Shipping Methods in E-Commerce: The Best Choice for Online Store

When considering a successful e-commerce venture, shipping methods for online stores might not immediately come to mind. However, it's a critical, though often behind-the-scenes, process that ensures customer satisfaction. Choosing the most important shipping methods can greatly influence customer loyalty and repeat business. 

Shipping is an important part of the customer experience and ensures that your products reach your customers quickly, undamaged and, nowadays, as sustainably as possible. However, shoppers' wishes differ depending on the target and product group as well as individual preferences: So which shipping methods should online retailers offer?

Shipping is one of the most challenging parts of running a business. If you're unsure about the various shipping methods, now is a great time to strengthen your knowledge. 

A brief overview of the most important shipping modes

Not all shipping is created equal. As an e-commerce business, you have a wealth of options for product delivery. Let's take a shipping method overview. Shipping is a cost factor that must be carefully managed. You'll need to determine whether your packages require the fastest shipping method or if a slower, more economical approach is suitable. This is where finding the cheapest shipping method becomes critical. Sometimes changing your logistics partner can help with this. On the other hand, your shoppers have different expectations of you, your shop and therefore the shipping of your products - such as sustainable and green delivery.

Standard shipping

This is the most common domestic shipping option, with an average shipping time of around two to three days - depending on the provider. For many customers, the “standard shipping” method offers a good balance between delivery speed and cost. With standard shipping, the package is usually delivered to the front door/letterbox; depending on the provider, however, delivery to the local post office, a parcel shop or a locker/pack station is also possible.

Express shipping

During the Christmas season or other important shopping events, some people want to have their order shipped as quickly as possible so that the gift they ordered arrives on time. During peak seasons, offering a shipping method “express” option, like next-day delivery, is essential. This is when customers are willing to pay for the fastest shipping method.

Forwarding shipping

Freight forwarders facilitate the transportation of goods from one country to another. These goods may be shipped in various forms, such as packages, containers, or crates, and their services benefit both businesses and individuals involved in importing and exporting.

The level of involvement of a freight forwarder depends on the client’s requirements. For example, they may handle the transportation of a full container load from a manufacturer in one country to another or manage the direct shipment of finished products from the producer to a warehouse.

Freight forwarders utilize multiple transportation methods, including ships, airplanes, trucks, and rail, often combining them to optimize the shipping process.

Click & Collect

Click & Collect offers shoppers the opportunity to order the products they want online and then pick them up at a retailer's branch (often at a time of their choosing). Of course, this assumes that there is a store, warehouse or similar where the customer can collect the ordered goods. However, the service appears to be popular among the major players.

Many of the most successful online shops in Germany already offer the option of "Click & Collect". This "shipping method" means that your customers can pick up their order themselves from a branch or warehouse near them. This saves you as an online retailer the high costs of the last mile, and your customers can freely choose when they would like to pick up their package.

International shipping

When shipping internationally, you must consider shipping methods and shipping costs associated with cross-border deliveries. For example, customs regulations must be observed for many countries; customs clearance also requires special documents and, above all, time. Online retailers who want to ship internationally should therefore team up with a logistics expert who is globally networked and can offer their customers flexible and cost-effective shipping methods anywhere in the world thanks to local last-mile partners and global fulfillment centers.

If the target country is different, entirely different considerations come into play. These include:

• Customs declarations and forms that provide customs officials in the destination country with information about the contents, cost or value of the shipment and whether it is a commodity or a gift.
• Applicable taxes, duties and charges. The recipient is responsible for any additional customs fees. Communicate this transparently on your website to avoid surprises.
• Depending on the country of origin and destination, the costs can vary greatly.

Special shipping methods

Logistics involves various post shipping methods, each with different costs and delivery times. The shipping method based on the product is critical. Heavy or large items may require specialized transportation. The cost involved, and the delivery time, are the key variations among the many shipping techniques. Faster deliveries hence often have higher cost-intensity. Still, the kind and weight and size of the objects to be moved also matter. For example, heavy and massive machine components often cannot be loaded in a standard vehicle and thus call for particular heavy-duty transportation.

