How Do Businesses Ship Products? Tips and Strategies You Can Use for Fast and Efficient Delivery
February 21, 2025
Ramin Popal
Shipping a product might seem simple enough at first. You box it up, slap a label on it, and send it on its way. However, shipping is much more complicated than that if you run a business. There are many ways to ship products, and each one can affect your bottom line and your customers’ satisfaction. How a business ships products can change that business’s reputation.
If you want to know how businesses ship products, you’ve come to the right place. This guide will examine the ins and outs of shipping products for business to help you understand the process better. Before diving into shipping logistics, it’s essential to consider how to find a supplier for your product, as the right supplier can impact shipping costs, delivery times, and overall efficiency.
Before you get too far into the shipping process, it helps to have a good ecommerce platform to manage your online store. AI Store Builder’s AI store builder can help you create a beautiful, professional online store in hours. With a customizable template and built-in AI tools to help you design your site and create content, you can launch your new ecommerce business quickly. Then, as you start making sales, you can implement the shipping strategies we cover in this guide.
What Are the Different Methods Businesses Use to Ship Products?
Understanding E-Commerce and the Role of Shipping
E-commerce refers to buying and selling products online, where businesses operate through digital storefronts rather than physical retail stores. Unlike traditional retail, where customers walk into a store and take their purchased items home, e-commerce businesses must ship products to their customers, making logistics and delivery a vital part of the business model. For an online business to succeed, efficient shipping is as important as having great products. Slow or unreliable shipping can lead to:
High cart abandonment rates
Customers often leave their shopping carts when shipping costs are too high or delivery times are too slow.
Negative reviews and customer complaints
Customers who experience late or damaged deliveries are less likely to shop again.
Loss of competitive advantage
With companies like Amazon offering fast and free shipping, customers now expect quick delivery times from all online retailers.
Businesses use different shipping methods based on their business model, customer location, and product type to meet customer expectations and maximize profitability.
Shipping Methods for E-Commerce
There isn’t a one-size-fits-all shipping solution. Businesses choose a shipping method based on Speed (how fast customers want their orders), Cost (whether they offer free shipping or charge customers), Product size and weight (small vs. bulky items), and Geographic coverage (local vs. international shipping). Here are the main shipping methods that businesses use:
Standard Shipping
What It Is
The most commonly used shipping method is where products are delivered within 5-10 business days using regular postal services or third-party couriers.
Who Uses It
Small businesses, online marketplaces, and independent sellers want to keep costs low while maintaining reasonable delivery times.
Carriers Used
USPS, UPS, FedEx (USA), Royal Mail (UK), Canada Post, DHL, etc.
Pros
Affordable for both businesses and customers.
Widely available in most countries.
Reliable for non-urgent orders.
Cons
Longer delivery times compared to expedited shipping.
Tracking may not be available for all shipments.
It is not ideal for businesses with customers who expect fast shipping.
Expedited & Express Shipping
What It Is
A faster shipping option that delivers orders within 1-3 business days.
Who Uses It
Businesses that sell high-demand products where customers expect fast delivery.
Companies competing with Amazon Prime and other services offer two-day or next-day shipping.
E-commerce brands that prioritize customer satisfaction and convenience.
Carriers Used
FedEx Express, UPS Next Day Air, USPS Priority Mail Express, DHL Express.
Pros
Reduces waiting time, improving customer satisfaction.
More reliable tracking and handling.
It can be a competitive advantage when customers compare stores.
Cons
Higher costs for both businesses and customers.
It may require warehouses in multiple locations to ensure fast shipping.
It is not ideal for bulky or oversized items due to extra costs.
Same-Day & Local Delivery
What It Is
Some businesses offer same-day delivery, where orders placed in the morning are delivered within hours.
Local delivery services use couriers, bike messengers, or delivery apps to fulfill orders in specific cities or regions.
Who Uses It
Grocery stores, florists, and food & beverage businesses.
Fashion brands that offer same-day delivery in major cities.
Electronics retailers offer fast replacements for customers.
Carriers Used
UberEats, DoorDash, Postmates, Instacart (for grocery and retail).
Pros
Perfect for perishable goods (e.g., food, flowers).
It drives impulse purchases since customers get their products instantly.
Creates a premium shopping experience for high-value customers.
Cons
Limited geographic coverage – only works in urban areas.
It is expensive for businesses if they don’t charge extra for delivery.
Requires a well-organized local delivery system.
Dropshipping & Supplier-Based Shipping
What It Is
The business sells a product without holding inventory—instead, when a customer places an order, the supplier ships the product directly to the customer.
The business acts as a middleman between the supplier and the customer.
Who Uses It
Dropshipping businesses that don’t want to invest in inventory.
