An Essential Guide

to eCommerce Shipping

Contents

01

INTRO

02 THE CARRIERS
03

DOMESTIC SHIPPING

USPS, FEDEX, UPS, REGIONAL CARRIERS

08

INTERNATIONAL SHIPPING

I-PARCEL, POSTAL QUALIFIED WHOLESALERS (PQW)

10

ONLINE STORES AND ECOMMERCE CARTS

12

SHIPPING SUPPLIES

14

SHIPPING INSURANCE

16

WHAT IS SHIPPING SOFTWARE? DO I REALLY NEED IT?

18

SHIPPING TERM GLOSSARY

20 WANT TO SAVE HOURS A DAY ON SHIPPING?

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

Introduction
Do you remember when you thought shipping was easy? Back
in the days when it meant going to the post office, or dropping a
stamped letter in the mail box? Now that youre selling online and
youre shipping more than the average person, youve realized
that shipping is one of the most challenging and mind-numbing
aspects of selling online.
Thats why we created this shipping guide.
The goal of this guide is simple. We want to educate you about
shipping so that it minimizes stress and ensures youre shipping
in the most efficient way possible. Because we (ShipWorks) have
been working with all of the major U.S. shipping carriers and 40+
online shopping carts for nearly a decade, we have a pretty good
grasp of the ins and outs of shipping items sold online. This guide
will cover the basics of shipping in the U.S. and give pro-shipping
tips. By the end, youll be saving time and money while growing
your ecommerce business.
Lets get started!

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

The Carriers
Were often asked which carrier is the best. Unfortunately, there
is no cut and dry answer to that question. The answer depends
on three key things: 1) what youre shipping (size and weight of
package), 2) where its going, and 3) when does it need to arrive
at its destination. Once you fill in these three blanks, the best
carrier choice becomes more obvious.
To begin, lets talk a little about the carriers. You may think
of only three to choose fromUSPS, FedEx, and UPSbut
thats only the beginning!

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

THE CARRIERS
Domestic Shipping:
U.S. Postal Service (USPS)

USPS Services:
USPS has numerous delivery services, and weve highlighted the
main ones (chart below). This chart is not all inclusive, so if you have
questions, please check the carriers website for complete details.

Whether you call it the Post Office, US Mail, or USPS,

the United States Postal Service is probably the shipping

USPS Rates:

service youre most familiar with. The USPS has some

The USPS has four different rates: Retail, Commercial Base (CBP),

great benefits such as convenience, free supplies, free

Commercial Plus (CPP), and Negotiated Service Agreement

pickup and it has direct partnerships with many online

(NSA). You may think that if youre an online seller you can only

retail sites, like eBay.

qualify for retail rates, but thats not true. There are ways you
can qualify for commercial and negotiated level pricing, which

How to Ship with USPS:

There are two basic options when shipping with USPS:
1. Ship it from the Post Office. Visit your local Post Office
with your item boxed up and ready to ship. When you take
the box to the counter, theyll weigh your package(s) and

will give you a discount on postage. Well talk more about how
you can get these discounts later, but for now, heres a quick
overview of each of the rates:
Retail rates are the rates you pay when you visit the post office.
Commercial Base Pricing is a discounted rate offered to
USPS customers who buy and print shipping with an online

tell you how much postage you owe. Once you pay, theyll

postage provider. Commercial Base Pricing is always

make sure it reaches its destination.

2. Ship it from your home. If you want to avoid waiting in line
at the Post Office, you can print postage and ship items

cheaper than rates at the Post Office.

Commercial Plus Pricing is available for companies
who ship more than 50,000 packages per year and

from home. You will need to package the item in a box,

weigh it, and measure the length, width and height. Then,
visit USPS.com and create an account. The site will walk

have a customer commitment agreement with USPS.

Negotiated Service Agreement is a contractual agreement
between the USPS and high volume shipping companies.

you through all of the next steps and will allow you to print

This type of pricing is also available through Express 1 (well

postage from your computers printer. The last step is to

explain Express 1 below).

drop the box off at the Post Office or request a free pickup
from USPS (At least one item being mailed must be sent

USPS rates do occasionally change. Heres their 2014

Rate Guide: www.usps.com/business/prices.htm

Priority Mail Express, Priority Mail, or Flat Rate to be

eligible for free pickup).

