A 2023 Capgemini study reports that a whopping 72% of customers who are satisfied with their delivery experience are likely to step up their purchase levels with a business by 12%. What’s more, 73.6% of customers say that their delivery experience is THE most important aspect of the overall customer experience.
With so much hinging on the delivery leg of the customer journey, e-commerce businesses have to choose their shipping carriers carefully. After all, choose the wrong one, and you risk your customer experience, business reputation, and sales goals—the ultimate nightmare all packed into one.
To avoid that, you need to understand your choices and compare them to find the perfect carrier partner. To help you with this, here we discuss the different types of delivery carriers, how to go about narrowing down your search, and, most importantly, the top shipping carriers and how they fare against each other.
Types of Shipping Carriers
Before we get into the top shipping carriers or dive into comparing shipping carriers, it’s important to first understand their different types. Here’s a quick overview:
National Shipping Carriers
National delivery carriers refer to large-scale logistics companies such as USPS, FedEx, and UPS. These carriers offer comprehensive delivery solutions across the country and are best suited to e-commerce businesses that have a constant need to fulfil deliveries domestically. Since they are national shipping carriers, they have an extensive network that can help you service customers in every nook and cranny of the country.
International Shipping Carriers
These delivery carriers are companies that facilitate seamless cross-border logistics, offering hassle-free customs clearance and a global reach to e-commerce businesses. These carriers will likely be more on the pricey side as compared to national shipping carriers, given the distance and complexity of delivery.
An important aspect to note when choosing international shipping carriers is that some offer Delivery Duty Paid (DDP) shipping while others offer Delivery Duty Unpaid (DDU) shipping services. In the first case, the e-commerce business pays the customs and export duty, while in the latter, the customer pays the customs import duty. Naturally, the first one is more popular since it offers a cheaper option to customers and drives international business.
Freight Carriers
Freight carriers specialize in bulk shipments, managing large-scale transportation via air, road, rail, or water. These are usually not suited to e-commerce businesses since e-commerce businesses rarely ship in bulk, and their deliveries are more dependent on customer demands and orders, which are erratic.
Regional or Last-mile Shipping Carriers
These shipping carriers service only specific regions and are usually considerably smaller than national, international, and freight carriers. However, since they’re limited to an area, they usually offer affordable and quick shipping services within those areas.
How to Choose the Right Shipping Carrier
Today, you have umpteen options when you start looking for shipping partners. But too many options are not always a good thing, as you’ll realize the minute you search ‘top shipping carriers for e-commerce businesses.’ Google will bombard you with results, and you’ll soon be drowning in options.
So, how do you wade this wave? With a succinct checklist that helps you judge, compare, and, most importantly, narrow down your options to the one most suited to your needs.
1. Where Do You Ship To?
We’ve got three words for you—location, location, and one more, you guessed it! Location! And that of your customer. When choosing a shipping carrier, you need to ascertain where your customers are first.
Ask yourself whether you ship within the state, the country, or globally. This will help you identify the ideal shipping carrier for your needs. For instance, if your customers are exclusively on the West Coast, OnTrac is a good option. Alternatively, if they’re across the globe, a bigger shipping carrier like FedEx or DHL might be better suited to your shipping needs.
Furthermore, location also determines the type of service you should opt for. If you’re shipping locally, consider a more affordable service, such as ground shipping, which is significantly less expensive than expedited shipping yet still delivers at the same speed.
2. Carrier Reputation
Operating in the business world, you don’t have to be convinced of how important professional reputation is. You could be offering a stellar USP and pricing your products below your competitors, but your brand reputation is sour, gaining and keeping customers—a thing of dreams.
Well, the same applies to your shipping carriers. Conduct market research, connect with other businesses leveraging shipping carriers, and understand what their experience has been like. In other words, learn from others’ mistakes to recognize reliable carriers.
3. Extent of Technology Integration
Your chosen shipping carrier must not shy away from technology. It must be able to facilitate updates on shipments and offer easy integration with your existing business tools. Typically speaking, shipping carriers offer open APIs that allow for easy label generation and inventory management while you meet customer needs.
That said, it can still have its woes. Instead, consider onboarding a tool like LateShipment.com’s Delivery Management solution that integrates with over 1200 carriers and business tools, bridging the gap between your tech stack and carriers while automating your delivery management operations seamlessly.
