Shipping options: 9 methods, carriers, and cost-saving strategies

For mid-sized businesses, mastering shipping options is vital for happy customers and healthy profits. With diverse products and a growing customer base, knowing the different shipping methods, who carries them, and how to save money can really boost your bottom line. 

According to a 2024 QuickBooks survey, 51% of businesses aiming for fast or steady growth report that streamlining systems and operations is a major challenge, highlighting the need for efficient processes like smart shipping choices.

It's not just about finding the cheapest rate—you need to consider speed, reliability, tracking, and what works best for each package and destination, whether in a business-to-business-to-consumer model or direct to the end-user.

There are nine common shipping options for growing businesses, including affordable ground shipping and fast international options. Businesses must learn how to pick shipping options and partners that match their shipping volume. By choosing your method strategically, your business can operate more efficiently, save money, and deliver a better customer experience.

9 common shipping options and methods

Choosing the right shipping options for your business

The 5 steps of business shipping

Optimizing your shipping strategy with technology and partnerships

Boost productivity and enhance profitability

9 common shipping options and methods

Understanding the various growing business shipping options and methods available is crucial for businesses to optimize costs, delivery times, and customer satisfaction. 

There are several options to choose from, each providing a balance of speed, cost, and reliability to meet diverse shipping needs.

Expedited shipping

Speed: Fast (1-3 business days)

Relative cost: High

Expedited shipping means you get your package faster than regular ground delivery, often with a guaranteed arrival time. Think of it as a speedier, paid upgrade.

Best for: Urgent orders

Major shipping companies offer different kinds of expedited services. For example:

• UPS has options like 2nd Day Air (arrives in two business days), 3 Day Select (arrives in three business days), and Worldwide Expedited for faster international deliveries.
• The USPS offers Priority Mail and the even quicker Priority Mail Express (usually overnight). Their Ground Advantage service is also a good, faster-than-standard option for domestic packages, typically arriving in two to five business days with tracking and insurance.
• DHL provides options like SmartMail for quicker domestic deliveries and International Direct for faster international shipping, which can still take a few days to a couple of weeks, depending on where it's going.

Ultimately, expedited shipping costs more than slower options, so you'll choose it based on how quickly you need your package to arrive, where it's going, and what your budget is.

Overnight shipping

Speed: Extremely fast 

Relative cost: Very high

Overnight shipping means your package arrives the very next day after you send it. Because it's so fast and requires special handling, it's also usually the most expensive way to send things domestically.

Best for: Last-minute gifts or perishable goods

Big shipping companies like UPS offer different overnight options. For instance:

• UPS Next Day Air usually gets your package there by late morning or midday
• UPS Next Day Air Saver is a bit cheaper and aims for delivery by the end of the next business day. 

These services rely heavily on air travel to cover long distances quickly. Just like other fast shipping methods, the price you pay for overnight shipping will depend on how heavy your package is, its size, and how far it needs to go.

Priority Mail

Speed: Medium-fast 

Relative cost: Medium 

Priority Mail is a special service from the USPS, not just a general term for fast shipping. 

Best for: Sending mail and packages across the U.S., because it offers a good balance of speed and cost, usually delivering in one to three business days.

If you need something to arrive even faster, the USPS has Priority Mail Express, which offers guaranteed overnight or 2-day delivery to most places. They even deliver on Sundays and holidays sometimes for an extra fee. For sending packages outside the U.S., there's Priority Mail International, a dependable way to ship to over 180 countries, though it will take longer than domestic services.

Flat-rate shipping

Speed: Varied 

Relative cost: Varied 

Flat-rate shipping means you pay one set price to ship your package, no matter how much it weighs or how far it's going, as long as it fits into a special box or envelope from the shipping company. 

Best for: Heavy items

This method is great for heavy items or sending things a long way, because you're paying a fixed price that can be much cheaper than paying by weight or distance. But, if your item is very light or only going a short distance, flat-rate shipping might actually cost you more. Businesses should check if their typical packages would save money this way.

Economy shipping

Speed: Slow

Relative cost: Low

Economy shipping is the cheapest way to send packages. It's slower, taking anywhere from a few days to over a week, because it usually travels by ground. 

Best for: Shipping things you don't need in a hurry

Businesses often use economy shipping to offer "free shipping" to customers since it costs them less. It's also ideal for big, heavy items that would be too expensive to ship quickly, like furniture.

USPS Ground Advantage is a popular example. It allows you to send packages weighing up to 70 pounds, with delivery typically taking two to five business days across the U.S., and includes tracking and $100 insurance. It's a great, low-cost option for non-urgent items.

Multiple addresses

Speed: Varied

Relative cost: Varied 

Multiple addresses is a handy feature that lets you send different items from one order to different places. Instead of making separate purchases, you can simply tell the store where each part of your order should go. This makes sending things to various locations much easier for everyone.