USPS Service

Delivery

Priority Mail Express

Overnight delivery to most U.S. locations

Priority Mail

Expected delivery within 1, 2, or 3 business days.

Delivery date is an estimate, not guaranteed.

Flat Rate for Priority Mail Express or Priority Mail

Overnight delivery or 1, 2 or 3 business days delivery.

First-Class Mail

Delivery is within 2-3 days

Standard Post (Retail only)

Delivery in 2-8 days

Media Mail

Delivery is within 2-3 business days

Parcel Select

Delivery is usually within 7-10 days

Military Mail (APO/FPO/DPO)

Varies

*All pricing and facts from USPS.com and are subject to change. This chart highlights many services, but is not all inclusive, so please check the carriers website for complete details.
AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

THE CARRIERS
USPS Pro-Shipper Tips:
You can get free Priority Mail, Priority Mail Express and

ENDICIA

Regional Rate boxes, envelopes and stickers at most Post

Endica is the largest provider of online postage based on postage

Offices and the supplies may also be ordered at USPS.com.

volume, and they offer a vast array of postage printing options that

The supplies come with free delivery to your door.

will eliminate trips to the Post Office. You can try them for 30-days

If you ship Priority Mail and Priority Mail Express, make sure

for free. After your first 30-days, they offer plans with no monthly

you use the correct box for your shipment. The packaging

subscription fee as well as paid monthly subscription fees. Endicia

indicates the service. So, if you use a Priority Mail box, you

has also partnered with companies like DHL Global Mail. To learn

will receive Priority Mail Service, and if you use a Priority Mail

more, visit here: us.dhlglobalmail.com.

Express box, you will receive Priority Mail Express Service.

USPS only guarantees delivery by a specific day for Priority
Mail Express. Priority Mail will be delivered in an estimated
1-day, 2-days or 3-days, and is not guaranteed for delivery
within this time frame.
To qualify for free package pickup at your door, at least
one package being shipped must be sent via Priority
Mail Express, Priority Mail or Flat Rate. You can schedule
a carrier pick up online.
If you are shipping from home and you purchase postage

Endicias shipping rates are at the Commercial Base level, which is a

discount from the retail rates that you would receive at a USPS
counter. Endicia also supports customers who have achieved the
ability to use Commercial Plus Pricing and NSA rates.
EXPRESS 1
Express 1 is a USPS partner specifically for Priority Mail Express and
USPS Priority Mail. They provide substantial postal discounts to any
individual or company, regardless of their shipping volume and without
signing a contract guaranteeing a specific annual shipping volume.

from USPS.com, know that their site doesnt interface with

Express 1 is free to any individual or business, and it is especially

a digital scale. You will need to enter the weight manually

ideal for ShipWorks customers because it is fully integrated within

or select Flat Rate. Well also talk more about scales in the

ShipWorks software and customers can begin receiving postal

supplies section.

discounts immediately.

CBP and CPP rates are for those that ship in bulk, but they
are also offered by some of USPSs Partners, like Endicia,

Since Express 1 only offers USPS Priority Mail Express & USPS Priority

Express 1 and Stamps.com.

Mail services, theyve partnered with Endicia and Stamps.com to offer

Did you know you can do hidden postage so that only you
and USPS know how much you paid for shipping? With this
feature, the postage is still encoded on the barcode so it will
be shipped like normal, but your customer will never see how
much was paid on postage.

USPSs Partners:
Something that surprises many new shippers is that the USPS has
several approved partners that are authorized to provide internet
based USPS postage: Endicia and Stamps.com. To buy electronic
postage from any of these partners, you will buy it from your
computer. However, you can drop off the package at the Post
Office (with postage on it from Endicia, Express 1 or Stamps.com)
or have them picked up by the Post Office. When you mail it, the
Post Office will deliver the package for you. The benefits of using

First Class, Parcel Select and Media Mail. If you ship items using First
Class, Parcel Select or Media Mail, you will need to use Express 1 &
Endicia, Express 1 & Stamps.com, or the USPS website.
STAMPS.COM
Stamps.com has the largest customer base using online postage
service, and they make it possible to print postage directly from your
printer for anything from postcards to large packages. They offer a
free 30-day trial, and at the end of the trial you may sign up for a
monthly or annual plan.
Stamps.com shipping rates are Commercial Base Pricing Rates, a
discount from the retail rates you would receive at the USPS counter.
Stamps.com also supports customers who have achieved the ability
to use Commercial Plus Pricing and NSA rates.

these partners are convenience and cost savings.

