Picture this: Your online retail business is taking off. Your company has a high-quality, sought-after product, and customers rave about your speedy service.
These achievements are yours, but not yours alone: You rely on fulfillment and shipping carriers to consistently, reliably, and safely deliver your products to customers.
Choosing the right shipping carriers for your ecommerce business can make the difference between satisfied and frustrated clients. Here’s how to select the right carriers, and how much they charge to ship parcels.
What is a shipping carrier?
A shipping carrier, often called a carrier or delivery carrier, is a shipping company responsible for picking up goods and delivering them to their intended destinations. They ship via various modes of transportation, including trucks, trains, cargo ships, and aircraft.
Shipping carriers vary in size and scope, ranging from small local courier services to prominent multinational logistics companies. Well-known shipping carriers include DHL, UPS, FedEx, and the United States Postal Service (USPS).
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The Shopify guide to shipping and fulfillment
Boost customer satisfaction while driving sales growth for your ecommerce business with an effective shipping and fulfillment strategy. Use this guide to create a plan that covers all aspects of shipping and fulfillment, from how much to charge your customers to choosing the right fulfillment method.
How to choose the right shipping carrier for your business
- Shipping cost
- Location
- Delivery days
- Service speed
- Sustainability
- LTL vs. FTL
- Tracking, insurance, and scheduling
- Other considerations
While it may be tempting to spring for the biggest, best-known name, shipping carriers vary in costs, package types handled, and delivery destinations. Different shipping carriers excel at specific aspects of the shipping process.
Here are some considerations when reviewing carriers:
Shipping cost
Multiple factors—including fuel prices, mode of transport, delivery speed, and distance—determine carrier costs. Ecommerce customers often expect free shipping, so finding a carrier with affordable shipping lets you pass savings on to them.
If you’re looking for a break on fees, consider Shopify Shipping. It helps merchants unlock up to 88% savings when buying shipping labels from leading carriers like DHL Express, UPS, FedEx, and USPS.
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Location
Shipping carriers categorize shipments using a zone system based on the distance packages travel. For example, the United States Postal Service lists eight zones, with Zone 1 marking the package’s origin and Zone 8 representing the farthest possible destination of more than 1,800 miles. Zoning simplifies pricing and service determination.
Knowing the zones your goods will ship to can help you choose the right national, local, or regional carrier. If you plan to deliver internationally, enlist a carrier experienced in foreign shipments.
Delivery days
Not all carriers do weekend deliveries. If your customers expect packages on Saturdays, Sundays, or holidays, or they’ve paid a premium for this option, enlist a carrier that can deliver on these days for the specific service you’re using.
Service speed
Depending on location, expedited shipping may require air delivery, but not all carriers offer it.
Sustainability
Many large shipping companies, and some smaller regional ones, actively pursue carbon neutrality by including alternative fuels and renewable energy in their logistics. If environmental sustainability aligns with your company values, consider a carrier that offers eco-friendly shipping solutions.
LTL vs. FTL
Small ecommerce stores needing to ship small volumes at quick rates rely on LTL, or less-than-truckload, shipping. This practice allows business owners to share truck space with other parties, reducing costs. However, because carriers stop at multiple dropoff points, delivery times can be slower with this shipping option.
In contrast, FTL, or full truckload, involves quantities of cargo that fill an entire truck, often used when a single customer has substantial freight to transport.
Tracking, insurance, and scheduling
Most carriers offer shipping insurance and automated tracking systems for customers to check delivery status. And a few even let customers schedule their preferred delivery dates and times.
Shopify Shipping includes up to $200 of insurance through Shipsurance on each order for eligible merchants. Submit claims for Shipsurance or carrier coverage easily in the Shopify admin for labels purchased through Shopify Shipping.
Other considerations
Do you ship fragile items? Do they need refrigeration or special packaging? Are your goods perishable? Check with carriers to ensure they accommodate your requests while guaranteeing reliable service.
Top shipping carriers for ecommerce businesses
Industry experts expect global parcel volumes to reach 256 billion annually by 2027. Given the demand, there are many shipping carrier options.
📌Pro tip: Buy discounted labels from popular carriers through Shopify Shipping. Unlock savings of up to 88% on leading domestic and international carriers—including USPS, DHL Express, FedEx, and UPS—without leaving your Shopify admin.
United Parcel Service (UPS)
Known for its signature brown trucks, UPS offers nationwide and international shipping, freight shipping for large deliveries, and flat-rate shipping based on size, weight, and speed. UPS also delivers packages to thousands of UPS Access Point locations nationwide.
Flat rate shipping starts at $10.85 for extra small packages, while extra large packages start at $27.60. Establish a contract with UPS for daily pickups from your warehouse or storefront and pay a daily rate determined by delivery destination.
If you ship less frequently, opt for retail delivery to a UPS Store or UPS Customer Center, with rates based on shipping speed, location, dimensions, and weight.
UPS offers same-day and next-day delivery, delivery guarantees, detailed tracking, and Saturday deliveries.
💡Learn more about shipping with UPS through Shopify Shipping.
FedEx
FedEx provides LTL, air, and freight shipping for packages more than 150 pounds. It also offers temperature-controlled shipping and complimentary packaging testing to ensure products arrive undamaged.
