Return to Blog Homepage

10 Benefits of Automating Your eCommerce Shipping

March 17, 2025

Ramin Popal

Consider you just opened an online store. You’ve worked hard to build your website, attract visitors, and make sales. But once those sales start, you’re overwhelmed by the number of orders and shipping logistics. Sound familiar? If so, you’re not alone. Many eCommerce businesses face the same challenges—especially in the beginning. One crucial step to streamlining operations is learning how to find a supplier for your product, ensuring you have a reliable source for inventory and smoother order fulfillment.

Luckily, there’s a solution to help you get organized and regain control: eCommerce shipping automation. This guide will explore how shipping automation can streamline operations, reduce costs, and improve customer experience. You’ll also discover a valuable tool to help you tackle the specifics of eCommerce shipping automation: AI Store Builder’s AI store builder.

What is Automated E-commerce?

man typing on a laptop - eCommerce Shipping Automation

Why Are Businesses Automating Their E-commerce Operations? 


As e-commerce sales grow, so do the challenges of operating an online store. Traditional e-commerce stores require constant manual work to handle orders, manage inventory, and fulfill shipping requests. As a business grows, this becomes unsustainable, leading to delays, mistakes, and inefficiencies. By automating key processes, businesses can: 

Save Time & Increase Efficiency. 


Instead of handling each order manually, automation processes transactions instantly. Reduces the workload on employees, allowing them to focus on customer experience and business growth. 

Reduce Human Errors 


Manual order fulfillment increases the chances of incorrect addresses, duplicate orders, and tracking mistakes. Automation ensures accurate shipping details, customer addresses, and inventory records. 

Improve Customer Experience 


Customers expect fast shipping and real-time updates—automation ensures orders are processed and shipped without delays. Automated tracking notifications keep customers informed about their order status. 

Cut Operational Costs 


Hiring a team to manage orders manually, update stock, and handle shipping inquiries is expensive. Automation allows businesses to handle high order volumes with fewer employees. 

Scale Faster Without Bottlenecks 


A business that relies on manual processes struggles to keep up with growth. Automation allows companies to expand without increasing overhead costs. 

How Does E-commerce Automation Work?  


To better understand automation, let’s break it down into three core functions: 

1. Task Automation 


This involves automating repetitive processes to ensure business operations run smoothly. 

Example

When a customer places an order, the system automatically:

  • Generates an invoice. 
  • Select the best shipping carrier. 
  • Creates and prints a shipping label. 
  • Send a confirmation email with tracking details. 

Without automation

  • The store owner manually processes each order, leading to delays and potential errors. 

2. Workflow Automation 


This type of automation connects multiple systems, ensuring that data moves smoothly.  

Example 

A Shopify store automatically syncs with a fulfillment center, ensuring that:

  • Orders are processed and packed without requiring human input. 
  • Stock levels update in real-time across all sales channels. 
  • Customers receive tracking notifications without manual intervention. 

Without automation

  • Business owners must send order details to warehouses, manually update stock, and inform customers of order status, increasing workload and errors. 

3. AI & Data-Driven Automation 


Modern automation tools analyze customer behavior and optimize decision-making using artificial intelligence (AI). 

Example

  • AI-based shipping automation tools
  • Compare multiple carriers in real time to select the cheapest and fastest option. 
  • Suggest personalized delivery choices (e.g., express vs. standard shipping) based on customer location and past behavior. 
  • Identify delivery delays in advance and send proactive notifications to customers. 

Without automation

  • Businesses manually track shipping rates and delivery times and update customers, leading to slow responses and high costs. 

Standard E-commerce Processes That Can Be Automated  


E-commerce automation covers many business operations. Here are some of the most common areas:
 

1. Order Processing & Fulfillment 


It automatically confirms orders and sends them to suppliers or fulfillment centers. It also generates invoices and packing slips without human intervention. 

2. Shipping & Carrier Selection 


Choose the most cost-effective shipping method based on weight, location, and carrier rates. Create shipping labels and send tracking updates to customers instantly. 

