How Do I Choose the Best Shipping Carrier and Which Shipping Options Should I Offer Customers to Balance Cost and Delivery Times?
- Dec 1, 2025
Since the COVID-19 pandemic, global online ecommerce sales have skyrocketed from 3.354 billion USD in 2019 to 6.04 billion USD in 2024, and online sales are expected to keep growing. This trend presents a huge opportunity for sellers who choose marketable products to sell with a strong profit margin. One key factor that can make or break those margins is shipping so choosing the right carrier and shipping options is crucial to success. Many wonder: which carrier is best and how to tell which is a better shipping option to balance cost and delivery times.
Studies have found that slow or expensive shipping is one of the most common reasons for why customers abandon shopping carts. Let’s dive into what shipping carrier to choose for the cheapest shipping that doesn’t sacrifice speed.
Top 3 U.S. Ecommerce Shipping Carriers
Shipping companies are vital for moving orders from merchandiser to customer. Quite literally, ecommerce businesses could not exist without reliable shipping partners. Together, UPS, FedEx, and USPS dominated U.S. ecommerce shipping in 2025, offering businesses a mix of speed, reach, and affordability to meet rising customer expectations.
UPS (United Parcel Service)
UPS is one of the world’s largest shipping and logistics companies. In 2024, UPS pulled in $91.1 billion in revenue, delivering over 22 million packages daily to 200+ countries and territories.
UPS provides reliable shipping across the U.S. and internationally, handling everything from small packages to large freight. Their U.S. Domestic Shipping covers ground and air delivery nationwide, while International Shipping reaches customers around the globe. Delivery options include UPS Ground (1–5 days), 3-Day Select for less urgent shipments, Next-Day Air for overnight delivery, and Express Critical for same-day service anywhere in the U.S., including all 50 states, D.C., and Puerto Rico.
Customers also benefit from extra services such as Declared Value Protection for lost or damaged packages, Carbon Neutral Shipping to offset emissions, and Proof of Delivery notifications via email, fax, or mail.
FedEx
FedEx is the leading North American carrier in ecommerce logistics, known for speed and international reach. In 2024, the FedEx Ground segment alone delivered around 2.9 billion packages to 220 countries and territories and is expected to generate $87.9 billion in total revenue in fiscal year 2025.
Their services include FedEx Express for domestic and international delivery, FedEx Ground for small-package shipping, FedEx Freight for less-than-truckload shipments, and FedEx Services for support with marketing, billing, and technical needs. Delivery options include International Priority Express (1–3 business days to destinations in Canada, Asia, Europe, and the U.S.), International Priority for same-day delivery of important documents or parcels in 220+ countries, and International First for early-morning international express delivery.
FedEx also offers value-added services such as Customs Tools to simplify international shipping compliance and FedEx Delivery Manager, which lets recipients schedule, reschedule, or receive notifications for flexible delivery.
USPS (United States Postal Service)
The USPS continues to play a vital role in U.S. and international shipping and ecommerce, delivering to 180 countries around the world. In fact, 44% of the world's mail volume is processed and delivered by the U.S. Postal Service. In 2024, the Postal Service delivered to 156 million residential addresses and 12.6 million business addresses.
Their USPS Connect Local program offers same-day and next-day delivery at low fixed rates, while USPS Connect Ecommerce partners directly with online platforms to provide discounted rates and fast onboarding. Delivery options include Priority Mail Express, the fastest air delivery available year-round; Priority Mail, which typically arrives in 1–3 days with free flat-rate boxes and envelopes; First-Class Mail for letters, postcards, and small parcels within five business days; and Ground Advantage, a cost-effective ground shipping option with 2–5 day delivery.
By learning about each carrier’s strengths and services, businesses can choose the right shipping partner to balance cost, speed, and reliability.
11 Types of Ecommerce Shipping Methods
Here are the 11 most common types of ecommerce shipping methods to choose from:
- Free Shipping
Free shipping over a set dollar amount is a widely used option that is very popular with customers and with sellers because it increases conversion rates and reduces cart abandonment. Free shipping should be used to boost conversion, clear inventory, and reward loyal or high spending customers. But because shipping isn’t actually “free”, sellers may need to cover the cost by increasing product prices. To remain competitive, it’s important to compare your prices with what competitors are charging for similar products.
- Overnight Shipping
Overnight shipping is another popular option that means the customer receives the order on the next business day. In most cases, customers pay an extra shipping fee for this service. It is a premium service that can be offered for high-value, perishable, time-sensitive, or urgent deliveries.
- Two-Day Shipping
Amazon popularized two-day shipping and as such, it has become somewhat of an industry standard with 86% percent of consumers defining fast delivery as two days or less. Offering two-day shipping can reduce cart abandonment, increase conversion rates, and improve customer experience while offering a balance between speed and cost.
- Standard Ground Shipping
Standard ground shipping is a reliable option offered by all major carriers that provides delivery within 2–7 business days. It is suitable for shipping general merchandise and orders that don’t require special speed or handling.
- Expedited Shipping
Expedited shipping offers priority delivery of high-demand purchases. It is a way to increase the speed of a delivery and is a good option for customers who are willing to pay extra to receive their order faster.
- International Shipping
International shipping is used for shipping products to customers outside the country by air, sea, and road. It is essential to choose a reliable partner and understand the taxes, regulations, and costs associated with this service.
- Freight shipping (LTL / FTL)
For businesses that sell large, high-ticket items such as furniture or ship mass quantities of items, freight shipping is a must. Depending on order volume, companies can choose between LTL (Less Than Truckload) and FTL (Full Truckload) services, which helps lower per-unit shipping costs on bulk orders and improve handling of fragile goods.
- Economy Shipping
Economy shipping can save money for both sellers and customers because it serves price-conscious shoppers while preserving margins. It is a good option to offer for low-value or non-urgent items that the customer doesn’t mind waiting a little longer to receive.
- Same-Day Delivery
Businesses in urban markets can offer same-day delivery for local customers who need (or want) a product right away and for time-sensitive products. By partnering with a courier service for deliveries, merchants can increase customer satisfaction and gain a competitive edge.
- In-Store Pickup / Buy Online, Pick Up In-Store (BOPIS)
With BOPIS, customers and businesses can save shipping costs by placing an order online and then picking it up at a nearby storefront. This is a great option for businesses that have physical storefronts near their customer base.
- Locker Delivery
Locker delivery is an option through major carriers like Amazon and DHL where customers pick up their parcels from a secure, self-service locker. This is ideal for businesses with customers in urban areas where failed deliveries are common or there is high risk of packages being stolen.
In summary, when deciding which shipping options to offer, it’s important to balance speed, cost, and reliability to meet customer expectations while protecting your profit margins. Choose a carrier that offers the right mix of services for your needs.
Shipping Made Simple with G10 Fulfillment
Outsourcing ecommerce shipping to a third-party logistics (3PL) provider allows businesses to offer fast, reliable delivery without the overhead of managing their own warehouses or shipping operations. 3PLs leverage volume discounts, optimized shipping routes, and advanced technology to keep shipping costs low while meeting customer expectations. This means businesses can scale efficiently, provide timely deliveries, and focus on growing their brand rather than handling logistics.
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