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BUSINESS STRATEGIES

Ecommerce shipping basics: benefits, factors and management

Allison Ko


eCommerce shipping guide

Every customer touchpoint matters in eCommerce. However, it’s not uncommon for shipping to be treated as an afterthought. After all, you’ve probably got your hands full stocking up on inventory, promoting your products and learning all the ins and outs of how to sell online


But eCommerce shipping is, quite literally, the fulfillment of the promise you make to your customers with every order. It has the power to make or break a customer’s experience with your brand—plus make your job easier or more difficult.  


Keep reading for tips on creating an eCommerce shipping strategy that runs smoothly and leaves a positive impression on your shoppers. 


Need one less thing to worry about? Create your eCommerce website with Wix.


Read more:



How does eCommerce shipping work?


Ecommerce shipping covers the entire process of getting your products from a customer’s online shopping cart to their doorstep. It includes steps, such as:


  • Packaging: Secure and protective packaging ensures your products reach customers safely. Proper packaging safeguards your items while contributing to the overall customer experience.


  • Carrier selection: Choose carriers such as USPS, FedEx, UPS or DHL based on factors like cost, delivery speed and the nature of your products.


  • Order fulfillment: Once an order is placed, it's time to manage your order fulfillment. Send out shipments in a timely manner and keep your customers informed by providing tracking details.



Why eCommerce shipping should be a top priority


While it may come at the end of a transaction, eCommerce shipping can be the start of a long-lasting relationship. Your shipping process can indirectly increase sales, gain customer loyalty and keep your support inbox clear of "Where is my order?" (WISMO) inquiries.


More specifically, here are the top reasons why you’ll want to prioritize this element of your eCommerce business: 


  • Gain more sales: Affordable shipping can make a big difference at checkout and can be the tipping point that turns a prospect into a buyer. In fact, a recent survey by Baymard Institute showed that 48% of U.S. adults abandon their carts due to high shipping fees, taxes and other extra costs.

  • Get a competitive advantage: Unique options, like same-day delivery or eco-friendly packaging, can differentiate you from competitors and attract customers who value these benefits.

  • Earn customer trust and loyalty: Customers are happy when their orders arrive quickly, safely and exactly as promised. Satisfied customers are more likely to return and recommend your brand to others. 

  • Declutter your customer support inbox: WISMO inquiries are the most commonly received customer support question in eCommerce, according to Gorgias, making up 18% of incoming requests on average. A good shipping strategy can reduce such calls, which means your support team will have more time to address other concerns.



Ecommerce shipping: what to consider


When it comes to figuring out the best way to handle shipping for your business, there are multiple factors you’ll want to keep in mind. 



Speed vs. cost


Today’s shoppers expect fast and low-cost (or free) shipping, mostly because eCommerce powerhouses like Amazon offer these benefits. According to Ware2Go, 42% of shoppers expect two-day shipping.


However, research suggests that cost has an edge over speed. Approximately 32% of consumers say the cost of shipping is the most important to them than delivery speed and convenience. 


Offering both—i.e., fast and low-cost shipping—is still the idea. But understandably, this might not always be feasible due to financial or logistical constraints. In some cases, it might not even be necessary.


The ultimate solution? Understand your customers’ preferences and the nature of your products. This will help you determine what to prioritize or how to find a suitable compromise.


Pro tip: Offer limited-time discounts for select shoppers or events. Wix supports three different ways to reduce prices, including sales prices, automatic discounts and coupons. Learn more about offering discounts and coupons via Wix.



Security


Making sure shipments reach customers safely protects both your reputation and your bottom line. This means investing in secure packaging materials and reliable shipping carriers.


Keep in mind that security doesn’t end when a carrier delivers products to your customer’s doorstep. Porch piracy is a real problem, with over 119 million packages stolen in 2023. 


To avoid such issues, offer your customers real-time tracking and delivery notifications. You can also allow them to set specific delivery timelines so that their packages arrive when they’re home. UPS reported that 74% of consumers value real-time package tracking, while 72% want the ability to choose delivery dates.



Sustainability


As interest in sustainable eCommerce grows, the ability to offer low-impact shipping options can differentiate your brand.


Nearly 80% of consumers say they’d be willing to wait at least one day for a package if that meant it was shipped sustainably, and 88.8% agree that companies should offer an “eco-friendly shipping” option—according to a survey by Sifted


Think about ways to offer sustainable shipping, including consolidated shipments, eco-friendly packaging or partnering with carbon-neutral carriers.



eCommerce shipping - example of a sustainably shipped product


Popular types of eCommerce shipping methods


There are several shipping methods you can incorporate into your eCommerce shipping strategy. Here are the most common options. 



