Ecommerce Shipping
Get The Print Version
Tired of scrolling? Download a PDF version for easier offline reading and sharing with coworkers.
A link to download the PDF will arrive in your inbox shortly.
Key highlights
Ecommerce shipping is a multi-faceted process and a large source of cost for businesses, as it can involve partnering with shipping companies, warehouses, and delivery partners in order to ensure timely delivery of goods.
There are several ecommerce shipping methods, each of them suitable for different types of products, carrying various costs, and appropriate for different levels of business.
International shipping is a big consideration for ecommerce businesses, as it can lead to a greater audience but also comes with cross-border legislative concerns, customs, and numerous costs.
There are many shipping platforms, each of them suited for different sizes of business or use cases, which makes it important for ecommerce businesses to choose the one that best matches their needs.
It’s possible to lower ecommerce shipping costs and improve workflows by utilising automation, simplifying the return process, and keeping a close eye on several key shipping metrics and KPIs.
There’s more to ecommerce shipping than launching a product out of a warehouse and hoping it lands with the right customer. You need to ensure the package arrives in a timely, cost-effective manner, and without getting damaged in the process.
On top of all this, you have to meet customer expectations. (Did you know 95% of people would rather opt for standard delivery if it means not paying for shipping?)
While a difficult balancing act, perfecting ecommerce shipping can set your business apart, helping you to increase conversions and build trust with your customer base.
With UPS raising prices 5.9%, the U.S. Postal Service (USPS) raising prices 5.1-7.8% across shipping types, and FedEx now adding surcharges for home deliveries per package and not per shipment, ecommerce shipping is in a rough spot.
You can’t control the rising costs of shipping, but you can better your understanding of the various shipping models, the impact different carriers have on your ecommerce shipping strategy, and ultimately strike the right balance between cost and efficiency.
Find your favourite features.
Explore all of the capabilities of the BigCommerce platform.
Types of ecommerce shipping methods
There are several shipping methods, each with their own use cases and pros and cons. None of them is going to be ideal for every single order or business, so it’s important you understand how each one fits into the shipping process.
Two-day shipping.
Two-day shipping is exactly as it sounds, promising a transit time of two days within placement of an order.
Popularised by Amazon, free two-day shipping is a perk offered to Amazon Prime members on eligible items, and has become an industry standard among top ecommerce companies.
Ideal for: Two-day shipping is a great option for rush orders that aren’t absolutely critical. For example, a last-minute gift purchase or emergency back-to-school supplies. With more than 50% of shoppers expecting items within two days, it’s a good idea to offer this shipping option.
Same-day delivery.
Same-day delivery isn’t easy to pull off, requiring warehouses in strategic locations, often near metropolitan areas. These warehouses will typically carry a selection of your highest-demand products, making it possible to fulfil orders in a quick manner without requiring the large storage for your entire catalogue.
Ideal for: The same-day delivery process isn’t practical for all ecommerce businesses, largely because of the logistical hurdles it presents. If you carry perishable goods, however, same-day delivery, even in limited markets, can be a nice value add and help differentiate your company from other ecommerce brands.
Overnight shipping.
Typically used for the holiday season and last-minute gift purchases, overnight shipping ensures shoppers receive their purchase within the following business day after placing the order.
Overnight shipping provides a solution for emergencies, such as replacing a broken gadget before an important meeting or obtaining a last-minute gift for a special occasion.
Ideal for: If your business sells necessities, emergency goods, or time-sensitive goods (Healthcare-related, perishables, etc.), consider offering overnight shipping. Keep in mind it can come with a higher price tag for both you and the customer, and that it does demand you have the ability to ship orders in a very quick manner.
International shipping.
Shipping items abroad enables ecommerce stores to vastly expand their customer base. However, it’s a complex logistical endeavour involving shipping regulations, customs procedures, and taxes or import fees for each target destination.
Ideal for: Many ecommerce businesses can benefit from offering international shipping, assuming you’re not selling something specific to the U.S., like power adaptors. While international shipping presents various logistical and legal challenges, a reputable international shipping carrier can help you navigate cross-border orders and deliveries.
Eco-friendly shipping.
Eco-friendly consumerism is on the rise, with the market now accounting for 24.8% of U.S. retail spending. Shipping often carries a significant carbon footprint.
Shipping that’s eco-friendly offers a greener way to ship, using a number of sustainable practises to reduce environmental impact:
Eco-friendly packaging: Items may be packaged in materials that are recyclable and/or reusable. Excessive packaging materials such as bubble wrap or cardboard can be eliminated.
Localised warehousing: Regional warehouses reduce the distance products travel and lower carbon emissions associated with transportation.
