Small businesses face the challenge of delivering fast, affordable shipping without hurting their profit margins. Slow delivery times often lead to lost sales—nearly half of online shoppers abandon their carts due to slow shipping estimates. Over 90% of consumers see two to three days as the standard, while 30% have come to expect same-day delivery.
Shipping isn’t just a cost or logistical hurdle—it’s a customer service opportunity. Shoppers want reasonable shipping fees, accurate delivery estimates, and careful packaging. The best shipping options for small business owners improve customer satisfaction while protecting your bottom line. Below, we’ll explore key small business shipping solutions, popular carrier options (from USPS to DHL), and strategies to reduce shipping costs without sacrificing service.
Shipping considerations for small businesses
- Shipping rates and fees
- Delivery speed and service levels
- Package weight and dimensions
- Packaging materials
- Tracking and insurance
- International shipping
- Returns and reverse logistics
When mapping out your shipping strategy, keep these considerations in mind. Each factor can impact your shipping costs, customer satisfaction, or both:
Shipping rates and fees
Carrier pricing can include hidden surcharges and fuel fees on top of the base rate. You can negotiate discounted shipping rates directly with carriers or use shipping software with pre-negotiated discounts, like Shopify Shipping, to lower your shipping expenses.
Delivery speed and service levels
Your customers expect a range of shipping options—from economy to expedited. Consider offering a free standard speed with a faster option for a fee. Ensure the carriers you use can meet your promised delivery times—not all deliver on weekends or holidays, for example.
Package weight and dimensions
Most carriers use dimensional weight pricing based on package volume and weight, so excess empty space in a box costs you more. Right-size your packaging for each order and use lightweight packing materials. Sending apparel in poly mailers instead of boxes can cut volume and costs.
Packaging materials
Good packaging materials protect your product and impact costs and customer experience. Take advantage of free shipping supplies from carriers (e.g. USPS offers free flat-rate shipping boxes and DHL provides shipping supplies at no charge for account holders). If one of your brand values is sustainability, eco-friendly packaging can share that value with your customers.
Tracking and insurance
All major carriers include basic tracking and some insurance (e.g. USPS Priority Mail covers up to $100). Customers expect tracking numbers, so be sure to set up your ecommerce platform to send tracking automatically. If you need shipping insurance for higher-value, bespoke shipments you can buy additional coverage or use third-party insurers.
International shipping
If you ship internationally, duties, taxes, foreign transaction fees, and customs forms come into play. Research the countries you plan to ship to and decide whether you or the customer will pay international fees. Consider using a payment processor that calculates duties at checkout to avoid surprising your customers.
Returns and reverse logistics
Plan for how you’ll handle ecommerce returns. For example, providing a prepaid return shipping label in the box and clear instructions for how refunds work at your business will set your customers up for success. Even though you foot the bill on “free” returns, they also yield happy—and often repeat—customers.
Best shipping options for small businesses
The best shipping option for your business will depend on your package weight, size, destination, and required delivery speed. Some small businesses find that using multiple carriers is the best way to get the cheapest rate for each scenario.
United States Postal Service (USPS)
As of January 2025, USPS is the most-used shipping carrier by Shopify merchants. USPS is a carrier option best for small businesses shipping small and light packages within the US. It also offers competitive rates for items of less than 70 pounds and free package pickup options. For international shipping needs, USPS offers global delivery services through options like Priority Mail International and First-Class Package International, which can be economical for smaller packages under four pounds compared to private carriers.
Key features:
-
Mail and shipping services. USPS provides a range of price points and delivery timeframes and features like tracking, insurance, and discounted commercial rates.
-
Small business discounts with online labels. By printing labels through USPS’s online tools (or through Shopify Shipping), you automatically get Commercial Base Pricing—lower rates than retail counter prices. Businesses shipping higher volumes can also opt into USPS’s Business Rate Card for additional savings.
-
Free packaging and pickups. USPS provides free shipping supplies for Priority Mail—you can order boxes, envelopes, and mailers at no cost. They’ll even deliver these supplies to you. USPS will also pick up packages for free from your business or home during your regular mail delivery.
United Parcel Service (UPS)
UPS is known for its reliability and speed on ground shipping in the US and international air delivery. UPS offers a wide range of services suitable for small businesses, from economical ground delivery to guaranteed next-day air. Small businesses may turn to UPS when they need guaranteed delivery dates, or when shipping large packages where UPS’s rates become competitive.
Key features:
-
Discounted shipping for small businesses. UPS provides sizable discounts through its small business program.
-
Fast and guaranteed delivery services. UPS Ground has day-definite delivery across the continental US, and it often moves faster than USPS for medium distances.
-
Flat-rate and packaging conveniences. UPS has a flat-rate program called UPS Simple Rate and provides free shipping supplies like envelopes, labels, and packaging forms for account holders, and you can schedule free pickups for your packages.
FedEx
FedEx is known for competitive rates for time-sensitive deliveries and comprehensive international shipping options. For businesses serving global customers, FedEx provides customs clearance support and documentation tools that simplify cross-border shipping to over 220 countries.
Key features:
-
Built-in business shipping discounts. Opening a free FedEx business account unlocks automatic discounted rates on FedEx Express and FedEx Ground services, even for small shipping volumes.
