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10 eCommerce Shipping Best Practices to Reduce Costs and Improve Customer Satisfaction

March 19, 2025

Ramin Popal

When you run an eCommerce business, you hear a lot about improving sales and attracting customers. However, few people talk about the importance of shipping. Shipping can make or break a sale. 56% of customers have abandoned a cart due to unsatisfactory shipping options. Finding the right shipping partner is just as crucial as learning how to find a supplier for your product, as both impact your overall success. You can avoid this scenario and improve customer satisfaction by implementing effective eCommerce shipping best practices.

This blog will introduce you to ten shipping best practices to help you reduce costs and improve customer satisfaction. AI-powered solutions like Aisle Planner's economic calendar are valuable tools for implementing eCommerce shipping best practices. This tool lets you identify shipping trends to plan and prepare for upcoming changes to avoid surprises.

What is E-commerce Shipping?

man packing a box - eCommerce Shipping Best Practices

Order Processing & Verification: The First Steps of E-commerce Shipping 


Order processing begins as soon as a customer completes their purchase. First, the e-commerce platform verifies the payment and checks whether the ordered items are in stock. Next, the system automatically alerts the business’s warehouse or fulfillment center to prepare the order for shipping. 

This step can take a few hours to a few days, depending on the business’s operations and whether they use an automated order management system (OMS). The quicker the order is processed and verified, the faster the customer will receive it. Speeding up this process reduces errors and delays that can lead to unhappy customers.

The Key Steps in E-commerce Shipping


To successfully ship an order, businesses must follow these steps:

Step 1: Order Processing & Verification

  • The e-commerce store receives an order.
  • The system verifies payment and stock availability.
  • The order is sent to the warehouse or fulfillment center for packing.
  • An automated order management system speeds up this process, reducing errors and delays.

Step 2: Picking & Packing the Order

  • The warehouse team selects the ordered items.
  • Items are packed using the right-sized and protective packaging.
  • A shipping label is printed and attached to the package.
  • Packaging should be lightweight but sturdy to reduce costs and prevent damage.

Step 3: Carrier Selection & Shipping Method

  • The business chooses the best shipping carrier (e.g., USPS, FedEx, UPS, DHL).
  • The system compares shipping rates and delivery times to optimize cost and speed.
  • The order is handed over to the selected carrier for transit.
  • Choosing the right carrier can significantly impact shipping costs and delivery speed. Businesses should negotiate bulk rates for better pricing.

Step 4: Shipment Tracking & Customer Notifications

  • Once shipped, the customer receives a tracking number.
  • The business sends real-time tracking updates via email or SMS.
  • Customers can check the delivery status anytime through a tracking link.
  • Providing transparent tracking information reduces customer inquiries and builds trust.

Step 5: Delivery & Confirmation

  • The package is delivered to the customer.
  • Some shipments require a signature confirmation for security.
  • The system updates the order status as ‘delivered.’
  • Fast and accurate delivery increases customer satisfaction and encourages repeat purchases.

Step 6: Handling Returns & Refunds

  • Customers request a return via the store’s returns portal or support team.
  • A return label is generated for easy processing.
  • Once the returned item is received, the system issues a refund or exchange.
  • A simple and transparent return process increases customer confidence and loyalty.

Choosing the Right E-commerce Platform for Shipping Management


Before businesses can set up their shipping process, they need a reliable e-commerce platform that supports order management, fulfillment integration, and carrier selection. Here are some of the most popular platforms:

1. Shopify

  • Best for small to mid-sized businesses that want an easy-to-use, all-in-one e-commerce solution.
  • Offers built-in shipping tools like Shopify Shipping, which provides discounted carrier rates and tracking integration.
  • Supports multiple fulfillment options, including dropshipping and third-party logistics (3PL) services.

2. WooCommerce (WordPress Plugin)

  • It is best for businesses that want complete control over their store’s shipping setup.
  • Allows integration with various shipping carriers through plugins.
  • Requires custom configuration for real-time shipping rates and automation.

3. BigCommerce

  • Designed for businesses that need a scalable, enterprise-level e-commerce platform.
  • Offers real-time shipping rate calculation and carrier selection.
  • Supports integration with multiple fulfillment centers and warehouses.

4. Magento (Adobe Commerce)

  • Best for large e-commerce brands that need custom shipping solutions.
  • Supports advanced shipping rules, custom carrier rates, and multi-warehouse management.
  • Requires technical expertise for setup and customization.
  • Choosing the right e-commerce platform depends on the business size, budget, and shipping requirements.

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10 E-commerce Shipping Best Practices to Follow

amazon boxes - eCommerce Shipping Best Practices

1. Offer Multiple Shipping Options


Customers have unique delivery preferences. Some prioritize low costs, while others want speedy delivery regardless of the price. Many shoppers wish to have flexible delivery options. This is especially true for younger consumers. For example, a 2022 survey from logistics firm Convey found that 79 percent of millennials want flexibility in delivery. Only 61 percent of boomers feel the same way. You can cater to different customer segments by offering multiple shipping options at checkout. Consider providing standard, expedited, and eco-friendly shipping options. Integrate multiple shipping carriers into your online store to compare rates and delivery speeds. Also, it provides customers with real-time delivery estimates at checkout. 