3. Customer Notifications & Tracking


Sends real-time tracking details via email or SMS, reducing “Where is my order?” inquiries. Updates customers about order status, delivery delays, and estimated arrival times. 

4. Returns & Refunds


Generates return labels automatically when a customer requests a return. Updates stock levels when a returned item is processed without manual inventory updates. 

5. Inventory Management 


Syncs stock levels across multiple sales channels (Shopify, Amazon, eBay, etc.). Sends low-stock alerts and automatically places reorder requests for high-demand products. 

Businesses that automate these processes experience faster growth, lower costs, and better customer satisfaction. 

Why Is Automation Essential for E-commerce in 2025?  


The future of e-commerce relies on automation to remain competitive. As customer expectations for faster deliveries, real-time tracking, and smooth shopping experiences continue to rise, businesses that rely on manual processes will struggle to keep up. 

Amazon & Big Retailers Are Setting New Standards 


Customers now expect next-day or even same-day shipping, which is impossible to achieve manually. Automated fulfillment centers and logistics networks enable rapid shipping at scale. 

Rising Shipping & Operational Costs 


Manual shipping and fulfillment processes increase costs due to labor and inefficiencies. Automation helps businesses reduce costs by optimizing carrier selection and fulfillment workflows. 

AI-Driven Decision Making is Becoming the Norm 


AI is improving shipping speed, delivery accuracy, and fraud detection, giving businesses that use automation a competitive edge. Predictive analytics help forecast demand, allowing companies to automate restocking and inventory planning.

ai store builder - eCommerce Shipping Automation

Related Reading


What is an Example of E-commerce Automation?

women on a laptop - eCommerce Shipping Automation

Order Processing & Shipping Label Automation: What It Means for You  


Automation is not just a buzzword; it has real-world impacts on eCommerce businesses. This section will cover how eCommerce shipping automation affects order processing and shipping labels. 

Before Automation: The Manual Process  


The first step in understanding how shipping automation impacts your business is to look at the manual process. Here’s how it works without automation: 

  1. A customer places an order at the store.  
  2. The business owner receives an email or notification about the new order.  
  3. They manually check product availability to ensure the item is in stock.  
  4. To create a shipping label, the business owner copies and pastes the customer’s address into a shipping carrier’s website (e.g., UPS, FedEx, DHL).  
  5. They manually compare different shipping rates to choose the best option.  
  6. After selecting a carrier, they print the shipping label and attach it to the package.  
  7. They manually send an email with tracking information to the customer.  
  8. If a customer requests a return, the business owner must manually generate a return label, email it to the customer, and update stock levels after receiving the return. 

Problems With the Manual Process  


The manual order fulfillment process is slow, tedious, and prone to errors. Here’s why:

  • Time-Consuming: Manually processing each order takes significant time, significantly as order volume increases.  
  • Higher Risk of Errors: Copying and pasting addresses, manually selecting shipping options, and tracking inventory manually increase the chance of mistakes.  
  • Slower Fulfillment Times: Since every step is done manually, orders take longer to ship, leading to customer dissatisfaction.  
  • Inconsistent Customer Communication: If tracking emails and order updates are sent manually, some customers may not receive timely updates.  

After Automation: The Optimized Process With E-commerce Automation  


With automation, the entire order fulfillment and shipping process can happen without human intervention, allowing businesses to process orders faster, reduce errors, and provide better service. Here’s how the automated process works:  

  1. A customer places an order in the store.  
  2. The system automatically checks product availability and updates stock levels in real-time.  
  3. The customer’s address and order details are automatically sent to the chosen shipping carrier.  
  4. The system compares multiple carriers and selects the best shipping option based on price, delivery speed, and reliability.  
  5. A shipping label is automatically generated, printed, and assigned to the order.  
  6. The system sends the customer an order confirmation email and a tracking number.  
  7. Customers receive real-time tracking updates via email or SMS without manual follow-ups.  
  8. If a customer requests a return, the system automatically generates a return label and updates the inventory upon receiving the return.  