Courier shipping

For time-sensitive deliveries, consider “courier shipping”, which is even faster than same-day delivery. This is essential when needing the safest shipping method for important documents. Such as (perishable) food that needs to be with the customer within minutes or a few hours. A classic example of this is delivery services for shopping or drinks. For most online retailers, this shipping method is unlikely to play a role.

Same-day shipping

This particularly fast delivery method was long carried out by specialized courier services - for example for important documents or medicines; however, more and more online retailers such as Amazon are also offering same-day delivery. According to same-day specialist Dodo, many customers now attach importance to same-day delivery - however, the underlying survey also includes the delivery of food and other time-critical products, for which customers generally expect quick delivery, in contrast to other goods such as electronics or fashion.

Free shipping

One of the most effective promotions you can offer is free delivery. It can be set up as a cart price rule, applied when specific criteria are met, or based on a minimum purchase amount. If both conditions apply simultaneously, the configuration setting takes priority over the cart rule.

Overnight shipping

Overnight shipping ensures that a product arrives the day after it is shipped. Different carriers may use their own branded terms for this service.

In the courier industry, overnight shipping is the fastest delivery option available. As a shipper, offering this service allows you to provide customers with next-day delivery.

This service is crucial in several industries. Law firms rely on express mail for time-sensitive legal documents, while the healthcare sector depends on it for urgent medical supplies to maintain patient care standards. E-commerce businesses benefit from overnight shipping by ensuring timely gift deliveries, which enhances customer satisfaction during peak seasons. To meet various customer expectations, your online store can also offer next-day delivery.

Shipping methods for different product categories

Retailers employ several shipping techniques to get goods into consumers' hands. These consumers have become used to some of these delivery options over time and today expect to find them while purchasing online. The most often occurring shipment categories are as follows:

Parcel

Parcels are cuboid-shaped shipping items that can be processed automatically by sorting systems. They consist of boxes in which the goods are shipped. Each shipping service provider has different transport conditions. These relate, for example, to size, weight, tariff and contents.

Shipping service providers such as DHL, Hermes, DPD, and GLS have different requirements for package girth, but 300 centimeters are often used as a common guideline. It doesn't matter whether you reach the girth measurement with a package measuring 60 × 60 × 60 centimeters or 100 × 50 × 50 centimeters, for example. However, please note that there are different limits for the dimensions depending on the service provider. You can find these in the tariff details in the shipping cost calculator. If your package exceeds a certain size, a certain weight or deviates from the cuboid shape, it must be sent as bulky goods or on a pallet.

Document

Even in the age of digitalization, there are still reasons to send documents by post. Be it because you want to rule out an electronic security gap or because original documents are required for legal reasons. To protect important documents, shipping providers offer suitable covers. It is also important to choose a trustworthy and reliable shipping service provider when sending sensitive documents.

To ensure that your documents arrive safely, you can send them by registered mail, for example. Unlike with standard mail, you will receive a receipt for delivery. Depending on the type of registered mail, the recipient may have to personally sign that the documents have been delivered.

One advantage of this shipping method is that documents do not need to be accompanied by a packing list when shipped internationally, unlike a parcel. In addition, documents are usually not subject to customs duties. However, please note that exceptions prove the rule. If you are sending identification documents such as a passport or ID card, find out about country-specific regulations in advance.

Bulky cargo

The bulky goods category includes all goods that cannot be processed and shipped as a standard parcel due to their special shape, size and weight. Parcels are processed by shipping service providers using automatic sorting systems that are designed to meet a parcel standard. All packages that cannot be sorted must be sorted and transported by hand. For this reason, a bulky goods surcharge is also charged.

