What is ecommerce shipping?

Shipping is one of the most important parts of a thriving ecommerce business. It impacts both customer satisfaction and business costs, so having a solid shipping plan may be key to your success. With increasing competition in the ecommerce space, having fast, reliable shipping could make a big difference as you work to attract and retain customers.

Read on to learn more about:

• What ecommerce shipping is
• Different types of shipping
• Shipping company options
• Amazon shipping options
• Domestic vs. international shipping
• How to ship your products to customers
• Shipping tips and tricks

What is ecommerce shipping?

Shipping is one of the last steps in the fulfillment process. Most online orders follow these steps:

1. A customer places an online order.
2. The seller makes sure they have the product in stock.
3. The seller checks the order information for accuracy.
4. The order is picked, packed, and prepared for shipment.
5. The order is shipped.

In the early days of your commerce business, you might be able to pack products in your garage and drive them to your selected carrier for shipping. But as your business scales, so will your shipping needs—especially if you offer a variety of products in your online storefront.

That’s why it’s important to regularly review your shipping process. If orders are coming in faster than you can get them out the door, it may be time to consider extra help, or to outsource your fulfillment and shipping so you can focus on growing your business.

Ecommerce shipping timelines

Because ecommerce shopping offers such a quick, click-to-buy experience, customers like to know how long they’ll need to wait for their item to appear at their doorstep. Here are some common ecommerce shipping timelines:

• Standard: Also known as “economy shipping,” standard shipping usually spans a delivery timeline of 3 to 7 days once the order has been dispatched. It tends to be a less expensive option for shippers and customers.
• Two-day shipping: This is a popular option for customers who need something fast, but don’t want to pay for overnight shipping.
• Same-day delivery: For customers in the same location as the product they want, same-day delivery is a great choice for perishable purchases like groceries. But it relies on an ecommerce business warehousing their products in the same location, or having an expedited process that allows for same-day delivery.
• Overnight: This is often the shipping option customers use for last-minute holiday gifts or urgent purchases. When a customer chooses overnight shipping, they’re expecting delivery by the next business day. This is usually the most expensive shipping option.
• Expedited: Expedited accounts for any shipment faster than a 3-to-7-day delivery. Turnaround times can depend on the carrier you use, and how fast a customer wants their product.

Which shipping company is best for ecommerce?

Choosing the best shipping company will depend on your ecommerce needs. Ideally you want to work with a company that offers fast and affordable shipping, suits your budget, and can handle shipping your product. Here are four options you can explore:

• UPS: Ship to customers in over 200 countries and territories with options like UPS Ground for delivery in 1 to 5 business days, and UPS Next Day Air for domestic delivery in one day.
• Amazon Shipping: Use Amazon’s transportation network to ship orders placed in the Amazon store, on your own website, or through other sales channels. Amazon Shipping offers pickup and delivery seven days a week, with no weekend delivery fees or residential surcharges.
• FedEx: With a variety of time-based shipping options to choose from, FedEx helps you ship your products against multiple timelines. They also service over 220 countries and territories.
• USPS: You can ship both domestically and internationally with USPS, with options to qualify for free package pickup, flat-rate boxes, and parcel return with your carrier.

Shipping options at Amazon

Amazon offers a variety of shipping options to suit both customers and ecommerce businesses, including Amazon Prime members. Shipping options include:

