditional materials for sustainable packaging options: think biodegradable mailers, recyclable boxes, and paper-based alternatives to plastic bubble wrap.

But don’t stop there. Encourage customers to reuse packaging for their returns, or even for other purposes at home. A simple “reuse and recycle” message in your return instructions can go a long way toward minimizing waste. Some brands even offer incentives for customers who return items in their original packaging.

By prioritizing sustainable packaging and minimizing waste, online retailers can cut environmental costs and help build a more sustainable future, one return at a time.

7. Leverage Technology for Smarter Returns

Technology is a game-changer when it comes to optimizing return processes and reducing environmental impact. Virtual try-on technology lets customers see how clothes or accessories will look and fit before they buy, slashing the number of returns due to poor fit or style mismatches. This not only enhances customer satisfaction but also reduces the environmental footprint of online shopping.

AI-powered return management systems can further streamline return processes for online retailers. These tools can predict which items are most likely to be returned, automate approvals, and even suggest the most sustainable route for each return. The result? Faster, smarter returns that use fewer resources and generate less waste.

By embracing technology-driven solutions, online retailers can deliver a more positive customer experience while making meaningful progress toward sustainability.

The Importance of Transparency and Accountability

In the ecommerce industry, transparency and accountability are non-negotiable for reducing the environmental impact of returns. Customers want to know exactly how their returns are handled, where items go, how waste is minimized, and what steps are being taken to reduce emissions.

Online retailers should clearly communicate their return policies and processes, making it easy for customers to understand what happens after they send something back. This includes being upfront about efforts to minimize waste, use sustainable materials, and optimize return processes for lower emissions.

By holding themselves accountable and sharing their progress, online retailers can build trust, set themselves apart in a crowded market, and drive the entire industry toward more sustainable practices.

Reducing Environmental Impact through Education

Education is a powerful tool for reducing the environmental impact of ecommerce returns. Online retailers have a unique opportunity to inform customers about the environmental costs of returns and the benefits of making more sustainable choices.

This can be as simple as including information on product pages about the carbon footprint of returns, or as involved as partnering with environmental organizations to promote sustainable shopping habits. By raising awareness and encouraging customers to think before they buy or return, retailers can help shift behavior toward a more sustainable future.

Empowering customers with knowledge not only reduces waste and emissions but also strengthens brand loyalty and positions online retailers as leaders in building a more sustainable ecommerce industry.

The Bigger Picture: Returns as a Circular Opportunity

Sustainability isn’t just about less carbon. It’s about less waste, less overproduction, and more reuse. Using more sustainable materials in returned products can significantly reduce the environmental impact and support circularity.

Returned items don’t have to be liquidated, dumped, or buried in clearance tabs. With the right tech stack and reverse logistics flow, returns can fuel:

Refurbished product lines
Second-chance marketplaces
Loyalty-building exchanges
In-house recommerce

However, the process of handling returns often generates extra packaging materials, excess packaging, plastic packaging, plastic waste, and plastic packaging waste, all of which contribute to environmental impact and landfill accumulation. Returned synthetic products can emit plastic particles, further polluting the environment. Improper disposal of returned goods can even result in open-air dumping sites, as seen in some regions.

The scale of the problem is massive, with billions of pounds of returned products, specifically, 9.5 billion pounds, ending up in landfills each year. These practices contribute to global carbon emissions, greenhouse gas emissions, and CO₂ emissions, highlighting the true environmental cost of ecommerce returns. Many synthetic materials in returned goods are produced using fossil fuels, compounding the emissions problem.

Certain categories, such as consumer electronics, present unique challenges due to hazardous materials and recycling difficulties. Compared to returns from online shopping, in-store purchases generally have lower return rates and generate less waste, making them more sustainable options. Thus, traditional shopping contributes less to packaging waste and emissions than ecommerce.

Online shopping returns and ecommerce returns, however, are associated with higher rates of returns, more packaging waste, and greater environmental cost. Online shopping leads to increased waste from online purchases, and the percentage of returns from online purchases varies widely by industry. The fashion industry recorded some of the highest return rates, further amplifying the issue.

The same emissions generated by reverse logistics, repackaging, and landfilling of returns are comparable to those produced by millions of cars. Paper waste is another significant byproduct of inefficient return processes.

Both consumers and retailers share responsibility for reducing the environmental impact of returns. Adopting sustainable practices can improve customer loyalty and demonstrate environmental responsibility, helping brands improve customer loyalty and build long-term trust.

Brands like Patagonia, Lululemon, and IKEA are already piloting resale programs that give used items a second life. This isn’t fringe. It’s the new mainstream. Swapping plastic packaging for more sustainable alternatives is another step brands can take to reduce waste and support circularity.

Pro tip: Create a branded “like new” collection and route eligible returns there instead of the liquidation abyss.

TL;DR: Stop Offsetting, Start Optimizing

If your entire returns sustainability strategy hinges on buying carbon credits, it’s time for a reboot.

Ecommerce brands have a huge opportunity to lead by:

Reducing returns in the first place
Routing them smarter and shorter
Repurposing returns into value
Implementing infrastructure that supports circular commerce

And you don’t need to be a $1B DTC darling to do this. Start small. Automate smarter. Ask better questions.

Because no amount of offsets will fix a broken process.

Frequently Asked Questions

How can ecommerce brands reduce return-related carbon emissions without offsets?

By using regional return hubs, minimizing return shipments through virtual try-ons or better sizing tools, and refurbishing items locally instead of reshipping them.

Why are carbon offsets considered greenwashing by some experts?

Because many offsets don’t reduce emissions at the source, they often act as a license to pollute rather than driving systemic sustainability improvements.

What are practical alternatives to carbon offsets for online retailers?

Implementing smart return routing, peer-to-peer resale, local drop-off partnerships, and clearer product education can meaningfully reduce returns emissions.

Do returns really make a big environmental impact?

Yes, especially when returns are shipped back, repackaged, restocked, or discarded. Each step contributes to carbon output, waste, and energy use.

How can ecommerce brands make their returns policy more sustainable?

Start by making returns frictionless but intentional: require reason codes, incentivize exchanges, offer local return options, and prioritize reuse or donation of returned items.

Written By:

Indy Pereira

Turn Returns Into New Revenue

Convert returns into second-chance sales and new customers, right from your store.

Why Temperature-Controlled 3PL Fulfillment Services Is Hot

Why Brands Are Getting Serious About Temperature-Controlled Warehousing
Four Ranges, Endless Requirements
The Cold Storage Supply Chain Is Booming
When Is Controlled Warehousing the Right Move?
Key Benefits of Temperature-Controlled 3PL Fulfillment
What to Look for in a Temperature-Controlled Facility
Final Thoughts
Frequently Asked Questions

So here’s the deal: not all products like to chill the same way. Some want crisp air. Others prefer it mild. And then there are the divas, like cheese, chocolate, and pharmaceuticals, that absolutely must stay within a consistent temperature range or things go sideways fast. Enter the world of temperature-controlled 3PL fulfillment services, where warehouses become climate whisperers and storage becomes science.