4. Distributed Warehouses
The next consideration when choosing a shipping partner is to explore whether they can pick up your products from distributed warehouses to facilitate faster delivery. Distributed warehouses involve shipping carriers having a network to pick up products from different fulfilment centres to complete delivery faster.
For instance, if you have warehouses in Indiana and Oregon, your shipping carrier must be able to pick up products from both warehouses, depending on the destination of delivery. That is, in the event the product is being delivered in Nevada, it is collected from the Oregon warehouse, and if the package needs to be delivered to a customer in Georgia, the carrier picks it up from the Indiana warehouse.
5. Speed of Delivery
Speed might not always matter, but it does when it comes to e-commerce order delivery. And so the next factor to consider when comparing shipping carriers is how fast they can fulfill deliveries. Typically, carriers offer two options for these services: standard (takes two days or more) and expedited (same-day or next-day) delivery.
Considering 97% of online customers label same-day delivery as ‘fast,’ with 85% finding next-day delivery ‘acceptable,’ if you don’t deliver your orders within a day or two, you’re risking their business.
So, choose a shipping carrier that offers you affordable and fast shipping. That said if your packages include perishable items, then the high price tag is just a necessary evil.
6. Cost of Shipping
The cost of shipping has to be balanced with your profit margins and shipping needs. For instance, if you’re offering low-value products with a slim profit margin, your shipping costs have to be minimal. Alternatively, if you’re selling big-ticket items that require careful handling but also quick delivery, your shipping costs can be slightly higher. In such a case, you’ll have to opt for premium shipping with signature confirmation.
In short, you have to choose the carrier that offers you the most competitive shipping rates while meeting your unique shipping needs.
7. Dimensions and Weight of Your Packages
The next factor to consider is how big your packages are and how much they weigh. These two aspects directly influence the cost of your package. As a result, the smaller and lighter the package, the lower the cost of shipping it.
If your packages are big and usually heavy, you have to find carriers that offer affordable shipping in that segment. UPS is one such carrier that offers highly competitive rates for large packages.
8. Dependability and Shipment Tracking
Customer trust is a fragile thing that, once broken, cannot be easily restored. If your carrier is sloppy, your customer experience will suffer. Choose a reliable carrier that offers timely deliveries with minimal delays.
Furthermore, your chosen carrier must offer real-time package tracking capabilities to help you communicate shipping updates to your customers, anticipate delays and issues, and stay on top of your post-purchase experience.
9. Customer Service
Imagine your package goes MIA, and your shipping carrier couldn’t care less. Sounds like a nightmare, right? Avoid this by ensuring you choose a delivery carrier that offers proactive customer service across channels.
Explore online reviews and connect with businesses partnering with the carrier to gain a fair idea of how the carrier addresses client issues.
10. Other Considerations
Here are some additional questions to answer in order to find the right shipping carrier for your e-commerce business:
Are you shipping to military bases?
Military bases aren’t treated as regular delivery destinations due to security checks, entry restrictions, etc. Moreover, different shipping carriers label military bases differently. For instance, USPS treats military bases as domestic destinations, while other carriers approach them as international delivery destinations. This variation trickles down to pricing differences as well. Carriers treating military bases as international destinations can quote a higher price tag as compared to ones that treat them as domestic.
So, if you have a considerable number of shipments to military bases, be sure to discuss this with your shortlisted carriers before signing on the dotted line.
Are your packages fragile?
What you’re shipping also plays a vital role in choosing shipping carriers. UPS, for instance, offers a special service and packaging if you’re shipping fragile goods. The shipping carrier will use custom boxes and special packing material to ensure the product survives the delivery journey.
So, if you’re in the business of shipping glassware, antiques, artwork, ceramics, electronics or any product that can get damaged if not handled with care, be sure to choose a carrier that knows how to pay special attention to packages.
Are you shipping hazardous materials or dangerous goods?
The same goes for shipping hazardous or dangerous goods as fragile items. If you’re in the business of selling pesticides, medical drugs, paint, cleaning chemicals, gas cylinders, or any other kind of dangerous goods, you need to keep that in mind while choosing your carrier.
Not all shipping carriers will be equipped to deliver such items. And if you’re shipping internationally? All the more! Some carriers, such as UPS and FedEx, do deliver ammunition, but USPS doesn’t. So be sure to discuss this with carriers during your vetting process.
Does the carrier’s policy align with your shipping policy?
Your shipping carrier’s shipping policy must comply with your own store’s policy. If not, you’re inviting customer complaints, delivery complications, hefty shipping invoices, and whatnot. Be sure to analyze your shortlisted carrier’s policy and whether it matches yours.
