Shipping costs are one of the most controllable variable costs for online sellers, yet many sellers default to one carrier without comparing alternatives. A few pence per parcel can add up to thousands of pounds per year at volume.
Compare carrier rates instantly with the Shipping Cost Estimator.
UK Carrier Options for Online Sellers
Royal Mail
The default for most new UK sellers. Key services:
- 2nd Class Large Letter: from £1.25 (up to 750g) — best for flat, lightweight items
- Tracked 48: from £3.35 (up to 2kg) — tracked, reliable
- Tracked 24: from £4.10 (up to 2kg) — next-day tracked
- Special Delivery: from £7.05 — guaranteed next-day with compensation
Royal Mail is the only carrier that delivers to every UK address including rural Scotland and Northern Ireland without surcharges. Use it for lightweight items and rural addresses.
Evri (formerly Hermes)
The cheapest option for parcels under 5kg for most routes:
- Standard parcel (up to 2kg): from £3.29
- Standard parcel (2-5kg): from £4.49
- Standard parcel (5-10kg): from £5.49
Drop-off at ParcelShop locations is cheapest. Collection from home costs slightly more. Tracking included. Delivery times: 2-3 working days.
DPD
Best for reliable next-day delivery with a 1-hour delivery window notification:
- Next-day parcel (up to 5kg): from around £5.99 for business account holders
- Precise delivery tracking with real-time updates
DPD is preferred for fragile or valuable goods where the delivery experience matters.
DHL
Strong for business accounts and international shipping:
- Competitive rates for heavier parcels (5kg+)
- Express options with guaranteed delivery times
US Carrier Options
USPS
Best for lightweight packages (under 1lb) and residential addresses:
- Priority Mail (up to 1lb): from $8.70
- Priority Mail (1-5lbs): from $10-15 depending on distance
- No dimensional weight for packages under 1 cubic foot
- Free delivery confirmation and insurance up to $100
UPS Ground
Best for heavy packages (over 1lb) going residential:
- UPS Ground (1lb): from $8.99 (retail) — business rates lower
- Volume discounts are significant; most ecommerce sellers get 20-50% off published rates
- Real-time tracking and consistent delivery windows
FedEx
Competitive with UPS, particularly for business accounts:
- FedEx Ground: similar rates to UPS
- FedEx Express Saver (3-day): significantly more than ground but cheaper than overnight
- Strong for B2B shipments
Dimensional Weight: The Hidden Cost
Carriers charge for whichever is greater: actual weight or dimensional (volumetric) weight. Dimensional weight formula:
UK/EU: Length x Width x Height (cm) / 5,000 = volumetric weight (kg) US: Length x Width x Height (in) / 139 = dimensional weight (lbs)
A large but light item like a cushion measuring 40cm x 40cm x 15cm has a volumetric weight of 4.8kg even if it physically weighs 0.5kg. You would be charged for 4.8kg.
How to Reduce Shipping Costs
- Right-size your packaging — every extra centimetre of box can push you into a higher weight bracket
- Open business accounts — direct business accounts typically offer 20-40% lower rates than consumer prices
- Use a courier broker — platforms like Parcel2Go, Shippo, or Easyship aggregate rates and offer discounted access to multiple carriers
- Consider multi-carrier software — tools like ShipStation automatically route each shipment to the cheapest carrier based on weight, size, and destination
- Negotiate at volume — at 200+ parcels per month, most carriers will offer custom rate cards
Use the Shipping Cost Estimator to compare carriers for any parcel weight and dimensions before dispatching.