And let’s be honest, if you’re shipping temperature-sensitive products without the right temperature control setup, you’re flirting with spoilage, recalls, and angry emails. No one wants that.

Why Brands Are Getting Serious About Temperature-Controlled Warehousing

Blame it on the rise of DTC food, supplements, skincare, and all those perishable goods showing up on doorsteps. Ecommerce has exploded into categories that used to be strictly brick-and-mortar. Now everyone’s shipping salsa, serum, and medicinal products, and they all demand different temperature ranges and humidity levels.

That’s where temperature-controlled warehousing steps up. It’s not just about slapping an AC unit in the corner and calling it a day. A true climate-controlled warehouse is a carefully calibrated environment, with everything from refrigeration equipment to humidity control, air conditioning, and yes, even sandwich panels to regulate insulation.

Think of it like this: the temperature-controlled warehouse maintains product integrity the way a museum maintains art. It’s protection. It’s preservation. It’s essential.

Four Ranges, Endless Requirements

Let’s talk numbers. Most temperature-controlled facilities operate within four different temperature ranges:

1. Frozen (-10°F to 0°F): For ice cream, frozen meats, and products that prefer sub-zero vibes.

2. Refrigerated (33°F to 40°F): Think produce, pharmaceutical products, food grade items, and alcoholic beverages that demand cool-but-not-frozen conditions.

3. Ambient storage (50°F to 70°F): This is your standard controlled environment, great for supplements, makeup, or dry snacks.

4. Room temperature with humidity control: Often overlooked but critical for chocolate, electronics, and other temperature-sensitive goods.

Without proper temperature monitoring, one spike in heat or dip in cold air, and your stored goods could be toast. Literally. Improper storage doesn’t just shorten shelf life, it can lead to product quality issues, regulatory compliance headaches, and, worst-case scenario, a full-blown recall.

The Cold Storage Supply Chain Is Booming

We’ve all heard of the cold chain, but the spotlight on cold storage really intensified during the pandemic. Vaccines, fresh produce, and meal kits made everyone realize how fragile product integrity can be when temps aren’t dialed in just right.

Now that ecommerce has leaned hard into consumables, the need for temperature-controlled warehouse facilities isn’t just for Big Pharma or Big Food. Even indie brands selling elderberry syrup or adaptogen smoothies need safe storage that meets safety standards.

And that’s where 3PLs with temperature-controlled warehousing solutions come in hot (and cold). They’re building out storage space with energy consumption top of mind, balancing optimal storage with sustainability. It’s a delicate dance, keeping products stored safely while not blowing up the power bill.

When Is Controlled Warehousing the Right Move?

If you’re shipping anything that falls under sensitive products, perishable products, or items with “store below 72°F” on the label, yes, it’s time. That includes:

Food products (fresh, frozen, or fancy)
Pharmaceutical products
Alcoholic beverages (yes, some spoil)
Temperature sensitive goods like vitamins, probiotics, and CBD
High-end cosmetics and skincare with active ingredients
Specialty beverages, dairy alternatives, etc.

Look, there’s no one-size-fits-all in fulfillment. But if your goods don’t like high temperatures, or they melt, separate, rot, or grow fur in transit, temperature controlled storage isn’t optional. It’s critical.

Key Benefits of Temperature-Controlled 3PL Fulfillment

Here’s what a solid temperature controlled warehousing partner brings to the table:

Consistency. A climate-controlled setup isn’t just cool sometimes. A good 3PL keeps a consistent temperature 24/7 using smart sensors, alarms, and responsive temperature monitoring systems.
Flexibility. Need 1,000 square feet today and 10,000 next month? The right provider scales storage units and square footage with your seasonal swings.
Regulatory compliance. Whether you’re dealing with FDA, USDA, or international guidelines, these folks help ensure compliance so you don’t get flagged or fined.
Product quality. When your stored goods arrive fresh, intact, and ready to use, your customers notice. And so do your reviews.
Lower risk. No more worrying about improper storage, spoiled batches, or losing a pallet because someone didn’t close the fridge door right.

What to Look for in a Temperature-Controlled Facility

Not all warehousing solutions are created equal. If you’re shopping for a 3PL, ask the awkward questions:

What temperature ranges do they support?
Can they offer different temperature zones in the same facility?
Do they offer cold chain tracking or just ambient delivery?
How often do they inspect and recalibrate their refrigeration equipment?
What’s their backup power situation if temperatures rise unexpectedly?

Oh, and don’t forget the nerdy stuff, like expansion valves, airflow testing, and environmental conditions reporting. It’s not sexy, but it matters.

Final Thoughts

As ecommerce keeps moving into categories like wellness, food, and pharma, temperature-controlled warehousing needs are becoming the norm, not the niche. A few degrees can make or break a customer experience. A few missed requirements can sink a whole product launch.

So if you’re scaling a brand that relies on product integrity, get serious about your controlled warehousing strategy. Because when it comes to sensitive goods, the wrong warehouse is worse than no warehouse at all.

And if you’re still storing collagen gummies in your garage, well, it’s time to upgrade.

Frequently Asked Questions

What is temperature-controlled warehousing, and why does it matter?

Temperature-controlled warehousing is a storage solution that keeps goods within specific temperature and humidity ranges. It protects temperature-sensitive products from spoilage, ensuring quality, safety, and compliance across the supply chain.

Which products require temperature-controlled storage?

Items like perishable food, pharmaceutical products, skincare, supplements, and alcoholic beverages often need controlled temperatures to maintain product integrity and shelf life.

What temperature ranges are used in temperature-controlled warehouse facilities?

Most facilities operate within four different temperature ranges: frozen (-10°F to 0°F), refrigerated (33°F to 40°F), ambient (50°F to 70°F), and room temp with humidity control.

How does temperature-controlled warehousing support regulatory compliance?

By maintaining a consistent temperature range and offering detailed temperature monitoring, controlled facilities help brands meet FDA, USDA, and food safety standards.

Can a 3PL offer both ambient storage and cold chain solutions?

Yes. Many modern 3PLs provide flexible temperature-controlled warehousing solutions that include cold storage, ambient zones, and climate-controlled spaces, all under one roof.

Written By:

Indy Pereira

Turn Returns Into New Revenue

Convert returns into second-chance sales and new customers, right from your store.

How US Sellers Can Thrive Against Global Competition

The ecommerce industry has experienced a dramatic shift in recent years, with global Sellers gaining direct access to U.S. consumers. Platforms like Amazon, Temu, and Shein have made it easier than ever for international merchants, particularly those based in China, to reach American shoppers with competitively priced products. At the same time, social media trends such as the “Amazon Haul” phenomenon have fueled consumer demand for affordable and trendy products, often sourced from overseas suppliers.