Entrepreneurs test new products before committing to bulk orders.
Print-on-demand stores sell customized items shipped from third-party manufacturers.
Carriers Used
Depends on the supplier (AliExpress, CJ Dropshipping, Spocket, Zendrop, etc.).
Pros
No upfront inventory costs – lower financial risk.
Easy to start and scale – businesses can sell multiple products without worrying about stock.
Location flexibility – can be run from anywhere in the world.
Cons
Longer shipping times – if the supplier is overseas, deliveries can take 2-4 weeks.
Lower profit margins due to competition.
Less control over packaging and branding.
Freight Shipping (For Large & Bulk Orders)
What It Is
Used by businesses shipping heavy, oversized, or bulk products that can’t be delivered through standard shipping methods.
Who Uses It
Manufacturers and wholesalers deliver large shipments to retailers.
Furniture brands and industrial equipment sellers.
E-commerce stores selling heavy or high-volume items.
Carriers Used
FedEx Freight, UPS Freight, DHL Global Forwarding, Maersk (for international cargo).
Pros
Cost-effective for large shipments.
Can handle international bulk orders.
Ideal for businesses that ship products in bulk.
Cons
It is slower than other shipping methods.
Complicated logistics and customs processing.
Requires freight brokers for international trade.
Minimize errors, ensuring customers receive the correct items.
Lower costs by optimizing storage, packaging, and shipping.
Improve brand reputation, leading to repeat customers and higher conversions.
For new e-commerce sellers, setting up a fulfillment system can be challenging—but that’s where tools like AI Store Builder come in. Instead of worrying about warehousing, supplier sourcing, and logistics, AI Store Builder handles everything for you so you can focus on growing your business.
Get Fast: How Businesses Speed Up Order Processing
Regardless of the fulfillment method, businesses optimize order processing to ship products faster.
Here’s how
Automating Order Processing: AI-powered tools route orders to the nearest warehouse or supplier in real-time.
Using Inventory Management Software: Prevents overselling by tracking stock levels automatically.
Optimizing Warehouse Layout: Reduces picking and packing time with strategically placed products.
Partnering with Reliable Carriers: Ensures fast, cost-effective shipping options.
Pro Tip
Automating fulfillment and supplier sourcing saves time and reduces human error—that’s why platforms like AI Store Builder do the heavy lifting for you.
Order Fulfillment Strategies: What Are They?
Businesses use various order fulfillment strategies depending on their size, product type, and business model. Here are the most common fulfillment methods:
Self-Fulfillment (In-House Fulfillment) How It Works
The business stores its inventory, processes orders, and ships them using local or international carriers.
Who Uses It
Small businesses and startups with low order volume or want complete control over packaging and branding.
Pros
Complete control over inventory, packaging, and shipping experience.
No reliance on third-party warehouses.
It can offer personalized packaging for a better customer experience.
Cons
It is time-consuming, as businesses must manually process and ship each order.
Higher costs for storing inventory and hiring staff as the business scales.
Limited shipping speed unless multiple warehouse locations are used.
Best for
Small e-commerce stores just starting to want to maintain direct control over their fulfillment.
Third-Party Logistics (3PL) Fulfillment How It Works
Businesses outsource storage, packing, and shipping to a third-party logistics provider (3PL). When a customer orders, the 3PL handles everything—from warehouse storage to last-mile delivery.
Who Uses It
Growing businesses that need fast, cost-effective shipping.
Companies that want to scale without managing warehouses.
E-commerce brands offering global shipping.
Pros
Faster fulfillment due to strategically located warehouses.
Lower shipping costs by leveraging bulk carrier discounts.
There is no need for businesses to manage inventory or packing.
Cons
There is less control over packaging and branding unless the 3PL offers customization.
It can be expensive for businesses with low order volume.
Best for
Medium to large e-commerce businesses need fast, scalable shipping solutions without managing logistics themselves.
Focus on marketing & sales instead of logistics management.
If you’re launching a new e-commerce store and don’t want to deal with the complexities of fulfillment, let AI Store Builder handle it.
Key Strategies Businesses Use for Fast & Efficient Shipping
Packaging & Branding: Enhancing the Customer Experience
A product’s packaging is the first thing customers see when they receive their order, making it an essential part of branding and customer experience. Businesses must choose packaging that is:
Protective – Ensuring the product arrives undamaged.
Cost-efficient – Keeping shipping expenses low.
On-brand – Reflecting the business’s identity.
Types of Packaging Businesses Use
Standard Cardboard Boxes – Ideal for most e-commerce shipments, offering durability and stackability.
Poly Mailers – Lightweight, water-resistant bags for clothing and soft items, reducing shipping costs.