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

THE CARRIERS
Comparison Chart Showing Differences Between Endicia vs. Express 1 vs. Stamps.com
Endicia

Express 1

Stamps.com

Authorized partner of the USPS

Provides discounts you dont get at the Post Office

Supports USPS Priority Mail Express

Supports USPS Priority Mail

Supports Flat Rate - Priority Mail Express

Supports Flat RatePriority Mail

Supports First-Class Mail

*possible with large volume

Supports Media Mail

*possible with large volume

Supports Parcel Select

*possible with large volume

Free USPS supplies delivered to your door

Easy and convenient return options

Supports standard and thermal label printer

Prints stealth (hidden) postage so the receiver doesnt know how much was spent on postage

Requires a monthly subscription

Offers Commercial Plus Pricing type discounts without a contract

X
X

This chart highlights many services, but is not all inclusive. Please check the appropriate companys websites for complete details.

Pro-Shipping Tips Using Endicia,

Express 1 and Stamps.com:
You can negotiate your rates with some providers. The

You can use Express 1 in conjunction with either Endicia or

negotiated rate will depend upon the volume that you ship

Stamps.com. In fact, we strongly encourage you to do this

annually, and may require that you sign a contract to meet

since Express 1 savings are substantial for most customers.

that annual volume.

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

THE CARRIERS
FedEx:

FedEx Pro-Shipper Tips:

FedEx also offers a variety of services like package redirect,

FedEx is a great choice for packages that need timely

hold at location and many others. Please visit their website

shipping options. Similar to the USPS, there are two basic

for a complete list of unique services that may be of interest

options when shipping with FedEx. You can take it to a

to you and your business.

FedEx location and they will do nearly everything for you,

or you can set up the shipment by yourself from your
home or office.

FedEx has FedEx Ground, which delivers to both commercial

and residential addresses, and FedEx Home Delivery, which
delivers only to residential addresses Tuesday through
Saturday. These are two separate services so dont get
confused! FedEx Ground will charge a surcharge if you ask

How to Ship with FedEx:

1. Ship it from a FedEx office. Visit your local FedEx office with

them to deliver to a residential address.

the item boxed and ready to ship. When you take the box to

You can negotiate a rate with FedEx based on your shipping

the FedEx clerk, theyll weigh your package(s), tell you how

volume. This will ensure that youre getting a lower rate than

much you owe, and then ship it for you. Its that easy.

whats available online. The more you ship, the more you save.

2. Ship it from your home. If you want to be more independent, you will need to package the item in a box, weigh
it, and measure the length, width and height. Then, visit
FedEx.com and create an account. This is very easy to

When customers sign up for a FedEx account via ShipWorks, they

are automatically able to receive a FedEx discount of up to 16%.
FedEx rates do occasionally change. Heres their 2014 Rate
Guide: www.fedex.com/us/2014rates/rate-changes.html

do on their site, and it will walk you through how to print

shipping labels online. After creating the label and applying
it to the package, you can schedule a pickup or drop it off at
a FedEx facility.

FedEx Services:
FedEx Service

Delivery

Same-day delivery cross-country or cross-city

Delivered door to door within hours (depending on availability)

FedEx First Overnight

Delivered first thing the next business day morning

FedEx Priority Overnight

Delivered the next business day morning

FedEx Standard Overnight

Delivered the next business day afternoon

FedEx 2Day AM

Delivered in 2 business days in the morning

FedEx 2Day

Delivered in 2 business days

FedEx Express Saver

Delivered in 3 business days

FedEx Ground

Delivered within 1-5 days in contiguous US and 3-7 days to and from Alaska and Hawaii

FedEx Home Delivery

Delivered within 1-5 days in contiguous US and 3-7 days to and from Alaska and Hawaii

FedEx SmartPost

Delivered within 2-7 business days

*All information is from FedEx.com and is subject to change. This chart highlights many services, but is not all inclusive, so please check the carriers website for
complete details.

