Fighting fulfilment costs: The 2025 shipping outlook

In this guest article, Starshipit content marketing lead Kimberley Hughes reveals how retailers are fighting fulfilment costs in the current shipping market. 

Retailers are bracing themselves as shipping costs hit new highs in 2025. Retailers are ranking shipping expenses as their biggest headache, fuelled by soaring fuel rates, labour crunches, and carrier price hikes. Factor in Red Sea disruptions, seasonal volatility, and U.S. tariffs on the horizon, and the situation is turning critical.

Additionally, customers aren’t budging – they still expect deliveries that are fast, flawless, and eco-friendly. Caught between profit erosion and shopper demands, retailers face a stark choice: adapt or get left behind.

The issue isn’t just rising expenses – it’s the inability to rein them in. Retailers are responding with smarter shipping strategies, using technology to tackle inefficiencies and protect profits while keeping service strong. The focus this year is clear: target the root causes of fulfilment costs and adapt with precision. Here’s how industry leaders are taking charge.

Automation takes the lead: Efficiency under pressure

Peak seasons expose the chaos of delays and clunky manual fulfilment processes, inflating expenses and frustrating shoppers. In 2025, up to 66 per cent of retailers surveyed are already tapping into shipping automation to streamline their workflows. Rather than adding more team members to manage orders, they’re leaning into purpose-built technology.

Automated label printing and seamless data transfer to carriers slash errors and speed up fulfilment. With robotics and intelligent sorting, small crews manage big order surges, slashing labour overheads while hitting deadlines. The catch? It’s tech investment versus extra hires – a bet that pays off in precision and growth potential. These changes are about making operations leaner and deliveries reliable.

Multi-carrier moves: Flexibility that pays off

Single-carrier loyalty is proving to be a liability as fees climb and delays mount. Retailers are increasingly diversifying, mixing local and global carriers to snag better rates and dodge disruptions. The primary benefit is adaptability, noting how blending local and global carriers keeps disruptions at bay while meeting shopper needs. Automation streamlines the juggling act, syncing options into one unified dashboard.

This isn’t a quick fix – it’s a bold pivot to stay nimble and keep the checkout competitive, sidestepping the risks of being locked into one option.

Hidden costs from rate increases or overstocked shelves chip away at gains, often unnoticed until it’s too late. Across the sector, retailers are tracking metrics to uncover savings and stay ahead of cost creep. Justin Irvine of The Aggregate Co. drives it home: “Set clear and defined KPIs and watch your business scale with excellence.”

By tracking carrier delays or inventory bottlenecks, retailers can pivot fast – adjusting rates or redirecting packages as necessary. This slashes excess stock, steadies finances, and sharpens decision-making.

It’s less about drowning in stats and more about wielding them to turn pressure into progress.

Your 2025 playbook: Winning with less

Shipping costs are a persistent challenge, but retailers are responding with precision. Across the industry, streamlined automation, flexible carrier options, and sharp data use are cutting waste while keeping deliveries on track.

Leaders like DHL eCommerce, Uber, and FedEx highlight how staying adaptable keeps costs and service in balance. Expenses are rising, but the tools to manage them are more effective than ever. Retailers are meeting customer expectations through streamlined operations, improving satisfaction and strengthening profitability.

Success hinges on achieving more with fewer resources, transforming shipping into a strategic advantage. The key for 2025? Doing more with less, turning fulfilment from a cost sink into a competitive edge.