What is eCommerce Shipping?

ECommerce shipping refers to the process of delivering products purchased online from a seller to a customer’s doorstep. It’s a critical component of the e-commerce ecosystem, encompassing everything from the moment an order is placed to the final delivery. As online shopping continues to soar in popularity, driven by convenience and the expanding reach of digital platforms, ecommerce shipping has become more important than ever. With consumers expecting faster delivery times and seamless experiences, businesses must prioritize efficient and reliable shipping solutions to stay competitive.

Why eCommerce shipping is more important than ever

Shipping is one of the key factors why customers choose your company and brand. It is as important as your competitive product price or product description. Free shipping options encourage 93% of online buyers to buy more. 78% of US Amazon Prime Customers signed up for the Amazon Prime Loyalty Program to benefit from Free Shipping.

However, sometimes it is impossible to offer a free delivery cost. Often, it is not the most rational shipping option for an eCommerce merchant. Applying a wise strategy may bring you more customers while saving on the costs you pay to your carrier. Today, we will get to know what delivery strategies to apply to differentiate from your competitors and get more transactions in your store, and improve customer experience.

Shipping solutions for eCommerce

Choosing the right eСommerce shipping solutions is a pivotal point for meeting customer expectations and optimizing costs. Here we gathered eight of the most popular eСommerce shipping methods:

1) Expedited shipping

Expedited shipping ensures faster eСommerce delivery, often within 2-3 business days. It’s perfect for customers who are willing to pay extra for quicker service.

2) Advanced flat rate shipping capabilities

Advanced flat rate shipping offers businesses a way to simplify their shipping costs by setting fixed rates for different shipping zones or order values. Unlike standard flat rate shipping services, advanced capabilities allow for greater flexibility and customization. For example, businesses can set different flat rates based on product weight, dimensions, or even customer location. This method is particularly useful for businesses with a diverse product range or a wide customer base.

3) Ground shipping

Ground shipping is a widely used method for transporting goods over land, typically via trucks. It’s a cost-effective option for domestic shipments, especially for heavier items that don’t require expedited delivery. Shipment of goods can take anywhere from 1 to 7 days, depending on the distance between the origin and destination. It’s ideal for businesses that want to balance cost and delivery time, making it a popular choice for non-urgent deliveries within the same country or region.

4) Air freight

Air freight is the fastest business shipping method over long distances, making it the preferred choice for time-sensitive or high-value shipments. While it’s more expensive than ground or ocean freight, air freight offers unmatched speed, often delivering goods within 1-3 days internationally. This method is commonly used for shipping electronics, luxury goods, and perishable items that require quick transport. 

5) Ocean freight

Ocean freight is the most economical way to ship large volumes of goods internationally. It involves transporting goods via cargo ships across the world’s oceans, making it suitable for heavy or bulky items that aren’t time-sensitive. Ocean freight is typically slower, with transit times ranging from a few weeks to a couple of months, depending on the destination. It’s a cost-effective solution for businesses that need to move large quantities of goods overseas, such as manufacturers and retailers with global supply chains.

6) Rail shipping

Rail shipping involves transporting goods by train, offering a middle ground between ground and ocean freight in terms of cost and speed. It’s particularly effective for moving large quantities of goods over long distances within a continent, such as across North America or Europe. Rail shipping is often used for bulky, heavy, or hazardous materials that are difficult or expensive to transport by road. It also has a lower carbon footprint compared to road or air transport, making it an environmentally friendly option.

7) Intermodal shipping

Intermodal shipping combines multiple modes of transportation—such as rail, truck, and ocean—to move goods from origin to destination. This is one of the most flexible methods of shipping, it allows businesses to optimize shipping routes based on cost, speed, and environmental considerations. Intermodal shipping is ideal for long-distance and international shipments, where a combination of rail, truck, and ship transport can reduce costs and transit times. It’s also a useful shipping method for businesses that need to transport goods through regions with varying infrastructure or regulations.