Same-day delivery


As the name suggests, this means delivering products the same or next day a customer orders them. It’s perfect for urgent purchases and customers who value instant gratification. 


Roughly 88% of customers are willing to pay more for same-day delivery. So, if eCommerce logistics aren’t an issue for you, consider incorporating this delivery option into your shipping strategy. 


Pro tip: Strike while the iron’s hot and send back-in-stock notifications that incentivize your customers to make a purchase ASAP. Learn how to notify customers when products are back in stock via Wix. Or, explore how to use Google Ads with Wix to turn your shipping options into a selling point.



Expedited shipping (overnight, two-day)


Expedited shipping options like overnight and two-day delivery balance speed and cost. They’re great options for customers who want their items delivered quickly but don’t need same-day service or don’t want to pay the high cost associated with it.



Express shipping (one to three days)


Express shipping gets your products to customers in just one to three business days, making it a great choice for those who need their orders quickly or during peak shopping times like the holidays. It can help you stand out by offering a faster service than your competitors. However, it comes with higher costs and requires you to coordinate closely with carriers to avoid delays or issues. 


Don't miss out on maximizing your seasonal sales: Check out the ultimate eCommerce holiday readiness checklist and get your business holiday-ready today.



Standard shipping


Standard shipping typically delivers your products in three to seven business days. It's often the most cost-effective option, which can help keep your shipping costs down and potentially allow you to offer free shipping. While it may not be the fastest option, it balances affordability with reliability. 



Eco-friendly or carbon-neutral shipping


Eco-friendly shipping reduces the environmental impact of the shipping process. This can include using biodegradable or recyclable materials or choosing carriers that prioritize sustainability. This shipping method aligns with customers’ growing preference for sustainable eCommerce and appeals to those who are searching for eco-friendly products.



example of a product requiring eco-friendly shipping


In-store pickup


In-store pickup allows customers to buy online and collect their orders from your store, often the same day or within a few hours. It’s a great way to drive foot traffic to your store and save on shipping costs, which can be passed on as savings to customers. This option is convenient for local shoppers and can lead to additional impulse purchases when customers are in-store. 



Curbside pickup 


Curbside pickup lets customers order online and then collect their items from their car outside your store. Customers may prefer this during busy times or if they have mobility issues. This method can also streamline your store operations and reduce the need for in-store interactions. However, it requires you to run a tight ship to ensure that orders are prepared and delivered to customers’ vehicles quickly and efficiently.



Subscription shipping 


Subscription shipping delivers products to customers on a regular schedule, like weekly or monthly, without them having to place a new order each time. This method can simplify inventory management, as well as build customer loyalty. But it requires careful planning, and customers might be wary of commitment if their needs are prone to change.



Dropshipping 


Dropshipping lets you sell products without holding any inventory. Instead, items are shipped directly from the supplier to your customers. This method reduces your upfront costs and eliminates the need for warehousing. It’s a flexible option that allows you to offer a wide range of products without a large investment. However, shipping times can be longer since the supplier handles fulfillment, and you’ll need to manage supplier relationships carefully.


Interested in dropshipping? Check out Wix’s dropshipping store builder and tools. 


Learn more:



Freight shipping


Freight refers to any package or shipment that’s more than 150 pounds or larger than 30 x 30 x 30 inches. This shipping method involves hiring specialized freight carriers that transport bulky goods via planes, ships or trucks, both domestically and internationally.



International vs. local shipping


International eCommerce shipping gives you access to a global audience and could boost your revenue. But it comes with its own challenges, including higher costs, longer delivery times and customs-related hurdles.


On the other hand, local shipping is faster, more affordable and has fewer complexities. The downside? It limits your customer base and, thus, your earning potential.


Learn more:


Explore the different types of eCommerce to find the best fit for your business needs.



Top shipping companies for eCommerce (+shipping costs)


Once you've determined the eCommerce shipping methods you'll offer, choosing the right shopping company plays a big role in delivering a smooth experience for your customers. Shipping costs, including the cheapest shipping for eCommerce, will vary based on package size, weight and destination. Below are some of the top shipping companies, each offering easy-to-use calculators to help you estimate costs:







How to create an eCommerce shipping strategy that keeps customers happy



01. Dial in the right shipping speeds 


It’s true that today’s customers generally expect their shipments to arrive quickly, but that doesn’t mean you should jump straight to same-day or next-day delivery.


