Case Study: How One Small Business Cut Postage Costs by 25%

This case study examines how PetiteCrafts, a small UK-based maker of handmade accessories, reduced annual postage costs by 25% using a combination of packing audits, accurate weighing and targeted use of Royal Mail business tools.

Background

PetiteCrafts shipped roughly 1,200 parcels per year with average parcel weight between 300–900g. The co-founders noticed postage was a major cost and wanted to optimise without changing customer service levels.

What they changed

1. Packing audit: They performed a manual audit of 100 recent orders and discovered consistent over-packaging and unnecessary internal boxes.
2. Weighing accuracy: Purchased a calibrated postal scale to ensure accurate weight banding and eliminate overpayment for heavier bands.
3. Repackaging: Adopted lightweight padded mailers for small items and redesigned product bundles to reduce overall volume.
4. Business tariffs: Negotiated a small business shipping rate with Royal Mail after demonstrating consistent monthly volumes.
5. Label automation: Implemented a low-cost shipping software to batch-print labels and apply correct service levels by SKU.

Results

Within six months, PetiteCrafts reported:

• 25% reduction in postage spend.
• 10% faster packing time due to simplified packaging choices.
• Fewer customer complaints about damaged goods.

Key lessons

Several simple changes compounded to deliver material savings. The most impactful were accurate weighing (to avoid paying for weight bands unnecessarily) and selecting appropriate outer packaging that reduced dimensional surcharges.

"We were surprised by how much a small packing change saved us — the audit was the single most valuable exercise." — Owner, PetiteCrafts

Practical checklist for small sellers

• Run a packaging audit and test void fill options.
• Buy an accurate scale and reweigh SKUs.
• Negotiate business tariffs if you have consistent volumes.
• Use batching tools to reduce label errors and speed up fulfilment.

Conclusion

Optimisation is accessible to small businesses; you don't need large budgets to make meaningful savings. A methodical approach to packing and postage selection, combined with modest investment in tools, can deliver measurable returns and better customer outcomes.