Benefits of the Automated Process  

  • Faster Order Processing: Orders move directly to fulfillment without delays caused by manual data entry.  
  • Reduced Shipping Errors: Customer details are automatically imported, minimizing mistakes in addresses or shipping preferences.  
  • Lower Operational Costs: Less staff time is needed to manage shipping, allowing the business to operate more efficiently.  
  • Improved Customer Experience: Customers receive instant order confirmations and tracking updates, reducing inquiries and increasing satisfaction.  
  • Scalability: Businesses can handle larger orders without hiring additional employees or slowing down fulfillment.

10 Benefits of Automating Your e-Commerce Shipping

man smiling - eCommerce Shipping Automation

1. Speedy Order Processing That Makes Customers Happy


Customers expect quick and efficient shipping, and delays in processing can lead to order cancellations, negative reviews, and lost sales. Manually entering order details, selecting carriers, and generating shipping labels slow down fulfillment times. 

How Automation Helps

  • Orders are automatically forwarded to the shipping system when a purchase is made. 
  • The system instantly assigns a carrier, generates a shipping label, and updates the order status without human intervention. 
  • Fulfillment teams can print multiple labels simultaneously, reducing the time spent on individual shipments. 

Results

2. Cut Shipping Costs to Boost Profit Margins 


Shipping costs can cut profit margins, mainly when businesses rely on expensive shipping options without comparing rates. Choosing the wrong carrier or package size increases unnecessary expenses. 

How Automation Helps

  • The system compares shipping rates from multiple carriers in real-time, selecting the most cost-effective option. 
  • Automated tools apply bulk discounts and carrier-specific savings, reducing shipping expenses. 
  • Businesses can set up automated shipping rules to use free shipping for specific locations while charging for others. 

Results

  • Lower shipping costs without compromising delivery speed. 
  • More competitive pricing for customers. 
  • Increased profitability per order.

3. Fewer Errors in Shipping Labels and Addresses 


Incorrect addresses, duplicate shipments, and misprinted labels lead to delayed deliveries and higher return rates. Human errors in manual data entry increase the chances of mistakes. 

How Automation Helps

  • The system automatically validates shipping addresses and corrects mistakes before shipping. 
  • Automated shipping tools detect duplicate orders and prevent unnecessary shipments. 
  • Shipping labels are generated without manual input, reducing errors in package weight, dimensions, and tracking details. 

Results

  • Fewer lost or delayed packages. 
  • Lower refund and reshipment costs. 
  • Increased trust and reliability in order fulfillment. 

4. Real-Time Tracking & Customer Updates 


Customers want real-time updates on their order status. Businesses that fail to provide tracking information receive a high volume of customer inquiries, increasing support workload. 

How Automation Helps

  • Tracking numbers are automatically generated and sent to customers via email or SMS. 
  • Customers receive automated updates for order processing, shipping, and delivery status. 
  • Businesses can integrate tracking with customer service chatbots, allowing customers to check status updates instantly. 

Results

  • Fewer “Where is my order?” inquiries. 
  • Better customer experience with instant tracking notifications.
  • Reduced customer support costs and workload. 

5. Simplified Multi-Carrier Management 


Choosing a single carrier for all orders limits flexibility and increases costs. Different regions may have better carrier options for faster, cheaper delivery. 

How Automation Helps

  • Shipping automation integrates multiple carriers into one system, allowing businesses to choose the best option for each order.
  • Automated tools select the best carrier based on destination, shipping speed, and cost. 
  • Businesses can automatically assign different carriers to domestic and international orders. 

Results

  • More flexible and cost-effective shipping solutions. 
  • Faster deliveries in other regions. 
  • Reduced reliance on a single carrier, preventing disruptions.