Best for: When a company needs to send promotional items, subscription boxes, or recurring deliveries to a network

While super convenient for customers, this option can be tricky for businesses. Each separate address needs its own shipping label, tracking number, and possibly different shipping costs. This means more work in the warehouse to make sure the right items go to the correct addresses.

Local delivery or pickup

Speed: Immediate to same-day

Relative cost: Very low

Local delivery and pickup are great ways for local businesses to serve customers nearby without using big shipping companies. This means they can avoid shipping costs, complications, and long waits. 

Best for: Smaller businesses, with local choices and can build stronger community ties and get products to customers faster.

Local delivery is when the business brings your order right to your door. They usually set a small delivery area (a few miles) to keep things manageable. This involves planning routes and having staff and vehicles ready. Local pickup is when you order online and then go to the store to get your items yourself. This saves everyone time and money on delivery.

International shipping

Speed: Varied

Relative cost: High-very high

International shipping means sending packages across country lines. It's much more complicated than shipping locally because you have to follow rules from both the sending and receiving countries. It's not just about moving the box—it's about understanding global trade laws, paperwork, and extra fees.

Best for: Shipping to international customers

A key part of international shipping is the customs declaration. This is a legal form that tells customs officials exactly what's inside your package, how much it's worth, and other important details. Customs uses this to check and approve your shipment. If this paperwork isn't perfect, your package could be delayed, sent back, or even taken away. So, getting these details right is crucial.

Freight shipping

Speed: Varied 

Relative cost: Medium-high

Freight shipping is how businesses move large, heavy items—usually weighing over 150 pounds—often on pallets or in large containers. It's different from sending single packages—freight is all about moving large amounts of products for businesses. This method is vital for getting raw materials to factories and finished goods to stores.

Best for: Businesses like distributors, wholesalers, and fulfillment centers who will benefit from freight shipping.

It helps them efficiently move their products from where they're made to warehouses, between different storage locations, or directly to big retail stores. It's much cheaper per item when you're shipping a lot at once, compared to sending many small packages.

There are different ways to do freight shipping:

• Ground freight uses trucks and sometimes trains for shipping within a country.
• Air freight is the fastest but most costly, great for urgent or valuable international goods.
• Ocean freight is the slowest but cheapest, perfect for huge amounts of international cargo that aren't time-sensitive.
• Multimodal freight combines two or more of these (like truck to train to ship) using containers that easily switch between transport types, balancing cost, speed, and efficiency for complicated journeys.

Choosing the right shipping options for your business

Selecting the ideal shipping strategy is essential for any business aiming to keep costs low and boost business efficiency. The right choices can significantly impact your operational costs, the speed at which products reach your customers, and ultimately, their satisfaction.

Consider package characteristics

Choosing the correct shipping method starts with knowing your package's details. How much it weighs and how big it is will impact which shipping companies and services you can even use. For example:

• The USPS usually ships packages up to 70 pounds.
• UPS and FedEx can handle single packages up to 150 pounds.
• If your package is heavier than that or unusually large, you'll likely need to use freight shipping.

Your item's size and fragility also determine how you'll pack it and what shipping method you'll pick. A small, sturdy item might just need a padded envelope with basic shipping. But a fragile, awkwardly shaped item will need lots of padding and might need a special shipping service. Also, big or odd-shaped items can cost extra due to "oversize" fees, which could push you towards freight.

Assess delivery speed and urgency

Shipping needs generally break down into urgent, standard, and local. 

• Urgent: For urgent needs, you'll need expedited or overnight shipping. These are the fastest options, using air travel to get packages there in a day or a few days, but they cost more. Think UPS Next Day Air or USPS Priority Mail Express.
• Standard: For items that aren't as time-sensitive, standard ground or economy shipping works best. These are cheaper because they use ground transport and take longer, from several days to over a week. USPS Ground Advantage and UPS and FedEx Ground are examples.
• Local: For customers who need something right away and are nearby, local delivery or pickup can get them their order the same or next day, completely bypassing regular shipping companies.

Evaluate shipping costs and profit margins

Understanding shipping costs is vital for a business's profits. These costs go beyond just the basic rate, including factors like the carrier, shipping method, package size and weight, destination, and extra fees (like fuel or residential delivery surcharges). Knowing all these helps businesses price products correctly, offer competitive shipping rates, and avoid financial loss.

Flat-rate shipping can be cost-effective, especially for heavy items or long distances, since the price is fixed regardless of weight or zone. This makes costs predictable. However, for lighter or local shipments, flat rates might be more expensive than calculating costs by weight, potentially cutting into profits. 

Leverage tracking and insurance

Using tracking and insurance is critical for both your business and your customers to feel confident, and it helps reduce risks. 