8) Options of custom shipping methods in CS-Cart

CS-Cart platform offers a range of different shipping methods that allow businesses to tailor their shipping options to specific needs. These online shipping services can be configured based on various parameters, such as weight, order total, delivery location, and shipping carrier. Businesses can create unique shipping rules, such as free shipping for orders over a certain amount or tiered shipping rates based on distance. CS-Cart also supports integrations with multiple carriers, enabling real-time shipping rate calculations and tracking.

Types of delivery and shipment options

• Home delivery. Home delivery is the most common and convenient option, where the purchased goods are delivered directly to the customer’s doorstep. This method is favored for its simplicity and ease, making it the go-to option for most online shoppers. Home delivery can be further categorized into different speeds, such as standard, expedited, or same-day delivery.
• In-store pickup. In-store pickup, also known as “Click and Collect,” allows customers to place an order online and then pick it up at a physical store location. This option eliminates shipping costs and provides a faster way for customers to receive their orders. It’s especially popular among shoppers who want to avoid waiting for home delivery or who prefer to inspect the items before taking them home.
• Locker delivery. Locker delivery involves delivering packages to secure, self-service lockers located in various public locations, such as shopping centers or transportation hubs. Customers can collect their orders at their convenience by entering a code sent to them by the retailer. Locker delivery is ideal for customers who are not home during the day or who want to avoid waiting for a delivery.
• Curbside pickup. Curbside pickup is a contactless delivery option where customers place an order online and pick it up at a designated spot outside the store. This method gained popularity during the COVID-19 pandemic and continues to be a preferred option for those seeking a quick, convenient, and safe way to receive their orders without entering the store.
• Scheduled delivery. Scheduled delivery allows customers to choose a specific date and time for their order to be delivered. This option provides greater flexibility and convenience, especially for large or bulky items that require someone to be home for delivery.
• Same-day delivery. Same-day delivery is a premium service that guarantees delivery on the same day the order is placed. This option is particularly appealing to customers who need their items urgently. Same-day delivery is often limited to certain geographic areas and comes at a higher cost due to the speed and logistics involved.
• Express delivery. Express delivery, also known as next-day or overnight delivery, is another expedited shipping option that ensures orders arrive within one business day. While not as fast as same-day delivery, it still caters to customers who need quick delivery without the urgency of receiving it on the same day.
• International delivery. International delivery allows businesses to ship orders to customers in other countries. This option typically involves longer shipping times and may require additional handling for customs clearance, duties, and taxes. Offering international delivery expands a business’s reach to global markets, but it requires careful consideration of shipping costs, regulations, and customer expectations.
• Dropshipping. Dropshipping is a fulfillment method where the retailer does not keep the products in stock but instead transfers customer orders and shipment details to a third-party supplier, who then ships the goods directly to the customer. 
• Subscription box delivery. Subscription box delivery involves sending customers a curated selection of products on a recurring basis, such as monthly or quarterly. This model is popular in industries like beauty, fashion, and gourmet food, where customers enjoy receiving a regular surprise package.

Read more: 

• eCommerce Delivery: a Step-by-Step Guide for 2024
• How to Make Your Delivery Successful
• What is eCommerce Warehousing?

Costs and rates

Shipping carriers determine costs based on either the actual weight of a package or its dimensional weight (volumetric weight), whichever is greater. Dimensional weight is calculated using the package’s volume (length x width x height) and a conversion factor set by the carrier. This approach ensures that large, lightweight packages are charged fairly for the space they occupy in the carrier’s vehicle. 

The choice of shipping method—whether standard, expedited, overnight, or freight—significantly impacts costs. Faster shipping methods like overnight or same-day delivery tend to be more expensive due to the logistics required to meet tight deadlines. In contrast, standard ground shipping is typically the most affordable option, making it popular for non-urgent deliveries.