6. Increased Order Volume Without Extra Work 


As businesses grow, handling more orders manually becomes unsustainable. Processing each order manually limits scalability and increases labor costs.
 

How Automation Helps

  • Automated systems process hundreds or thousands of orders simultaneously, removing the need for manual data entry. 
  • Shipping workflows can be customized to handle seasonal order spikes without hiring additional staff. 
  • Businesses can scale efficiently without increasing operational complexity. 

Results

  • Easier expansion to new markets. 
  • Higher efficiency without additional staffing costs.
  • More orders are fulfilled in less time.

7. Faster Returns Processing 


A slow or complicated return process reduces customer satisfaction and leads to negative reviews. Manually handling returns is time-consuming and prone to errors. 

How Automation Helps

  • Customers can initiate returns online and automatically generate return labels. 
  • The system tracks return shipments and updates inventory once the return is received. 
  • Refunds or exchanges are processed without manual review, reducing wait times. 

Results

  • Hassle-free returns improve customer trust. 
  • Faster inventory restocking. 
  • Lower customer service workload. 

8. Optimized Inventory Management 


Without inventory tracking, businesses risk overselling out-of-stock products. Poor inventory management leads to excess storage costs and slow-moving stock. 

How Automation Helps

  • Syncs inventory across multiple sales channels (Shopify, Amazon, eBay, etc.). 
  • Alerts businesses when stock levels are low and automatically reorders products. 
  • Tracks shipping and return data to adjust stock availability in real time. 

Results

  • Prevents overselling and customer complaints. 
  • Ensures accurate stock levels across platforms. 
  • Reduces warehouse costs by optimizing storage.

9. Better Customer Experience 


A slow, error-prone shipping process frustrates customers and reduces repeat purchases. Smooth and reliable shipping boosts customer loyalty.
 

How Automation Helps

  • Ensures fast and accurate deliveries. 
  • Provides instant tracking updates to customers. 
  • Reduces errors, leading to higher satisfaction and fewer complaints. 

Results

  • More favorable reviews and repeat customers. 
  • Higher retention rates. 
  • Stronger brand reputation.

10. Scalability for Growth 


Manual shipping processes become a bottleneck as businesses expand. Automation ensures that companies can scale without significantly increasing costs. 

How Automation Helps

  • Handles high-order volumes smoothly. 
  • Allows companies to expand to new markets without increasing fulfillment complexity. 
  • Supports multi-location shipping and international expansion. 

Results

  • Faster business growth with minimal operational issues. 
  • Increased revenue without additional labor costs. 
  • More flexibility in scaling logistics operations.

Related Reading

How to Use E-commerce Shipping Automation to Improve Your Business

woman thinking - eCommerce Shipping Automation

Choosing the Right Shipping Automation Platform


Shipping automation tools are not created equal. The right automation tool determines how efficiently your store can process orders, generate shipping labels, and provide tracking updates. Some platforms offer multi-carrier support, while others focus on inventory and shipping management. 

How to Choose a Shipping Automation Tool

  • Multi-Carrier Integration: It supports UPS, FedEx, DHL, USPS, and other shipping carriers, offering flexibility in cost and speed.
  • Automated Order Processing: Ensures orders are instantly sent to fulfillment without manual intervention.
  • Real-Time Shipping Rate Comparison: This helps businesses automatically choose the most cost-effective shipping option.
  • Returns Automation: Enables easy return label generation and inventory restocking.
  • Inventory Syncing: Ensures that stock levels remain updated across all platforms.

How AI Store Builder Helps

ai store builder - eCommerce Shipping Automation


AI Store Builder integrates real-time carrier selection, automated shipping label generation, and smooth order tracking into its platform. Businesses using AI Store Builder can set up automated workflows in minutes, ensuring efficient shipping.

Integrating Shipping Automation With Your E-commerce Platform


A disconnected shipping process causes delays, fulfillment errors, and poor tracking visibility. Integrating automation allows all systems (storefront, warehouse, carrier, and customer service) to work smoothly. 