You can tell whether your package is bulky goods by the following points:

• It does not correspond to the parcel standard of the service provider's sorting system. At DHL, for example, a parcel may not exceed the dimensions 120 × 60 × 60 centimeters. At the same time, it may not be less than 3 centimeters high.
• It is neither cuboid nor roll-shaped.
• The package has protruding or protruding parts, loose constrictions, protruding handles, etc.
• The packaging is not made of paper or cardboard (depending on the shipping service provider).

Pallets

Pallets are the all-rounders among shipping methods. Large, heavy and bulky goods are shipped on them, as well as general cargo and many smaller boxes and cartons. Transport on a pallet makes loading easier using a crane or forklift.

There are various types and sizes of pallets. The classic on the market is the standardized Euro pallet, of which there are an estimated 500 million in circulation worldwide. It measures 120 × 80 × 14.4 centimeters (L × W × H), can carry a weight of 1,000 to 2,000 kilograms and can be used multiple times. In addition to the Euro pallet, there are industrial pallets and half pallets. Each type of pallet has different dimensions and properties.

Tires and auto parts

The shipping method for car parts such as tires, engines, fenders or small spare parts is subject to certain requirements depending on the component. Car manufacturers, tuning workshops and hobbyists know that smooth shipping and punctual delivery are crucial for the continuation of production and repairs.

You can send small and light car parts or spare parts using standard parcel sizes. Large and heavy parts, such as engines, hoods, car tires or fenders, must be sent as bulky goods.

Suitcase

Business trips, long vacations, stays abroad: some trips require a lot of luggage. If you are traveling by train or plane and want to travel without a suitcase, you can send it to your destination in advance. Some shipping companies specialize in a suitcase service, while others require you to choose the parcel shipping method.

DHL had its own suitcase service until the end of 2021, but this was discontinued due to low demand and too much effort. If you pack your luggage in a sturdy box and adhere to the minimum size and weight, you can still send it to the destination with the shipping service provider.

Criteria for selecting a shipping method

When exporting, it can be challenging to determine the most suitable transportation. Consider the potential hazards and choose the least expensive shipping method that ensures timely and safe delivery. Considering the potentially hazardous circumstances to which the products may be subjected, you need to give careful consideration to the mode of transportation that is the most appropriate for ensuring the delivery of the goods in a timely manner and without risk.

When it comes to the distribution of commodities and goods, businesses have a wide variety of possibilities from which to pick. On the other hand, because there are so many options available, it could be challenging for them to choose the mode of distribution that addresses their requirements the most effectively.

Every single shipping option, whether it be a flat-rate, expedited, multiple-address, international, or commodities shipment, comes with its own individual set of advantages and disadvantages. Before businesses can choose the most effective strategy, they need to take a number of factors into consideration.

There is a wide variety of popular shipping options that are available to both individuals and businesses. Every shipping method has its own set of advantages and disadvantages; in the end, the way that is selected will be determined by the kind of goods that are being transported, the degree of urgency for delivery, and the overall cost of shipping.

Business owners can accomplish their objectives and offer their customers with the best possible experience by selecting the shipping method that is most appropriate for them from among the various possibilities that are available to them.

Types of Goods

To begin, you need to consider the different sorts of items that you are transporting. Because there are so many different goods, there are a few different transportation techniques that are necessary. On the other hand, if you are delivering fragile materials, for instance, you can choose to go with a shipping option that provides additional protection, such as air goods forwarder services or speedy delivery.

You should, on the other hand, choose a delivery mode that is less expensive, such as ground shipping, if you are sending substantial things. If you deal with the right company, they will supply you with information on the delivery method that is the most efficient. Research may help you define your action strategy more accurately, which is something you should consider doing.

Destination

It is also important that you consider the location of your cargo. When you are delivering to a location that is located at a considerable distance, it is strongly suggested that you choose a delivery option that provides door-to-door delivery. On the other hand, if you are delivering to a metropolitan area, it can be more advantageous for you to choose a technique that provides possibilities for recipients to pick up their packages. Consider of the distance in addition to the distance.