Are you shipping media?
Products such as vinyl records, books, CDs, DVDs, manuscripts, printed music, etc., qualify as media mail when shipping with carriers like USPS. In other words, these are priced differently (often more affordable than regular package delivery).
So, if you’re shipping such items, make sure to explore Media Mail rates to get the best possible deal.
Comparing Shipping Carriers
Here’s a look at the top shipping carriers to explore in 2025:
1. FedEx
Short for Federal Express Corp, FedEx is an American multinational conglomerate holding company that offers transportation, e-commerce, and business services. Headquartered in Memphis, Tennessee, it is the largest express transportation company in the world with integrated standard, economy, and expedited offerings for both residential and business shipping. FedEx serves over 220 countries and territories globally and is a leading name for reliable, on-time, and safe delivery.
This shipping carrier also offers a unique service—FedEx Delivery Manager- that helps e-commerce businesses schedule their packages flexibly and with a variety of location options. Not only that, but FedEx also facilitates the safe and reliable shipping of perishable goods through its temperature-controlled shipping options.
Its standout services include ground transportation, freight services, express transportation, and supply chain management.
2. UPS
United Parcel Services, popularly known as UPS, has been around for almost 100 years, making it a widely trusted and reliable shipping carrier for e-commerce businesses globally. Based in Atlanta, Georgia, this shipping carrier services over 200 countries and delivers approximately 22.4 million packages daily.
Further, it also offers e-commerce businesses attractive on-time delivery KPIs that are backed by cutting-edge real-time tracking options. UPS offers a wide selection of delivery time periods to facilitate flexibility for businesses. Its My Choice service also allows businesses to set specific delivery locations and dates.
Its key offerings include package delivery, logistics services, and freight forwarding.
3. DHL
Dalsey, Hillbolm, and Lynn, or DHL, offer cost-effective and reliable shipping to e-commerce businesses, servicing over 220 countries and territories globally. It does this by facilitating comprehensive tracking updates, flexible delivery options (with next-day and even same-day delivery capabilities), GoGreen solutions to drive sustainability, and customs clearance expertise that facilitates seamless, hassle-free shipping to every corner of the world.
Its notable services include international shipping, courier services, and supply chain solutions.
4. USPS
The national postal service in the US, the United States Postal Service (USPS), is easily one of your top choices thanks to its cost-effective prices, especially when it comes to lightweight and small packages. They provide a significant variety of delivery options, such as Priority Mail Express for urgent orders and Media Mail for academic materials.
Not only that, but with USPS, you also get delivery services such as same-day/one-day or two-day deliveries to ensure eager customers get their orders as soon as possible. Further, USPS fulfills delivery across the US, from military bases to P.O. boxes. You can also explore their Click-N-Ship service, which allows you to print shipping labels and set pick-up dates and times online for seamless logistics.
Some of its standout services include express transportation and supply chain management.
5. OnTrac
Positioning itself as a last-mile delivery e-commerce parcel carrier, OnTrac is a relatively minor shipping carrier as compared to the other names on this list. Majoring servicing locations in the western US, it offers competitive pricing and quick delivery (albeit only in those limited locations), along with same-day, two-day, and overnight delivery options.
So, if you have a chunk of customers in the western US, OnTrac might be a good choice for a shipping carrier. An interesting aspect to note is that it offers a DirectPost service that combines the agility of OnTrac Ground with the last-mile delivery network of USPS, offering you a highly affordable way to ship to your customers.
Its notable services include regional package delivery services, overnight delivery, and same-day delivery.
6. Amazon Logistics
An excellent choice for e-commerce businesses leveraging Fulfillment by Amazon (FBA), Amazon logistics revolutionized traditional logistics with a robust delivery network, allowing it to compete with bigwigs like FedEx and UPS in no time.
Further, Amazon’s extensive locker system also offers businesses safe and flexible pick-ups and returns, further enhancing its appeal. Amazon Logistics also offers detailed analytics to help businesses improve strategies, make informed decisions, and optimize their shipping operations.
Its key services include Amazon Locker, Fulfillment by Amazon (FBA), and Package Delivery.
7. R+L Carriers
R+L Carriers is a family-owned freight shipping company that helps e-commerce businesses ship across the world. Its delivery options include next-day delivery, same-day delivery, freight services, and proactive customer service, making it a decent contender to the others on this list.
