For enterprise ecommerce businesses, shipping doesn’t just represent a significant portion of operating expenses — it’s also a primary driver for their customers’ overall experience.
Follow these 10 must-know ecommerce shipping best practices to keep your operations efficient and cost-effective.
1. Offer multiple ecommerce shipping options
According to The Future Shopper Report 2023, 48% of consumers want their shipping faster, while 43% want it cheaper. These statistics highlight the need to offer customers different delivery options, balancing low prices and speed. Doing so expands the range of customers you cater to, reducing cart abandonments and leading to greater conversion rates. Consider these strategies:
Empower customers to balance cost and speed
If you offer buyers shipping choices, you accommodate both groups — those who prefer to have their order arrive as fast as possible and those who are more cost-sensitive.
The video game ecommerce platform GameStop, for example, implements this strategy by offering two shipping options and a click-and-collect alternative, where customers can buy online and pick up their order in-store. By removing potential friction points in the purchase process, the company increases the likelihood of conversion.
Alt text: A display of three ecommerce shipping options for customers: "Pick up in-store" (available today), "Same Day Delivery" (available today), and "Ship to Home" (1–3 days shipping).
Free shipping thresholds based on order value
By offering free shipping on orders above a certain value, businesses encourage customers to increase their cart size, boosting average order value (AOV). For example, if your AOV is $45, setting a $60 threshold can nudge customers to add another item.
This approach is beneficial because it improves profitability per order and the customer experience by offering a perceived savings opportunity, which builds loyalty and encourages repeat purchases.
Discover the economics behind free shipping programs.
Offer split shipping or consolidation options
Giving customers the option to choose between receiving packages together or separately can enhance customer satisfaction. For example:
- Some customers may opt for split shipment, preferring faster delivery of in-stock items while waiting for back-ordered products to arrive.
- Other clients might prefer to merge their purchases’ shipping to lower costs.
Explore our guide to parcel shipping optimization.
2. Provide accurate ecommerce delivery predictions
Consumers are more likely to purchase if they know when to expect order delivery. To make a precise delivery promise and improve your client’s ecommerce delivery experience, consider these best shipping practices:
- Use predictive analytics to refine estimates: Ensure customers receive accurate information even when real-time issues arise. Predictive analytics enables businesses to anticipate and adapt to potential disruptions, such as weather conditions or traffic accidents, enhancing customer brand trust and loyalty.
- Track macro-environmental changes: Economic fluctuations, new regulatory shifts, and many other macro-environmental changes challenge ecommerce stores to maintain their estimated delivery dates (EDD). Use flexible tracking systems to guarantee smooth transitions during policy or technology major changes.
- Manage delays with real-time carrier data: Tracking your shipment with delayed data can lead to blind spots in your logistics operation. Use systems that provide real-time data to prevent disruptions proactively and guarantee customer satisfaction.
4. Improve your order tracking
Providing visibility into a package’s journey not only builds trust but also reduces operational burdens like “Where Is My Order?” (WISMO) inquiries.
High-performing ecommerce companies use advanced tracking systems to deliver an exceptional post-purchase experience while automating internal operations. Here's how.
- Give proactive status updates: Customers shouldn’t have to ask for updates. Go omnichannel to reach out to them in the most suitable ways, such as SMS, e-mails, or even app notifications.
- Mobile tracking capabilities: According to Ecommerce Market Data and Ecommerce Benchmarks, over 60% of ecommerce sales are made with a mobile device. Make sure to offer mobile-friendly product tracking pages, allowing your customers to stay informed about their deliveries on the go.
- Ensure last-mile visibility: Ensure that your carrier network, including regional and specialized last-mile providers, offers API integrations to track last-mile delivery, allowing you to offer accurate delivery updates for your customers.
5. Optimize your packaging
Every box counts for shipping efficiency. Ecommerce businesses can reduce operational expenses and improve customer satisfaction simply by minimizing packaging waste. Best practices include:
- Implementing right-sized boxes and mailers: Minimize dimensional weight charges and the use of excess filler material. This best practice helps to cut down shipping costs and create a more sustainable ecommerce delivery process.
- Selecting the best void fill and protective materials: Keep products secure during transit and minimize the likelihood of damage and returns, which could lead to customer dissatisfaction and additional costs.
- Adopting custom packaging for frequent sizes: Streamline the packing process, improve warehouse efficiency, and reinforce brand identity through consistent packaging.
Discover how Shipium’s Package Planner API optimizes your cartonization strategy.
6. Implement real-time address validation
Failed deliveries are expensive. Validating an address before the order reaches a warehouse lets you fix any issues that may appear beforehand. Modern shipping technology provides:
- Address verification at checkout: Platforms like Shipium cross-check entered addresses against official databases, like USPS. This process ensures every detail — street name, city, ZIP code — is valid and up to date before routing orders.
- Address standardization: Address validation tools automatically format inputted addresses to meet postal standards — whether it’s fixing mixed-up apartment number formatting for customers in Buenos Aires or adjusting postal code conventions for buyers in Madrid. Ensure compatibility across different delivery partners and reduce the risk of rejected or delayed shipments.
7. Secure competitive carrier rates
Carrier shipping rates are among the most expensive parts of shipping for ecommerce. Securing competitive prices is key to maintaining profit margins in a highly competitive market.