This global competition presents both challenges and opportunities for U.S.-based Sellers. While international merchants benefit from cost-efficient manufacturing and logistics, American businesses can still thrive by leveraging their strengths such as superior customer service, branding, and localized marketing strategies. By understanding the changing dynamics of ecommerce and implementing smart business tactics, domestic Sellers can remain competitive and grow their market share.

Make Returns Profitable, Yes!

Cut shipping and processing costs by 70% with our patented peer-to-peer returns solution. 4x faster than traditional returns.

See How It Works

Understanding the Competitive Landscape

Historically, American retailers sourced products through distributors and wholesalers, often relying on Chinese manufacturers for affordable goods. However, the rise of ecommerce platforms has eliminated many middlemen, (a phenomenon known as disintermediation), allowing manufacturers and Sellers from China to sell directly to U.S. consumers at lower prices.

A study by Marketplace Pulse found that in five major European Amazon marketplaces (Spain, France, Italy, the UK, and Germany), 41% of Sellers were based in China. In a different study by the same source, China-based sellers were found to represent nearly 50% of the top 10,000 Sellers on Amazon in the U.S. Additionally, upwards of 95% of Chinese Sellers use Fulfillment by Amazon (FBA) depending on the product category, ensuring fast and reliable shipping that levels the playing field with domestic merchants.

Despite these challenges, U.S. Sellers have unique advantages that can help them stand out in an increasingly competitive marketplace. Here’s how:

1. Competing with More Than Just Price

While low prices can attract customers, American consumers also value quality, trust, and customer service. Sellers who prioritize superior product quality, hassle-free returns, and excellent customer support can differentiate themselves from international competitors.

2. Leveraging Branding and Storytelling

Companies like Shein and Temu rely on aggressive digital marketing to promote their ultra-low-cost products. However, many consumers also seek brands that offer authenticity, transparency, and ethical sourcing. U.S. Sellers can build brand loyalty by emphasizing their company’s values, quality control, and customer engagement strategies.

3. Smart Marketing and Customer Engagement

Establishing an independent website allows Sellers to cultivate their own customer base rather than relying solely on third-party marketplaces. Targeted digital marketing, social media engagement, and partnerships with influencers can help businesses create a loyal audience and drive repeat sales.

4. Supply Chain Optimization

Efficiency in sourcing and logistics is crucial to competing with global Sellers. By improving demand forecasting, negotiating better supplier agreements, and optimizing shipping and fulfillment strategies, domestic Sellers can lower costs and improve profit margins.

5. Expanding Product Categories and Sales Channels

Instead of competing head-to-head in oversaturated categories, Sellers can explore niche markets with consistent demand. Additionally, diversifying sales across platforms like Walmart, eBay, and Shopify reduces dependence on Amazon and creates new revenue streams.

Thriving in a Global Ecommerce Market

The increasing presence of global Sellers on platforms like Amazon, Shein, and Temu has reshaped ecommerce, but it does not mean U.S. businesses cannot compete. By focusing on quality, branding, smart marketing, and operational efficiency, American Sellers can carve out a strong position in the marketplace. Success in ecommerce is not just about offering the lowest price—it’s about providing value, building customer trust, and adapting to an ever-changing digital retail environment.

Written By:

Indy Pereira

Turn Returns Into New Revenue

Convert returns into second-chance sales and new customers, right from your store.

Top 5 Pricing Strategies For Making Free Shipping Profitable

Pricing is one of the most determining factors of a customer’s buying decision. While customers naturally gravitate towards the lowest price, this expectation is now the norm thanks to marketplaces placing a high importance on low final prices (which includes the list price and shipping cost). If you look at any product page in Amazon, very likely the Seller who has the Buy Box also has the cheapest offer. This price expectation puts pressure on online Sellers to set a “just right” price that is both low, but low enough to cover free shipping. As a result the cost of shipping is an important component of online product pricing.

In this article, we will talk about five ways to recover your shipping costs using strategic pricing strategies:

1. Include Shipping Costs in Product Prices

Remember the last time you were irritated about hidden resort fees during hotel checkout? Or that mysterious additional tax you didn’t know about when traveling to a new city? Similarly, customers perceive a surprise shipping charge negatively, which might lead to cart abandonment.

However, the shipping cost is an inseparable part of selling online. There should be no reason to treat this cost separately. What if you included the shipping cost in the price of the item?

Imagine having to pick between these two options for something you’re about to buy:

Option 1: $30 + $5 shipping charge
Option 2: $35 with free shipping

Bill DAlessandro, from consulting firm Rebel CEO, ran this very test for a skincare product and found that including shipping in the product cost (Option 2) converted twice as many shopping carts. Several other studies have shown that customers are more likely to abandon the shopping cart when they see a shipping charge added during checkout, the top reason by more than 2-fold!

How do you distribute shipping costs to individual item prices? One approach is to change the pricing of items below your free shipping threshold to include a portion of the expected shipping cost.

Say a merchant offers free shipping for orders of $50 or more, and the average shipping cost is $5. Start by converting your sale price to a percentage of the free shipping threshold, and then add that percentage of the average shipping cost to the item price. For example, a $25 item is 50% of the $50 free shipping threshold, so add 50% of the shipping cost to the item price ($2.50), for a new sale price of $27.50. Similarly, a $10 item is 20% of the $50 free shipping threshold, so add 20% of the shipping cost to the item price ($1.00), for a new sale price of $11.00.

Pros:
The advantages of including shipping costs in the product price are:

The abandoned cart rate goes down as there is more transparency from search to checkout.

Your store stands out by having the free shipping banner compared to other stores that don’t, regardless of their pricing.

Cons:
There are other factors that you might want to keep in mind before using this method:

Higher prices may price you out of the market with customers who are willing to pay the extra shipping charges during checkout.

If the customer initiates a return, you need to refund the listed price including a part of the shipping cost baked into it.

Customers buying multiple items would prefer a separate, lower shipping charge on the whole purchase rather than higher prices on individual items.

Make Returns Profitable, Yes!

Cut shipping and processing costs by 70% with our patented peer-to-peer returns solution. 4x faster than traditional returns.

See How It Works

2. Offer Free Shipping on Select Items Only

It is tough to offer free shipping for your entire product catalog when you sell everything under the sun, big or small. But you can thoughtfully select which items to offer with free shipping.

It is often the items with low-margins, heavy-weight, and big-size that suffer losses from shipping costs. This should not stop you from providing your customer with free shipping on higher-margin items where the shipping cost is not a big chunk of the product price.

The key is communicating it effectively to the customer. Being clear and upfront about such restrictions will help customers navigate your page easily and with trust. Here’s an example that Neil Patel demonstrates in this blog where the Seller offers free shipping on all footwear SKUs:

Free shipping on certain SKUs help reduce the burden on shipping on sellers

Source: https://neilpatel.com/blog/make-free-shipping-profitable/

A more subtle way to offering free shipping on specific products is setting a free shipping threshold that meets exactly the item you plan to offer free shipping. For example, if your website sells shoes starting at $75 and socks starting at $12; setting free shipping at $75 allows you to offer free shipping to anyone who buy at least 1 pair of shoes, but will only offer free shipping if someone orders 7 pairs of only $12 socks.