Eco-Friendly Packaging – Sustainable options like biodegradable materials to appeal to environmentally conscious consumers.
Custom Branded Packaging – Boxes with a business logo, thank-you notes, and branded tissue paper for a premium unboxing experience.
Pro Tip
Branded packaging enhances customer loyalty by making your product feel premium and exclusive. This is especially useful for dropshipping businesses that want to stand out from competitors.
Customers expect reliable delivery and real-time tracking of their orders. Businesses use tracking systems and shipping insurance to ensure orders are delivered safely.
Shipping Insurance
What It Covers: Lost, stolen, or damaged packages.
When Businesses Use It: High-value products like electronics, jewelry, or fragile items.
Carriers that offer insurance include FedEx, UPS, DHL, USPS, and third-party providers like ShipCover and Route.
Tracking Solutions
Carrier-Provided Tracking: USPS, FedEx, and UPS provide essential tracking updates.
Advanced Tracking Tools: Shopify, AfterShip, and ShipStation offer real-time shipment tracking integrated into e-commerce stores.
Automated Customer Notifications: Sends shipping updates via email or SMS to reduce customer inquiries.
Pro Tip
Businesses that offer tracking reduce customer complaints and support tickets, improving the overall experience.
Customs Declarations & International Shipping Requirements
For businesses selling globally, customs and import taxes are critical to shipping. International shipping requires accurate documentation to avoid customs delays, unexpected fees, or package returns.
Key Customs Documents Businesses Need
Commercial Invoice: Lists product details, value, and country of origin.
Customs Declaration Form: Required by most countries to assess import duties.
Harmonized System (HS) Codes: Identifies product categories for import classification.
How Businesses Reduce Customs Delays
Using Fulfillment Centers in Key Countries: This avoids international shipping altogether by storing products closer to customers.
Pre-Paying Duties & Taxes (DDP – Delivered Duty Paid): Some businesses include import taxes in the checkout price, so customers don’t have to pay customs fees on arrival.
Partnering with Reliable International Carriers: DHL, FedEx, and UPS offer faster, more reliable international delivery than postal services.
Pro Tip
To prevent abandoned carts, businesses that sell internationally must communicate shipping times and import duties at checkout.
Business Shipping Accounts: Reducing Costs & Simplifying Logistics
Many businesses set up business accounts with major shipping carriers to:
Get bulk shipping discounts.
Access priority customer support.
Use automated shipping software for order processing.
Carriers That Offer Business Accounts
UPS Small Business Program – Discounts and same-day pickup for growing brands.
FedEx Business Account – Provides volume discounts and express shipping benefits.
DHL Express for E-Commerce – Preferred for global shipping with competitive rates.
How Businesses Save with Carrier Accounts
Flat-Rate Shipping: Predefined pricing for packages within certain weight limits.
Integrated Shipping Software: Shopify, WooCommerce, and BigCommerce integrate with carrier accounts for automated shipping label creation.
Pro Tip
Even small businesses can access shipping discounts using e-commerce fulfillment services that partner with major carriers.
Labeling & Compliance: Avoiding Delays & Errors
Proper shipping labels ensure packages reach the correct destination without delays or returns. Businesses follow strict labeling guidelines to:
Reduce shipping errors.
Ensure compliance with carrier regulations.
Improve last-mile delivery efficiency.
Key Elements on a Shipping Label
Recipient’s Name & Address – Must be correctly formatted for international orders.
Tracking Number & Barcode – Allows real-time shipment scanning.
Customs Declaration (if required) – This is for international orders with product descriptions and values.
Fragile or Special Handling Indicators – Labels like “Fragile,” “Perishable,” or “Do Not Bend” help protect packages.
How Businesses Automate Label Creation
Shipping Label Printers: High-volume businesses use dedicated printers like Dymo or Rollo.
Integrated Shipping Software: Shopify, ShipStation, and EasyPost generate shipping labels automatically based on the customer’s order details.
AI-Powered Logistics Tools: Some AI-driven shipping platforms predict optimal package sizes and auto-apply the correct labels to reduce human error.
Pro Tip
Ensuring labels are correctly formatted for international addresses prevents delivery failures and chargebacks.
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!
Best Practices You Can Emulate for Fast & Efficient Shipping
Ship Happens: Choose the Right Fulfillment Model for Your Business
Successful e-commerce businesses optimize their fulfillment strategy to ensure fast, efficient shipping while managing costs. The best practices include:
Using a reliable dropshipping supplier
Instead of managing inventory, partner with a trusted supplier who ships products directly to your customers.
Expanding to third-party fulfillment centers
If you’re scaling, work with 3PL services like Amazon FBA, ShipBob, or Red Stag Fulfillment to store products closer to customers for faster shipping.
