11 Shipping Methods You Can Consider for Your eCommerce Business

What would you look for when ordering a product online?

You’ll surely want: 

• Minimum shipping costs
• Getting delivery as fast as they can be
• Optimal condition of the products you receive

That’s exactly what your customers look for when buying products online from your store. 

And you can’t afford to avoid their preferences, especially in the era when:

• Two-thirds of global shoppers expect to receive deliveries within 24 hours 
• Approximately 41 percent of global online shoppers would abandon their carts because delivery fees were too expensive.

This is where choosing the right shipping methods plays a crucial role in running a successful e-retail business.

This blog serves as your exhaustive guide that covers: 

• The most common shipping options
• Leading reliable shipping carriers and how they operate
• How you choose the right carrier for your business. 

So, let’s start.

Understanding the Shipping Process

When you deliver goods from one point to another, specifically from your warehouse to your customer, that’s called shipping. 

This shipping process also entails documentation, package handling, noting arrival times, and transportation means.

Basically, your shipping involves three processes:

• Receiving the order
• Order processing
• Order fulfillment 

How quickly and accurately you can prepare your customer’s order and ship it to their destination impacts these stages of the shipping process.

However, if you have to deal with e-commerce shipping, you need a shipper. 

So, that brings us to another question: Who is a shipper?

A shipper is the person who processes and prepares the order to ship, and the carrier is the person who does the last-mile delivery process.

In some cases, e-commerce companies utilize a 3PL. 

So, what is a 3PL?

It’s a third-party logistics provider that offers inbound and outbound shipping services. 

When you partner with a 3PL, you don’t have to worry about handling order fulfillment. 

The 3PL will do it all for you, whether it’s picking orders from the fulfillment store, packaging products, or shipping them to your customers.

Exploring the Types of Shipping Methods

People thinking of starting a business often overlook the shipping and delivery methods for their business. Though it seems to be a background process, it is not just an important process but a complex one too. 

Below you will find the different types of eCommerce shipping methods:

1. Freight shipping

If the shipment weighs more than 150 pounds or measures more than 30X30X30 inches, it is considered freight. Simply put, shipping large quantities of goods is called freight. This type of transporting commodities, goods, and cargo is performed by land, air, or sea.  

Types of freight shipping are:

• Ground freight through trucks
• Ocean freight through ships
• Air freight through planes
• Multimodal freight through a combination of vehicles

Various factors that influence time and pricing are

• Mode of transport
• Origin and destination 
• Parcel size and weight 
• Special handling requirements, if any

2. Flat rate shipping

This type of shipping doesn’t charge based on the item’s weight, shape, or size. So, you can ship any item at the same price within the shipping zone.

Usually, the e-commerce site and its shipping partner decide the price for flat-rate shipping. This method helps save money in the long run, especially if you often ship heavy or multiple items in one box.

3. Overnight shipping

When the package gets delivered to the customer the day it’s shipped, that’s overnight shipping. The price and terms may vary based on the shipping carrier. However, if your company partners with a platform that offers pre-negotiated discounts, you can save some bucks.

4. Priority mail

Priority mail is an exclusive service USPS provides and is a brand name, not a unique shipping method. It operates just like shipping methods, such as expedited and overnight shipping. This type ships goods within the US in 1 to 3 business days, depending on the origin and destination. 

5. International shipping

As the name suggests, if the shipping originates from a different country than the destination, that’s international shipping.

However, this shipping type requires more formalities since it is shipped to a different country. 

In international shipping, you must submit customs declarations and forms that have details, such as:

• What’s inside the package
• The cost or estimated value of the product
• Whether the package is merchandise or a gift for the customs officers receiving the parcel

International shipments generally need more clearances compared to domestic ones, so you must ensure you stay prepared for them.

6. Expedited shipping

If the package is delivered much faster than the standard shipping time, it’s called expedited shipping. Different carrier companies may offer unique branded names for this method of shipping and services may differ slightly.

Here are some examples of expedited shipping services. 