He goes on to show how there is a marked improvement in net profits with this experiment despite a reduction in margin per SKU. The increase in sales yields more revenue and higher overall profitability.

Pros:
Offering free shipping on a limited SKU selection has its benefits:

It increases sales volume, effectively negating any decrease in margin per single item.

It helps recruit new loyal customers who can make repeat purchases if they are satisfied with your products and customer experience, increasing their lifetime value.

Guides customers’ focus to the items you want them to buy (e.g., high margin items, best sellers, etc.)

Cons:
Keep in mind these few things while implementing this shipping strategy:

Free shipping on select items works best when an order contains at least one higher-priced item with a low shipping cost.

Promoting free shipping on one item may inaccurately signal to the customer that you specialize in that item only.

3. Enable Free Shipping on Large Orders

Setting a minimum order value to unlock free shipping increases your revenue, creating the margin needed to recover your shipping costs. But this shipping strategy does not work for everyone.

Publishing a minimum order value encourages customers to target a particular shopping cart subtotal such as $50. But if you have a limited product catalog, the customer may abandon the purchase because they cannot find additional relevant items to purchase. In this case, it may be easier to nudge them with a prompt that says, “free shipping when you buy 3 or more”, targeting an order quantity rather than an order subtotal. It may sound silly, but not all customers would think of increasing the item quantity to achieve the free shipping threshold.

It works best for consumables that customers regularly buy, like personal care or household items. For these products, customers are used to expecting savings when buying in bulk. The end goal is similar to the minimum order value in that the merchant can increase the average order value and ship the items together to decrease the shipping costs.

Pros:
The advantages of bulk/quantity-based free shipping offers are:

It’s easy for customers to increase the quantity of a product they already want to buy and may want to repurchase in the future.

Shipping multi-unit orders is more time and cost-effective compared to fulfilling orders for the same items one at a time.

Cons:
A possible hindrance to something like this would be:

It is mostly applicable only to consumables that customers regularly repurchase over time.

It will not be profitable for items that cannot be shipped together to gain packaging and shipping cost efficiency.

4. Introduce Flat Rate Shipping

If for some reason it is not possible to include shipping costs in your product prices, there is still a way to manage customer expectations. Customers will have less anxiety about shipping charges if they know the flat rate shipping cost upfront, regardless of how much they spend.

Online shoppers must take into account many factors when deciding on a purchase. Making the shipping cost clear and simple will make the shopping experience easier, and customers respect the transparency.

You should consider your average margin per unit and average shipping cost to calculate a profitable flat rate to charge. Here’s an example of an online Seller advertising flat rate shipping very effectively: “We don’t want our customers to experience sticker shock when they see the shipping rates at our store. Also, we want to make our online shopping experience straightforward and having a $10 Flat Rate Shipping charge lets customers quickly calculate their costs. That can’t be a bad thing, right?”

Source: https://www.giftbasketsfrommichigan.com/blog/gift-baskets/everyday-10-flat-rate-shipping

There are many flat rate services to choose from (size and weight restrictions apply):

FedEx One Rate has several options for overnight and 2-day flat rate shipping, depending on what time of day the package needs to be delivered. Pricing depends on the size of the package (dimensions) and how far it’s traveling (there are 3 zones defined). FedEx offers free packaging included with each service, which is a nice perk to keep cost down.
UPS Simple Rate has more flexible shipping speeds accommodating next day, 2-day, 3-day, and 5-day transit times that in both air and ground services. There are no zones defined by UPS, so one rate is truly one rate, and a packaging subsidy is available for UPS Digital Connections members.
USPS Priority Mail Flat Rate delivers within 1 – 3 days, though it’s not guaranteed like FedEx and UPS flat rate services are, and only considers a single zone like UPS. Rates are cheaper when purchased using an online solution as compared to purchasing at a post office window, and Flat Rate boxes and mailers come in the widest variety of sizes and are free for shippers.

Pros:
Some of the advantages of flat-rate shipping are:

Sales increase as the customers increase their average order value to make the most of the flat rate.

The shipping options on the product page are much easier to configure.

Cons:
You should be careful about the following:

Flat rate shipping is not suitable for low-margin items. Depending on the flat rate you charge, such a margin may not cover the shipping cost when customers only order a single item during checkout.

It is also not profitable for items that have high shipping costs such as big and bulky, heavy, or items that require special packaging.

Convert Returns Into New Sales and Profits

Our peer-to-peer returns system instantly resells returned items—no warehouse processing, and get paid before you refund.

I'm Interested in Peer-to-Peer Returns

5. Adopt a Dynamic Shipping Charge

Customers may sometimes find your competition is offering the same items at lower prices. But in some cases, your warehouse may be closer to the customer allowing you to ship faster and cheaper than the competition, creating the opportunity to leverage your proximity by offering a more attractive shipping option.

To adopt a dynamic shipping price strategy, ask the customer for their zip code during checkout and use it to determine your actual cost and transit time using real-time rate shopping across all your carriers and services.

Maybe you want to determine if free shipping should be offered or not. Perhaps it’s used as a surprise and the enchanted customer feels that they’ve won something, increasing conversion rates.

Typically ecommerce Sellers calculate shipping charges using the average shipping rate for all their sales, a combination of different zones, sizes, and weights. So, some customers pay more than they should for shipping while others pay less. If the shipping charge imposed on the customer is higher than other Sellers, because of the kind of item you ship (heavier, larger, for example), your cart abandonment rate will be higher.

By collecting the zip code, there is an opportunity to charge the customer the shipping fee tailored to them, encouraging them to buy from you. You can get real-time estimates of shipping rates right from your shipping solution or Order Management System (OMS) by connecting it to the checkout page. This approach also ensures that your shipping cost is covered, effectively taking it out of the equation.

This blog by Squarespace explains one way to do it in great detail, including how to add a markup to create a profit center from your exceptional negotiated rates.

Source: https://support.squarespace.com/hc/en-us/articles/213022907-Carrier-calculated-shipping

Pros:
The big benefits of having this system are:

You can rest assured that you won’t lose money from shipping costs, no matter the location of the customer or change in carrier rates.

A portion of your customers will be rewarded for their proximity to your order fulfillment center, encouraging them to buy from you.

Cons:
There are repercussions to imposing a dynamic shipping charge:

If your fulfillment location is further from your target customers, you will end up charging your core market a higher-than-average shipping cost.

Temporary spikes in shipping rates may result in a customer lost for good, establishing your reputation for high costs.

No More Return Waste

Help the planet and your profits—our award-winning returns tech reduces landfill waste and recycles value. Real savings, No greenwashing!