Here’s how to determine the most realistic delivery timeline for your e-commerce business:


  • Research your customers’ preferences: Use surveys and other feedback avenues to ask your customers about their preferred delivery timelines. Find out if they’re willing to pay extra for expedited shipping. You can use Wix’s form builder to create questionnaires for your business. 


  • Understand your products: Some goods (e.g., food) can be delivered on the same day, while for others (e.g., electronics), such a fast turnaround might not be practical. Luckily, many customers understand this and will shift their expectations accordingly.

  • Consider your brand identity: If a bargain price is your unique selling proposition (USP), then your customers will appreciate low-cost shipping. You might need to prioritize affordability over speed to maintain your USP.

02. Select shipping service providers


Gone are the days when the postal service was the only shipping option available to small businesses. Today, there is a wide range of carrier options to choose from. Let’s break down the most common.


  • Traditional freight carriers: The “big three” carriers—FedEx, UPS and USPS—dominate the shipping industry in the U.S. While they offer an extensive reach and reliable delivery services, their rates can be high unless you’re a high-volume shipper. You’re also competing for service with major retailers, who may take priority during crunch periods like the holiday season. As an alternative, consider providers like DHL or smaller regional carriers.

  • Dropshipping: Some manufacturers or suppliers offer dropshipping services, whereby they deliver products directly to customers on your behalf. Once a customer places an order on your website, simply pass the details to the manufacturer or supplier, and they will handle the rest. Dropshipping helps you speed up deliveries by eliminating the need for a middleman.

  • Third-party logistics (3PL): 3PL providers take care of warehousing, order fulfillment and even shipping for your business. But unlike dropshipping, you’ll still be responsible for sourcing inventory and sending it to the fulfillment center. This option is ideal if you’re struggling to manage shipping costs and expectations, or if you’re experiencing rapid growth that requires outsourcing fulfillment.

  • Marketplace programs: Some online marketplaces offer special shipping programs that can help you streamline the order fulfillment process. For example, Amazon provides in-house eCommerce fulfillment services, while Etsy offers discounted carrier rates. These services can be attractive if your customers prioritize speedy delivery and actively shop on these marketplaces.

  • Your own stores: Your physical stores can act as a mini fulfillment and/or pickup center. For example, you could fulfill orders using items from the closest store; your in-store staff will be responsible for packing and shipping items to your customers. This shortens the delivery distance, potentially saving you time and money. When using this method, you can partner with local couriers for same-day delivery or even start your own courier service.

    As another option, you can invite customers to pick up their online purchases at a nearby store. This option eliminates high carrier costs and lowers the risk of misplacing items. 



curbside pickup option on an eCommerce page


03. Calculate your shipping costs


Understanding your shipping costs helps you set competitive prices and stay profitable. The main factors to consider when calculating these costs include:


  • Carrier rates: Contact your carriers for estimates or use the shipping calculators on their websites. Fees charged by carriers are typically based on the size and weight of each package. You’ll want to record the exact dimensions and weights of your products—and know ahead of time how much your heaviest and bulkiest items will cost to ship, alongside your lightest ones.

  • Packaging materials: Consider the size, weight and sturdiness of your eCommerce packaging materials, which include the outer box and any packing material (such as protective foam, bubble wrap or other filler; marketing inserts; instructions or manuals; and packing lists). Tip: Use packaging prototypes to run simulations and calculate the time needed to assemble a shipment. That way, you can accurately estimate warehouse staffing costs and compare them with outsourced shipping options. 


  • Insurance: When it comes to shipping, insurance is a smart way to protect your packages against loss or damage. It’s especially important for high-value items or when you’re shipping internationally. Many carriers offer insurance options. To estimate insurance costs, check with your carrier for their rates based on the value of your shipment.

  • International shipping fees (if applicable): Calculate customs duties, taxes and other fees associated with international shipping. The exact costs will depend on the weight and dimensions of your packages, the destination and your carrier’s rates. Use online shipping calculators provided by your carriers and check with customs authorities for potential import duties and taxes based on your destination. 



04. Decide how to charge for shipping


When setting your shipping fee, find a balance between customer satisfaction and business profitability. Here are some of the most popular ecommerce shipping options. 



Free shipping


This is the holy grail of shipping. It reduces cart abandonment rates. So, you’ll want to figure out how to offer free shipping in some form. 


Consider limiting free shipping to returning customers, specific time periods, specific locations or orders above a minimum order value. 


Whatever you choose, make sure it doesn’t erode your profit margins. You could potentially offset costs by baking it into the price of your product, express shipping or wraparound services, such as installation or tech support. 