Electric vehicle fleets: Carriers such as UPS, USPS, and FedEx have invested in modernised delivery trucks that emit fewer pollutants.
Reverse recycling: Meal kit delivery companies, for example, encourage customers to return packaging materials for recycling or reuse.
Ideal for: Every ecommerce business should make an effort to offer some level of eco-friendly shipping. It doesn’t have to be a separate shipping method, but can instead be accomplished by using recycled packaging and materials, EV vehicles where possible, and so on.
Hybrid shipping.
Hybrid shipping combines multiple shipping methods and fulfilment processes to maximise efficiency. It may involve a combination of the following:
Carriers: A business might partner with a different carrier for domestic shipping, international shipments, and last-mile delivery.
Fulfilment centres: Businesses may operate their own fulfilment centres or use third-party fulfilment services.
Dropshipping: Businesses can partner with suppliers who fulfil orders and ship products to customers. This prevents businesses from having to hold inventory.
Ideal for: Hybrid shipping is another method every ecommerce business should embrace to some degree. Examine what warehouses are available in your markets, which shippers can safely and efficiently carry your goods, and so on, to determine which combination of methods and resources can help you deliver products most effectively.
Get a free 15-day trial of BigCommerce.
No credit cards. No commitment. Explore at your own pace.
Ecommerce shipping carrier options
Each carrier has its own approach to calculating rates and negotiating discounts with ecommerce businesses. When shipping internationally or to remote areas, it’s important to find a carrier with the coverage you need.
UPS.
United Parcel Service (UPS) serves more than 200 countries and territories, delivering more than 20 million packages daily.
UPS is known for a commitment to time-definite deliveries, including options like:
UPS Ground (domestic delivery in 1-5 business days)
UPS Next Day Air (one-day domestic)
UPS 2nd Day Air (two-day domestic)
The UPS shipping portal and APIs enable seamless integration with ecommerce platforms, making order processing efficient, too.
USPS.
Known for its low rates on smaller packages, USPS offers:
Domestic shipping across the United States
Priority Mail international shipping (6-10 business days) to more than 180 countries
Free package pickup at your home or office, depending on location
Flat rate boxes let you ship items of various weights at a fixed cost, which simplifies shipping cost calculations. USPS is also well-versed with international shipping, so anything involving customs forms and the like is within their wheelhouse.
USPS also provides parcel return services, allowing customers to easily return items using the carrier. This small post-purchase perk can make a big difference for customers.
FedEx.
FedEx offers various shipping options, including:
FedEx Express Saver (Three-day delivery)
FedEx Standard Overnight
FedEx also offers reliable cross-border shipping and customs clearance in more than 220 countries and territories. And they provide packaging solutions to protect fragile or high-value items during transit.
DHL.
DHL is a trusted carrier for international shipments, with 18 distribution centres in the U.S., DHL offers international express deliveries and freight forwarding services, as well as ecommerce-specific solutions.
DHL also offers a range of time-definite services, such as:
DHL Express Worldwide
DHL Express 9:00, which guarantees delivery on specific days and times
The company offers carbon-neutral shipping for U.S.-based deliveries, allowing you to take part in the eco-friendly shipping movement.
There's a lot to love ❤️
Watch a demo to see the BigCommerce platform in action.
Costs associated with ecommerce shipping
It’s easy to focus solely on shipping rates when considering your ecommerce shipping budget. While shipping rates are one thing to consider, there are several other key factors that influence how much to budget for shipping.
Packaging costs.
With the exception of some products, you’ll typically need proper packaging when shipping items to ensure they aren’t damaged. Packaging costs include:
Boxes, mailers, or envelopes
Packing materials — bubble wrap, packing peanuts, air pillows, or special inserts if you’re shipping alcohol
Custom or branded packaging
While not a must, branded packaging can serve as a differentiator, make for a powerful first impression, and positively influence the customer experience.
Delivery speed costs.
Carriers often charge higher fees for expedited shipping. Ecommerce businesses must decide if and how much of these costs to pass on to the customer.
Premium delivery services like next-day or same-day shipping come with higher costs due to urgency and priority. Keep in mind this cost can be higher for large items, or those shipping to areas more removed from distribution centres.
As an online store, it’s worth trying to negotiate carrier contracts with the best rates for certain delivery speed options, provided they have a consistent shipping volume.
International costs.
The costs of shipping internationally add up quickly. This is for a number of reasons:
Shipping carrier fees: Each carrier calculates international shipping fees differently. Carriers often categorise countries into shipping zones based on geographical proximity, with a flat rate or fixed range in each zone.