In addition to shipping, this shipping carrier also offers warehousing processes, supply chain solutions, and logistics, making it ideal for e-commerce businesses that have complicated shipping requirements.
Its standout services include supply chain solutions and international and domestic freight services.
8. Pitney Bowes
Pitney Bowles is a frontrunner in cross-border shipping and has a robust global e-commerce suite that offers seamless marketplace integrations, smooth delivery, and hassle-free customs clearance. It also facilitates end-to-end package tracking and integration with all the major e-commerce platforms. Pitney Bowles’ API integration also allows it to smoothen the shipping process, from printing shipping labels to tracking packages as they make their way to your customer’s doorstep.
Its key services include global logistics, shipping and mailing services, and e-commerce solutions.
9. Canada Post
Canada Post is a government-owned entity that facilitates the seamless delivery of packages in Canada and internationally in over 190 countries. It offers a wide variety of mail classes, from affordable options that might take a few days to priority delivery that can be pricey but offers faster delivery.
Canada Post also supports on-demand pick-ups in addition to scheduled ones and offers diverse service levels, attractive shipping rates, easy shipping label generation, dependable tracking, and an easy account setup.
Canada Post’s standout offerings include online shipment tracking, signature collection, and reliable on-time delivery.
10. Purolator
Purolator is an international package shipping and logistics provider that operates primarily in the United States and Canada. While it does offer international shipping, Purolator is especially the go-to for shipping within these two countries, thanks to its extensive networks that allow e-commerce businesses to service customers in even the most remote areas with ease.
Its key services include global e-commerce package shipment and reliable, on-time delivery.
11. DPD
Short for Dynamic Parcel Distribution, DPD is one of the leading shipping carriers globally. DPD is known for integrating advanced shipping devices, such as driverless cars and drones, to improve the delivery process. Servicing over 230 countries and territories, this freight carrier offers express delivery options for urgent packages, with returns and package forwarding services as well.
Further, having DPD has created a holistic express warehousing, forwarding, and transportation infrastructure along with a highly sophisticated delivery network, allowing it to become a top partner for numerous e-commerce businesses across the globe.
DPD’s notable services include reliable shipping, flexible and customizable delivery options, and real-time shipment tracking.
Here’s a quick overview of the above-mentioned shipping carriers.
| Shipping Carrier | Shipment Locations | Standout Services |
|---|---|---|
FedEx | International shipping | Ground transportation, freight services, express transportation, and supply chain management |
UPS | International Shipping | Package delivery, logistics services, and freight forwarding |
DHL | International Shipping | International shipping and courier services and supply chain solutions |
USPS | International Shipping | Express transportation and supply chain management |
OnTrac | International Shipping | Regional package delivery services, overnight delivery, and same-day delivery |
Amazon Logistics | International shipping | Amazon Locker, Fulfillment by Amazon (FBA), and Package Delivery |
R+L Carriers | International Shipping | Supply chain solutions and international and domestic freight services |
Pitney Bowes | International Shipping | Global logistics, shipping and mailing services, and e-commerce solutions |
Canada Post | International Shipping | Online shipment tracking, signature collection, and reliable on-time delivery |
Purolator | International Shipping | Global e-commerce package shipment and reliable on-time delivery |
DPD | International Shipping | Reliable shipping, flexible and customizable delivery options, and real-time shipment tracking |
Conclusion
Now that you have a comprehensive view of all the top shipping carriers, how they measure up against each other, and the ultimate checklist of how to choose the right one (or ones) for your e-commerce business, it’s all done, right? Phew! Well, not quite.
Once you choose your carrier partner, the next task is to manage them and your delivery experience. Doing this manually can be time and resource-intensive, not to mention prone to errors. Instead, consider integrating LateShipment.com’s Delivery Experience Management software.
Our incredibly user-friendly tool helps you craft bespoke order-tracking experiences, boost engagement, and drive repeat purchases by facilitating a smooth customer experience. Its advanced capabilities, such as automated shipping notifications, self-serve order lookup on an on-brand order tracking page, smart incident alerts, custom shipping notifications and more, help you reduce your Where Is My Order (WISMO) inquiries by 72%, drive repeat purchase revenue by 12% and increase post-purchase customer engagement by 6%.
But the true cherry on the cake is its shipping and delivery insights, carrier performance data, Delivery Satisfaction (DSAT) score, and detailed reporting on everything delivery! In other words, it meticulously tracks your delivery operations to ensure you make data-backed decisions every step of the way.