Pre-stocking inventory for high-demand items
If you’re running paid ads or seasonal promotions, pre-stock fast-moving products with your supplier to avoid delays.
Diversifying suppliers
Avoid depending on one supplier; have backups to prevent disruptions if a supplier runs out of stock.
Pro Tip
AI Store Builder automatically connects your Shopify store with pre-vetted, trusted suppliers, ensuring fast, reliable shipping without you needing to manage fulfillment logistics.
Offer Competitive & Transparent Shipping Options
One of the biggest reasons customers abandon their cart at checkout is due to unexpected shipping costs or long delivery times. The best e-commerce businesses clearly communicate shipping options upfront and optimize their pricing model:
Offer free shipping where possible
If you can, factor shipping costs into product pricing so customers aren’t discouraged by extra fees.
Provide multiple shipping speed options.
Some customers are willing to pay more for express shipping, while others prefer a lower-cost standard shipping option.
Use real-time shipping calculators.
Shopify and WooCommerce integrate with tools that provide accurate shipping rates at checkout, reducing customer surprises.
Show estimated delivery dates at checkout
Displaying precise estimated delivery times builds trust and reduces customer support inquiries.
Pro Tip
Offering free shipping on orders over a certain amount encourages customers to buy more, increasing your average order value (AOV).
AI Store Builder helps you implement optimized shipping strategies to keep your store competitive while keeping fulfillment efficient.
Optimize Packaging & Branding for a Memorable Experience
The customer’s unboxing experience is an extension of your brand. Instead of sending plain, generic packaging, successful e-commerce brands use customized packaging and branding elements to stand out.
Use high-quality packaging materials.
Protect products during transit to prevent returns due to damaged goods.
Include custom-branded packaging
Add your logo, thank-you cards, and stickers to increase brand recognition.
Offer eco-friendly packaging options.
Sustainable packaging appeals to environmentally-conscious shoppers and differentiates your brand.
Use compact packaging
Reduce package size to save on shipping costs while keeping the product secure.
Pro Tip
Branded packaging encourages social media shares, leading to free user-generated content and more exposure for your store.
AI Store Builder works with suppliers that offer custom branding options so your store can stand out with professional, well-branded shipments.
Automate Shipping & Order Tracking to Improve Customer Satisfaction
Customers want to track their orders in real-time, and businesses that offer automated tracking notifications see higher customer satisfaction and fewer refund requests.
Integrate automated order tracking.
Use apps like AfterShip, ShipStation, or Shopify’s built-in tracking tools to provide real-time updates.
Send proactive shipping notifications.
Keep customers informed with order confirmation, tracking updates, and estimated delivery times via email or SMS.
Have a clear return & refund policy.
Make returns easy for customers to increase trust and encourage repeat purchases.
Offer package protection and insurance.
Customers can purchase shipping insurance at checkout for high-value items to protect against lost or stolen packages.
Pro Tip
Businesses that provide clear and timely shipping updates reduce customer service workload, as buyers won’t need to contact support asking about their order status.
AI Store Builder integrates with order tracking tools, automatically ensuring customers receive smooth tracking updates.
Prepare for Seasonal & High-Demand Shipping Periods
During peak shopping seasons like Black Friday, Cyber Monday, and Christmas, shipping carriers experience delays due to high order volumes. Innovative e-commerce businesses plan to prevent fulfillment issues.
Stock up in advance
Ensure your supplier has enough inventory before running promotions to avoid stockouts.
Set realistic shipping expectations.
Communicate longer shipping times during peak seasons to prevent customer frustration.
Use multiple fulfillment centers.
Work with multiple warehouses or suppliers to distribute shipping loads and ensure faster deliveries.
Leverage express shipping options
Offer priority shipping at checkout for customers who need their orders quickly.
Pro Tip
Businesses that prepare for peak seasons maximize sales while reducing customer complaints.
AI Store Builder ensures your store is connected to suppliers that can handle seasonal demand efficiently so you can scale without shipping disruptions.
AI Store Builder: Your Key to Simplifying E-Commerce Store Set-Up
At AI Store Builder, we create a complete Shopify store for you in under 10 minutes. We include 20 trending products, trusted suppliers, and an entire 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.
Consider this: you have a fantastic product idea. You have a vision for your brand. Now, you need to build an online store to sell your products. But wait! What about product research? What about finding a supplier? What about actually setting up the store? For many entrepreneurs, this is the part of the process that causes the most stress. This is where AI Store Builder comes in.
At AI Store Builder, we create a complete Shopify store for you in under 10 minutes. We include 20 trending products, trusted suppliers, and an entire 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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