How ecommerce shipping works: Key steps, best practices, and process optimization

SendTech Staff Pitney Bowes
05/05/2025 Domestic Solutions

In a world where customers expect delivery in hours—not days—ecommerce shipping has become a defining moment for modern brands. A smooth, on-time delivery builds trust. A missed package? It can break it.

But today’s shipping process isn’t just about speed. It’s about scaling efficiently, managing rising shipping costs, and navigating growing complexity across carriers, platforms, and global markets. Whether you're launching a new ecommerce store, handling seasonal order spikes, or expanding internationally, you need more than a provider—you need a strategy built for growth.

This guide unpacks how modern ecommerce shipping operations really work—step by step. You’ll learn the core stages of fulfillment, automation tips to streamline workflows, carrier selection strategies, and how to build a scalable, cost-effective shipping process that delivers on customer expectations—and keeps them coming back.

Table of contents

What is ecommerce shipping?

Ecommerce shipping refers to the entire process of getting an online order from your warehouse to your customer’s doorstep. It includes everything from picking and packing, to labeling, carrier selection, and final delivery.

Whether you’re managing a few shipments a week or thousands per day, your ecommerce shipping strategy must balance speed, cost, and reliability. Customers care deeply about delivery promises, and their expectations are only rising. In fact, shipping costs and speed are two of the most common reasons shoppers abandon their carts.

Your ability to manage this process efficiently—using the right shipping carriers, methods, and logistics tools—directly affects customer satisfaction and your profit margins.

Breaking down the ecommerce shipping journey

Once a customer places an order, your shipping workflow kicks into motion behind the scenes. But how exactly does that journey unfold—and where do costs or delays creep in?

The ecommerce shipping journey involves a series of connected steps, from order confirmation to delivery (and potentially returns). Each step is a chance to reinforce your reliability—or risk a bad customer experience.

Here’s a closer look at the typical workflow:

  1. The order is received via your ecommerce website or marketplace.
  2. It’s processed using an order management system that verifies payment and stock levels.
  3. The order moves to fulfillment, where it’s picked, packed, labeled, and handed off to the appropriate shipping carrier.
  4. From there, the order is tracked, delivered, and potentially returned if needed.

With the right automation and logistics partners, you can streamline this workflow to reduce costs, avoid errors, and scale efficiently

Key steps in the shipping process

There are three essential stages in the ecommerce shipping process: receiving, processing, and fulfillment. Each step is critical to ensuring that the right product reaches the right customer on time.

Order receiving

This is where it all starts. Your ecommerce platform captures the customer’s order, and your back-end systems must be ready to act—fast.

Modern ecommerce businesses operate across multiple channels: branded websites, online marketplaces like Amazon and Walmart, and even social commerce platforms. That’s why omnichannel fulfillment tools and ecommerce automation are essential.

By syncing incoming orders in real-time, you reduce the risk of overselling or delays. A centralized order dashboard helps you monitor order flow and ensure all customer data is accurate before fulfillment begins.

Order processing

Once an order is received, your system verifies payment, checks stock availability, and routes the order to the right fulfillment center.

  • Order management systems (OMS) automate these checks and help prioritize fulfillment based on shipping method or customer tier.
  • Inventory syncing prevents “phantom inventory” issues—where an item appears in stock but isn’t.
  • Automation here can trigger warehouse tasks, update customers with confirmation emails, and flag exceptions before they cause problems.

💡 Tip: The faster you process, the sooner your team can fulfill—and the happier your customer will be.

Order fulfillment & shipping

Order fulfillment includes multiple micro-steps, from product retrieval to final handoff. Let’s break it down:

Picking & packing

The picking process involves selecting the correct items from your warehouse inventory. There are several methods:

  • Batch picking: Grouping similar orders to minimize walking time.
  • Zone picking: Dividing the warehouse into zones for greater efficiency.
  • Wave picking: Scheduling picking runs based on carrier pickup times.

Once picked, products are packed securely and branded where possible. Smart packaging decisions (like using the smallest possible box) can reduce shipping costs and minimize waste.

Labeling & documentation

Every shipment needs accurate shipping labels, barcodes, and—if it’s going international—customs documentation. These documents ensure that your package can be tracked and delivered efficiently.

Using automated label printing reduces human error and speeds up your workflow. Bonus: labels can be branded with your company logo or colors for a more polished look.

Carrier selection & shipping

Choosing the right shipping carriers is a balancing act between speed, cost, and reliability. Many ecommerce businesses now use multi-carrier shipping software to:

Whether you're shipping with FedEx, USPS, UPS, DHL, or a regional courier, automating this decision can significantly lower costs and reduce delivery times.

Order tracking & delivery

Customers expect to know where their order is at every step. Real-time order tracking, automated shipping updates, and branded tracking pages improve transparency and reduce WISMO ("Where Is My Order?") calls to support.