Shipping carriers divide regions into zones based on distance from the origin point, with costs increasing as the distance grows. Domestic shipping is generally less expensive than international shipping, which may involve crossing multiple zones and require additional handling, customs clearance, and taxes. Businesses can reduce costs by using multiple fulfillment centers closer to key customer regions, shortening the average distance to customers.

Businesses often negotiate rates with carriers based on shipping volume, leading to significant discounts. High-volume shippers might benefit from tiered pricing, where the cost per package decreases as shipment numbers increase. 

Packaging and labeling

The primary goal of packaging is to safeguard products as they move through various hands and facilities. Balancing protection and cost is key. Overpacking can drive up shipping expenses, while underpacking risks product safety. Optimizing packaging size and weight helps keep shipping costs down without compromising the condition of the items. Custom-sized packaging can also reduce excess material and lower shipping charges.

Packaging doubles as a branding tool, turning deliveries into memorable events that reinforce brand identity. Custom-branded boxes and inserts can generate positive word-of-mouth and social media buzz. Personalized touches like notes or samples inside the package can further enhance customer loyalty.

Labels should include all necessary information, such as addresses, tracking numbers, and special instructions. Proper labeling helps prevent misdeliveries and ensures packages move efficiently through the shipping network. For international shipments, packaging and labeling must comply with regulations in both the origin and destination countries. This includes customs shipping declarations and handling instructions.

Carriers and solutions

The right carrier ensures packages arrive on time, in good condition, and at a cost that meets both business and customer needs. Selecting carriers involves evaluating services, pricing, and coverage. Major carriers like UPS, FedEx, DHL, and USPS offer a range of options, including standard and expedited shipping. Depending on your needs, you might also consider regional or niche carriers. 

US eCommerce shipping carriers

In the United States, several major carriers dominate the shipping landscape, each offering a range of services tailored to different business needs. 

• UPS is a leading ecommerce delivery service known for reliable delivery and extensive services, including ground, air, and freight options. 
• FedEx offers comprehensive solutions such as FedEx Express for overnight delivery and FedEx Ground for cost-effective shipping. Its robust tracking and reliable delivery make it a top choice for businesses.
• USPS plays a key role, especially in domestic and international shipping, with services like Priority Mail and First-Class Mail. It’s known for its wide reach, including P.O. Boxes and remote areas, and offers reliable flat-rate options.
• DHL Express specializes in international shipping, providing fast and reliable services like same-day and next-day delivery. 
• Amazon Logistics supports sellers on the Amazon Marketplace through Fulfillment by Amazon (FBA), handling warehousing, packing, and shipping with Amazon’s vast delivery network.

UK eCommerce shipping carriers

In the UK, several key carriers cater to the diverse needs of eCommerce businesses, offering various services to ensure efficient delivery.

• Royal Mail, the UK’s national postal service, offers options like Tracked 24 and 48 for standard deliveries, Special Delivery for next-day service, and International for global shipments.
• Hermes, now Evri, specializes in affordable and flexible shipping solutions. They offer standard, next-day delivery, and Click & Collect services, with a wide network of ParcelShops. 
• DPD is a reliable courier service for ecommerce. They provide next-day delivery, time-slot scheduling through DPD Predict, and international shipping.
• UPS operates in the UK with domestic and international services, including ground delivery through UPS Standard and expedited shipping with UPS Express. 
• FedEx also offers UK services, including fast delivery with FedEx Express, economical options with FedEx Economy, and global shipping.

International eCommerce shipping

International eCommerce shipping involves navigating customs regulations, taxes, and delivery logistics. Several global carriers and platforms help businesses manage these complexities.

• DHL Express is a top choice for international shipping, known for its vast global network and expertise in customs handling. It offers fast delivery options, including same-day and next-day services, with reliable tracking and customs support. This is a particularly good service if your business is in the Middle East or you need to ship goods there.
• FedEx International provides a range of solutions, from fast delivery with International Priority to cost-effective shipping with International Economy. 
• UPS Worldwide offers various international shipping options, including express services for urgent deliveries and saver options for cost-effective shipping.
• USPS International is known for its affordability and reach, offering shipping to over 190 countries. While not as fast as some private carriers, USPS is a cost-effective choice for smaller packages, especially with services like Priority Mail International and First-Class Package International.