• Two-Day Delivery: Customers who sign up for Amazon Prime can choose from millions of items available for fast and free shipping in just two days.
• One-Day Delivery: Another delivery perk of Amazon Prime? More than 15 million items are available for one-day delivery, with no minimum purchase.
• Same-Day Delivery: Amazon Prime members also have the option to choose same-day delivery on select products. Same-day delivery is available most days of the year, with limited availability during high-volume shopping events like Black Friday.
• No-Rush Shipping: This free option gives Prime members promotional rewards when they select No-Rush Shipping at checkout. It also helps Amazon prioritize the fastest deliveries for customers with urgent needs.
• Subscribe & Save: This is a “set it and forget it” option for customers who want to buy—and re-buy—products they use often. Not only can they save money on their purchases, but they can skip or reschedule their deliveries so their products arrive right when they need them. Many sellers’ products are enrolled in Subscribe & Save automatically.
• Order with Free Shipping by Amazon: Amazon shipping is free for customers who meet the minimum amount of eligible items. Any item fulfilled by Amazon with “FREE shipping” on the product detail page counts toward the minimum.
• Domestic Expedited Shipping: Items that aren’t available for one-day shipping may still be shipped via express delivery for an additional fee.
• Standard Delivery: Like most standard or economy delivery options, standard delivery will bring products to customers within 4 to 5 business days.

Shipping methods you can use in your ecommerce business

There are a variety of shipping methods you can use to get your products to customers. Some options include:

• Dropshipping: Dropshipping is a form of ecommerce fulfillment where sellers can outsource buying, storing, and shipping products to a third party, usually a supplier. The dropshipper can handle some or all of the steps in the fulfillment process. This tends to appeal to sellers who want lower costs, but outsourcing the fulfillment process can lead to complications with the customer experience.
• Direct from warehouse: Also known as “direct shipping,” this method involves shipping products directly from the supplier, manufacturer, or brand to the customer.
• Third-party shipping: Using this approach, ecommerce business owners can outsource their shipping needs to another company for a fee.
• Last-mile shipping: Using a two-pronged approach, last mile shipping uses a carrier like FedEx or UPS to pick up and hand off your shipment to another carrier, like USPS. From there, the second carrier sorts and delivers the package. Delivery is slower, but it can cut down on shipping costs.
• Automated shipping: Take the guesswork out of fulfillment and shipping with automation, which automatically fulfills and ships orders to cut down on manual tasks.
• Eco-friendly shipping: Reduce your carbon footprint with more sustainable shipping practices, like using recycleable, reusable, or biodegradable packing materials, or relying on regional warehouses to cut down on travel time for deliveries.
• Hybrid shipping: Some ecommerce business owners rely on a combination of methods to ship orders more efficiently. For example, they may work with different carriers for domestic and international shipments, rely on fulfillment providers for certain orders, use dropshipping for select products, and work with carriers who partner with other carriers for last-mile shipping.
• Freight shipping: If your product is heavier than 150 pounds or larger than 30in x 30in x 30in, freight shipping is often your best option. Freight shipping may also be used by manufacturers sending products to ecommerce businesses, or by sellers sending product to fulfillment centers.

You can also consider shipping options based on cost:

• Flat-rate shipping: Flat-rate shipping uses a fixed rate that can apply to all orders. Or it can use multiple fixed rates that apply to orders based on their weight, value, or other identifying markers determined by your carrier’s pricing structure.
• Free shipping: You can offer free shipping to customers by including the cost of shipping in the product price. You can also require that they spend a certain amount to get free shipping, or you can charge a standard fee either monthly or yearly and include free shipping for that time period (like Amazon Prime).
• Real-time carrier shipping: These rates are based on your carrier’s shipping rates and are often pulled directly from their database, so customers can see exactly what it costs to ship their order in real time.

How to use dropshipping and Buy Shipping in the Amazon store

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How to use dropshipping and Buy Shipping in the Amazon store

Find out how to use dropshipping and the Buy Shipping tool for products you sell with Amazon.

What are the benefits of shipping with a fulfillment provider?

Using a fulfillment provider like Fulfillment by Amazon (FBA) can make shipping easier by taking care of the process for you. If you decide to sign up with a fulfillment provider, you’ll be expected to send your products to the provider’s warehouse. When a customer places an order, the fulfillment provider will be notified, and they’ll pack and ship the order on your behalf.