Customs duties and taxes: Most countries impose a tariff on imports. Customs officials assess the amount based on the information of the print label. It’s important to factor this into the total cost of shipping.
Shipping service level: Expedited or express international shipping comes with higher costs.
It’s expected that international goods will cost more, so don’t be afraid to explore offering international shipping. Be prepared to test how much of the cost you’re willing to eat versus pass off on the customer.
Bulk shipment discounts.
Some shipping carriers offer incentives to ecommerce businesses who ship a large volume of packages each month. Business owners can negotiate contracts for bulk shipments at favourable carrier rates.
The agreement specifies the discounted rates for different shipping services, the minimum shipping volume required to qualify, and the duration of the agreement.
Keep in mind some bulk shipping agreements will penalise you if you fail to meet a shipping quota during a specified time. This penalty can range from loss of the contract to paying a higher rate on shipping that month. If you don’t foresee consistent bulk orders, proceed with caution.
Shipping insurance.
Shipping insurance provides financial protection in the event items are lost, damaged, or stolen during transit. While it adds costs, insurance may be necessary for high-value or fragile items.
Shipping insurance rates are calculated with the following in mind:
Item value: Higher-value items generally have greater insurance premiums.
Item type: Certain items are considered high risk for loss or damage in transit, such as art or fine jewelry.
Destination: Shipping to high-crime destinations raises insurance premiums.
Packaging quality: High-quality packaging may be more expensive, but carriers may offer lower rates due to the reduced risk of damage.
If you’re selling lower-priced goods or items that are lower risk, shipping insurance isn’t a must. Even if you’re selling luxury goods, it’s possible to have shipping insurance as an optional add during the checkout process, rather than build it into your shipping process as a whole.
International ecommerce shipping factors
International ecommerce shipping is almost always more complicated than domestic shipping, with more supply chain considerations and cross-border legal hurdles. But, this isn’t stopping the 43.51% of brands that are shipping or fulfiling orders in new countries in 2026, and it shouldn’t stop you.
Before giving up on international shipping or diving in, consider the following factors that impact this process.
International shipping costs.
The cost of international shipping varies widely depending on shipping distance, package weight, destination country, and more.
Carriers calculate fees according to these variables:
Package weight and dimensions: Carriers often use dimensional weight pricing, which considers the package’s size in addition to its weight. Some shippers offer flat-rate shipping for items of a certain dimension, regardless of weight.
Destination country: Each country imposes its own customs duties, import fees, and taxes — typically a percentage of the item’s value.
Shipping service level: Prices vary for standard, expedited, and express shipping.
Customs documentation: Some ecommerce shipments may require documentation to avoid delays and potential fines.
Transportation method: Some international shippers will offer different types of transportation, with air transport being quicker and more expensive, and sea freighters being cheaper but slower (and more ideal for large quantities).
Additional fees: Additional fees may apply, such as fuel surcharges, remote area surcharges, handling fees, or insurance costs.
International shipping taxes.
International orders will always go through the customs clearance process, both while leaving their country of origin and arriving in their destination country.
During this process, customs officials assess packaging and labels for safety, and determine if a product goes over a value threshold, which can incur additional fees.
Here’s a breakdown of the fees you might incur:
Import duties: Tariffs are imposed on specific goods when they enter the country, typically a percentage of the item’s declared value or its weight.
Import taxes: Value-added tax (VAT), goods and services tax (GST), or sales tax are examples of taxes applied to imported goods. These taxes are often based on the item's value, including the cost of the item itself, shipping fees, and insurance.
Surprises can occur, but by implementing Delivered Duty Paid (DDP), you can take care of estimated customs fees ahead of time and protect the customer from nasty, unexpected costs.
Regulatory considerations.
There will always be regulatory hurdles with any cross-border transaction, as every country has a customs process and many countries have differing laws. These regulations are always important to be mindful of, especially if you’re shipping high-value or bulk items.
Common regulatory factors include:
Customs documentation: Commercial invoices, packing lists, certificates of origin, and other documents are required for the customs process.
Import and export regulations: Certain items may be prohibited or have limitations in different countries. For example, the U.S. famously banned the import of Kinder Eggs during a time as the toys posed a choking hazard.
Harmonised System (HS) codes: HS codes are used to classify products for customs and taxation purposes. You or your carrier must find the appropriate HS code for a product before shipping it abroad.
Sanctions and embargoes: On top of permanent regulations, it’s important to be aware of sanctions or embargoes impacting trade between specific countries.
Labelling and marking requirements: Some countries have specific labelling and marking requirements for imported goods, with non-compliance leading to delays and fines.