2. Optimize Packaging to Reduce Costs


Packaging impacts shipping costs, sustainability, and customer experience. Overpacking leads to unnecessary expenses, while improper packaging can result in damaged products and returns. Use right-sized, lightweight packaging to minimize shipping fees. Consider biodegradable or recyclable materials to appeal to eco-conscious shoppers. Optimize box size selection to reduce dimensional weight pricing. 

3. Negotiate Shipping Rates with Carriers


Shipping costs can quickly eat into profit margins, especially for businesses fulfilling high order volumes. Negotiating rates help secure lower shipping costs and better service levels. Compare bulk shipping rates across multiple carriers. Join third-party logistics (3PL) programs that offer discounted carrier rates. Set up regional fulfillment centers to reduce delivery distances and costs. 

4. Automate Order Processing and Label Printing


Manually processing orders slows down fulfillment and increases the risk of errors. Automation speeds up label generation, carrier selection, and inventory updates, reducing operational inefficiencies. Use shipping automation software to print bulk labels and assign orders to fulfillment centers. Sync inventory management tools with shipping platforms to update stock levels automatically. Reduce order processing times by automating shipping label creation at checkout. 

5. Provide Real-Time Order Tracking and Notifications


Customers expect instant updates on their order status and prefer to track shipments in real-time. Integrate tracking systems with carrier APIs to update customers automatically. Send real-time tracking notifications via email and SMS. Allow customers to track their orders directly on your website. 

6. Offer Free Shipping with Minimum Purchase Requirements


High shipping costs discourage customers from completing their purchases. Free shipping can increase conversion rates and average order value (AOV). Set a minimum spend threshold to qualify for free shipping (e.g., "Free shipping on orders over $50"). Offer free shipping exclusively to loyalty program members. Use AI-driven pricing tools to offset shipping costs within product pricing. 

7. Improve International Shipping Efficiency


Expanding into international markets unlocks new revenue streams, but shipping logistics can be complex. Customers expect transparent shipping fees, customs duties, and predictable delivery timelines. Provide clear information on duties and taxes at checkout to prevent hidden fees. Work with international fulfillment centers to reduce shipping times. Offer multi-currency payment and localized shipping options for different regions. 

8. Streamline Returns and Refund Processing


A complex return process discourages new customers from buying. Forty percent of shoppers won’t order unless the returns period is at least 30 days. European consumers expect refunds within 5 to 6 days after returning an order—longer delays lead to dissatisfaction. Display a clear and easy-to-understand returns policy on product and checkout pages—Automate return label generation for smoother processing. Issue quick refunds to prevent negative reviews and increase trust.
 

9. Use AI and Automation to Optimize Shipping Costs


AI-driven logistics solutions help reduce shipping expenses by analyzing carrier rates and optimizing fulfillment routes. Automated shipping systems prevent human errors and improve processing speed. Use AI-powered shipping calculators to provide accurate rates at checkout—Automate carrier selection based on cost, speed, and customer preference. Implement inventory forecasting tools to prevent backorders and delayed shipments. 

10. Monitor Key Shipping Metrics and Adjust Strategies


Tracking performance metrics helps businesses identify areas for improvement and reduce unnecessary shipping costs. Regular monitoring improves efficiency, customer experience, and overall profitability. Monitor key performance indicators (KPIs) such as average shipping cost per order, On-time delivery rate, and customer complaints related to shipping. Adjust shipping strategies based on real-time performance data. Test new packaging methods, carrier partnerships, and fulfillment centers to optimize logistics. 

Eliminate the Guesswork with AI Store Builder


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!

Common E-commerce Shipping Challenges & How to Overcome Them

woman looking sad - eCommerce Shipping Best Practices

High Shipping Costs: How to Cope and Maintain Profitability


Shipping costs can eat into profit margins, making it harder for businesses to stay competitive. Customers expect low-cost or free shipping, but offering it without optimization can lead to financial losses. Last-mile delivery fees, surcharges, and fuel costs make shipping expenses unpredictable.

How to Overcome It

  • Negotiate Carrier Rates: Businesses with higher shipping volumes can negotiate discounted bulk rates with carriers like FedEx, UPS, and DHL. 
  • Use Shipping Software for Rate Comparison: Tools that compare real-time carrier rates help select the most cost-effective option for each shipment. 
  • Offer Free Shipping With Minimum Order Value: Encourage customers to spend more to qualify for free shipping, which offsets costs. 
  • Leverage Third-Party Logistics (3PL) Providers: Outsourcing fulfillment to a 3PL can reduce shipping costs using optimized shipping networks. 
  • Use AI-Powered Optimization Tools: AI-driven shipping tools analyze historical order data to recommend the most cost-effective shipping routes.

Slow or Unreliable Delivery Times: How to Keep Customers Happy


Late deliveries damage customer trust and lead to negative reviews and refund requests. Unpredictable carrier delays due to weather, holidays, and peak seasons impact order fulfillment times. Inaccurate delivery estimates cause frustration and customer complaints.