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

THE CARRIERS
United Parcel Service (UPS):

UPS Pro-Shipper Tips:

You can negotiate a rate with UPS based on your shipping

UPS is a great option for larger packages, especially those

volume. This will ensure that you receive a lower rate than

that need timely delivery. They are the world's largest

whats available online. The more you ship, the more you save.

package delivery company and ship to over 200 countries.

UPS offers high-volume customers Mail Innovations

to help streamline and optimize domestic shipping.

As with the USPS and FedEx, there are two basic options when
shipping with UPS. You can take it to a UPS location and they will
do nearly everything for you, or you can set up the shipment by
yourself in the comfort of your home or office.

UPS Mail Innovations works with the USPS to obtain

more competitive postal rates and offers transit times
similar to that of First-Class USPS mail.
My UPS is a unique online service offered by the UPS
that helps keep your shipping data in a customizable

How to Ship with UPS:

1. Ship it from a UPS office. Visit your local UPS office with
the item boxed and ready to ship. When you take the box
to the UPS clerk, theyll weigh your package(s) and tell you
how much postage you owe. Or, if you dont have a box at
home, you can take in the item and theyll box it and ship it
for you. Its that easy.

and easy-to-use format. Does that sound like something

you need? You can find more details on their site.
UPS offers many additional value-add services like Saturday
delivery and Saturday pickup for select services. Please visit
their website for full details
UPS rates do occasionally change. Heres their 2014 Rate
Guide: www.ups.com/media/en/daily_rates.pdf

2. Ship it from your home. It is also possible to ship UPS items

from home. First, package the item in a box, weigh it and
measure the length, width and height. Then, visit UPS.com
and create an account. This is very easy to do on their site,
and it will walk you through how to print shipping labels
online. After creating the label and applying it to the package,
you can schedule a pickup or drop it off at a UPS facility.

UPS Services:
UPS Service

Delivery

UPS Next Day Air Early AM

Delivers the next business day in the morning

UPS Next Day Air

Next business day delivery by 10:30 am., 12:00 noon, or end of day, depending on destination

UPS Next Day Air Saver

Next business day delivery by 3:00 or 4:30 p.m. where UPS Next Day Air delivery is committed by 10:30 a.m. or 12:00 noon, respectively

UPS 2nd Day Air A.M.

Delivery on the second business day by 10:30 a.m. or 12:00 noon to most commercial destinations

UPS 2nd Day Air

Delivery by the end of the second business day. Some locations in Alaska and Hawaii require additional transit time

UPS 3 Day Select

Delivery by the end of the third business day

UPS Ground

Delivery typically in 1-5 business days

UPS Mail Innovations

UPS Mail Innovations inducts your mail piece into the U.S. Postal Service within 48 hours of processing.
The U.S. Postal Service will then deliver the mail piece within three to five days, on average

All information is from UPS.com and is subject to change. This chart highlights many services, but is not all inclusive, so please check the carriers website for complete details.

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

THE CARRIERS
Regional Carriers

i-parcel

Regional shipping carriers cover a geographic region.

i-parcel is focused on helping internet retailers with their

They can often times provide lower rates than other

international online shopping experience. Their patent

carriers because they cover a smaller region. For example,

pending Cloud technology offers international shippers

OnTrac covers the West Cost and ships within California,

local currency shopping, multi-currency payments, fraud

Arizona, Nevada, Oregon, Washington, Utah, Colorado

protection, online tracking, returns and more. They offer

and Idaho. If you ship within these states, you could save

several shipping services, but their primary offering is

money and gain the competitive edge with next-day

the i-parcel Preferred Service, a 5-7 business day, fully

delivery at ground rates. Similar to larger shipping

trackable international air express service with the ability

carriers, regional carriers offer a variety of shipping

to provide shoppers with shipping costs, duties and

services. For example, OnTrac offers Sunrise, Sunrise

taxes at checkout.

Gold, Super Sunrise Gold, OnTrac Ground, Palletized

Freight and COD Services.

Postal Qualified Wholesalers (PQW)

You can discover other regional carriers in your area by doing

PQWs are an approved list of companies who work with

online research.

the USPS to send and mail packages outside of the US.