Tracking lets everyone see exactly where a package is in real-time, from start to finish. This transparency makes customers happy as they can follow their order, and it means fewer "where's my package?" questions for your team. For your business, tracking helps you spot delays or lost items early, so you can fix problems faster.

Insurance is an important backup for your shipments, especially for valuable items. Even though you hope nothing goes wrong, things can happen. Shipping insurance helps you get your money back if goods are lost or damaged, protecting your business from losing money. For expensive products, the small cost of insurance is worth it to avoid having to replace a costly item.

The 5 steps of business shipping 

Navigating the process of getting products from your business to your customers involves several key stages. Understanding these steps is crucial for establishing an efficient and reliable shipping operation.

1. Carrier selection

Picking the right shipping company, including the best shipping options for a growing business, is a big deal for any business. It affects how much you pay, how fast things get delivered, how reliable your service is, and whether your customers are happy. There's no single "best" carrier—it depends on what your business ships and who your customers are. Smart choices here can save you money and make things run smoother.

Each major shipping company has its strong points:

• UPS and FedEx are known for being reliable, having great tracking, and handling many different package sizes, even large freight. But they can be pricier.
• The USPS (U.S. Postal Service) is usually cheapest for lighter packages and offers unique flat-rate shipping and wide delivery, even to rural areas. However, their tracking might not be as detailed, and some services can be slower.
• DHL is a leader in international shipping, with a huge global reach and expertise in customs. They're ideal if you send a lot overseas.

By knowing what each carrier offers in terms of strengths, prices, and delivery speeds, businesses can pick the best partners for their shipping needs.

2. Package preparation and labeling

Getting your package ready and labeled correctly is important for it to arrive safely and on time. If you don't do it right, you could end up with broken items, delayed deliveries, and unhappy customers, costing your business money. It's about protecting your product from start to finish.

This involves picking the right packaging, good cushioning (bubble wrap, peanuts), and tough tape. Make sure your items are packed tightly so they don't move around and get damaged. 

Finally, create and stick on the shipping label securely. This label has all the important info like addresses and tracking codes that helps the carrier deliver your package correctly and without delays.

3. Method selection

After you pick a shipping company, the next step is choosing the exact shipping method (like overnight, 2-day, or standard ground). This decision is about finding the right balance between how fast you need the package to arrive and how much it will cost. Your choice here directly impacts both your customers' happiness and your business's profits.

When picking a method, think about:

• How fast does it need to be delivered?
• What's the cost of each option?
• How big and heavy is the package?
• What do your customers prefer?

By offering different shipping choices, customers can pick what works best for their timeline and budget, which makes them happier and can prevent them from abandoning their purchase.

4. Tracking and insurance

As the package travels through the carrier's network, it moves from sorting facilities to various hubs and eventually to the delivery depot closest to the recipient. Throughout this journey, the package is scanned at different checkpoints. 

Each scan provides real-time updates on the package's location, transit status (like "in transit" or "arrived at sort facility"), and estimated delivery date. This visibility is invaluable for managing customer expectations and proactively addressing delays. 

This is also the period where most loss, damage, or theft incidents occur. Having insurance in place provides financial protection against these unforeseen events. Businesses rely on insurance to recoup the cost of the goods if something goes wrong during transit.

5. Delivery to the customer

The very last and most important step is delivery to the customer. This is when the package actually gets to the person who ordered it. How well this goes really affects how happy your customer is. A smooth and on-time delivery makes customers think highly of your brand, leading to them buying from you again and giving good reviews.

Good delivery means more than just getting the package to the right address. It also means delivering it how the customer prefers and making sure it's safe. This could be leaving it at their doorstep, putting it in a secure locker for them to grab later, or having them pick it up in-store.

Optimizing your shipping strategy with technology and partnerships

To make your shipping strategy better, use technology and work with the right partners. Shipping software and e-commerce platforms are super helpful. They can automatically create shipping labels, compare prices from different carriers, update tracking, and tell customers where their package is. This saves time, reduces mistakes, and often gets you cheaper shipping rates you couldn't get on your own, saving you money.

For businesses that are growing, working with a Third-Party Logistics (3PL) company can be a huge benefit. 3PLs handle everything from storing your products and managing inventory to packing and shipping orders. 

By letting a 3PL handle this, you don't need to invest a lot in warehouses or staff. You also get their shipping discounts and expertise, freeing you up to focus on making and selling your products.

Boost productivity and enhance profitability

Mastering the diverse shipping options available is not just about logistics—it's a strategic imperative for modern businesses. Businesses need to carefully consider package characteristics, delivery urgency, and costs to optimize their supply chain. 

By leveraging an enterprise business solution like Intuit Enterprise Suite, you can optimize operations, enhance customer satisfaction, and drive sustained business growth in a competitive market.