When tracking is personalized and proactively delivered, your brand comes across as more professional—and more trustworthy.

Returns & reverse logistics

Returns aren’t just a post-purchase pain point—they’re a make-or-break moment for your customer experience. Shoppers expect a frictionless, hassle-free return process, and your ability to deliver can directly impact loyalty.

Here’s how top ecommerce brands manage their returns:

  • Easy-to-find return policies: Make sure your return window, eligible items, and conditions are clearly stated on product and checkout pages.
  • Automated return labels: Customers should be able to generate or receive a return label with minimal effort. Platforms like ShipAccel help automate this process based on rules you define.
  • Self-service portals: Let customers initiate returns, select reasons, and view refund status online—reducing pressure on your support team.

But beyond convenience, there’s cost and sustainability to think about. Reverse logistics can get expensive quickly. That's why many brands are now:

  • Reselling returned goods through secondary marketplaces
  • Refurbishing items to reduce waste
  • Repackaging returned stock for flash sales or outlet stores
  • Donating non-sellable returns to meet CSR goals

📦 Real example: A home goods retailer found that over 40% of returns were for minor packaging damage. By adding a “return reason” flow with photo uploads and offering a 20% refund without return, they saved thousands on return shipping and boosted CSAT scores.

Parties involved in the shipping process

Shipping success depends on collaboration. Here are the key players:

Shippers (retailers & sellers)

Shippers manage:

  • Carrier selection
  • Order processing
  • Customer communication (like tracking emails or return instructions)

A reliable shipper ensures packaging is secure, policies are clear, and expectations are managed.

Carriers (shipping providers)

Carriers are responsible for physically transporting packages. They impact:

  • Delivery speed
  • Last-mile experience
  • Shipping rates

Businesses benefit from rate negotiation, multi-carrier partnerships, and discounted options through fulfillment software.

Fulfillment centers & warehouses

Whether in-house or outsourced, fulfillment centers store inventory and handle picking and packing. Efficient warehouse management means fewer delays and happier customers.

Third-party logistics (3PLs)

3PLs manage warehousing, shipping, and returns on behalf of ecommerce brands. They’re ideal for growing businesses that want to scale fast and reduce overhead. Many 3PLs also offer negotiated carrier rates and value-added services like kitting or international compliance.

Customers

Customers shape your shipping strategy. They expect:

  • Fast, affordable delivery options
  • Clear tracking
  • Easy returns

Meeting these expectations drives loyalty, increases satisfaction, and boosts your brand’s reputation.

Importance of ecommerce shipping processes

Shipping doesn’t just move products—it moves your brand reputation. A well-structured shipping process is the engine behind every positive review, repeat order, and customer referral.

Here’s why it matters:

  • Customer satisfaction – 87% of shoppers say delivery experience directly impacts their decision to buy again. A delayed, damaged, or confusing delivery can ruin even the best product.
  • Cost control – Shipping is one of the largest operational expenses in ecommerce. Optimizing packaging dimensions, negotiating carrier rates, and batching orders can drastically reduce overhead.
  • Scalability – Without streamlined workflows, growing order volume can turn into chaos. Businesses with automation in place are better positioned to scale during peak seasons without adding headcount.
  • Brand differentiation – Offering faster delivery, eco-friendly options, or branded packaging sets you apart from competitors.

🧠 Brands that treat shipping like a growth lever—not a cost center—see bigger returns in loyalty, retention, and margin.

Shipping process best practices

If you want to optimize your ecommerce shipping process, these best practices aren’t just tips—they’re operational pillars that keep your fulfillment running smoothly, even as your business scales.

  • Use shipping automation – Automating key tasks like label printing, carrier assignment, and shipping notifications saves hours of manual work. It also ensures consistency—especially during peak times when errors are more likely. Look for shipping software that syncs directly with your ecommerce platform to eliminate gaps.
  • Offer multiple shipping options – Today’s customers expect choice. Some prioritize speed, others want free shipping, and some will pay for same-day delivery. Providing options—like standard, expedited, and same-day—allows you to meet varied expectations and increase cart conversions.
  • Negotiate carrier rates – Don’t settle for default rates. Use your shipping volume as leverage to negotiate better deals with multiple carriers. Multi-carrier shipping software like ShipAccel can help you access discounted shipping rates and automate the selection of the most cost-effective carrier for each order.
  • Streamline returns management – A messy return experience can turn customers away for good. Automate return label generation, offer QR-code drop-offs, and make refund tracking easy. Not only does this reduce support tickets, it increases customer satisfaction.
  • Integrate with ecommerce platforms – Whether you’re on Shopify, WooCommerce, or BigCommerce, integrating your shipping software ensures real-time syncing of order data, inventory levels, and tracking. This eliminates manual errors, speeds up fulfillment, and provides customers with a seamless experience from cart to delivery.

