Your e-commerce glossary

All the terms you need to know to succeed in modern e-commerce, explained simply and clearly.

Back to Glossary

What is Shipping Method?

Shipping methods refer to the various ways a merchant can ship their products to customers, offering different speeds, costs, and carriers based on customer needs.

Explanation

Shipping method is the option that determines how an order will be delivered to the customer. It involves choosing between various carriers (e.g., FedEx, UPS, USPS) and delivery services (e.g., standard, expedited, or same-day delivery). The method selected impacts delivery times, shipping costs, and the customer experience. A merchant can offer multiple shipping methods to cater to different customer preferences.

Importance

  • Improved Customer Satisfaction: Offering multiple shipping methods can cater to customer preferences for cost, speed, and convenience.
  • Increased Conversion Rates: Providing a range of options increases the likelihood of customers completing their purchase.
  • Cost Control: Merchants can manage shipping costs effectively by offering various price points.
  • Competitive Advantage: Providing diverse shipping methods sets your store apart from competitors.

How It Works

  • Set Up Shipping Options: Merchants configure available shipping methods based on their business needs (e.g., flat rate, real-time rates, free shipping).
  • Carrier Integration: You can integrate with carriers like UPS, FedEx, or local services for real-time pricing and tracking.
  • Customer Selection: Customers choose their preferred shipping method during checkout based on their budget and delivery needs.
  • Shipping Calculations: The shipping fee is automatically calculated based on the chosen method and destination.
  • Order Fulfillment: The selected shipping method determines how and when the package is sent to the customer.

Benefits

  • Flexibility: Customers can select the shipping method that best fits their needs.
  • Cost Efficiency: Merchants can offer cost-effective options to save on shipping expenses.
  • Faster Deliveries: With multiple shipping methods, customers can opt for quicker deliveries when needed.
  • International Shipping: Enables merchants to expand their reach by offering global shipping methods.
  • Better Customer Experience: Having various shipping options increases satisfaction and can reduce cart abandonment.