Learn About Sustainable Returns

Summary

The reality of modern ecommerce is that free shipping is no longer a luxury, it’s an expectation. But it doesn’t have to be a burden on your bottom line. By integrating shipping costs into your pricing strategy, selectively offering free shipping, or using dynamic pricing models, you can create an approach that aligns with customer expectations while keeping your business financially healthy. The key is to experiment, track results, and adjust as necessary…what works for one business may not work for another. When done right, free shipping can become a powerful conversion tool that boosts sales, improves customer loyalty, and ultimately drives long-term profitability.

Download The Ultimate Guide to Profitable Free Shipping

Frequently Asked Questions

How to price for free shipping?

If the average shipping cost is $5 per order, that means you would lose $5 each time you provided free shipping. If, however, you increase product prices by 20% so the average product price is $10 or more, you can offset the cost of shipping on an average order.

Does offering free shipping increase sales?

Yes, offering free shipping can increase sales. Numerous studies show that free shipping is a key factor in purchasing decisions.

How do retailers afford free shipping?

Some merchants ask customers to cover shipping expense on smaller, lower margin orders. Shoppers are incented to buy more, since additional items ship for free. As the order size increases, overall gross margin goes up, covering the incremental shipping cost increase. Another option is to include shipping costs in product prices.

What is a good free shipping threshold?

Knowing how much an average customer spends per transaction can provide a better idea of what a business’ minimum order value for free shipping should be. A free shipping threshold should be slightly (about 30%) above the average order value to encourage customers to add more items to their cart.

How to offer free shipping without losing money?

The simplest way to make free shipping work for your shop is to price your items to include the shipping cost in the item list price. You can choose to offer free shipping to buyers only located in your country, or to all buyers around the world based on your shop’s needs and customer demographics.

Written By:

Indy Pereira

Turn Returns Into New Revenue

Convert returns into second-chance sales and new customers, right from your store.

Top 8 Marketing Strategies For Making Free Shipping Profitable

Intelligently Set Minimum Order Value
Offer Free Shipping with Loyalty Programs
Offer Free Shipping for a Limited Time Window or Amount
Offer Free Shipping at Peak Seasons of the Year
Offer Free Shipping on Returns Only
Offer Free Shipping to First-Time Customers Only
Offer Date-Certain Shipping
Consolidate and Deliver Multiple Orders on Fixed Dates
Summary
Frequently Asked Questions

Free shipping isn’t just a perk, it’s a powerful marketing tool that influences buying decisions and customer loyalty. It’s a deciding factor in where and how people shop. Shoppers are bombarded with choices, and offering free shipping can be the difference between an abandoned cart and a completed sale. However, without a strategic approach, it can also become a financial burden that eats into profits. The key lies in leveraging free shipping as part of a well-planned marketing strategy; one that drives conversions, increases average order value, and strengthens customer retention. In this article, we’ll explore 8 innovative ways to make free shipping work for your business without sacrificing your bottom line.

1. Intelligently Set Minimum Order Value

It would be best to avoid delivering low-cost items for free as their shipping costs are often higher than the cost of the item itself, leaving only so much margin. Setting a minimum order value in your shopping cart helps you generate enough margin to recover some of the shipping cost. One study has revealed that about half of the shoppers will add additional items to their shopping cart just to qualify for free shipping, making a great case for setting a minimum order value for free delivery.

However, be mindful that there’s a fine line between setting a minimum order value that will increase total sales and one that will drive away the customers. There are different ways to test what that right amount is. Don’t set a limit too far away from your average order value. It should be just enough for customers to add a couple more items at most.

The following is a simple model developed by a data analytics company, RJ metrics:

To learn more about calculating your minimum order value, check out this guide by DSers.

Pros:
The advantages of defining a minimum order value are:

You don’t lose all your profit margin by spending it on shipping costs.

Your average cart size goes up, meaning on average your customer spends more every time they buy from your store.

Cons:
There are a few things you should keep in mind while using this approach:

There’s a chance that your core customer base abandons you for a cheaper alternative and does not come back.

If you are in growth mode, subsidizing shipping may be the only way to get your products out there and create a great track record of customer service. Thus, setting a minimum order value may not be in your best interest at this early stage.

2. Offer Free Shipping with Loyalty Programs

Loyalty programs are customer memberships offered by retailers in exchange for various perks, including free shipping. The customer is charged a fee or must collect points against regular orders to enjoy the perks of the membership. It is designed to encourage repeat purchases, enabling retailers to absorb the shipping costs.

Some big retailers offer the membership to customers for free; solely in exchange for basic personal details such as email account, name, address, gender, and birthday. Retailers use this information to encourage more purchases through targeted marketing efforts. They leverage customers’ purchase history and demographics to send special offers and personalized catalogs.

The increase of purchase frequency from a loyalty program is reflected in the customer lifetime value (CLV), which is the basis for most loyalty programs. CLV refers to the dollar amount that a customer is worth to you between their first and last purchase from your business. It is easy to calculate with a formula:

CLV = ((Average Order Value) x (Average Gross Margin) x (Average Number of Transactions per customer over a year) x (Average Lifespan of a Customer in years)) + ((Loyalty Program Fee per year) x (Average Lifespan of a Customer in years))

For a loyalty program to be successful, CLV should increase when compared to CLV without the loyalty program. Let’s walk through an example. Before loyalty programs, if your Average Order Value was $50, Average Gross Margin was 20%, the Average Number of Transactions per customer over a year was 8, and customers only stayed for 1 year (Customer Lifespan), then:

CLV: ($50 x 20% x 8 x 1) + $0 = $80

Now suppose you offer free shipping for a yearly fee of $50, you’ll see a few changes in your metrics. Your Gross Margin goes down to 10% because of $5 assumed average shipping expense per order, but the customers are likely to stay with you for twice as long (that is two years). In this case:

CLV: (($50 x 10% x 8 x 2) + ($50 x 2)) = $180

Since there is an increase in CLV despite a decrease in Gross Margin, the loyalty program worked in this case. And this estimate has not accounted for increased purchase frequency from customers wanting to take advantage of the free shipping.

Even if you don’t charge a monthly fee, the point system is a good alternative. The points-based system encourages customers to keep shopping and take advantage of free shipping. Also, it can be designed to ensure there is enough additional margin to make up for shipping costs. Another driver of sales are tailored offers and product catalogs.

Make Returns Profitable, Yes!

Cut shipping and processing costs by 70% with our patented peer-to-peer returns solution. 4x faster than traditional returns.

See How It Works

In some cases, loyalty programs such as supermarket cards end up being a discount program without getting any more loyalty from the customer. Customers get membership cards from all supermarkets they visit and either shop all the discounts across all supermarkets or shop for the one with the most discounts on a given shopping trip. So it’s not really a loyalty program as much as it is data collection that helps the store offer even more discounts by way of additional tailored coupons. Therefore, it is necessary to design loyalty programs to increase your profitability and reward increased spending.