Some of the benefits of working with a fulfillment provider include:

• Less expensive shipping: Fulfillment providers tend to ship for numerous sellers, giving them better shipping rates. They may also have established relationships with other shipping partners that can help reduce costs.
• Reliable shipping: A fulfillment provider that already has established shipping protocols and existing carrier relationships will likely have a faster and more reliable process. This can make for a better customer experience.
• Shorter shipping timelines: Depending on who you outsource fulfillment to, you may have the option to store your products at different locations across the country, which can cut down on shipping times depending on where your orders originate.
• More time for your business: With someone else handling your shipping, you won’t have to focus on picking, packing, and getting your products to a carrier. You can spend that extra time on other aspects of your business.
• Business growth: Another benefit of shipping from different warehouse locations? You can reach more customers faster, which may support expansion efforts.

If you’re considering working with a fulfillment provider, do your research to find the right one for you. Don’t forget to consider the additional costs, like for warehouse storage, so you know how much fulfillment will add to your operating budget.

Domestic vs. international shipping: What’s the difference?

Domestic shipping refers to items that are shipped within a country’s borders. International shipping refers to items sent beyond those borders. For example, if you’re shipping from one state within the US to another, that’s a domestic shipment. If you’re shipping an item from the US to Europe, that’s an international shipment.

Both domestic and international shipments have some requirements in common, like proper packing and labeling. But international shipping has additional requirements you’ll need to meet to ensure your package gets to your customer. Here are some things to keep in mind:

• Determine your international shipping needs: Knowing the countries you plan to ship to most, the average size and weight of packages, how often you plan to ship, and your preferred speed of delivery can help you find the right international shipping carrier.
• Work with a trusted international shipping carrier: Look for carriers who have a variety of shipping options and a good reputation for reliable delivery. Ideally, you want to work with one who offers tracking services. Then make sure they can meet your needs—and help you navigate the additional steps for shipping internationally. You can also get shipping quotes and compare prices to help you decide.
• Stay on top of your costs: International shipping fees can vary by weight and dimensions, distance, destination, shipping speed, and more. There may also be specific regulations for large or expensive items. International shipping carriers can help you understand these costs so you don’t have to take your best guess—and they may even offer flat-rate shipping to help keep costs down. Remember: the faster the shipping, the higher the cost.
• Don’t forget about taxes: Your package will go through customs before it’s accepted into its destination country. This is where duties and taxes are assessed. Every country has their own taxes, import fees, and duties that need to be paid. For example, Europe’s value-added tax (VAT) or Canada’s goods and services tax (GST) may be added based on the item’s value, shipping, and insurance. Again, this is where working with an international shipping carrier can be very helpful. They can alert you to fees that need to be paid so your package doesn’t wind up stuck in customs.
• Fill out your customs documentation: Depending on the country of delivery, you may have to fill out customs documentation that details package contents, the final destination, and more. Failure to do so may result in delays or fines.
• Follow the rules: International shipping regulations exist for a reason, so don’t try to ship prohibited or restricted items to countries that don’t allow it—you could face a hefty fine if you do. Depending on what you’re shipping, you may need a license or permit to ship to a particular country.

Learn more about international shipping

Shipping costs to plan for

Whether you’re shipping internationally or domestically, there are a variety of costs involved. Here’s what you’ll want to include in your business plan and bookkeeping:

• Carrier: Think basics like postage and shipping fees.
• Packaging: This means materials like packing tape and boxes, envelopes, additional materials like air pillows and bubble wrap, and custom packaging (if your product requires it).
• Fulfillment: The cost associated with picking, packing, and shipping your products.
• Overhead: This could include everything from shipping software to warehouse fees. If you plan to pack and ship your own orders, you should still factor these costs into your overhead.
• Package insurance: If you want financial protection from packages that get lost, damaged, or stolen during the shipping process, package insurance is a must. You could pay for it yourself through your carrier, or there are third-party package insurance companies that pass the cost to your customers. Costs are calculated based on the type and value of the shipped item, its destination, and the quality of packaging (high-quality packaging may result in lower rates).
• Extras: Depending on your carrier, it may cost extra for shared tracking information. Want a signature on delivery or photographic proof? That may cost too. Check with your carrier for any fees on extras like these.