Fulfillment and integration

Fulfillment and integration ensures orders are processed, packed, and shipped smoothly. These elements optimize the supply chain, and boost operational efficiency.

Fulfillment services

Fulfillment involves managing inventory, processing orders, packing, and shipping. Ecommerce businesses can either handle fulfillment in-house or partner with third-party logistics (3PL) providers. In-house fulfillment offers more control but requires significant resources. In contrast, 3PL providers manage everything from warehousing to shipping, helping businesses scale, reduce costs, and tap into expert services.

Integration with ecommerce platforms

Seamless integration between eCommerce platforms and fulfillment systems is essential for efficient order management. Platforms like Shopify, WooCommerce, and Magento often integrate with fulfillment solutions, automating order processing, updating inventory in real-time, and streamlining shipping. This reduces manual errors and ensures smooth operations.

Integration with shipping carriers

Ecommerce shipping integration often connects with major carriers like UPS, FedEx, and DHL, allowing businesses to compare rates, print labels, and track shipments directly from their eCommerce platform. 

Inventory management

Effective inventory management impacts order accuracy and shipping efficiency. Integrated systems provide real-time visibility into stock levels, preventing stockouts or overstocking. They also enable automatic reordering based on sales data, ensuring orders are fulfilled promptly.

Order Management Systems (OMS)

Order Management Systems (OMS) coordinate and track orders from placement to delivery, integrating with eCommerce platforms, fulfillment centers, and carriers. 

Returns management

Integrated systems enable businesses to handle returns smoothly, offering features like automated return labels and real-time tracking. 

Real-time data and analytics

By analyzing data from eCommerce platforms, fulfillment centers, and carriers, businesses can make informed decisions, identify trends, and continuously improve processes, enhancing customer satisfaction.

Strategies and tips for promoting your online store with shipping options

Product size and weight

Think about how significantly your largest/heaviest product differs from the smallest/lightest one. 

If your products are quite uniform by size and weight, apply a per-item, area-based approach. Make the delivery price dependent on the customer’s location and not by product size or weight.

Use promos for shipping like $10 shipping per order, $5 shipping per item, or even free shipping over $50. If your products are varying in sizes and weights, show straight rates from a carrier to your customers and ensure that these rates you’re offering are the best possible ones.

Focus on getting the accurate weights and sizes of your products to get the best return on investment by optimizing your shipping choices.

Divide your products into groups, then get product weights and sizes for the heaviest or largest 20% and smallest or lightest 20%.

This shipping strategy has the biggest impact on your shipping rates. Zones are dynamically calculated based on where your package is shipped from. To increase your margin, try to set rates depending on a zone. For example, if you’re shipping from Los-Angeles, show a cheaper rate for this zone and increase the rate as your distance from there.

Take the USPS example. USPS sets the ‘zoned’ services (Priority Mail Express, Priority Mail, USPS Retail Ground, and Bound Printed Matter) and the ‘un-zoned’ ones (First-Class Mail, USPS Marketing Mail, Library Mail, and Media Mail). For these services, the cost is higher, the greater the zone is.

Shipping destination

Consider what prevails in your online store/marketplace: domestic or international delivery.

Shipping internationally typically implies getting a rate straight from a carrier. At this, rates may significantly vary even for neighboring countries. This fact makes international delivery difficult for creating your own rates. If domestic shipping prevails, then you’re free to choose a scenario as shown below.

Free shipping

Free shipping promo is easy to explain to customers, and, actually is what they are looking for. However, you’re still paying the cost to the carrier and deserve getting your piece of cake. The most effective approach to free shipping is to offer it for orders where you’re making enough on the sale to cover delivery costs and still make a profit.