Follow these three critical steps to make the best carrier agreements:
- Negotiate volume-based discounts: Planning high-volume order shipments with a carrier can help you negotiate discounts. For instance, committing to ship 200,000 packages monthly might unlock tiered pricing in a deal that benefits both sides.
- Set favorable service level agreements (SLAs): Include performance metrics in your shipping carrier contracts, such as on-time delivery percentages, handling of exceptions, and transparency in tracking. SLAs ensure your carriers are accountable while delivering quality service.
- Implement carrier management software: After securing the best rates, using a software solution to manage your carrier contracts can ensure you fully leverage your negotiated agreements and consistently monitor them.
Learn how to negotiate carrier rates with our in-depth playbook.
8. Diversify your carrier network
Relying on a single carrier creates vulnerabilities in your ecommerce shipping process, such as service disruptions due to carrier delays, strikes, or capacity shortages. It can also cause increased costs during peak seasons when demand outpaces carrier availability.
That’s why strategic carrier selection and diversification aren’t just about cutting costs — they're also about enhancing resilience and reliability, even during unforeseen disruptions.
Get started with:
- Multi-carrier management tools: Use solutions like Shipium’s Carrier Selection to manage multiple carriers and streamline decision-making processes.
- Cost-based routing: Automate carrier selection based on delivery cost and transit times, ensuring optimized shipping delivery.
- Proactive disruption mitigation: In cases where a carrier is overloaded or experiences delays, alternate carriers can immediately step in to maintain high delivery rates and preserve customer trust.
8. Partner with regional carriers
Partnering with regional carriers is critical to last-mile optimization and cost reduction because they can provide advantages that enterprise carriers can’t. Let’s review the benefits:
- Reduced time-in-transit: Regional carriers often have better network coverage and delivery routes within specific geographic areas, allowing them to deliver packages faster than national carriers in dense urban zones or remote rural locations.
- Local market expertise: Local companies are familiar with the areas they serve, including traffic patterns, customer preferences, and regional shipping quirks. Their localized knowledge often translates into smoother and more efficient deliveries, reducing errors and delays.
- Specialized services: Many regional carriers offer unique services tailored to specific needs, such as same-day delivery, temperature-controlled shipping, or flexible pickup and drop-off options. These delivery options can provide competitive differentiation for your business.
See how Shipium’s pre-integrated carrier network helps you find regional delivery partners.
9. Streamline returns management
According to the National Retail Federation,17.6% of online sales — or $247 billion of merchandise purchased online — were returned in 2023. The takeaway here is that returns are an inevitable part of ecommerce, so you need to build a strategy for it.
By offering convenient and efficient return options, you not only meet customer expectations but also differentiate your business, transforming these “not-so-good” aspects of online business into a competitive advantage.
Here are three shipping best practices for improved return management:
- Refine your return tracking system: Use the right technology and processes to track returns on time. A robust system tracks and updates every step from the start to the end of a refund or exchange. It reduces errors, cuts delays, and boosts efficiency. This automation creates a better experience for customers and internal teams.
- Offer multiple return options: Make the process more convenient by providing options like in-store returns, prepaid shipping labels, or third-party drop-off locations. This type of flexibility caters to various preferences and strengthens customer service.
- Process refunds quickly: Show customers that you value their time and satisfaction. Offering rapid returns minimizes frustration and increases the likelihood of repeat purchases.
10. Adopt advanced ecommerce shipping software
From real time decision-making to seamless integration with existing systems, ecommerce shipping platforms help you enhance efficiency, reduce costs, and meet growing customer expectations on their delivery experience. With a modern solution, you get:
- Real-time rate shopping capabilities: Compare shipping rates across multiple carriers in real time to select the most cost-effective option for every shipment. By leveraging fully loaded rate shopping, you go beyond basic rate comparisons to account for all associated costs, such as accessorial fees and surcharges. This comprehensive approach ensures you always choose the option that delivers true cost savings.
- Advanced inventory insights: Analyze and optimize inventory placement across your network. By strategically positioning inventory closer to demand, you reduce shipping distances, minimize delivery times, and cut costs. Advanced insights also provide real-time visibility into stock levels, enabling faster replenishment and preventing overselling, for a smoother and more efficient ecommerce delivery experience.
- Tech stack Integration: A positive customer shipping experience starts with smooth internal fulfillment operations. Integrate all of your tech stack, including transportation management systems (TMS), order management systems (OMS), and warehouse management systems (WMS), to streamline workflows and minimize inefficiency.
Follow the best shipping practices with Shipium
Shipium helps ecommerce businesses manage the complexity of modern logistics by improving delivery speed, optimizing carrier selection, and predicting accurate delivery dates.
Our API-first platform integrates with your existing systems (including OMS, WMS, ERP, and TMS), enabling you to automate decisions like:
- Selecting the best carrier for each shipment
- Calculating delivery promises in real time
- Managing inventory placement efficiently
With our powerful Fulfillment Engine, you consolidate your shipping operations, reduce costs, and enhance customer satisfaction by ensuring every delivery is both fast and reliable.
Book a demo today and see how enterprise operations keep up with ecommerce shipping best practices with Shipium.