Once you’ve established international shipping with a country, don’t forget to routinely revisit a country’s shipping requirements and whether there are any embargoes in place. International laws and relations can and will change.
Carrier choice.
Carrier selection is a business-critical decision for ecommerce companies that ship abroad, impacting shipping prices, delivery times, and customer satisfaction.
Carriers can change what they offer and how much it costs, so before focusing your search on a carrier, instead, consider the following:
Shipping needs: Identify which destination countries you’ll likely ship to, average package weight and dimensions, the volume of shipments, and your desired delivery speed.
Shipping rates: Compare shipping rates from each international shipping carrier, using their online calculators to run mock shipments.
Delivery speeds: Keep speed in mind when reviewing delivery options. It’s a good idea to give customers a choice of speed or lower-cost shipping.
Tracking: Whichever carrier you choose should have real-time tracking, with quality support in the event anything goes missing.
Integrations: Some carriers offer API integrations, making it easier for you to incorporate their services into your ecommerce platform or shipping software. This can streamline order management and make it easier to keep tabs on deliveries.
With all of the above in mind, reach out to your top carrier choices and begin negotiating shipping rates and terms. It’s not only about the rates, but also the penalties for having a lower-volume month.
Top ecommerce shipping software and support
You don’t have to handle ecommerce shipping logistics alone. Ecommerce shipping management systems can help you efficiently route customer orders through multiple channels like Amazon or eBay, simplify international logistics, and more
The following ecommerce shipping solutions are not only great choices, but also integrate with BigCommerce:
ShipStation.
ShipStation is a powerful shipping solution that’s helped ship more than 1.5 trillion packages. Whether you’re just starting out, mid-size, or an enterprise, ShipStation can help you with:
Access to lower shipping rates across major carriers, including USPS, DHL, UPS, and FedEx.
Automation tools that simplify carrier selection, order tagging, warehouse assignments, and other crucial pieces of order fulfilment.
Integrations with more than 400 different platforms.
With the ShipStation BigCommerce integration, you can simplify the ordering and shipping process in no time, and all from the comfort of your BigCommerce site.
ShipWorks.
ShipWorks specialises in high-volume shipments, providing an on-premise and cloud-based solution. The ability to work on-premise offers unparaleled speeds, while cloud support allows the tool to integrate with online solutions, like BigCommerce.
With ShipWorks, businesses managing high-volume shipments can optimise logistics with:
Rule-based automation that assigns shipping methods based on weight, destination, and shipping service level.
Scan-to-ship support that makes it easier for warehouse employees to scan a packing slip and generate print labels, pull order info, tracking information, and more.
On-premise installations that enable speeds greater than cloud-only solutions, with added security and further enterprise resource planning (ERP) integrations.
ShipWorks has a great BigCommerce integration, too, making it easier to take advantage of their free USPS Postage account and lower rate shipping prices.
ShipBob.
ShipBob is a global logistics solution, making it easier for ecommerce brands to ship anywhere, no matter how distributed their business.
What sets ShipBob apart is the company’s large network and fulfilment support, which includes:
More than 60 global fulfilment centres that make it possible to store and ship your products around the globe.
Multi-node fulfilment support enables businesses with multiple inventories and locations to more easily determine which shipping option will get products to customers the fastest, and cheapest.
A consolidated dashboard simplifies inventory and order management, whether you’re on BigCommerce, Shopify, Amazon, or a combination of platforms.
The ShipBob integration on BigCommerce bundles the above functionality and makes it accessible from within your BigCommerce site, whether you’ve got one or one hundred stores.
ShipHero.
The ShipHero warehouse management system accommodates businesses of every size, offering an AI-powered platform that simplifies shipping from beginning to end.
ShipHero prioritises keeping you, the business owner, in control with:
Advanced carrier analytics that provides insight into average carrier delivery times, prices, and where issues are most commonly arising.
ShipHero AI Picking streamlines warehouse logistics, mapping out the most efficient routes within warehouses to reduce walk time.
Real-time carrier rate visibility makes it easier to stay competitive in an increasingly expensive shipping market.
Whether you want to optimise shipping from your browser or streamline warehouse flows with the mobile app, the ShipHero BigCommerce integration can help you get started quickly.
Optimising the ecommerce shipping process
The ecommerce shipping process has more moving parts than a rocket. Fortunately, optimising your shipping process isn’t total rocket science.
Leverage shipping automation.
Most shipping platforms offer some form of automation at this point, from automated label generation to carrier choice based on cost. Embrace it.