How to Set Up Integration

  • Connect Your Online Store – Platforms like Shopify, WooCommerce, and Magento allow direct integration with shipping automation tools. 
  • Sync Order Management Systems – Ensure that orders automatically flow from checkout to fulfillment without manual entry. 
  • Enable Carrier API Connections – Link carriers to your automation tool to access real-time shipping rates and tracking updates. 
  • Set Up Automated Tracking & Customer Notifications – Automate emails and SMS notifications for order confirmation, shipping updates, and delivery alerts.

How AI Store Builder Helps: 


AI Store Builder provides pre-configured integrations with major shipping carriers and fulfillment services, removing the complexity of manual setup. The platform automatically syncs orders from your store and assigns the best shipping method, reducing the risk of errors.

Automating Carrier Selection and Shipping Label Generation 


Choosing a shipping carrier manually wastes time and increases costs if a more affordable or faster option is available. Creating shipping labels is inefficient, especially for stores handling high order volumes. 

How to Automate Carrier Selection

  • Set Rules for Cheapest or Fastest Shipping: Define automation rules prioritizing speed or cost efficiency.
  • Automate Label Printing: Once an order is placed, the system generates a shipping label instantly.
  • Bulk Label Printing: Print multiple shipping labels simultaneously to streamline warehouse fulfillment.
  • Pre-Set Packaging Preferences: Automate package selection based on product weight and dimensions.

How AI Store Builder Helps


AI Store Builder automatically selects the best carrier based on cost, delivery speed, and customer location. The system creates and prints shipping labels instantly, ensuring orders are ready for shipment.

Automating Order Tracking and Customer Notifications 


Customers expect real-time tracking updates and will contact support if they don’t receive them. Manual tracking updates increase workload and delay customer responses. 

How to Automate Tracking

  • Automatically Attach Tracking Numbers to Orders – Ensures that customers can track their shipments immediately after purchasing.
  • Send Real-Time Shipping Updates via Email and SMS—Notify customers when their package is shipped, out for delivery, or delivered.
  • Integrate Tracking With Customer Service Chatbots – Allows customers to get order updates instantly without waiting for support agents.

How AI Store Builder Helps 


AI Store Builder’s built-in automation
sends tracking numbers and delivery status updates to customers without manual input. By providing real-time tracking links, businesses can reduce customer support inquiries.

Automating Returns and Refund Processing 


A slow return process reduces customer trust and discourages repeat purchases. Manual refund and return handling increases workload and operational inefficiencies. 

How to Automate Returns Processing

  • Allow Customers to Request Returns Online – Customers initiate returns through a self-service portal without contacting support. 
  • Automatically Generate Return Labels—The system instantly sends a return shipping label, eliminating the need for manual processing. 
  • Update Inventory Upon Return Arrival – Stock levels adjust immediately when returned items are received, preventing overselling. 
  • Automate Refunds or Exchange Processing – Refunds are issued instantly based on pre-set policies, reducing delays.

How AI Store Builder Helps


AI Store Builder provides automated return label generation and refund approvals, reducing the time it takes to process returns. The platform integrates with warehouse management systems, ensuring inventory updates automatically when returns are received.

Monitoring Performance and Optimizing Shipping Automation 


Businesses need to track the effectiveness of their shipping automation system to ensure it’s reducing costs and improving efficiency. Without performance monitoring, automated workflows may not be fully optimized. 

How to Monitor and Optimize Shipping Automation

  • Track Key Metrics: Monitor order processing time, shipping costs, delivery speed, and return rates.
  • Analyze Carrier Performance: Identify which carriers offer the best combination of speed and affordability.
  • Adjust Automation Rules Based on Data: Update shipping rules to optimize cost savings and efficiency.
  • Use AI-Driven Predictive Analytics: Forecast demand spikes and adjust shipping logistics proactively.

How AI Store Builder Helps


AI Store Builder
provides detailed analytics and reporting on shipping costs, delivery times, and carrier performance. The platform automatically adjusts shipping workflows based on real-time business performance data.