A few good examples of membership programs designed around free shipping would be Instacart, Shipt, and Walmart. Instacart and Shipt’s annual memberships provide free grocery deliveries for orders over $10 and $35, respectively, at $99 per year, which basically encourages a monthly shopping behavior from its members (other service fees apply). Walmart+ is Walmart’s subscription-based loyalty program with a price tag of $12.95 per month or $98 per year, with no order minimum.

A few retailers that do unpaid loyalty well are Sephora, ShopRunner, and Starbucks. If you look at the Free Sephora Beauty Insider program, it rewards dedicated beauty shoppers with more than discounts and free shipping; it offers a free birthday gift, exclusive events, and other extra frills. Customers are encouraged to buy more and stay on to reap the benefits tailored right for them.

Another unique membership program is Shoprunner, which partners with high-end luxury retailers to provide free 2-day shipping and free returns for its members. The membership is currently free for customers, potentially charging the retailers for the express delivery service.

The well-known Starbucks Rewards program is points-based and rewards customers with stars based on the number and value of their purchases that can be redeemed for free drinks and food. Going beyond basic points, it comes with a free birthday item, access to exclusive games and games, free refills on certain drinks, skip-the-line with Order Ahead, and more.

Pros:
The advantages of a loyalty program shipping strategy are:

Sellers can offer ‘free shipping’ while recovering the shipping costs from customers up front, or over time, depending on which strategy is chosen.

Customer data acquired through loyalty programs can be used to drive other marketing campaigns and to design future products.

Customer behavior data can help you improve your user experience by conducting different experiments on the same customers.

Cons:
A few things to keep in mind when offering loyalty programs:

Sellers should be wary of customers using loopholes to extract the maximum value out of their membership, such as multiple people sharing the perks for one account.

The success of loyalty programs is difficult to assess over a short period, given the need for customer longevity.

3. Offer Free Shipping for a Limited Time Window or Amount

If you’re not yet set to offer free shipping all the time, free shipping for a limited time serves as a great marketing tool in many cases. The purpose of providing free shipping here is to encourage additional purchases and build a relationship with the customer for future business.

Free shipping promotion for a limited time window

Very simply, you need to set a target of future incremental sales from customers who have used the free shipping promotion. The margins from incremental sales should cover the costs of shipping during the offer and help you assess the success of your campaign. Additionally, just acquiring more customers could increase brand awareness, which will attract new prospects organically in the future.

One way to make this limited-time offer work without sacrificing too much profitability is to adopt value limits. Like in the cookie example above from Levain bakery, the free shipping discount is limited to $20 because the cookies need to ship using 2nd Day Air services, which can quickly get very expensive. The amount is enough to provide free shipping to neighboring states but will not be enough to cover cross-country shipments.

If you have a high engagement rate on your web store but a low conversion rate, that means customers need a nudge to complete the checkout. Offering a limited-time free shipping offer will excite prospective buyers and turn window shoppers into paying customers. Temporary free shipping can be an excellent investment to boost sales during slow periods. It is essential to be careful about frequency to not habituate the customers to free shipping.

You can be creative by offering a limited time offer through different shipping strategies:

Offer free shipping on next purchase to customers only after checking out. This acts as a reward for shopping with you and encourages the customer to explore your catalog for future purchases.
Offer customers free shipping when they share their purchases on social media or after writing a product review. Here, you are using free shipping to increase your exposure and potential sales via consumer generated content.
Send a free or discounted shipping promo code by email or text if a cart has been abandoned.

The broad idea is to invest in the shipping cost for a few orders to acquire more customers and get more future orders.

Pros:

Limited time offers for free shipping require relatively few changes to order fulfillment operations.

Free shipping promotions can be added on top of your existing discount promotions to make them more effective.

Cons:

Running limited-time offers frequently may accustom the customers to expect free shipping all the time.

Free shipping promotions are so commonly available these days that they can get lost amongst the host of other promotions.

4. Offer Free Shipping at Peak Seasons of the Year

Free shipping is not a value creation strategy if you do not have enough sales to increase your bottom line with reduced unit margins. Therefore, offering free shipping during peak season could be a better idea. One, there is potential for more sales, and two, you need to be competitive when everyone is offering some kind of promotion. Free shipping is “a cherry on top” of any other promotion.

Every business has a seasonality to it. Depending on your products, test out free shipping offers during different times of the year such as Christmas, Mother’s Day, Valentine’s Day, Amazon Prime Day and Back-to-School.

Third-party Sellers on various marketplaces such as Amazon could also benefit from offering free shipping during their flagship sale day. Increased customer traffic on Amazon during Prime Day can work in your favor only if you can stand out. Even if you don’t offer free shipping all year round, temporarily offering free shipping could help you convert a larger share of the increased traffic to the site.

Best Buy has been offering free shipping to all customers during its peak holiday sales season. Target, on the other hand, offered free expedited shipping before Christmas on most of its items. The key was to increase sales during the peak season and get an even bigger share of the pie than usual.

The objective of this shipping strategy is to increase profits by increasing gross sales at a lower margin but be mindful of not losing money on every sale. Customer acquisition can be a secondary goal, but the primary purpose of this shopping lift should be to increase your overall profit. It’s possible that customer spending on your site during the off-peak season might not cover the promotional free shipping losses incurred during the peak season, so you may have to wait until the following year for a possible pay-off. Therefore, be selective about what products you offer with free shipping.

Pros:

It is relatively safe to offer temporary free shipping as the increase in sales volume will guard against the downside in margins.

This shipping strategy does not set unrealistic customer expectations of free shipping all year round.

Cons:

Running peak season promotions to acquire customers at a loss may create uncertainty about the promotion paying off if the off-peak sales are lower than anticipated.

It is a busy time for both carriers and online Sellers. The sheer volume spike can cause delays when on-time delivery is crucial (e.g. gifts shouldn’t arrive a day or two after Christmas). Make sure you’re prepared to handle the spike in order fulfillment volume and not disappoint your customers.

Convert Returns Into New Sales and Profits

Our peer-to-peer returns system instantly resells returned items—no warehouse processing, and get paid before you refund.

I'm Interested in Peer-to-Peer Returns

5. Offer Free Shipping on Returns Only

The prominence of online shopping has made returning products much more important in recent years. Customers care about the ability to return the item if they are not satisfied with it almost as much as free shipping. Therefore, there is an opportunity to attract customers by offering free shipping on returns as a feature of shopping with you.

There are a few categories where the customer thinks about returns even before they have made the purchase. These are the products that conventionally require a trial. Anything in the fashion category, house décor, and jewelry fit are example categories.

When customers shop for clothes, they cannot be 100% certain of the fit or how they would look wearing the product. The risk of losing the conversion is higher if returns are complicated (e.g., how to print a shipping label, how to mail the return, who pays the return shipping and how much will it cost, etc.). This creates a lot of hesitation to complete an online purchase unless the return policy is simple, clear, and customer-friendly. Free returns take the fear out of monetary loss from unsatisfactory purchases. For example, kurufootwear.com, an exclusively online footwear store, advertises free returns explicitly.

