Global e-commerce sales are expected to touch $6 trillion in 2022. The US online shopping revenue is also expected to touch 1.3 trillion dollars by 2025. Billions of e-commerce shipments are delivered across homes in the U.S. every day and managing it is no easy task. Small businesses and startups hinge on shipping companies to deliver goods and improve customer satisfaction.
Shipping companies are the backbone of the e-commerce industry. They provide the right logistics services and supply chain solutions to help e-commerce stores serve their customers.
Which are the preferred shipping partners for e-commerce businesses in the US?
When it comes to the US, there are clear winners for shipping services. The US Postal Services (USPS) comes first followed by UPS (United Parcel Service).
Top 5 Shipping Solutions For E-Commerce Stores in the US
As per Statista, USPS occupied the top slot at 54% with 500 of the top online shops indicating using it as their preferred shipping method. It was followed by UPS at 47.7%. FedEx and DHL were also at the top 5 preferred shipping partners for e-commerce stores in the US with 37.3% and 5.7% share respectively.
Here is a chart of standard shipping rates of different shipping partners for the US. You can see from it that the rates depend on the weight of the parcel. The location and time within which it has to be delivered also play a crucial role in determining the shipping rates.
| Unites States Postal Service (USPS) | UPS | ShipBob | Sendle | Lone Star Overnight | OnTrac | ||
|---|---|---|---|---|---|---|---|
| Weight | Rate | ||||||
| Standard Shipping | 01 Lbs | 10.72 | 15 | 11.2 | 5.1 | 10.65 | 9.77 |
| 02 Lbs | 13.7 | 15.57 | 12.5 | 6.5 | 12.18 | 11.27 | |
| 05 Lbs | 15.25 | 21.87 | 14.1 | 7.25 | 13.7 | 12.49 | |
| 10 Lbs | 21.1 | 31.08 | 15.75 | 8.71 | 14.91 | 13.62 | |
Now let us see the 10 best e-commerce shipping partners in the U.S.
1. United States Postal Service (USPS)
The US Postal Service (USPS), established in 1775, is the best shipping company for e-commerce businesses in the US as it offers both domestic and international shipping services. The time period of package delivery is usually between 2 to 8 days. The delivery fee depends on the package size, weight, and destination.
Benefits of USPS:
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Packages can be delivered to major cities in the US even on holidays or Sundays for an additional fee.
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There is also the option to receive loyalty credits and discounted prices.
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The USPS API can also be integrated easily into the e-commerce website.
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The USPS Returns Services provides an easy way for customers to ship items back to the store.
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Provides real-time analytics dashboard and support.
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It offers end-to-end solutions for small and medium businesses with its Click-N-Ship Business pro services. It includes easy-to-use database integration, tracking & reporting tools, and other services.
2. DHL Express
DHL, founded in 1969, is a subsidiary of Deutsche Post DHL Group, a logistics company with its headquarters in Germany. DHL Express headquartered in Plantation, Florida is the division that offers small business shipping solutions. It is the best for e-commerce businesses that sell products around the world. It specializes in this field and offers a wide range of resources tailored to help e-commerce companies engage in international trade.
Benefits of DHL Express:
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It provides excellent resources on international shipping to new companies that cover customs, imports & exports.
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It has a detailed guide on shipping costs and the things you need to do to ensure a good international shipping experience.
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For international shipping, it provides services such as end-to-end tracking visibility, delivery notifications, delivery management, door-to-door delivery, and money-back guarantee.
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For businesses, it provides DHL Express Service with a single customs clearance entry, one shipment label, and multiple location delivery.
3. UPS
The UPS was initially set up as the American Messenger Company in 1907 in Seattle. It was renamed United Parcel Service (UPS) in the year 1919 with an office in Oakland, California. Currently, it delivers to around 220+ countries with around 25 million packages delivered daily. With its headquarters in Atlanta, Georgia, UPS provides excellent shipping resources at competitive rates..
Benefits of UPS for e-commerce businesses:
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It offers help to e-commerce businesses to deal with international trade regulations and stay in compliance while avoiding penalties.
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It streamlines the international shipping process by speeding up the customs clearance with a paperless invoice.
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For small e-commerce businesses, it provides solutions such as product returns, email notifications, and an easy API integration tool.
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It offers complete shipment visibility across the supply chain directly from the desktop.
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Businesses can schedule collections directly at any time for added flexibility.
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The dashboard for small businesses gives insight into shipments and tools built explicitly for shipping management.
4. ShipBob
ShipBob is a third-party logistics service provider (3PL) with its headquarters in Chicago. Founded recently in 2014, it negotiates bulk discount rates with four major carriers FedEx, DHL, UPS, and US Postal Service. It fulfills e-commerce orders for direct-to-consumer brands including supply chain logistics and warehousing. It claims a 99.95% accuracy rate in fulfilling orders and a partnership with 7000+ e-commerce businesses.
Benefits of ShipBob shipping services for e-commerce stores in the US:
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It offers a full suite of e-commerce logistics and shipping solutions including shipping, warehousing, and inventory management.