How to Overcome It

  • Partner With Multiple Carriers: Instead of relying on one carrier, diversify shipping options to ensure flexibility when delays occur. 
  • Use Regional Fulfillment Centers: Storing inventory closer to key customer locations reduces transit time and speeds up deliveries. 
  • Automate Order Processing: Reducing order placement and shipment time ensures faster processing and dispatch. 
  • Provide Real-Time Delivery Estimates: Dynamic shipping calculators help customers choose faster delivery methods when needed. 
  • Monitor Carrier Performance: Regularly tracking carrier delivery speeds helps identify better-performing services.

Lost, Damaged, or Stolen Packages: How to Stay Prepared


Packages can get lost, stolen, or damaged in transit, leading to refunds, reshipments, and customer frustration. International shipments are at higher risk of theft or loss due to longer transit routes and multiple handling points. Carriers do not always take responsibility for lost or damaged packages, leaving businesses to cover replacement costs.

How to Overcome It

  • Use Insured Shipping for High-Value Orders: Offering shipping insurance protects the business and the customer. 
  • Require Signature Confirmation for Expensive Items: Ensuring someone can receive the package prevents theft or loss. 
  • Use Secure Packaging: Reinforced, tamper-proof packaging reduces damage risks and prevents theft. 
  • Provide Advanced Tracking and Notifications: Sending customers real-time updates and proof of delivery improves transparency. 
  • Partner With Reliable Carriers: Choose carriers with a strong track record for safe and timely deliveries.

International Shipping Complexities: How to Smooth Out Cross-Border Shipping


Cross-border shipments face customs clearance delays, import taxes, and regulatory restrictions. Shipping rates vary significantly between countries, making it difficult to set standard pricing. Customers are often surprised by hidden fees, leading to order cancellations and disputes.

How to Overcome It

  • Display Duties and Taxes at Checkout: Using an AI-powered duty calculator ensures customers see the full cost upfront. 
  • Offer Localized Shipping Methods: Partnering with regional logistics providers improves speed and reliability. 
  • Use a Global Fulfillment Network: Warehousing inventory in multiple countries speeds up international shipping. 
  • Provide Multiple Currency Payment Options: Allowing customers to pay in their local currency reduces checkout friction. 
  • Implement AI-Driven Carrier Selection: When setting up a Shopify store, AI Store Builder can pre-configure international shipping settings to automatically calculate duties, taxes, and the best carrier options for global sales.

High Cart Abandonment Due to Shipping Costs & Unclear Policies


Unexpected shipping costs at checkout are a significant reason for cart abandonment. Unclear return policies and estimated delivery times lead to customer hesitation. 

How to Overcome It

  • Offer Transparent Pricing: Display all shipping costs, estimated delivery dates, and any additional fees upfront. 
  • Provide Free or Flat-Rate Shipping: Simple pricing structures reduce hesitation and increase conversions. 
  • Use Exit-Intent Popups to Offer Discounts: Offering a small shipping discount for first-time buyers can help reduce cart abandonment. 
  • Communicate Shipping Timelines on Product Pages: Customers are more likely to buy with clear delivery expectations.

Inefficient Returns and Refund Process: How to Streamline Returns to Reduce Customer Frustration


Returns processing delays frustrate customers and increase negative feedback. Refunds that take longer than expected discourage customers from buying again. Forty percent of shoppers will not purchase from a store unless the return window is at least 30 days.

How to Overcome It 

  • Simplify the Returns Process: Offer pre-paid return labels and a hassle-free returns portal. 
  • Automate Refund Processing: Use AI-powered tools to process refunds instantly upon receiving returned items. 
  • Extend the Return Window: A longer return period builds trust and encourages more sales.
  • Use AI-Powered Return Analytics: AI tools can track return reasons and optimize product descriptions to prevent unnecessary returns. 
  • Where AI Store Builder Fits In: AI Store Builder ensures Shopify stores are set up with pre-configured return policies to make processing refunds and exchanges smooth and automated. 

The platform also helps businesses integrate automated refund processing tools, ensuring quick customer reimbursement.

Scaling Logistics as Order Volumes Increase: How to Handle Order Fulfillment Growth Pains


Businesses that experience rapid growth struggle to scale fulfillment and shipping operations efficiently. Managing multiple warehouses, carrier integrations, and inventory across regions becomes complex.

How to Overcome It 

  • Use AI-Driven Demand Forecasting: AI analytics help predict peak demand periods to ensure inventory is stocked appropriately. 
  • Outsourcing to Third-Party Logistics Providers (3PLs): A 3PL can handle fulfillment at scale, reducing operational stress. 
  • Optimize Multi-Warehouse Fulfillment: Distributing inventory across multiple warehouses reduces shipping times and costs. 
  • Automate Order Routing: AI-powered systems assign orders to the closest fulfillment center, optimizing delivery speed. 

Eliminate the Guesswork with AI Store Builder

ai store builder - eCommerce Shipping Best Practices


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!

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


Finding the right supplier for your dropshipping products doesn’t have to be complicated. With AI Store Builder, we do the supplier research for you. We’ll find trusted suppliers for the products you’ll sell on your Shopify store so you can focus on what matters: growing your business. 

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