📈 Pro tip: Audit your shipping process quarterly. Look at fulfillment speed, delivery accuracy, cost per shipment, and return rates. Identify bottlenecks and test changes in a controlled way—small tweaks can yield big gains.

Shipping processes with ecommerce platforms

Today’s top ecommerce platforms come with built-in shipping tools—but each has limitations. Here’s how they compare and how ShipAccel enhances them:

Shopify

Shopify Shipping offers:

  • Pre-negotiated discounts with USPS, UPS, DHL
  • Label printing and tracking
  • Seamless dashboard integration

ShipAccel enhances Shopify by:

  • Adding multi-carrier rate comparisons
  • Enabling batch processing for bulk shipments
  • Automating complex shipping rules

WooCommerce

WooCommerce shipping supports flexible plugins for:

  • Rate calculation
  • Label generation
  • Tracking

ShipAccel improves WooCommerce by:

  • Centralizing shipping into one dashboard
  • Enabling bulk order processing
  • Automating workflows and rate shopping

BigCommerce

BigCommerce includes:

  • Real-time rate display at checkout
  • Native order tracking and notifications
  • Built-in carrier partnerships

ShipAccel adds:

  • Smarter shipping rules to pick the best carrier
  • Integrated multi-carrier management
  • Enhanced returns and branded delivery tracking

Wix

Wix helps small businesses with:

  • Basic label printing
  • Carrier integrations
  • Rate display

ShipAccel expands this by:

  • Offering more carrier choices
  • Automating returns and order fulfillment
  • Supporting bulk shipping for growth

Optimize your shipping process with ShipAccel

ShipAccel was built for ecommerce businesses that want to do more than just ship packages—it helps you transform shipping into a strategic advantage.

Here’s how it works:

  • Cut costs, not corners – ShipAccel compares real-time shipping rates across multiple carriers, automatically choosing the best option based on speed, location, and cost. With access to pre-negotiated discounted shipping rates, you save on every label—without sacrificing service.
  • Simplify operations – Use batch processing to handle hundreds of orders at once. Apply automation rules to assign carriers, generate labels, and trigger tracking emails without lifting a finger. Your team gets more done with fewer clicks.
  • Enhance customer experience – ShipAccel offers branded tracking pages, real-time updates, and automated notifications—turning a routine delivery into a moment of engagement. Customers stay informed, and your support team spends less time answering WISMO calls.
  • Scale with confidence – Whether you’re shipping 100 orders a week or 10,000 during peak season, ShipAccel adapts to your volume. With robust integrations, you can plug into platforms like Shopify, BigCommerce, and WooCommerce in minutes and start optimizing right away.

🔁 Need better returns? ShipAccel supports seamless return workflows too—automating label generation and refund triggers while tracking return patterns that can help you reduce future churn.

Ready to simplify and scale your shipping strategy? Whether you're managing 100 orders or 10,000, ShipAccel helps you move faster, reduce costs, and exceed customer expectations.

Try ShipAccel, our ecommerce fulfillment software for a seamless, cost-effective shipping solution. Sign up for a free demo today.

Ecommerce shipping process FAQs

What are the stages of the shipping process in ecommerce?

The ecommerce shipping process typically consists of six key stages: order receiving, order processing, fulfillment, shipping, delivery, and returns management.

  • Order receiving begins when the customer places an order online.
  • Order processing involves verifying the order, confirming inventory availability, and preparing it for fulfillment.
  • Fulfillment includes picking, packing, and labeling items based on the order.
  • Shipping refers to selecting a carrier, generating a label, and dispatching the package.
  • Delivery ensures the package reaches the customer’s address on time.
  • Returns management handles any returned items and updates inventory accordingly.
    Each stage plays a critical role in delivering a smooth and reliable shopping experience.

Does fulfillment include shipping in ecommerce?

Yes, shipping is the final step in the ecommerce fulfillment process. Fulfillment includes all activities from the moment an order is placed to when it’s handed off to a shipping carrier. This covers order picking, packing, and shipping label creation. Once the package is prepared and scanned by the carrier, it transitions from fulfillment to shipping.
Modern ecommerce fulfillment platforms often integrate these steps seamlessly to reduce errors and ensure timely deliveries.

What is ecommerce order processing and why is it important?

Ecommerce order processing is the stage where a customer’s order is reviewed, validated, and prepared for shipment. It typically involves checking for payment confirmation, verifying inventory availability, printing shipping labels, and generating packing slips.
Efficient order processing ensures that products are packed correctly and shipped out quickly, reducing the risk of delays, stockouts, or customer dissatisfaction. In high-volume operations, automation and integration with inventory systems help streamline this process, minimize human error, and improve overall shipping accuracy.