-
Express and overnight expertise. FedEx offers Priority Overnight for next-morning delivery and FedEx 2Day for guaranteed two-business-day delivery. FedEx One Rate provides flat-rate Express shipping, allowing up to 50 pounds in a FedEx box for a fixed price, with fuel and residential surcharges included.
-
Reliable ground delivery and home service. FedEx Ground delivers in one to five days across the US, with a strong on-time performance record. FedEx Home Delivery operates Tuesday through Sunday, allowing weekend deliveries without extra fees.
DHL
DHL is known for its ability to move packages across borders quickly—often faster than USPS, UPS, or FedEx. While DHL also provides domestic US services through partners, it’s best known for export shipping. For merchants focused on markets in Europe, Asia, and Australia, DHL offers particularly strong service, with transit times as quick as one to three days to many international destinations.
Key features:
-
Global express delivery. DHL Express Worldwide operates its own customs clearance in destination countries, which speeds up delivery and can impress international customers with quick arrival times.
-
Discounts for small-business accounts. DHL’s Small Business PartnerSHIP Program provides volume-based pricing that reduces per-package costs as shipping volume increases.
-
Customs expertise and support. DHL includes customs paperwork and clearance support with their international shipments. They advise on required documentation and handle most of the clearance process, with brokerage services included in their shipping rates unlike some carriers that charge extra.
Shopify Shipping
Shopify Shipping is a built-in shipping service that lets small businesses access discounted rates and print labels for multiple carriers in one place. If your store is on Shopify, using Shopify Shipping can simplify your fulfillment workflow and save you money on postage. It essentially brings USPS, UPS, FedEx, DHL, Canada Post, and other carriers under one roof, so you can manage shipping without leaving your Shopify admin.
Key features:
-
Multiple carriers and services in one place. In the US, you can ship via USPS, UPS, FedEx, DHL Express, and others, selecting the best rate for each order. In Canada, Shopify Shipping offers Canada Post. In the UK, Evri and DPD. Shopify Shipping lets you ship to other countries as well. It also allows you to compare rates between carriers on the spot when fulfilling an order.
-
Pre-negotiated discounts. One of the biggest advantages of Shopify Shipping is the discounted rates Shopify has secured with major carriers. You get these discounts automatically—no separate negotiation or accounts needed.
-
Unified label printing and tracking. Shopify Shipping turns your Shopify admin into a single command center for fulfillment, which is especially handy as your order volume grows. Once you purchase a label, the order is marked as fulfilled and the tracking number is automatically emailed to the customer, simplifying communication. You can batch-print labels for multiple orders and schedule carrier pickups through the interface.
Shopify Academy
Shipping and Fulfillment Fundamentals
Learn the art of configuring and optimizing shipping settings and strategies in Shopify
Strategies for reducing shipping costs
Even with the right carriers and tools in place, shipping can remain a significant expense for a small business. Here are three strategies to help you costs:
Use every discount
Make sure you’re not paying walk-in retail shipping prices—those are for occasional shippers, not businesses. Take advantage of carrier incentive programs, shipping software, and any available partnerships to lower rates. This could mean negotiating directly with a carrier representative once your volume grows or using services like Shopify Shipping, which offers instant discounts.
Optimize packaging
Packaging isn’t just about protecting your product—it’s about minimizing wasted space and weight to lower your shipping fees. Start with right-sizing your boxes or mailers. Use packages that fit the product snugly (with adequate cushioning) but avoid oversized boxes that add dimensional weight. Eliminate unnecessary fillers—excess bubble wrap, peanuts, or double boxing—which can add weight and bulk.
Also aim to keep your packaging under common weight thresholds. For instance, staying under one pound can keep you in USPS First-Class rates, while under five pounds may get you better Ground rates. Small tweaks like using lighter-weight paper tape or smaller labels can even make a few ounces difference that adds up over hundreds of shipments.
Offer smart shipping options
How you structure shipping options for customers can influence your net shipping costs. One common strategy is setting a free shipping threshold—for instance, free shipping on orders over $75. This incentivizes customers to purchase a bit more (increasing your average order value), but it also ensures that when you do cover shipping, the order value (and profit margin) is high enough to absorb it. You’re trading a slightly lower margin on shipping for a higher margin on additional products sold.
Another tactic is promoting local pickup or local delivery if you have a local customer base. By offering curbside pickup, in-store pickup, or local courier delivery, you can avoid carrier fees altogether for those orders. Shopify has built-in options for local pickup/delivery that make this easy to set up. Every order a customer picks up themselves is money saved on postage (and often a chance for extra in-person sales).
Best shipping options for small business FAQ
What is the cheapest shipping method for a small business?
USPS typically offers the most affordable rates for small businesses shipping lightweight packages under five pounds within the US. For heavier items or time-sensitive deliveries, comparing discounted rates from UPS and FedEx through business accounts may reveal better options depending on distance and package dimensions.
What do small businesses use for shipping?
Many small businesses use a mix of carriers depending on package size, destination, and urgency—USPS for lightweight domestic packages, UPS or FedEx for heavier or guaranteed delivery items, and DHL for international shipments.
How can Shopify help cut shipping costs for small businesses?
Shopify automatically provides discounted pricing from USPS, UPS, and DHL through their Shopify Shipping feature. The platform also lets you crunch real-time rate calculations at checkout and helps to print shipping labels directly, eliminating the need for separate postage software or accounts with each carrier.