International Shipping:

Their goal is to help businesses with international shipping

and mailing. Those shipping internationally may want to
look at working with PQWs to simplify their international

Is it easy to ship international? Yes, it can be. Are there additional

shipping process. A complete list of PQWs is available

things you need to know? Absolutely!

online, and ShipWorks is integrated with many of these

approved PQWs.

This guides primary purpose is to talk about domestic shipping,

but were going to give you a few nuggets to think about when
it comes to international shipping. As youd expect, there are
numerous ways to ship international. All of the carriers we have
mentioned above (USPS, UPS, FedEx, etc.) provide international
shipping service. In addition, here are some others that you may
want to consider:

Pro-Shipper Tips:
International shipping requires customs forms. Some programs,
like ShipWorks, will automatically generate the customs forms
you need to ship internationally so that you dont have to worry
about your package getting stuck at the border.
Its important to know that customs regulations vary
by country and not all carriers ship to all locations.
Costs can be considerably higher for international destinations,
so make sure the weight and dimensions of the package are
accurate. Also, make sure you ship with a service that will track
and insure your shipments.

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

THE CARRIERS
Carrier Wrap-Up. So, whats the
Bottom Line? Which Carrier is Better?

5. Can you get a discount on shipping?

Dont forget, discounts are often available in a variety

After reading (or skimming) all of the above, you can understand

of ways that range from using an online shipping provider

why the best carrier will vary based on what youre shipping. In

to shipping volume discounts. Talk to your carrier and see

general, if youre shipping small items, start by researching USPS. If

if youre eligible for any discounts.

youre shipping larger items, start by researching FedEx and USPS.

6. Can you easily increase your shipping volume

In addition, here are six questions to ask yourself before

as the company grows?

ou pick a carrier:

Your ultimate goal is to grow your business, which means

1. What do you sell?

This question may seem basic, but your plan will take shape
as you start to think through this answer. Look at the item(s)

your shipping will grow too. As it does, make sure you keep
your future in mind, and continually evaluate your existing
infrastructure, storage, production, and shipping capabilities.

you ship the most. How much does it weigh? Is it fragile?

After knowing the answers to these basic questions, we recom-

Will it need extra padding? Will it need refrigeration?

mend visiting the carriers sites and calculating the cost for your

2. Where do you usually ship items to?

Knowing this answer will help you determine if you
should consider using a regional or international carrier,

specific type of package. All carriers have helpful shipping

calculators on their sites that will estimate the time and cost
of delivery based on the destination and service:

or if its better for your business to use a carrier that

delivers throughout the U.S.
3. What are your customers expectations?
Do your customers expect to have next day delivery? Do
they expect free shipping? Do they want both free shipping
and next day delivery? Once you determine your customers
greatest desire, you can tailor your shipping services to
meet their needs.
4. Does the shipping provider charge any extra fees?
Watching your shipping costs is important so that you can
keep your administrative costs low. Dollars and cents add

USPS Shipping Rate Tool:

postcalc.usps.com/
UPS Shipping Rate Tool:
wwwapps.ups.com/ctc/request?loc=en_US
FedEx Shipping Rate Tool:
www.fedex.com/ratetools/RateToolsMain.do?link=2
DHL Global Mail Rate Tool:
us.dhlglobalmail.com/get-a-quote.aspx
OnTrac Rate Tool:
www.ontrac.com/ziptools/default.aspx

up as your volume increases, so make sure you understand all fees as invoiced by your respective carriers.

Pro-Shipper Tip: If you use ShipWorks, you can also see shipping
rates without having to toggle between multiple carrier websites.

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

Online Stores and

eCommerce Carts
If youre reading this guide, its very likely that youre
already selling online on marketplaces like eBay,
Amazon, or Etsy and/or have your own website.
Since shipping is intertwined with selling online,
were often asked questions about marketplaces
and carts.

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

10

ONLINE STORES AND ECOMMERCE CARTS

Its no secret that your shopping cart is a critical component to

Do you have IT or programming resources available? If yes,

the success of your online business. Theres just too much for us

thats great and you would likely be fine with an open-source

to cover in this guide, so were intentionally keeping this section

or custom-made option. If not, you may want to go with a

short and sweet. However, here are a few things to keep in mind

plug-and-play, paid option shopping cart.

or questions to ask as you research eCommerce carts:

There are three general types of eCommerce carts
available: paid, open-source, and multi-channel.

