Review: Best Shipping Solutions for E-commerce Businesses

Shipping is one of the most important yet costly aspects of running an e-commerce business. With thousands of shipping providers offering various services, it can be difficult for online retailers to navigate the options and choose the right solution for their business needs. In this blog, CouponXoo will review some of the top shipping providers and platforms that e-commerce stores can use to fulfill orders, keep customers happy, and save on shipping costs.

USPS (United States Postal Service)

As the official postal service of the United States, USPS offers affordable basic shipping options that many small online sellers rely on in the early stages. While they do not offer tracking on all packages, their First-Class Package rates start at just $3-$8 depending on weight. USPS also has competitive Media Mail and Priority Mail rates.

Some advantages of shipping with USPS include:

  • Wide reach - USPS delivers to every address in the US, so all customers can be reached.
  • Affordability - Their basic rates are often the most affordable for lightest packages.
  • Flexibility - Offerings like Priority Mail and Priority Mail Express provide faster shipping options.
  • Integration - USPS works with many e-commerce platforms like Shopify, BigCommerce, Volusion for seamless order imports.

However, their tracking is not as advanced as UPS or FedEx for international or business customers. Delivery times can also vary more than other carriers. USPS works best for low-volume basic domestic shipping needs.

FedEx

FedEx is one of the top carriers preferred by businesses for its reliability. Their everyday rates are slightly higher than USPS but come with added benefits like money-back delivery guarantees. FedEx also has extensive international coverage.

  • Service variety - Offers economy (Ground), standard (Home), and expedited (Express) options.
  • Delivery visibility - Advanced tracking and estimated delivery windows.
  • Global reach - Widest international shipping network outside of UPS.
  • B2B experience - Known for consistent, on-time delivery for business shippers.

However, their rates increase substantially for heavier items or remote/residential deliveries. FedEx works well for medium-large volume shippers prioritizing reliability over the absolute lowest rates.

UPS

Similar to FedEx, UPS focuses on business-grade shipping services. Their rates are competitive for lightweight/commercial packages within the US. International coverage is excellent as well.

  • Guaranteed standards - Delivery by end of day for UPS Ground/3Day Select, next day for UPS Express.
  • Tracking integration - Provides shipment milestones beyond basic delivery updates.
  • Returns support - Offers return shipping labels and reimbursement on qualifying packages.
  • Commercial focus - Hubs and drivers set up for larger shippers' needs more than home/occasional users.

UPS works well for frequent shippers who need consistent, traceable fulfillment but may have higher minimum order/package rates than USPS/FedEx for lighter ad-hoc shipments.

Fulfillment by Amazon (FBA)

Having products fulfilled by Amazon FBA allows sellers to take advantage of Amazon's huge fulfillment infrastructure and Prime shipping benefits without handling any logistics themselves. FBA fees are competitive too for the advantages gained.

  • Access to Prime - Eligible products qualify for ultra-fast Prime delivery timelines.
  • Huge network - Leverage Amazon's warehouse space, packers, and carrier relationships.
  • Removal of burden - No more dealing with order fulfillment, customer service, or returns.
  • Integration advantage - Product listings are backed by Amazon's fulfillment promise and customer experience standards.

However, control is given up along with some margin to Amazon's fees structure. FBA works best for sellers already heavily invested in Amazon and not looking to diversify sales channels.

Shipping Platforms

While carriers handle transportation, shipping software allows online sellers to manage orders, print labels, calculate rates, and track shipments all in one central dashboard. Here are some top platforms:

  • ShipStation - Feature-rich solution good for mid-large shops needing multi-carrier support and complex automation tasks. $29-199/month.
  • Stamps.com - Best for basic occasional shippers needing USPS, UPS, and other domestic labels with minimal setup. $15.99-199/month.
  • Shippo - Very developer-friendly API for building custom shipping integrations into existing stores/platforms. $1-1000/month.
  • ShippingEasy - All-in-one platform both for printing labels and also dispatching orders to fulfillment centers. $10/order.
  • PirateShip - Extremely low rates on USPS and UPS if shipping lower volumes regularly. $0-24/month.

Using a shipping platform reduces rate shopping time and ensures orders consistently leave your warehouse accurately and on-schedule. Essential for any mid-volume operation.

