5 Key Priorities for a More Cost-Efficient Shipping Platform in 2025

4/7/2025 Andrew Palmer

The global e-commerce logistics market is projected to grow at a 7.2% CAGR through 2030 according to Grand View Research. This rapid growth is driving higher consumer expectations for faster, more affordable, and more sustainable delivery options — all while businesses face mounting costs tied to packaging, transportation, and supply chain management.

To stay competitive, companies must take a closer look at where they can reduce expenses while maintaining efficiency and reliability. Here are five key priorities for 2025 that offer opportunities to improve cost efficiency while building a more agile and effective shipping platform.

1. Labels

Labels play a big role in shipping accuracy, speed, and overall cost efficiency. Wasted materials, mislabeling, and inefficient printing processes can drive up expenses and slow down operations.

Enhanced labeling strategies — leveraging innovative and alternative materials — reduce waste, increase accuracy, and streamline operations. Consider the below strategies to optimize your labeling platform:

• Right-size your labels: By selecting labels that match product dimensions and shipping needs, you can reduce waste and control costs. Working with a partner skilled in strategic sizing and advanced production capabilities can help identify opportunities to enhance efficiency and streamline operations.
• Go linerless: Linerless labels feature a special release coating allowing the labels to be wound over each other without sticking. They offer an effective way to boost productivity, reduce costs, minimize waste, and improve workplace safety. As a reliable and greener alternative, they support efficient labeling without compromising sustainability goals.
• Invest in durability: High-quality labels reduce replacements and prevent issues during transit. Work with a partner with extensive testing capabilities to support custom durability for your product and packaging needs.
• Improve printing processes: Refined layouts and automated printing can cut down on material use and labor costs.
• Explore Radio-Frequency Identification (RFID) and smart label technology: RFID technology enhances logistics by enabling real-time tracking, reducing errors, and improving supply chain visibility for greater efficiency. Additionally, many retailers are rolling out RFID mandates. Early adoption could simplify mandate adherence in the future. For more information on RFID, reference this guide.
• Explore specialty coatings and adhesives: Advanced labeling materials, including proprietary coatings and specialized ultra-removable adhesives, like RRD’s repositionable CleanTac® adhesive technology, enhance durability and support sustainability. 

2. Packaging

According to RRD research, 87% of packaging decision-makers report altering sourcing due to supply chain disruptions, and 72% prioritize cost reductions through smarter selections. Striking the right balance between sufficient protection and excess packaging can help you avoid higher shipping fees, while inadequate packaging increases the risk of damaged goods and returns.

Notably, EMARKETER reports that high delivery costs were the top frustration for online shoppers last year, leading to increased cart abandonment rates. Addressing packaging inefficiencies can help alleviate these concerns.

When selecting a packaging partner, look for a vendor experienced in streamlining packaging for greater cost savings, sustainability, and operational effectiveness. An ideal partner should be able to help you:

• Optimize packaging dimensions: Evaluate whether packaging aligns with product specifications to reduce material waste and shipping costs.
• Consider sustainable alternatives: Explore eco-friendly materials, such as recyclable paperboard, that offer long-term cost benefits while advancing sustainability objectives.
• Implement automation: Assess opportunities for automated packaging processes to improve operations, minimize manual errors, and drive cost efficiencies.
• Adopt ready-to-ship packaging: Ships in Own Container (SIOC) packaging eliminates the need for secondary packaging by shipping products in their original, ready-to-ship packaging. This approach reduces material waste, lowers shipping costs, and supports products arriving intact.

3. Supply chain optimization

Managing an efficient supply chain is increasingly complex, with fluctuating demand, rising carrier costs, and global disruptions creating ongoing logistical challenges. Stay competitive by increasing visibility and agility, and consider working with a partner to execute the below strategies:

• Leverage data analytics: Advanced inventory management systems help reduce overstocking and shortages.
• Revise carrier and warehousing strategies: Building strategic partnerships with carriers and optimizing warehousing can reduce costs and streamline operations.
• Improve processes: Streamlining picking, packing, and distribution reduces warehouse inefficiencies.
• Assess nearshoring vs. offshoring: Weigh cost and supply chain reliability when choosing between regional and global sourcing. Offshoring — moving production overseas — lowers costs but increases lead times and geopolitical risks. Nearshoring — bringing operations closer to home — enhances agility, speeds up turnaround, and reduces transit costs. Many businesses are adopting a hybrid approach to balance efficiency with resilience.

4. Sustainability

A recent Deloitte survey found that 94% of supply chain executives view sustainability as a competitive advantage, highlighting its growing importance in business strategy. Striking a balance between advancing sustainability while cutting costs can be difficult. Consider the following:

• Utilize eco-friendly packaging and label materials: Recycled, biodegradable, or lightweight materials not only reduce environmental impact — they can also lower material costs, decrease shipping weight, and minimize storage space, all of which drive down operational expenses. In some cases, sustainable materials may also help you avoid regulatory fines, qualify for tax incentives, or improve supplier efficiency by standardizing substrates across SKU.
• Optimize shipping routes: Data-driven logistics can improve fuel efficiency, reduce mileage, and cut transportation costs.
• Partner with sustainable service providers: Working with vendors that prioritize sustainability can streamline compliance efforts with environmental regulations. These partners also often offer built-in efficiencies — including optimized materials and energy-conscious processes —  which can lead to lower operating costs.

5. Logistics

Pitney Bowes reports that in 2023, Amazon Logistics saw a 15.7% increase in shipping volumes, handling 5.9 billion parcels. This underscores the importance of scalable logistics to maintain supply continuity and customer trust. 

A scalable, flexible logistics strategy enables businesses to control costs and drive long-term growth in a dynamic market. Consider these strategies and questions:

• Secure a reliable supply chain: Is your supply chain resilient enough to handle unexpected disruptions or demand spikes?
• Partner with a full-service supplier: Are you working with a provider that can offer comprehensive, end-to-end solutions to streamline operations?
• Streamline handling and warehousing: How efficient is your returns management process, and what strategies can improve it to minimize costs and waste?
• Strengthen returns management: What improvements can be made to enhance efficiency and reduce costs in your returns process?

A strategic approach to shipping

As the logistics landscape evolves, cost-efficiency is no longer a nice-to-have — it’s a competitive advantage. To keep pace, prioritize a proactive review of your current shipping practices to identify and address areas for improvement. Ultimately, the goal is to maximize cost efficiency without compromising quality and reliability.

For more information on how RRD can streamline and optimize your e-commerce operations, visit our solutions page. 

Andrew Palmer is RRD’s Director of Sales, Labels.