Scaling Your Business With Shipping Automation 


As businesses grow, manual shipping becomes a bottleneck, preventing scalability. Automation allows companies to expand to new markets, offer faster shipping, and handle higher order volumes without increasing operational complexity. 

How to Scale With Automation

  • Expand Carrier Partnerships: Automate carrier selection for international shipping. 
  • Offer More Shipping Options: Set up automation for same-day, next-day, and standard delivery. 
  • Automate Multi-Warehouse Fulfillment: Optimize shipping by routing orders to the nearest fulfillment center.

How AI Store Builder Helps


AI Store Builder’s automated shipping system adapts to business growth, handling higher order volumes without increasing workload. With multi-warehouse shipping and expanded carrier options, businesses can scale efficiently. 

At AI Store Builder, we create a complete Shopify store for you in under 10 minutes. We include 20 trending products, trusted suppliers, and a dropshipping course that others charge thousands for. Plus, you get live support calls and community access. Skip the headaches of store setup, product research, and supplier hunting - we handle it all so you can focus on growing your business. Get your store built for you in less than 10 minutes today!

Get Your Store Built for You in Less Than 10 Minutes Today

ai store builder - eCommerce Shipping Automation

Finding a Supplier for Your Product: The First Step to Success in Dropshipping  


When starting with dropshipping, you must find a supplier or manufacturer for the products you want to sell. Some dropshippers choose to work with suppliers already integrated with their online store. For example, if you create a Shopify store for your dropshipping business, you can easily find products from trusted suppliers on the Shopify app store.  

Research Dropshipping Suppliers 


Once you find a few potential dropshipping suppliers, take the time to research each one. Look for reviews on third-party websites. Also, check out the supplier's social media pages to understand how they interact with customers. Ask the supplier questions before committing to working with them if you can. This can help you gauge their responsiveness, which is essential for future business operations. 
 

Prioritize Communication and Reliability 


Your dropshipping supplier will be responsible for fulfilling your customers' orders, so you need to ensure they have good communication and reliable operations. If they fail to meet your expectations, your business will suffer, not theirs. Before you get started with a dropshipping supplier, look for signs that they have solid operations. For example, you can read online reviews to learn about other merchants' experiences with the supplier. Also, consider placing a test order with the supplier to see how quickly they fulfill the order and if the product matches the description. 
 

Consider Product Quality 


Since you won't be handling the products in a dropshipping business model, you must ensure your supplier is shipping quality items to your customers. Otherwise, you risk frustrating your buyers and hurting your business's reputation. As mentioned, one way to gauge product quality is to read online reviews. Purchase items from the supplier and inspect them yourself before selling them in your store. 
 

Look for US-based suppliers


If your target customers are located in the United States, finding dropshipping suppliers based in the US is a good idea. This is because US-based suppliers tend to have faster shipping times for domestic customers. For example, if you dropship a product from a supplier located in China, it could take several weeks for your customer to receive their order. However, if you work with a US-based supplier, your customer could receive their order in just a few days. Faster shipping times will help you provide better customer service and increase your chances of getting repeat business.  

Choosing a Supplier to Work With 


Once you've researched and found a few suppliers you feel comfortable with, it's time to choose one (or more) to work with. Let's start with two suppliers for the same products. This way, if one supplier has stock issues or stops fulfilling orders, you can easily switch to another without inconveniencing your customers.

At AI Store Builder, we create a complete Shopify store for you in under 10 minutes. We include 20 trending products, trusted suppliers, and a dropshipping course that others charge thousands for. Plus, you get live support calls and community access. Skip the headaches of store setup, product research, and supplier hunting - we handle it all so you can focus on growing your business. Get your store built for you in less than 10 minutes today!

Related Reading


Join 15,000+ Shopify store owners who have got a store with AI Store Builder

Get your free store in less than 10 minutes today

Get Free Store + Course Now