While setting free shipping, ensure your subtotal threshold makes sense for your business and. Consider excluding inconvenient products for free delivery: too heavy or too bulky.

Flat rate / table rate shipping

Flat rate shipping stands for some fixed price like $10 delivery regardless of order value.

Table-rate delivery is a little bit more tricky. You can specify a certain amount, say $5 per order for a customer living in New-York, increasing this rate if delivery is getting further away from the fulfillment center. Alternatively, you can manipulate the shipping rate depending on the order subtotal ($10 shipping cost for orders below $50, $5 – for orders below $100, and free for orders – if the order subtotal exceeds $100). You can also include a different rate for some specific groups of products or specify rates based on the weight of the order.

Live rates from a carrier

This approach is hard for promos as the rates will vary on the custom order and distance from a warehouse, but you will be able to ensure the cheapest real-time option.

Live rates are the best options as you cover your costs showing UPS, USPS, or FedEx rates in real-time. You charge your customer exactly what the carrier collects from you. 

This strategy fits online retailers whose competitors offer live rates. You can stand apart by showing cheaper rates for lightweight packages or offering a cheaper price for orders made near your warehouses.

Alternative strategies for shipping options: 

• Standard + Expedited;
• Free + Standard + Expedited;
• Standard + In-store pickup + Same day delivery;

Mixing these strategies allows you to balance your income needs with promotional opportunities. For example, you can offer standard delivery for free with no or limited delivery commitment (say, 5-10 business days). Or, you can apply Expedited shipping (say, 3-5 day delivery at a table rate based on order value) and live rate options for Second Day and Overnight delivery. Finding your perfect match of strategies will bring you profit, decrease costs, and gain customer loyalty.

Shipping to multiple addresses

Shipping to multiple addresses can be complex, but managing it well can boost customer satisfaction and streamline operations. Using an advanced Order Management System (OMS) that supports multi-address shipping allows customers to specify different addresses within a single order. Automation is crucial; ensure your ecommerce platform can automatically calculate shipping costs, print labels, and track each package separately, minimizing errors and speeding up fulfillment.

Provide clear instructions during checkout to make it easy for customers to manage multiple addresses. Keep them informed by sending separate tracking numbers for each package and promptly updating them on any issues. Review and set clear pricing policies to manage the increased costs of shipping to multiple addresses. During peak seasons, like holidays, ensure your systems can handle the demand and consider offering promotional deals.

Blocking unwanted or fake customers

Fake customers may create accounts without intent to purchase or engage in fraudulent activities like chargebacks. To tackle this issue, use verification tools such as email and phone verification during account creation, along with multi-factor authentication, to ensure only legitimate users can access accounts.

Monitor user behavior to spot unusual activities, like multiple accounts from the same IP address or sudden spikes in orders from new customers. Implement CAPTCHA challenges to block bots during account creation, login, and checkout. Consider a manual review for high-value or first-time orders to catch red flags like mismatched billing and shipping addresses.

Limit the number of accounts created from a single IP address or device to prevent spammers from overwhelming your system. Block disposable email addresses during registration to reduce fake accounts. Maintain a blacklist of known fraudulent users, IP addresses, and email domains to block new attempts from these sources automatically.

Conclusion

At Simtech Development we customize the CS-Cart stores from 2005 and know it inside out. 

We can give you personal eCommerce pieces of advice about how to customize the software or connect more services to make it work even more efficiently. Our experts successfully integrated various order fulfillment systems like Freight Shipping, Innotrac, and QuietLogistics. We customized shipment services such as Aramex, MyParcel, GlobalTranz, Easyship, JNE, and FedEx in CS-Cart and Multi-Vendor stores. We expanded the default shipment functionalities by adding appropriate features like label printing for packing slips or automatic updating of order tracking statuses. Our expertise allows elaborating a solution to help you in making your customers happy with delivery!