Free returns can become very costly for items that have high shipping costs such as a couch or television. Therefore think about what products are worth offering with free return shipping. Products that are light and small with good gross margins are good candidates as the reverse shipping costs won’t eat up all your profits. Expensive or high-end luxury products are prime examples of products that enjoy a good margin and are excellent candidates for free return shipping.

Nevertheless, try to keep returns to a minimum by helping customers choose the right item in the first place. This can be done by having a detailed product information section, several size charts, FAQs, and useful visualizations.

Besides making it free, make sure that the customer receives hassle-free service during the return process. This can be achieved by giving them clear instructions on the site or including a pre-paid return shipping label inside the original package itself.

Pros:

By offering free shipping on Returns only, not all orders will incur the cost of an additional shipping expense.

It attracts customers who are wary of shopping online altogether because of the fear of getting duped by product presentation.

Cons:

A free returns policy can encourage unwanted consumer behavior such as wardrobing or ordering an item without serious intent to keep it.

A free returns policy must be accompanied by investment in product visualization and additional product description to ensure minimal surprises for the customer.

6. Offer Free Shipping to First-Time Customers Only

Getting customers to try your products can be the biggest hurdle in growing your ecommerce business. Offering free shipping could be the nudge that customers need to buy from a new online Seller. Such an offer makes sense for a retailer who is looking to broaden its base or acquire new customers.

Free shipping for new e.l.f. Beauty Squad members

It is a simple but effective shipping strategy. Many successful businesses, such as Postmates or Grubhub, have used it in the past to get the customer on board. Once the customers realize the value of the service, they stay on to become regular paying users.

Whether you’re an existing ecommerce Seller with a new product offering or a brand new online store, free shipping on the first order can get the product out into the hands of new customers. This is especially useful in consumable categories like pet food, coffee and vitamins where customers tend to order the products at routine frequency but are not sure if they are ready to commit to the product or the Seller just yet. It can be considered as an online version of free sampling.

Pros:

A way to get new products in the hands of the customers or for a new store to gain visibility.

Paves the way for a long-term relationship when coupled with consumables/regularly purchased items.

Cons:

May be vulnerable to exploitation if not executed properly (e.g. multiple fake accounts).

May not be enough to entice new customers depending on what competitors are offering and which season the promotion is in.

7. Offer Date-Certain Shipping

When free shipping is not an option, showing guaranteed delivery dates helps manage customer’s shipping expectations. Online Sellers should explore offering customers options for different delivery dates with different shipping charges. The slowest one might be offered free, but it still has a guaranteed date of delivery.

Guaranteed dates also help customers to make decisions faster because it takes out the mental math of “delivers in 5-7 business days”. Amazon and Walmart have used this shipping strategy successfully for a long time. Amazon has increased the accuracy of delivery date moving from a range to a specific date for this very reason.

A Seller should keep a couple of things in mind while implementing date-certain shipping options. They should create a sense of urgency by showing how long the delivery date promises will be valid before they change based on same-day shipping cutoff times (e.g. “If you order in the next…”). Moreover, the tracking should be made available to the customer in great detail to create transparency and further decrease anxiety.

Such options ease the customer’s mind because they can see the trade-off between spending more on shipping compared to the resulting delivery delay. This lets different types of customers choose and complete purchases depending on which tradeoff has a higher priority.

Pros:

Showing estimated delivery dates removes the mental math from calculating transit days into days of the week.

Customers can choose which tradeoff has a higher priority: cost vs. urgency.

Retailers don’t have to target a specific customer profile but can provide options for all types of customers.

Cons:

It creates complexity as delivery dates may not all be using the same carriers, but certain carriers may be more reliable for certain customers.

The chances of cart abandonment may increase as customers take more time to decide between more choices and may find other options in the meantime (the paradox of choice).

No More Return Waste

Help the planet and your profits—our award-winning returns tech reduces landfill waste and recycles value. Real savings, No greenwashing!

Learn About Sustainable Returns

8. Consolidate and Deliver Multiple Orders on Fixed Dates

Explore the possibility of consolidating all your orders and ship them all together on dedicated days to decrease overall logistics costs. This strategy can be used in conjunction with zone-skipping and applies to 1) fulfilling single-customer orders, 2) fulfilling multiple orders for the same customer, and 3) transporting goods between your warehouses and B2B customers such as retail outlets.

For the first one, examples would include crowdfunding campaigns and preorders, where the availability of a product such as a Kickstarted Boardgame project or new release music becomes available all at once in bulk. By presetting customer expectations about shipping and estimated delivery dates, you can offer economical shipping options by processing orders in bulk (just one time), thereby reducing labor and related fulfillment costs as well as longer transit options such as hybrid shipping services.

For the second one, this works well if you have repeat business coming from the same customers (DTC or B2B) on a recurring schedule. By grouping orders from a customer throughout the week, for example, and shipping all orders together on a pre-determined day of the week, (e.g. “Amazon Day”), shipping and logistics cost are minimal compared to shipping them all in real-time.

For the last one, this works well if you have a brick-and-mortar presence. The main idea is delaying inventory replenishment until you have a full truckload of goods per shipment (going out or coming in). Shipping efficiently (a full truck) reduces the logistics cost of each item carried. Having a good demand forecast is key in minimizing stockouts and estimating optimal shipment schedules. A set shipment schedule provides carriers certainty of future business and can help in your negotiations as well.

Pros:

It consolidates order fulfillment into one dedicated shipping day/period for preorders.

It improves shipment efficiency either between warehouses or between warehouses and retail outlets.

Consolidated shipping reduces the touchpoints for all the parcels from a Seller to buyer reducing the risk of damage.

Cons:

Not recommended for end-user shipping due to today’s fast shipping expectations, unless expectations are preset with the customer such as with preordered items or pre-determined day-of-week shipping.

Online Sellers will need careful estimation to replenish stocks using full truckloads and ample safety stock.

It requires negotiation and management of bulk shipping with logistics providers.

Summary

Free shipping isn’t just about meeting customer expectations, it’s a tool that can be leveraged to grow your business. By structuring your promotions thoughtfully, whether through minimum order thresholds, loyalty programs, or limited-time offers, you can encourage higher or more frequent spending while keeping costs under control. The best marketing strategies don’t just attract customers; they create long-term relationships. With the right approach, free shipping can not only increase immediate sales but also build a loyal customer base that returns again and again, making it a cornerstone of your long-term success. The secret lies in understanding your margins, leveraging data-driven insights, and continuously optimizing your approach.

Download The Ultimate Guide to Profitable Free Shipping

Frequently Asked Questions

Is free shipping a marketing strategy?

Free shipping is a marketing strategy by online stores that allow shoppers and customers not to have to pay an additional fee when placing orders for particular items. From the online shopper’s perspective, getting no additional cost to an item purchased from a website makes shopping much easier.

How to advertise free delivery?