Real-time carrier rates


Provide customers with dynamic carrier rates based on factors like order quantity, item weight and delivery location. Many eCommerce platforms offer tools to integrate real-time carrier rates into the checkout process.


For example, if you build your eCommerce store with Wix, you can easily set up variable shipping rates based on the product weight, price and delivery type. Alternatively, you can use third-party shipping apps to set and manage rates.


Explore these eCommerce tools to improve your operations today.


ecommerce shipping solutions in the wix app market

Check out the Wix App Market.


Flat-rate shipping


Flat-rate shipping simplifies the checkout process by charging a fixed shipping fee for all items, regardless of the weight or distance. This is ideal if you primarily deal in one type of product or if your customers come from one geographical region. Otherwise, consider offering a tiered flat rate based on product weight and distance. For example, you could charge $10 for orders of $50 or less, $5 for orders of more than $50—and so on. 


Learn more about eCommerce profit margins to gain valuable insights on how to strategically invest in your shipping process and maximize your bottom line.



05. Set up your checkout page and tracking systems


When you’re setting up your checkout page, make sure customers can easily see their shipping options, along with delivery times and costs. Clearly display any special deals, such as free shipping on orders over a certain amount. (Learn how to customize your checkout page on Wix.)


After checkout, set up an automated system to send tracking codes and updates via email or text. Use shipping software that integrates with your eCommerce platform, and follow steps for setting up auto-label printing and tracking codes. It may also be a good idea to create a dedicated tracking page that customers can visit at any time and reinforces your brand’s reliability throughout the delivery process.


Other handy tips at this stage:


  • Provide an estimated delivery date instead of just showing a range of shipping times (like "5-7 business days"). This gives customers a clearer expectation of when their order will arrive and helps reduce anxiety or confusion over when to expect their package.


  • Offer guest checkout. Forcing customers to create an account can lead to cart abandonment. After the purchase, you can still encourage them to sign up for an account by highlighting the benefits, such as faster checkout next time or access to special promotions.


  • Make your shipping policies easy to find on your website. This includes any info around processing times, returns and exchanges. Be clear if your shipping policies differ by region, plus highlight any eco-friendly shipping options you provide, as this can appeal to environmentally conscious customers.

  • Proactively communicate any potential shipping delays, especially during peak seasons or when there are external considerations, like weather and global events.


Find out how improving your eCommerce checkout can transform your customer experience.



06. Consider shipping insurance 


While not mandatory, shipping insurance is highly recommended, especially for high-value or fragile items. Insurance can benefit your business by protecting against financial losses from lost, damaged or stolen items. This coverage helps mitigate potential disputes and afford any product replacements or repairs. It can also reassure customers that their purchases are protected from start to finish. 


To offer insurance, choose an insurance provider that fits your needs. This could be through your shipping carrier (like UPS or FedEx, which often offer their own insurance options) or a third-party insurance company.


Display insurance as an option during checkout, so customers can opt into it at will. You’ll want to clearly communicate coverage limits and fees, plus reflect these details in your shipping policies. 



07. Prepare for customs declarations and forms (if applicable) 


If you’re shipping internationally, you’ll need to know how to fill out customs declarations to avoid delays or extra fees at the border. This will entail providing accurate product descriptions, values and Harmonized System (HS) codes. 


It helps to collaborate with a shipping provider that’s already experienced in international logistics and can help you manage complex paperwork and navigate different regulations. 


Note that your customers may have to pay customs fees when their packages reach their destination; make it clear to them what duties, taxes and fees they might face on your website or during checkout. Additionally, set up automatic notifications to keep customers informed about customs holds or delays, and consider offering options where you handle the duties and taxes to simplify the process for buyers.


Did you know? Wix’s free eCommerce templates can help you create a professional online store that’s optimized for smooth shipping and order management.



Ecommerce shipping FAQs


I've run the numbers and I'm discouraged. I just can't compete with the big retailers on shipping price and speed. What can I do?

Big retailers have significant resources to negotiate lower shipping rates. However, you can still compete with them by focusing on aspects like customer service and guaranteeing the best shipping experience possible. Respond quickly to inquiries, swiftly address any issues and offer unique perks like guaranteed safe delivery or delivery scheduling.

How can I most effectively add regional carriers to my shipping options?

What's the cheapest shipping company for eCommerce deliveries?

How can I start eCommerce dropshipping?

What is the delivery time for DHL eCommerce?

What is the difference between shipping and fulfillment?

How do I choose a shipping company?

How can I ship products from my house?

How do I know if I'm ready to ship worldwide?

How can I provide a better shipping experience to my customers?

What is an eCommerce carrier?

Which shipping company is best for eCommerce?






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