Paid: An eCommerce cart hosts your online store for you

and usually has easy templates to use so you can build

Do you want to host your own store or do you want someone

to do it for you? If you want to host your own store, than you
could go with an open-source cart.
Remember that security is a huge component of an online
site because you will be taking credit card information.

your store. Youll lose some flexibility with this option,

but it can also be easier to set-up.

Open-Source: With an open source shopping cart, you

will have to install it, develop it and maintain it yourself (or
hire an IT guy). This means you will have greater flexibility
and will be able to customize it. However, it also means
that you will need to have someone on your team thats
comfortable with technology and maybe coding.

Multi-Channel: Multi-Channel eCommerce solutions

make it possible to integrate, manage and optimize
merchandise sales across hundreds of online sales
stores like Amazon, eBay, Etsy, and more.

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

11

Shipping Supplies
There are a few shipping tools and supplies
that you will need in your shipping toolkit.
Thankfully, all of them are fairly inexpensive
and easy to get.

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

12

SHIPPING SUPPLIES
1. Shipping Scale: One of the must-have items for any shipper

3. Printer: You need a way to print shipping labels, and you have

is a scale because it ensures youre not overpaying on

a choice between a standard printer and a thermal printer.

outgoing shipments. The cost for a scale varies from about

$20 to $250 each. Before purchasing, determine if you
primarily send heavier items or smaller items. If youre

A standard printer uses ink or laser technology to print.

You probably already have a standard printer.

primarily sending smaller items, youll want a scale that

A thermal printer is dedicated to printing shipping labels. It

reads in pounds and ounces. If you primarily send heavier

uses heat to print (not ink), and usually does this in one of

items, most people can get by with a shipping scale that

two formats: EPL or ZPL. These are languages that tell the

accommodates up to 35 pounds.

thermal printer how to print the label. The benefits of thermal

Pro-Shipper Tip: When you weigh an item, always round

up. If the scale says 10.1 ounce, than your package must
be shipped at the 11 ounce rate.
Before you purchase a scale, you may want to do some
research and see if your scale integrates with your
shipping providers sitesome do and some dont.
If you buy a scale that doesnt, you will be entering
weights by hand to their site.
2. Tape Measure: Once you start shipping a lot, its likely that
you will know your commonly used size package dimensions
by heart. Until that time, you will want to keep a tape
measure nearby. If you dont have a tape measure, you
can also check the bottom of the box since many boxes

printers are that you never need to purchase ink or toner,

and they print labels much faster.
Either a standard or thermal printer will work for printing
shipping labels. Most customers start with a standard
printer and eventually graduate to a thermal printer as they
become more serious. When you do decide to look for a
thermal printer, we recommend supplies.shipworks.com
for thermal printers at over 20% off the retail price.
4. Shipping Supplies: Shipping supplies can be expensive,
but they dont have to be. As mentioned already, you can
get free supplies from USPS, FedEx and UPS. You can also
purchase supplies at a discounted price from many online
sites including supplies.shipworks.com.

have the size on the bottom.

Pro-Shipper Tip: When you measure an item, always round
up to the nearest inch. Fractions or decimals are not allowed.

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

13

Shipping Insurance
There are lots of insurance options. Even though carriers include
insurance protection, do you know what it really covers? Most
people try and ignore insurance until an item is lost or damaged
and they have to file a claim. Thats when they wish they had
researched insurance a little more from the get-go. After all, your
business is about growing revenues, and lost, stolen or damaged
shipments eat at the bottom line. If you know your insurance
coverage in advance, youll be much happier when (if) you ever
have to file a claim.

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

14

SHIPPING INSURANCE
Shipping insurance comes in two flavors: Cargo Insurance and

4. How much do I have to pay to insure a package?

Declared Value. They are night-and-day different from each other.