• UPS calls this shipping method UPS expedited shipping.
• USPS refers to USPS expedited shipping using terms such as Priority Mail and Priority Mail Express.  

7. Local delivery or pickup

This shipping type benefits small businesses that sell goods based on location. Local delivery depends on your business team’s bandwidth. As a business owner, you can deliver the package to the customer’s location or get your team members to do the work. Moreover, if you provide a local pickup option, nearby customers can go straight to your store and get their delivery.

8. Multiple address shipping

In this method, a customer sends different products in a single order to multiple destinations. Suppose you order two sets of headphones, one for you and the other for your friend. If you get it delivered to you and your friend’s house, that’s multi-address shipping.

This method fits when you have varied fulfillment preferences. For instance, 

• A customer may want to get items shipped to their doorstep 
• Another may want to pick it up from the store
• Yet another may want to email a digital gift card to a friend

Thus, you get the flexibility across standard shipping, local delivery, in-store pickup, or digital delivery.

While you may find this method good to enhance your customer experience, you may have to bear the logistical complexity of fulfillment operations.

9. Economy shipping

When you have to ship non-urgent deliveries that may take longer to reach customers, economy shipping is the best low-cost option. 

Delivery times in this method can range from a handful of days to one or two weeks based on the distance and logistics. 

If you prefer costs to speed, it can be a go-to option and suits you more when shipping mass quantities of bulky or heavy items.

10. Free shipping

When you charge zero shipping fees to deliver orders to your customers. 

While it may attract more customers and encourage big orders, you may have to trade off a portion of your profit margins against increased customer loyalty. 

11. Table rate shipping

In this method, your shipping costs depend on factors, such as:

• Weight 
• Dimensions 
• Destination. 

It involves customized pricing to optimize your shipping expenses so your customers get fair rates.

Evaluating Reliable Shipping Options

A shipping carrier refers to a person or company physically delivering products to customers. Carriers charge for each delivery.

However, shipping costs vary depending on factors, such as weight, shipping speeds, and distances. 

Carriers also include shipping labels in the packages, containing information about the source and destination.

Some reliable shipping options in the US are USPS, UPS, and FedEx.

1. UPS 

UPS is abbreviated as United Parcel Service. It’s a big player in the shipping industry and specializes in the secure and fast delivery of goods. 

This carrier is a favorite among eCommerce business merchants due to its reliability, accurate tracking system, and guaranteed express shipping.

This is why several eCommerce platforms in the US use this carrier. Though this is a reputed brand, it has cons, such as pricey shipping rates, and weekend delivery costs extra.

2. USPS 

If you own a small business and are looking for affordable shipping charges to make small and light shipments, USPS suits you best.

United States Postal Service stands out from its competitors as it’s an independent federal agency. 

It is responsible for providing postal services to all US residents. The best part is that it pledges “neither snow nor rain nor heat nor gloom of night” will stop the employees from delivering the packages. Plus, it provides accurate and competitive rates. 

However, the downsides are limited tracking and poor customer support.

3. FedEx

You probably heard about FedEx often if you are one of those avid online shoppers. This carrier is the best option for merchants looking for fast shipping. 

It also gained a big reputation for its air shipments, next-day deliveries, and options for shipping to foreign country available at different shipping prices and desired delivery times. 

If you want to make large shipments and track them, FedEx is a reliable shipping option. Like UPS, it can be an expensive option, but it provides some features that make up for it, such as: 

• Good shipping strategy 
• Accurate tracking
• Saturday delivery
• Discounted rates

Comparing Popular Shipping Carriers

Let’s talk about some reality here. There is no one best shipping carrier in the US. It’s because there are no one-size-fits-all shipping solutions.

However, we will compare popular shipping companies for shipping such as UPS, USPS, and FedX and find out what differentiates them from their competitors.