FedEx ships to more than 220 countries and territories and provides one- to three-business-day shipping in the contiguous US. Frequent shippers can open an account to access free envelopes and boxes. Choose from 12 sizes of flat-rate packages, with delivery fees starting at $9.75.
FedEx offers detailed tracking, overnight delivery, and Saturday deliveries.
💡Learn more about shipping with FedEx through Shopify Shipping.
United States Postal Service (USPS)
An independent agency of the federal government, the USPS is the only delivery service that reaches every address in the US—around 154 million residences. USPS also ships to more than 180 countries through partner carriers.
USPS can ship packages directly to local post offices and PO boxes for free and straightforward customer pickup.
USPS also offers a wide range of shipping options, from First-Class Mail, delivered in one to five days and starting at 73¢, to next-day Priority Mail Express starting at $27.90. USPS also offers flat rates from $9.
With its downloadable shipping software, you can quickly pay for postage and print shipping labels. Several USPS shipping options, such as Priority Mail Express, Priority Mail, and USPS Ground Advantage, include $100 of insurance.
💡Learn more about shipping with USPS through Shopify Shipping.
DHL
Based in Germany, DHL partners with USPS to provide last-mile delivery across the US. The company also covers 220 countries and more than 120,000 locations worldwide.
DHL’s residential delivery options start at $5.80; the carrier also provides express shipping for next-business-day deliveries of packages up to 154 pounds. If you wish, DHL can reduce carbon emissions on your shipments for a fee. With a DHL business account, you can access tools and on-demand delivery system for self-selecting delivery dates and locations.
💡Learn more about shipping with DHL through Shopify Shipping.
International shipping: what to know about global carriers
There’s extra legwork involved when you ship internationally—and that’s before adding extra costs for taxes, duties, and customs. Look for a carrier with extensive logistics networks—many of the abovementioned carriers have them, as do these:
FedEx
FedEx has a global network of more than 300 air and ocean facilities, serving more than 14,000 international origins and destinations, and is known for speedy deliveries. FedEx’s Next Day Early service can deliver your parcel as soon as 8 a.m. the next business day.
FedEx can ship an 8 ounce envelope from the US to Canada for $59 with FedEx International Priority service. Your customer will receive their parcel within one to threebusiness days after you post it.
UPS
UPS is another popular carrier for international parcels. Its Next Day Air service delivers as early as 10:30 a.m. the next business day.
If you’re willing to trade delivery speed for cost, UPS tends to have lower rates. Worldwide Saver rates start at $54.13 for international letter shipping in two to five working days.
DHL
DHL can ship a parcel to more than 220 countries and territories with its international shipping services. Its Parcel International Standard delivers to Europe and Canada in four to eight business days, and eight to 15 business days for the rest of the world. This service includes shipment value protection of up to $100 per package.
DHL’s international shipping rates could be more transparent. As a rough estimate, its shipping rate calculator quoted $146.81 and up to ship a three-pound parcel in an A4 envelope from Los Angeles (US) to London (UK).
Understanding shipping carrier policies and restrictions
Depending on what you sell, you might need a combination of shipping carriers. Some carriers restrict what they’ll ship or have policies that make them unsuitable for certain deliveries. Here are some factors to consider:
- Shipment tracking capabilities. The USPS has limited shipment tracking options on certain options like First-Class Mail. If your customers need parcel tracking, pick a service that offers it.
- Shipping insurance. Similarly, some carriers’ limited shipping insurance makes them unsuitable for transporting high-value goods. If you deliver expensive artwork or luxury items, consider buying labels from Shopify Shipping, where you can purchase additional insurance through Shipsurance for up to $5,000 USD of insurance coverage.
- Dangerous goods. Many carriers prohibit merchants from shipping hazardous goods. FedEx’s Dangerous Goods and UPS’ HazMat services are two exceptions, but they come withstrict guidelines for packaging and labeling and require paying an extra fee.
Shipping carrier FAQ
Is USPS a shipping carrier?
Yes. The United States Postal Service is both an agency of the federal government and a shipping carrier accessible to the general public and private businesses.
Who are the best shipping carriers?
There is no single best shipping carrier—only the best shipping carrier for your business and shipping strategy. To find your best one, consider the frequency and volume of your shipments, your recipients’ locations relative to yours (domestic versus international), parcel sizes, and required shipping speeds.
How do shipping carriers calculate shipping costs?
In general, major shipping carriers calculate shipping rates based on whichever is greater, the package weight or its dimensional (DIM) weight. Determine DIM weight by multiplying the package’s length, width, and height, then dividing by a DIM divisor (a number set by major carriers representing cubic inches per pound).
Can I negotiate shipping rates with carriers?
Yes, many carriers will negotiate with large retailers. To negotiate shipping rates, you must first make an account with the carrier and contact your account manager. Shopify Shipping expedites the process by offering merchants the lowest available rates.
What is the difference between ground and air shipping?
Parcels shipped by “ground” are transported by car, rail, or freight. Air shipping is when traveling by plane—a faster, but more expensive approach.
How can I track my shipment?
Most shipping carriers offer real-time shipment tracking with a tracking number or ID tag, which you can get from the merchant that sold your item.