Although the cost of air goods is higher than the cost of ocean transportation, you should think about utilizing air goods if you are concerned about moving your belongings to a distant location. Considering the company's track record of successfully managing long-distance deliveries is another important factor to consider.

Urgency

Are you under a great deal of time pressure, or do you happen to have an urgent requirement for your shipment? Through each of the several shipping channels, it is possible to obtain differing degrees of transportation speed. It is common for express delivery to be the choice that is the quickest when compared to ground shipment, whereas ground shipment is often the one that is the slowest. Whether you want to go with a quicker delivery option or not, you will consider the urgency of your goods as well as the distance between you and the delivery location.

Before selecting a service, it is essential to have a conversation about your particular needs to avoid any issues that may arise in the future. For them to be able to devise tactics that are appropriate, it is imperative that they are aware of any special needs.

Cost

Finally, pay some thought to the expenses that are linked with the cargo itself. The prices of various modes of shipment are distinct from one another. One example of this would be the possibility that air freight is more expensive than land transportation, even though air freight is typically faster than land transit. Although express delivery is typically faster than ground shipment, it is conceivable that the cost of express delivery will be more than the cost of ground shipment.

One of the most essential things to do before settling on a shipping route is to make sure that you are getting the best bargain possible by comparing the prices of all the different alternatives that are available to you. Examine the estimates that are offered by a number of various businesses, and select the one that is within your financial means and delivers the things inside the time limit that has been allowed to you.

If you carry out the essential study, the procedure of picking the proper mode of transportation is considered to be uncomplicated. The kind of products, the destination, the amount of urgency, and the cost of the shipping are all factors that will be considered when selecting the method and freight forwarder that will be most appropriate for your cargo.

FAQ

What is expedited shipping?

When compared to more traditional shipping alternatives, accelerated delivery allows for the delivery of items to be completed in a shorter amount of time. It typically involves delivery the following day or within two days, and it makes use of air travel or specialized carriers to ensure that products get at their destination within a shorter amount of time and in a more expedient manner. Even while expedited shipping typically comes with a larger price tag, it is well worth the additional cost for transactions that are time-sensitive or when customers absolutely need their things to be delivered quickly.

What is meant by flat-rate shipping?

Flat-rate shipping refers to a pricing model where a fixed shipping cost is applied, provided the item meets specific size or weight limits. This means the shipping fee remains the same, regardless of the package's actual weight or its final destination within the eligible region. This approach simplifies the shipping process, allowing both senders and recipients to easily predict shipping costs. Predefined flat-rate boxes, offered by various postal and courier services, can be particularly economical for shipping larger items that fit within the designated dimensions.

Which is the most cost-effective shipping method for small businesses?

The types of goods being transported and the total number of packages being delivered are often considered by small businesses when they are searching for the shipping service that will provide the most cost-effectiveness. When it comes to items that are not regarded to be very urgent, the most cost-effective alternative is often the standard ground or economy service. There is the possibility of achieving a consistent and fair cost through the utilization of flat-rate delivery for larger products that yet fit the size limits. In addition to utilizing shipping software to combine shipments, small businesses can negotiate lower prices with carriers and investigate regional carriers who may offer cheaper local delivery.

How can I reduce the shipping costs for my e-commerce business?

If transportation costs are to be reduced, carriers will need to undertake both strategic and operational changes. The following operational approaches are being considered:

• Use appropriate-sized boxes to minimize dimensional weight charges and avoid utilizing any unnecessary material for optimal packing.
• Evaluate Possible Rates: Use the weight of your shipment as leverage to get better rates or discounts from shipping companies.
• Put the Technology into Practice: Shipping software or third-party logistics providers can help with shipment consolidation and order processing efficiency.
• Secure Options with a Fixed Rate: Use flat-rate shipping to make costs predictable wherever you can.
• Evaluate the Information: It is important to regularly evaluate shipment numbers to identify areas where plans are inefficient and make necessary adjustments. By judiciously balancing the different prices with your customers' expectations, you may significantly lower your overall shipping charges without sacrificing quality.