While carriers charge about $0.90 cents for every

Here are a few questions you should ask yourself about insurance,

$100 of insurance (with a $2.70 minimum), third-party

so that you make sure youre getting the protection you need.

companies charge about $0.55 cents for every $100

1. What type of coverage are you getting? Is it declared

value or cargo insurance? This chart will help explain the
difference. Declared value is included by most major
shipping carriers at up to $50 or $100 of value. With this

(with no minimum). For example, ShipWorks Insurance

(managed by InsureShip) will charge as little as $0.55
cents for a package insured at $100, whereas UPS and
FedEx have minimums for the same package.

insurance coverage, the shipper must prove the carriers

5. How do I file a claim? Start your claim as soon as you

negligence directly resulted in the loss or damage to the

realize a package is damaged, lost or stolen. Carriers

shipment. Alternatively, cargo insurance (true insurance)

and third-party insurance companies have different

pays regardless of if the loss or damage was due to the

cutoff times for filing, so make sure you file soon so

carriers negligence, and is regulated.

that you dont miss the allotted window.

2. Who are you getting your insurance from? Is it a carrier

Pro-shipper tip: Some insurance carriers, like ShipWorks

or a third-party? Getting insurance from a carrier may

Insurance, provide coverage on shipping costs. Want

seem the easiest, but third-party insurance is generally

more information about Shipping Insurance? Check out

less expensive and provides fuller coverage.

ShipWorks free insurance webinar, available 24x7.

3. How much should I insure packages for? Insure items for

what they are worth in retail channels, or what is most likely
to be spent to replace it. If you ever have to file a claim,
you are unlikely to get more insurance compensation for
the item than its current retail value, so do not pay any
additional fees that result from higher insurance values.

Cargo Insurance (Most 3rd party insurance coverage,

including ShipWorks Insurance)

Declared Value (Carrier shipment coverage)

Provides door-to-door protection

Yes

No

Pays whether or not transportation providers negligence is

proven to have caused the loss

Yes

No

Pays for losses occurring outside control of the carrier

Yes

No

Pays shipper for full invoice value of cargo lost or damaged,

plus the freight and other associated costs

Yes

No

Can pay for expediting replacement goods

Yes

No

Typically has a speedy payout process

Yes

No

Regulated by the Department of Insurance

Yes

No

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

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What is
Shipping Software?
Do I Really Need it?
Well, it goes without saying that were a little biased and
we think everyone needs ShipWorks shipping software.

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

16

WHAT IS SHIPPING SOFTWARE? DO I REALLY NEED IT?

software when they are shipping about 20-25 packages a week.

Recommended Questions to Ask when

Looking for a Shipping Software Provider:

Here are a few comments customers have shared on the

ShipWorks is one of several options when it comes to shipping

advantages they see using ShipWorks:

software. We know youll like our product if you decide to use it, but

On average, most ShipWorks' customers begin using shipping

It saves a ton of time. We can download orders directly from

our shopping cart, print dozens of labels at once, and then
have our cart automatically updated.
I no longer spend my days copying and pasting addresses in
a carriers website. Now, I print labels quickly and Im done.
We are able to ship using FedEx, UPS and USPS without
switching shipping software and going back and forth
between websites.
You can develop and customize shipping labels,
reports and more so that you look more professional
as your business grows.
The ability to compare carrier prices all on one screen
saves me hundreds of dollars a year.

Whats the Benefit of Shipping Software?

we also understand you may want to shop around. Here are a few
questions to ask each software provider to ensure youre getting
software that will work best with your business.
1. Do you connect with my online store(s)?
2. Do you connect with the carrier(s) I like to use?
3. Do you offer free customer support? How will I get help?
Phone? Email? Social media? Online documents?
4. If I want to use more than one computer to manage my
shipping, do I need to pay for each workstation I run the
software on? If so, how much per workstation?
5. If I want more than one user to use the software,
does it cost more per user?
6. What printers/label formats do you support?
7. What shipping scales do you support?

Shipping software allows you to consolidate all of your orders from

8. Are you web-based or locally installed on the computer?

all online stores, and then ship with multiple shipping carriers.

9. If pricing is based on shipping volume, what happens

Depending on the software provider, you can also do things like

if I exceed or go under a specific shipping volume

compare carriers shipping rates (without having to visit each

for that month?

carriers website), print hundreds of shipping labels at one time,

automatically email your customers with their tracking number,

10. Is there an annual contract?

automatically update your store with the tracking number, purchase

shipping insurance that costs less and covers more, and manage
your customer database. Most shipping software offers a trial period,
so you can try one and determine if you like it.