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The e-commerce businesses connect to ShipBob and send the inventory. ShipBob stores them in any of its fulfillment centers. As soon as a customer places an order, it ships them from the nearest fulfillment center.
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Transparent pricing includes the cost of shipping and also the total cost to store the goods, manage the inventory, and fulfill customers’ orders.
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Its e-commerce software can be easily integrated into many e-commerce website building platforms such as Shopify, Wix, and WooCommerce and marketplaces such as Walmart and eBay.
5. DB Schenker
The best partner for overseas shipping, DB Schenker has close to 100 branches in the US, Canada, and Mexico for land freight. Its ocean freight division ships more than 5500 containers from the US to ports all around the world. This global transport and logistics provider is spread across 2000 locations in 140 countries.
Benefits of shipping with DB Schenker:
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It has a trade advisory set up with solutions in cargo insurance, customs bonds, trade documentation, and compliance solutions.
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It offers a full range of e-commerce logistics solutions from warehousing to shipping.
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It has automation tools for e-commerce businesses to streamline the supply chain and handle seasonal peaks.
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It works with e-commerce companies to handle return management from quality checks to repairs, and disposals.
6. YRC Freight
YRC Freight started off as Yellow Transportation in 1924 in Oklahoma City, USA. It was subsequently merged with Roadway and is now known as YRC Freight. Categorizing itself as LTL (Less than Truck Load) shipping service, it is the perfect shipping solution for small e-commerce stores focused on domestic delivery. In the LTL shipping model, the trailer carries freight from multiple shippers to utilize its capacity.
Services offered by YRC Freight:
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Standard- It is for shipping products when the time limit is not a factor. The products are shipped through its 250+ terminal networks.
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Accelerated- The products are shipped at top priority and travel through a faster network.
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Time-Critical- Here, the products are shipped fast with the reliability of a guarantee. The shipments are handled from start to finish by a dedicated team with proactive notifications to track the order.
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Logistics- This service is for custom shipping needs
7. Sendle
The first delivery service specifically designed to meet the needs of small businesses, Sendle offers affordable, flat-rate shipping across the US with no hidden fees. It also boasts to be a 100% carbon neutral shipping carrier in the US. Launched in the US in 2019, it aims to revolutionize package delivery for small e-commerce businesses. It has amazing plans for the fast delivery of small packages for e-commerce businesses.
Benefits of Sendle shipping services:
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It offers two-day shipping within the US for as low as $2.60 per package.
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Sendle Swift plan offers local delivery (less than 150 miles) at $2.60 for under half-pound packages and $3.40 for over half-pound regardless of the distance.
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It competes with shipping giants such as UPS and FedEx by not issuing peak-season surcharges.
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Sendle has designed its networks specifically for e-commerce businesses offering flat rates depending on weight and its rates are 88% less than traditional carriers.
8. Courier Express
Courier Express was established in 1985 in Atlanta, Georgia. It offers courier, freight, and warehousing solutions. It helps e-commerce businesses with parcel distribution all across the US. It has over 1000 vehicles operating per day and 803k square feet of warehouse space.
Benefits of Courier Express:
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It has an integrated last-mile delivery resource with complete information for online tracking.
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It uses technology-driven solutions such as GEO validation, digital signature capture, proof of delivery, delivery exception coding, client information portal, and many more.
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It offers warehousing management and ships products to anywhere in the US.
9. Lone Star Overnight (LSO)
Headquartered in Austin, Texas, Lone Star Overnight (LSO) is a leading overnight shipping & delivery company in the Southwest US serving mainly in the areas of Texas and Oklahoma. It has also opened for services in Louisiana, Arkansas, Kansas, and Missouri.
Services offered by LSO for e-commerce stores in the US:
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It offers online pickup scheduling for the store owners to make the pickup task easy and hassle-free
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The store owners can automatically print the return label from their office
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It has an easy rate calculator for store owners to know the shipping and delivery charges
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It offers an easy online tracking service for end-users
10. OnTrac
In the United States, OnTrac is the largest regional package carrier. It was founded in the year 1991 as California Overnight. It was formed after the acquisition of various small Canadian and American courier companies. It offers services in California, Arizona, Nevada, Oregon, Washington, Utah, Idaho, and Colorado. It offers both ground and overnight deliveries at flat rates to more than 60 million customers. Its service area covers 20% of the population of the USA.
Benefits of OnTrac:
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It provides real-time details of the package and supports multiple languages
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It notifies customers of parcels when in transit, pick up, delivered, and exceptions.
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It is compatible with eBay, AliExpress, Magento, and other e-commerce websites.
Conclusion
Warehousing and inventory management, transportation of orders, in-transit storage, reverse logistics, streamlined order tracking, and customer delivery are crucial to determine the ideal shipping partners.
Costs, location, and shipping time help e-commerce stores to further narrow down their choices. The choice of shipping partner can have a great impact on customer shopping experiences. Which are the factors you consider when selecting your shipping partner? Tell us about it.
