When it comes to staying flexible, being able to bob and weave around problems, and maximizing your budget, having multiple options is key. In the case of shipping for an ecommerce brand, in addition to harnessing ShipMonk’s Virtual Carrier Network, we recommend using a variety of shipping carriers vs. relying on one provider. 

The shipping industry has many competitors that bring a variety of services and rates to the table, but the main players are USPS, UPS, FedEx, and DHL. In this blog we’ll provide an overview of the shipping realm, major shipping carriers, and shipping services that may benefit your ecommerce brand the most!

Shipping Basics

You’re about to enter a detailed, yet easily digestible shipping universe. Out the gate there are a few things to keep in mind. For starters, you don’t have to settle for any one shipping carrier or shipping service. The most successful brands use a combination of methods and providers so they can get the best deals and adapt to supply chain issues. 

Additionally, while it is important to have a base understanding of every aspect of your business, a 3PL partner ensures that all the complex, nitty gritty components of ecommerce shipping get handled on your behalf so you can focus on building your brand. Lastly, while we’re going to go into different aspects of shipping rates, know that all carriers use the same four factors to calculate shipping costs: 

1. Weight (actual pounds of a package)
2. Dimensional weight (a formula involving package size and weight)
3. Shipping zones (how far the package has to travel)
4. Speed (how quickly you need a package to arrive at its destination)

Shipping Labels

Shipping labels are a major part of an order’s successful journey, ensuring accurate supply chain communication by clearly identifying info about a package. Though the specific details may differ by shipping carrier, all shipping labels have the following:

1. Return/sender address
2. Destination/receiver address
3. Sender and receiver names
4. Package weight
5. Type of postage paid for
6. Electronic tracking number
7. Shipping barcode (generated by the shipping carrier)
8. Shipping class (economy, standard, 2-day, overnight shipping, etc.)

In sum, a shipping label is meant to communicate important information about your package to fulfillment technology and trained personnel. Our shipping label article focuses on how incredibly important shipping labels are to the ecommerce order fulfillment process, and best practices for them too! 

Major Shipping Carriers

In the shipping industry there are many competitors that bring a variety of services and rates to the table. The main players are USPS, UPS, FedEx, and DHL. In general, for a brand to reach maximum success, the shrewdest tactic is to partner with a 3PL like ShipMonk that works with a wide network of shipping carriers so your products can go out in the time frame, and at a cost, that benefits you best. However, it’s definitely helpful to understand the highlights of each shipping carrier, so here we go!

USPS – United States Postal Service 

“The only carrier permitted to touch every mailbox in the US.”

Established on the promise of providing affordable shipping to all Americans in the late 1700s, USPS is the ONLY carrier permitted to touch every mailbox in the US. Over the years it has grown an extensive network to reach all those mailboxes at low cost and high speeds. USPS is best for smaller, lightweight packages (under 20 pounds) with a maximum weight of 70 pounds per package. Think – books, clothing, stuffed animals. 

USPS shipping services offer specially-discounted options, for example Priority Mail Cubic, which charges you based on the package’s dimensions, not weight. Additionally, USPS shipping includes free tracking with real-time updates until a package reaches its final destination. 

The only downside is they are not as reliable when it comes to international shipping, depending on where you’re shipping. This is because the parcels are delivered to a local post office abroad first, and customs and tariffs from there could delay delivery to an international customer.

UPS

“The oldest and largest commercial ground distribution network in the US.”

Whereas USPS has a strong track record for smaller, lighter packages, UPS (the United Parcel Service) has a maximum weight of 150 pounds. That’s more than double the USPS threshold. As such, UPS is a shipping leader for larger, heavier packages. Think – refrigerators, stereo systems, furniture. 

UPS offers many unique express shipping services; though they are typically higher priced than the USPS shipping services. One example is UPS Express Critical – UPS’s emergency delivery service that can get packages to their final destinations around the world within 24 hours. Another example of an area UPS shines is in the shipment of high-value items. UPS is a trusted shipping company for luxury products ranging from collectibles to designer goods. 

This carrier also offers free tracking so you can monitor a package right to your customer’s front door. UPS may also provide commercial discounts that are negotiated on a case-by-case basis and are provided to high-value shipping partners (i.e. 3PLs like ShipMonk that ship innumerable products for thousands of ecommerce clients). 

While UPS is very reliable for international shipping, it is a more expensive option. So unless you work with a 3PL that can get bulk shipping discounts, it may not be your best bet for growing your business globally.

FedEx

“The originators of the overnight express service.”

Whereas USPS and UPS hold distinctions in terms of pricing and services related to package size and weight, FedEx is known for its speed and specialty. FedEx provides reliable express shipping and overnight shipping options. If you need to get a package somewhere quickly, this is the service people tend to use. 

Additionally, FedEx excels in shipping specialty items such as perishables, food, and products that depend on strict temperature control. In keeping with this specialty, FedEx has boxes outfitted with their proprietary cold packaging material—keeping shipments between 35°F-46°F for up to 96 hours without having to use dry ice or gel packs. Like UPS, FedEx also offers free tracking so you can monitor a package right to your customer’s door.

And like UPS, FedEx is a reliable international shipper, but the costs can add up so you’ll want to work with a 3PL utilizing an array of shipping carriers to have a chance at making your international shipping budget-friendly. 

DHL 

“The largest international distribution network.” 

DHL is known for fast and dependable global shipping, particularly when it comes to shipping packages weighing up to 5lbs. Here’s how it works. DHL eCommerce utilizes its own domestic network to deliver a package to its final shipping zone, and then hands it over to the local post office to take it from there. ShipMonk is proud to utilize DHL in our extensive network of shipping carriers because of the company’s impressive emphasis on speed, value, and service.

In terms of speed, DHL’s time-saving shipping application and fast transit times set the bar high in the transportation industry. In terms of value, DHL helps ecommerce clients get the most out of their budgets by customizing shipping services to meet their unique needs. And in terms of service, DHL shipping specialists are dedicated to making every part of the shipping process as quick and efficient as possible—offering simple tracking tools, fast online billing, easy claims processing, and worldwide networks to get ecommerce goods where they need to go as swiftly as possible.

While DHL eCommerce is reliable and affordable, note that delivery times can be a bit longer than some competitors’ delivery times. However, you can customize that based on the service you select. Keep in mind that DHL eCommerce has relatively high minimums though, so unless you’re using ShipMonk (hint hint), you probably won’t be able to take advantage of their services. 

DHL Express is probably your best bet when shipping internationally. It’s more expensive than USPS or DHL eCommerce, but it’s so much more reliable in this area. And they deliver within 2-4 days almost anywhere in the world! Their own trucks do the last mile delivery.

The ShipMonk Shipping Benefit

ShipMonk believes in working with a variety of shipping carriers to get you the best rates and services possible. We’re going to dive deeper into different aspects of the shipping industry now, but be sure to check out our shipping methods overview chart to get an idea of our offerings. 

View Shipping Methods Overview

Ship Ship Hooray!

Shipping is just as important to your brand’s day-to-day operation as it is to customer experience. We hope you’ve enjoyed exploring the highlights of the most popular shipping carriers and shipping services. 

ShipMonk works with all the major providers so the ecommerce brands we represent have a variety of options in terms of pricing and speed at all times. Meanwhile, our Virtual Carrier Network ensures we can adapt your shipping operations quickly and effectively to maximize its success. Contact us today to learn more, and discover how our 3PL can elevate your business to the next level!