It saves a ton of time. We can download orders directly from

our shopping cart, print dozens of labels at once, and then have
our cart automatically updated.

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

17

Shipping Term Glossary

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

18

SHIPPING TERM GLOSSARY

BATCH PRINT: ............................................. Printing more than one shipping label at a time.
CARGO INSURANCE: ................................... T he type of shipping insurance from most 3rd party insurance providers
CARRIER: ................................................... The people who deliver your package from point A to B.
There are three main carriers in the USFedEx, USPS and UPS.

DECLARED VALUE COVERAGE: ..................... The type of shipping insurance from most carriers.
ECOMMERCE STORE/CART/PLATFORM: ....... This is the place where you sell your goods such as eBay, Amazon,
Etsy, your own website, or a host of other online locations.

ENDICIA: .................................................... Approved USPS partner. Authorized to provide internet based USPS postage.
EXPRESS 1: ................................................ A partner specifically for USPS Priority Mail Express and USPS Priority Mail.
It is able to provide discounts to any company, regardless of their shipping volume.

FEDEX: ....................................................... Acronym for Federal Express

FLAT RATE: ................................................. Y
 ou pay one rate no matter the weight or where the package is going.
FREIGHT CONSOLIDATION: .......................... See zone skipping definition
RATE CALCULATOR: .................................... An online tool that will tell you how much it will cost to ship an item by carrier. Every carrier has their
own online rate tool, so visit the carriers site or you can also get links to the calculator in this guide.

REGIONAL CARRIERS: ................................. Regional shipping carriers cover a specific geographic area. They can often times
provide lower rates since they cover a smaller geographic area.

RETAIL: ...................................................... The price you pay when you use standard shipping services. If youre a savvy shipper,
youll rarely, if ever, pay retail shipping prices.

SHIPPING CARRIERS: .................................. The big three are USPS, FedEx and UPS.
SHIPPING SOFTWARE: ................................ Software that streamlines your shipping processes and connects your
online store with shipping carriers.

SHIP WITH JOY: .......................................... T his is what happens when you use ShipWorks to do all of your shipping.
SHIPWORKS: .............................................. Shipping software that connects all of your online stores with all major shipping carriers. Print hundreds of
shipping labels with one click, update online order status, send email notifications, and more. Free trial.

STANDARD PRINTER: .................................. uses ink or laser technology to print. You probably already have one of these.
STAMPS.COM: ............................................ A
 pproved USPS partner. Authorized to provide internet based USPS postage.
THERMAL PRINTER: .................................... dedicated to printing shipping labels. It uses heat to print (not ink), and it does this
in one of two formats: EPL or ZPL. With thermal printers, you never need to purchase
ink or toner, and there is no paper jamming or wasted labels.

UPS: .......................................................... Acronym for United Parcel Service

USPS: ........................................................ Acronym for United States Postal Service
ZONE: ........................................................ Typically, carriers group together several geographical regions into zones
and provide shipping charges for movement between these zones.

ZONE SKIPPING: ......................................... T his is primarily for advanced shippers or those with multiple warehouses. Its a method
where you consolidate shipments going to a region by using less than truckload (LTL)
shipping and ship items together as a single larger shipment to get them closer to the
appropriate shipping zone or delivery point.

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

19

Want to Save Hours

a Day on Shipping?
Wed love to show you how ShipWorks can help
you grow your business and ship with joy.

TRY SHIPWORKS FOR FREE

THANK YOU SO MUCH! WE HOPE THIS EBOOK HAS TAUGHT YOU SOMETHING NEW ABOUT SHIPPING. WE APPRECIATE
THE TIME YOU TOOK TO READ THIS AND WED LOVE TO HEAR WHAT YOU THINK. PLEASE LET US KNOW YOUR
COMMENTS ON OUR WEBSITE, FACEBOOK, TWITTER OR SUPPORT@SHIPWORKS.COM. THANKS AGAIN!

AN ESSENTIAL GUIDE TO ECOMMERCE SHIPPING

20

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314-821-5888

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