How to ship to your customers in 6 steps

Ready to ship your products to customers? Follow these steps:

Step 1: Start with your packing materials

How you package your product for shipping is almost as important as choosing which products you want to sell. Choose the wrong materials,and your item could be damaged—which will impact your customer’s shopping experience. Whether your product is fragile and needs bubble wrap, or it’s sturdy enough to be put in a box with some extra paper to fill empty space, you can always do a test run to make sure your packing materials are up to par before you start shipping to customers.

Step 2: Don’t forget the extras

Do you have a business card? Some signature branding materials? How about a thank-you note? Maybe a coupon for a percentage off a customer’s next order? Not only do thoughtful add-ons help strengthen your brand, they can encourage repeat shopping.

Step 3: Pack up your order

Put your product, packing materials, and extras in a box, making sure everything is secure before you tape the flaps shut. If you work with a fulfillment provider, they will pack your orders. They may have their own packing materials, or they may use materials you supply them with—it depends on the fulfillment provider.

Step 4: Get your shipping label ready

Your label should include the customer’s name and address, and your business name and address in case of returns. Place your label on the top of the box where it’s easy to see. Again, fulfillment will take care of this for you if you’re working with a fulfillment provider.

Step 5: Transfer the package to your carrier

If you’re packing and shipping your own orders from your home, you’ll probably have to port your packages to your carrier of choice. If you have an account with a carrier, you may be able to schedule pickup at your home, office, or warehouse depending on the carrier. Tracking information is recommended so both you and customers know when a package is scheduled to arrive. If your package is shipping from a fulfillment provider, they’ll handle getting your package to the carrier.

Step 6: Let your customer know

Once the package has shipped, share the shipping and tracking information with your customer. You can use software to automate this part of the process so customers are automatically notified when their package ships.

Shipping tips and tricks

As you get more comfortable with shipping, you can explore different options to save money, streamline your process, boost your brand, and enhance the customer experience. Here are some tips and tricks to consider:

• Make sure your packing materials fit your product: Different items require different packaging. For example, the materials needed to pack and ship a baseball are different from the materials needed to pack and ship a floor-length mirror. Similarly, you wouldn’t use a giant box to pack and ship a small ring. Using proper packing materials is both cost effective and a better experience for customers.
• Decide who pays for shipping: Do you want customers to pay for shipping, or will you cover the cost? Maybe you split it down the middle and require customers to pay up to a certain purchase amount, then the cost transfers to you if they spend more? If you have a standard size or weight of product, is flat-rate shipping an option? Once you find the carrier you want to work with, you can calculate which option makes the most sense for you and customers who shop with you.
• Ensure the shipping label is clear: Even if you have exceptional handwriting, it’s recommended you use a printer for your shipping labels. It ensures the label is easy for your shipping carrier to read. Plus, handwriting every label will get tiresome—and it’s not scalable as your business continues to grow. To make shipping even easier, look for label printers that print on paper with adhesive backing, so you can just peel and stick the label to the box.
• Consider local delivery: If you have a smaller business and you want to cut down on shipping costs, local delivery is an option. You could deliver your products yourself, hire some extra help, or outsource to a local courier. It may take some additional coordination—for example, if you get worldwide orders, you’ll want to filter orders by zip or postal code to identify local orders.
• Help your business stand out: In addition to sharing business cards, thank-you notes, and coupons in your packages, you can make an impact on customers with custom packing materials. The packing paper or tissue could be in your business’s signature colors, you could offer custom packaging like branded boxes, or have fun with your shipping labels (just make sure they’re clear and easy to read). All of it goes toward cementing your brand in customer’s minds and giving them a unique shopping experience from checkout to delivery.
• Pack according to shipping costs: Don’t forget that shipping costs are calculated by size and weight. While you don’t want to ship items without protective packaging just to save a few dollars, you also don’t want to overpack your products—which could cost you in shipping fees and excess packing materials.

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