Should you ship items together or separately? We analyzed real shipping data to quantify the cost difference between optimized multi-item packing and individual item shipping.

The Test Setup

We simulated an e-commerce order containing 5 items of varying sizes:

Item	Dimensions (in)	Weight (lbs)
Electronics Box	8 × 6 × 4	2.5
Book Set	10 × 8 × 3	4.2
Clothing Bundle	12 × 10 × 4	1.8
Accessories Kit	6 × 4 × 2	0.5
Home Goods	14 × 10 × 6	3.1

Total actual weight: 12.1 lbs

Scenario 1: Individual Shipping

Each item shipped in its own appropriately-sized box with standard carrier rates:

Electronics Box (Zone 5)$12.45

Book Set (Zone 5)$14.80

Clothing Bundle (Zone 5)$13.20

Accessories Kit (Zone 5)$8.95

Home Goods (Zone 5)$16.30

Total (5 packages)$65.70

Scenario 2: Optimized Consolidation

Using our bin-packing algorithm, we consolidated items into optimal box configurations:

Box 1: Medium (18" × 14" × 10")

Contains: Electronics, Book Set, Clothing, Accessories

Billable: 15.2 lbs (DIM)$18.90

Box 2: Small (16" × 12" × 8")

Contains: Home Goods

Billable: 9.3 lbs (DIM)$13.45

Total (2 packages)$32.35

Cost Savings

$33.35

Saved per order

50.8%

Cost reduction

60%

Fewer packages

Why Consolidation Works

The savings come from multiple factors:

Reduced base charges: Each package has a minimum charge. Fewer packages = fewer minimum charges.
Better DIM efficiency: Small items in big boxes waste space. Consolidation fills boxes more efficiently.
Avoided surcharges: Individual small packages often hit minimum size thresholds.
Handling efficiency: Carriers charge less per pound for heavier packages within limits.

When NOT to Consolidate

Consolidation isn't always the answer. Consider shipping separately when:

Combined weight would exceed the 50 lb additional handling threshold
Items require different shipping speeds (overnight vs. ground)
Fragile items need isolation from heavier goods
Drop-shipping from multiple warehouses

The Algorithm Advantage

This is where automated bin-packing shines. Our algorithms consider:

3D Spatial Optimization

Rotates and positions items to maximize box utilization

Weight Distribution

Balances weight to avoid threshold surcharges

Box Selection

Chooses optimal box sizes from your inventory

DIM Calculation

Compares actual vs. DIM weight to minimize billable weight

Bottom Line

For a business shipping 1,000 multi-item orders per month with an average potential savings of $20 per order, optimized packing delivers $240,000 in annual savings. The API pays for itself on day one.

Smart Packaging vs. Individual Shipping: A Cost Analysis