With inflation, supply chain disruptions, and increasing operational expenses, many entrepreneurs ask: Is it still worth running a small business in 2025? One of the biggest financial challenges businesses face is the rising shipping cost, particularly for small packages, which comprise a significant portion of e-commerce and small business orders.

The USPS price hike for 2025 has placed additional pressure on small businesses that depend on affordable shipping options. As rates increase, business owners must decide whether to absorb the higher costs—cutting into their margins—or pass them on to customers, which may result in lost sales and abandoned carts.

So, what is the cheapest way to ship a small package? How can businesses continue offering affordable shipping without letting rising costs erode their profits? The key lies in understanding new shipping rate changes, identifying cost-effective options, and leveraging tools like ShipBae to optimize costs.

How the USPS Price Hike for 2025 Affects Small Business Shipping Costs

The United States Postal Service (USPS) announced rate increases for 2025, making it more expensive for small businesses to ship products affordably. These increases primarily affect small package shipping through popular USPS services:

• USPS Ground Advantage – A go-to for non-urgent, lightweight packages under 70 lbs, now with increased pricing.
• Priority Mail Flat Rate – A convenient option for small but dense packages, now more expensive than before.
• First-Class Package Service – The most affordable option for packages under 1 lb, but the 2025 rate hike means higher costs for businesses that ship high volumes of small parcels.

For businesses that frequently ship small packages, even a tiny percentage increase per package can significantly impact overall costs. Without adjusting their shipping strategy, companies may face:

• Higher operational expenses, reducing resources for growth, marketing, and product development.
• Tighter profit margins, requiring price increases, could lead to fewer sales.
• Customer frustration, as higher shipping costs may be passed down to buyers.

Beyond USPS rate hikes, fuel surcharges, carrier pricing adjustments, and international shipping fees further increase shipping unpredictability. Without a cost-saving strategy, businesses may struggle to maintain profitability.

What is the Cheapest Way to Ship a Small Package in 2025?

With small package shipping costs rising, businesses need cost-effective solutions that balance affordability and delivery speed. The cheapest option depends on several factors, including package weight, dimensions, shipping zones, and urgency.

Here’s a comparison of the most affordable small package shipping methods in 2025:

• USPS Ground Advantage – Best for non-urgent packages under 70 lbs. Despite rate increases, it remains one of the most affordable ways to ship small packages.
• USPS First-Class Package Service – The most affordable for packages under 1 lb, ideal for e-commerce businesses shipping lightweight products.
• USPS Priority Mail Flat Rate – If a package fits within a flat-rate box, this option can be cost-effective, especially for small but heavy shipments.
• UPS & FedEx Economy Services – These services offer competitive pricing for bulk shipments, with volume-based discounts that help reduce costs.
• Regional Carriers & Local Couriers – Regional couriers often provide cheaper and faster options than national carriers for businesses shipping within specific areas.
• Hybrid Services (UPS Mail Innovations, FedEx SmartPost) – These options combine private carriers for transit with USPS for final delivery, reducing overall costs.

Many businesses lose money by relying on a single carrier instead of comparing shipping rates across multiple providers. To find the cheapest way to ship a small package, companies must take a data-driven approach—leveraging technology to compare rates in real time and select the most cost-effective carrier for each order.

This is where ShipBae helps businesses take control of their shipping expenses.

How ShipBae Helps Small Businesses Save on Shipping Costs

With small package shipping costs rising, businesses need proactive solutions to reduce expenses and stay competitive. Finding what is the cheapest way to ship a small package is essential for maintaining profitability. ShipBae provides a multi-carrier shipping platform that helps businesses:

• Compare real-time shipping rates across multiple carriers, ensuring the lowest-cost option is chosen for every small package.
• Access bulk shipping discounts, reducing the impact of USPS rate increases.
• Automate shipping processes, including label printing and tracking updates, to save time and cut manual work.
• Integrate with e-commerce platforms like Shopify and eBay, streamlining order fulfillment.
• Offer multi-carrier solutions, allowing businesses to choose the cheapest and fastest shipping option for each order.

By leveraging ShipBae’s advanced shipping tools, businesses can reduce shipping costs, improve efficiency, and ensure small packages are shipped affordably—without sacrificing delivery speed.

How Small Businesses Can Offset Rising Small Package Shipping Costs

Instead of absorbing higher shipping expenses, businesses should take these cost-saving steps to find what is the cheapest way to ship a small package while maintaining efficiency and profitability:

• Regularly compare shipping rates – Carrier pricing changes frequently, so using ShipBae’s rate comparison tool ensures businesses always choose the most affordable shipping option.
• Strategically offer free shipping – Set minimum order thresholds to balance costs while encouraging larger purchases.
• Utilize hybrid shipping options – Services like UPS Mail Innovations and FedEx SmartPost can lower costs by using USPS for final-mile delivery.
• Optimize packaging – Using lightweight and compact packaging helps reduce dimensional weight charges, keeping shipping costs down.
• Leverage flat-rate shipping – If a small package is heavy but compact, USPS Priority Mail Flat Rate can be economical.

By combining these innovative shipping strategies with ShipBae’s cost-saving tools, small businesses can combat rising rates without reducing their profit margins.

The Key to Cost-Effective Small Package Shipping in 2025

So, is running a small business still worth it in 2025? Despite rising shipping rates and economic challenges, the answer is yes—if businesses adapt strategically.

Businesses can maintain profitability and remain competitive in an increasingly expensive shipping landscape by understanding what the cheapest way to ship a small package, comparing carrier rates, and leveraging cost-saving solutions like ShipBae is.

ShipBae makes it easy to compare shipping carriers, access discounts, and automate fulfillment, helping businesses save time and money. Small companies that optimize their shipping strategy today will be better positioned to navigate future price increases while keeping customers satisfied.To reduce your small package shipping costs and improve efficiency, explore how ShipBae can help you ship smarter today.