Consider offering free shopping when purchasing 3 or more items. Another example of promoting this method is: let’s say a customer reaches the checkout page, you can recommend other products with a message saying, “add one more product to your cart to be eligible for free delivery.”

Does Free Shipping Increase Sales?

Free shipping significantly impacts sales by reducing cart abandonment rates and increasing purchase conversions. Studies indicate that customers prefer free shipping over paid options, which can lead to higher sales volumes.

What are free shipping promotions?

Free shipping is an increasingly popular option for online shopping, where customers do not have to pay an additional shipping charge. Free shipping is attractive to customers who appreciate simple pricing structures, making it a potential competitive advantage for online businesses.

How do you determine the minimum value for free shipping?

To calculate your free shipping threshold, you need to know your average order value (AOV) and your average shipping cost (ASC). A simple formula is to multiply your AOV by 1.5 and add your ASC.

Why free shipping is not free?

For cheaper items, you simply can’t absorb the cost of shipping. If your product costs $6 and the cost of shipping is $8, you are going to lose money by offering free shipping. Your margins may differ across products, depending on the cost of manufacturing, as well as the size and weight of different items.

Written By:

Rinaldi Juwono

Rinaldi Juwono leads content and SEO strategy at Cahoot, crafting data-driven insights that help ecommerce brands navigate logistics challenges. He works closely with the product, sales, and operations teams to translate Cahoot’s innovations into actionable strategies merchants can use to grow smarter and leaner.

Turn Returns Into New Revenue

Convert returns into second-chance sales and new customers, right from your store.

Last-Minute PPC Conversion Tips

Strategies from Advertising to Fulfillment

Getting the customer on your product page is only half the battle – without an up-to-date strategy to maximize conversion, your marketing dollars are going to waste.

Efficient advertising clicks are getting harder to find, but Dilip Vamanan, co-Founder and CEO of SellerApp, knows where to find them. In this webinar, he shares advice from the basics to advanced tactics on how to squeeze the most out of your Amazon advertising strategy.

Meanwhile, fast and free shipping continues to become a “must have”. A UPS survey found that 77% of online shoppers say that free shipping is the most important option during checkout. Without it, 63% of shoppers say they will abandon their cart. On top of that, sellers can enjoy a 25% increase in conversion from offering 2-day shipping.

It’s not too late to make moves to improve conversion for the Q4 peak, so SellerApp and Cahoot are here with expert advice. In our free on-demand webinar, the founders of both firms covered pressing topics and provided actionable advice for how to maximize your Q4:

Holiday Shopping – in October
Basics of PPC
Importance of Advertising Automation
Q4 Last Minute Ad Improvements
Early Selling & Fulfillment in Q4
De-Risk Amazon FBA

Speakers

Sharon Gee, VP of Revenue Growth, BigCommerce

Dilip Vamanan, Co-Founder, SellerApp

Dilip Vamanan is the Co-Founder of SellerApp, a leading data analytics platform for Amazon sellers to scale their businesses and drive maximum ROI. A speaker at multiple renowned conferences like GMIC China, GMGC Malaysia, etc., he has over 13 years of experience in product development and global consulting and management. His current role and broad work experience in e-Commerce intelligence have enabled him to help Amazon sellers of all levels grow their business and gain a competitive edge in the industry.

Manish Chowdhary, Founder & CEO, Cahoot

Cahoot is the world’s first peer-to-peer eCommerce order fulfillment network. Cahoot enables eCommerce merchants to increase sales with affordable nationwide 1-day and 2-day delivery – everywhere they sell. Manish is a 40 Under 40 Competition Winner and holds an Honorary Doctorate from the University of Bridgeport. And, this year, Cahoot was recognized as one of Fast Company’s World’s Most Innovative Companies.

In this article

At a Glance: Cahoot vs Veeqo

Pricing Models & Carrier Rates

Order Routing & Workflow Automation

Multi-Channel Capabilities

Inventory & Warehouse Management

Support & Learning Curve

Amazon Buy Shipping & SFP

Data You Can Actually Use

Built for Amazon Sellers, but Not Owned by Amazon

Pros & Cons

Cahoot vs. Veeqo: What Sellers Are Saying

Final Verdict

Frequently Asked Questions

Is Veeqo really free, and what’s the catch?

How does Cahoot’s shipping software help reduce shipping costs?

Can I use Cahoot if I sell on Amazon and other ecommerce channels?

What makes Cahoot better for inventory management than Veeqo?

Why do sellers leave Veeqo for Cahoot?

Turn Returns Into New Revenue

Related Articles

In this article

The Real Pain of Traditional Returns

Enter Peer-to-Peer Returns

Why This Works (Especially for Small Businesses)

The Financial Angle

Built-In Risk Management

Customer Experience

Wrapping It Up

Frequently Asked Questions

What is a peer-to-peer returns platform, and how does it work?

How is a peer-to-peer returns model different from traditional returns?

Are peer-to-peer returns safe for ecommerce businesses and customers?

What types of ecommerce brands benefit most from peer-to-peer returns?

How can I start using a peer-to-peer returns platform?

Turn Returns Into New Revenue

Related Articles

In this article

The Real Cost of Returns Fraud

How AI Detects Fraud in the Returns Process

1. Photo Verification & Image Recognition

2. Pattern & Anomaly Detection

3. Cross-Platform and Channel Monitoring

4. NLP for Reason Analysis

5. Smart Risk Scoring

How Cahoot Uses AI to Catch Return Fraud Before It Hits Your Warehouse

How AI Preserves Customer Trust

Behind the Scenes: What AI Actually Looks At

The Business Benefits

✔ Reduced Operational Costs

✔ Improved Customer Loyalty

✔ Higher Margins

✔ Smarter Policy Decisions

Final Thoughts: AI Is the Future of Fraud Prevention

Frequently Asked Questions

How does AI detect fraudulent returns in ecommerce?

What is the difference between return abuse and friendly fraud?

Can AI-powered returns management improve customer satisfaction?

What types of ecommerce return fraud does AI help prevent?

Why is AI better than traditional fraud prevention methods?

Turn Returns Into New Revenue

Related Articles

In this article

Why Are These Surcharges Getting Worse?

What This Means for Your Ecommerce Operation

1. Know Your Surcharge Triggers

2. Reroute Using Distributed Fulfillment

3. Leverage Regional Carriers and USPS

4. Negotiate Like a Pro

5. Bundle Smart and Reduce Dead Weight

6. Offer Incentives to Offset Costs

7. Monitor, Adjust, Repeat

8. Stay Compliant: Commercial Invoice Requirements

Final Thoughts

Frequently Asked Questions

What are the new UPS and FedEx surcharges for 2025?

How can ecommerce brands reduce the impact of surcharges on large packages?

Can smaller ecommerce stores negotiate lower UPS and FedEx rates?

Is it worth switching carriers due to the 2025 surcharge changes?

What role does shipping software play in managing surcharge costs?