Parcel Shipping Services

For bulkier/heavier items that may exceed standard carrier dimensions/weight limits, parcel carriers help distribute freight across various trucking networks:

  • UPS Freight - Reliable LTL (less than truckload) network within North America. Zones determine rates.
  • YRC Freight (formerly Yellow Freight) - Top LTL provider in middle of US with competitive rates.
  • Old Dominion Freight Line - Specializes in palletized freight across nearly all lower 48 states.
  • Estes Express Lines - Regional LTL carrier in much of Eastern US and Canada.
  • FedEx Freight - Offers LTL,TL (truckload), and intermodal container shipping across US and international locations.

These drayage and intermodal providers become more cost-effective than carriers like UPS/FedEx for irregularly-sized or heavier shipments.

Return Shipping Solutions

As return rates have risen for e-commerce retailers, investing in robust return handling has become as important as outbound fulfillment. Consider:

  • Pre-paid return labels - Easily claim refundable postage cost from carriers and provide customers a seamless journey.
  • Return exchange options - Custom processes for swapped items, repairs, or gifts instead of just pure refunds.
  • Return analysis - Audit return causes and product metrics to shore up future success and cut down costs.
  • Carrier return partnerships - Programs from UPS,FedEx that simplify the return experience and provide insights.
  • Return fulfillment - Automate receiving, inspection, and reshipment of returned goods to maintain warehouse flow.

Addressing returns proactively can keep good customers and mitigate losses from disappointing exchange experiences.

White-Label Shipping Services

For businesses with irregular or unpredictable volumes, outsourcing both fulfillment and shipping eliminates infrastructure needs while gaining scale. White-label partners handle orders from start to delivery with their facilities. This is an option for new ventures or pop-up promos at reduced risk. Consider:

  • Fulfillment by Amazon - Focused on Amazons traffic but may fit well for small testing periods.
  • Anthropic - All-in-one platform also for warehousing, packing, and dispatch with AI routing optimization.
  • ShipBob - Affordable short-term fulfillment inventory storage and order shipping services.
  • Flexe - On-demand warehousing and distributed order fulfillment footprint nationally.
  • ShipMonk - Another nationwide on-demand 3PL focused on smaller scales of 5-5000 units per month.

This removes bandwidth limits for scaling up or down instantly without infrastructure changes based on sales patterns.

Related: Best Payment Gateways for E-commerce in 2024: A Comparison

Shipping Software Integrations

For online businesses already using a platform like Shopify, BigCommerce, or WooCommerce, shopping cart integrations allow the merchant to seamlessly pull rates, print labels, and track shipments without needing separate shipping dashboard software. Top integrated carrier options include:

  • USPS shipping for Shopify/Woo/BigCommerce
  • UPS shipping plugins
  • FedEx shipping plugins
  • Canada Post, Australia Post, and other international carrier plugins
  • ShipStation and ShipWorks order imports

These make order fulfillment a one-click process while still leveraging the commerce platform's existing sales workflows and product pages. Extremely useful for increasing shipment throughput without learning a new dashboard.

Green Shipping Options

Merchants wanting to tout sustainable practices can investigate carbon neutral/green delivery services now available:

  • DHL GoGreen - Carbon offset fee adds $1-3 per parcel climate projects portfolio and reporting.
  • UPS Carbon Neutral - Fund energy efficiency efforts and renewable programs with $1-$5 per package contribution.
  • Carbonfund.org - Third party allows configuring shipping impact estimates and donations.
  • Sustainable options - Look to regional electric cargo bikes or walking couriers for hyper-local low emission deliveries.
  • Natural packaging - Use recycled/plant-based paper, tapes, and fillers for more eco-friendly shipments.

These advances emphasize sustainability without derailing cost goals, appealing to environmentally conscious consumer segments.

In Summary

Shipping is a core business function for e-commerce requiring strategic planning, multiple integration points, and new capabilities like returns handling and sustainability focus. Researching all the options takes time but ultimately selecting solutions aligned with scale, reliability needs, and branding values allows establishing a fulfillment process optimized for long term growth. Merchants should explore the shipping discounts and coupons available on CouponXoo to identify additional savings on different carriers and services to further optimize their fulfillment costs.

CouponXoo strives to keep online retailers informed of the latest shipping developments and deals to help streamline their logistics. With the right solutions in place, merchants can focus on growing their sales while providing excellent customer experiences through fast, affordable and sustainable delivery.

Related: How to Get the Most Out of Free Shipping Offers in 2024

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