Find a shipping tool, like any of those mentioned above, and dive into the automated features. This can save you valuable time and money, and enable you to offer lower shipping costs for your customers (which is a huge win in this environment).
Simplify returns.
Returns can and will happen. Especially in the online space, where retail returns alone sit at 24.5%, versus 8.72% for brick-and-mortar stores. The best thing you can do is simplify the returns process for you and the customer, including:
Offering an online self-service option, where customers can choose to return their order.
Providing a shipping label they can print out from home and take to their local drop off location.
If possible, providing a QR code option that lets customers take the product to a local UPS or FedEX store and return the item without having to print anything.
Again, returns will happen. By simplifying the process you’re making the customer’s life easier and them more likely to shop with you again. You’re getting your product back. Win-win.
Track essential shipping KPIs and metrics.
All this work toward perfecting your ecommerce shipping processes is only worthwhile if you know it’s working. In order to determine this, there are several shipping KPIs and metrics to follow.
On-time delivery rate: Are orders arriving within the window promised by the delivery date? If not, offer customers a discount as an apology, and then work to figure out why the delivery was late if it’s a recurring issue with a carrier.
Average transit time: How long is it taking for a product to reach a customer once it’s left the fulfilment centre or warehouse? Long or worsening transit times can point toward carrier difficulties, but are to be expected if customs processes are involved.
Order lead time: This measures how long it takes for the customer to receive their product from the moment they purchase it. Unlike average transit time, this metric factors in order processing and logistics within your control, making it useful for in-house optimisations.
Shipping cost per order: Track your shipping cost per order over time to determine if things are staying consistent, if certain carriers are costing you more, and whether you need to adjust how much of the shipping margins you take on versus passing to the customer.
Cart abandonment due to shipping cost: Track whether people are dropping off during the checkout phase within your analytics platform to work toward identifying whether shipping costs are the culprit. You can further test this by putting shipping cost calculators upfront to reduce sticker shock.
Make the above part of your usual ecommerce metric tracking dashboard to ensure you don’t lose sight of these important numbers.
The final word
There’s no denying that ecommerce shipping is rife with details to follow, from tracking numbers to shipping speed to trade embargoes. Take your time and eat it in bits, like a great pizza. It will take trial and error, but eventually you’ll strike the right balance between speed, cost, and consistency.
The right ecommerce platform can help simplify the above, both with platform capabilities and those found through integrations.
Take BigCommerce, for example, which offers multiple shipping configurations, real-time shipping rate data for you and customers, and total control over the most complex logistics needs through a partnership with ShipperHQ.
Even a company with shipping needs as seasonal and complicated as Norsland Lefse, a Minnesota-based food manufacturer, found simplicity with BigCommerce.
Using BigCommerce and ShipperHQ, they were able to set transparent, real-time pricing on shipping that customers could view before checkout. Where seasonal demand used to result in higher shipping costs, they instead found a 40% YoY revenue boost within months of going live.
Sign up for a free demo and see for yourself how BigCommerce can help you deliver your products and a great customer experience today.
FAQs about ecommerce shipping
Online stores can distinguish their brand through their shipping strategy by offering branded packaging, a unique unboxing experience with personalised notes, supporting eco-friendly shipping methods, and making the return process as painless as possible.
Ecommerce businesses can reduce the environmental impact of shipping by offering eco-friendly options, including sustainable packaging, right-sized packaging that doesn't leave wasted space, using recycled packing materials, local warehousing, and carriers with carbon-neutral or EV delivery options.
Some shippers use dimensional weight to determine cost, which results in objects that take up more space having a higher cost to ship. For some items, like furniture, this is hard to get around. However, ecommerce stores can minimise this by using packaging that’s as efficient as possible.
Modern AI can optimise shipping by automatically choosing carriers with the lowest costs, optimising warehouse pathways, and picking distribution centres closest to a customer.
Some AI can also enable dynamic routing, which pulls from weather, traffic, and other data sources to determine in real-time which route is the most efficient.
A 3PL, or third-party shipping provider, is an ideal option for ecommerce businesses with slightly larger shipping volumes, anywhere in the 100 – 500 range each month.
More specifically, ecommerce businesses should take note if they're falling behind on promised delivery dates, have an increase in shipping or order-related mistakes, or find themselves spending too much time on handling shipping themselves.
Sustainability plays an increasing role in ecommerce shipping, as more and more customers are interested in eco-friendly practises and companies. Ecommerce businesses should partner with eco-friendly shipping companies, use recycled packaging, and take advantage of carbon neutral delivery companies.
⏰ Isn't about time that you evaluated your ecommerce platform?
Request a demo to see how the BigCommerce platform is different.