Shipping Carrier	UPS	USPS	FedEx
Number of employees	481,000	600,000	425,000
Number of vehicles	123,000	215,000	87,000
Number of shipments	21M shipments per day	500M mail pieces daily	14M shipments per day
Domestic & International delivery	Yes	Yes	Yes
Operating hours	9:00 am to 7:00 pm	24 hours a day	9:00 am to 8:00 pm
Working days	Open from Monday till Friday	Delivers seven days a week	Delivers seven days a week
Insurance	Up to $100 of coverage for every package	Up to $5,000 for damaged or lost items	Up to $100 of coverage for every package
Best for	Guaranteed shipping, package tracking, and heavy shipments	Shipping small packages, shipping to PO boxes, and free pickup	Fast deliveries, package tracking, and Saturday home delivery

Estimating Shipping Costs

In this section, we shall discuss the shipping rate of some top shipping carriers.

1. FedEx shipping costs

Shipping Service	Shipping Speed	Shipping Cost
FedEx First Overnight	1 day	$164.52
FedEx Priority Overnight	1 day	$127.47
FedEx First Overnight	2 days	$145.40
FedEx Priority Overnight	2 days	$108.35
FedEx Standard Overnight	2 days	$95.11
FedEx 2Day AM	3 days	$50.32
FedEx Express Saver	4 days	$36.71
FedEx Ground	5 days	$13.91

2. USPS shipping costs

Shipping Service	Shipping Speed	Shipping Cost
Priority Mail Express 1-Day	1 day	$48.45
Priority Mail	3 days	$11.60
Priority Mail Large Flat Rate Box	3 days	$21.50
Priority Mail Medium Flat Rate Box	3 days	$16.10
Priority Mail Large Small Rate Box	3 days	$9.45
USPS Retail Ground	7 days	$10.25

3. UPS shipping costs

Shipping Service	Shipping Speed	Shipping Cost
UPS Next Day Air Early	1 day	$134.98
UPS Next Day Air	1 day	$99.13
UPS Next Day Air Saver	1 day	$88.47
UPS 2nd Day Air AM	2 days	$44.36
UPS 2nd Day Air	2 days	$38.68
UPS 3 Day Air Select	3 days	$31.50
UPS Ground	4 days	$13.18

How to choose the best shipping carrier?

Below are the factors that will help you choose a reliable shipping carrier. 

• Pricing: As a business owner, you will tie up with a shipping carrier to deliver your goods. So, ensure the charges fit your budget. 
• International shipping: Not all carrier companies do international shipping. If you have to ship products across borders, ensure your shipping partner offers global shipping services.
• Delivery experience: Check if the carrier company offers unique services apart from the default, such as pickup locations, special door access, etc. 
• Weight limits: How large is your product package? Some carriers have weight limits, so ensure that the company can ship your items. 
• Insurance: Looking for some extra protection for your packages? Choose a carrier that offers insurance coverage. 

Other factors to consider are weekend delivery options, different eCommerce shipping options, and the type of products they ship.

How Upper Can Help Optimize Your Shipping

When delivering goods to physical locations, your delivery driver might find it pressurized. It’s because they have to plan or find a route, especially if you have committed to same-day delivery. If the delivery time gets too long, the reputation can be affected.

This is why you need powerful route planning software such as Upper Route Planner. This automated route planning software can easily handle your delivery operations and ensure you meet the customer’s expectations.  

With an array of routing features, it ensures you don’t waste time in route planning.

For instance, When the routes are optimized, you get time and space for more deliveries. Also, you can plan and optimize multiple routes at once. You can even plan routes for same-day delivery. Overall, with properly optimized routes, you can save fuel costs, simultaneously serving more customers.

Conclusion

It’s no secret that online shopping is on the rise and successfully delivering packages is an essential aspect of the customer experience. But most delivery businesses often consider the shipping process a massive headache.

Because customers expect to pay a little for shipping and receive the order quickly and in perfect condition. This problem can be eliminated by choosing the right shipping method to deliver your goods to the customers without any issues.

That said, you will find different types of shipping methods given in this article. Based on your business needs, you must opt for the best shipping method and associate with a reliable shipping carrier.