What is Amazon Shipping Software?

Efficient ecommerce order fulfillment and shipping is the backbone of success for Amazon Sellers. Amazon shipping software is a specialized tool designed to streamline Amazon order fulfillment while meeting strict performance metrics. The software assists Amazon Sellers in optimizing their operations, improving visibility, and streamlining logistics for better sales performance. Whether fulfilling standard Seller-fulfilled orders (FBM) or shipping in the Seller Fulfilled Prime (SFP) program, having the right software ensures seamless integration, cost savings, and customer satisfaction.

Modern shipping software integrates with multiple sales channels, (including Amazon Seller accounts), optimizes carrier selection, automates label generation, and ensures compliance with Amazon’s strict delivery expectations. It eliminates manual work, reducing errors and improving fulfillment speed—critical in today’s fast-paced ecommerce environment.

The Importance of Sales Channel Integrations: Selling Beyond Amazon

While Amazon is a dominant force in ecommerce, many Sellers operate across multiple platforms, in addition to their Amazon account, to maximize sales opportunities. Effective shipping software must support:

• Amazon (Marketplace & Seller Fulfilled Prime)
• Walmart
• Shopify
• eBay
• Etsy
• Other marketplaces and ecommerce platforms

Seamless integration ensures all orders—regardless of the platform—are processed from a single dashboard. Without proper integration, businesses face inventory mismatches, fulfillment delays, and operational inefficiencies. The right software centralizes data, syncing inventory and tracking across platforms and marketplaces, reducing manual updates, preventing overselling, and improving customer experience.

The Benefits of Multi-Channel Shipping Software

1. Centralized Order Management

Processing orders from multiple platforms in one place saves time and prevents fulfillment errors. A unified dashboard allows Sellers to efficiently manage shipping for Amazon, Shopify, Walmart, and beyond.

2. Cost Optimization Through Rate Shopping

Smart shipping software automatically compares carrier rates in real-time, helping businesses save money by ensuring they always get the lowest-cost shipping label without compromising delivery speed.

3. Carrier Diversification and Flexibility

Relying on a single carrier can be risky. Multi-carrier support lets Sellers choose from multiple shipping providers based on price, service level, and delivery region, reducing costs and improving reliability.

4. Automated Shipping Label Creation

Generating shipping labels manually is time-consuming and error-prone. Automated label creation and printing speeds up fulfillment, ensuring orders ship faster, more accurately, and at lower labor costs.

5. Reliable Tracking Customer Experience

A robust shipping solution provides efficient order tracking and management for shipping orders, offering real-time tracking updates and notifications that reduce customer inquiries and increases satisfaction by offering complete visibility into shipments.

How to Choose the Right Amazon Shipping Software

Choosing the right Amazon shipping software can be a daunting task, especially with the numerous options available in the market. However, by considering a few key factors, you can make an informed decision that meets your ecommerce business needs. Here are some tips to help you choose the right Amazon shipping software:

1. Determine Your Shipping Needs: Consider the type of products you sell, the frequency of your shipments, and the destinations you ship to. This will help you identify the features you need in a shipping software.
2. Check Compatibility with Amazon Seller Central: Ensure that the shipping software integrates seamlessly with your Amazon Seller Central account. This will enable you to manage your orders, inventory, and shipping processes efficiently.
3. Evaluate Shipping Rates and Services: Compare the shipping rates and services offered by different software providers. Look for software that offers discounted rates, flexible shipping options, and reliable shipping carriers.
4. Assess Inventory Management Capabilities: If you have a large inventory, look for software that offers robust inventory management features. This will help you track your stock levels, automate purchase orders, and optimize your inventory management processes.
5. Consider Scalability and Flexibility: Choose software that can grow with your ecommerce business. Look for software that offers flexible plans, scalable infrastructure, and customizable features.
6. Read Reviews and Ask for Referrals: Research the software provider’s reputation by reading reviews and asking for referrals from other ecommerce Sellers. This will give you an idea of the software’s performance, customer support, and overall user experience.

By considering these factors, you can choose the right Amazon shipping software that meets your ecommerce business needs and helps you streamline your shipping workflow.

Amazon’s Performance Metrics for Standard and Seller Fulfilled Prime (SFP) Orders

Amazon holds Sellers to strict performance standards, especially for those participating in Seller Fulfilled Prime (SFP). To meet Amazon’s strict performance standards, Sellers must ensure their shipping processes are efficient and reliable. Here are the key requirements:

Standard Amazon Orders

To maintain good standing, Sellers must:

• Maintain an On-Time Delivery Rate of 90% or higher
• Late Shipment Rate must not exceed 4%
• Keep the Pre-fulfillment Cancellation Rate below 2.5%
• Provide Valid Tracking for 95%+ of orders
• Ensure Order Defect Rates (negative feedback, A-to-Z claims, chargebacks) remain under 1%

Seller Fulfilled Prime (SFP) Orders

For Sellers enrolled in Seller Fulfilled Prime, the requirements are even stricter:

• Maintain an On-Time Delivery Rate of 93.5% or higher
• Provide Valid Tracking for 99%+ of orders
• Keep the Pre-fulfillment Cancellation Rate ≤ 0.5%
• 1-day Page Views >30%, 2-day Page Views >70% for standard-size products
• 1-day Page Views >10%, 2-day Page Views >45% for oversize products
• 2-day Page Views >15% for extra large products (there is no 1-day requirement for this size tier)
• Same-day handling for Prime orders (orders must ship out the same day if received before the cut-off time)
• Weekend fulfillment capability to match Amazon’s weekend delivery expectation
• Strict delivery speed adherence—late deliveries can result in suspension from SFP
• Sellers must provide free returns for all eligible items weighing less than 50 lb, for any reason

Meeting these requirements requires exceptional shipping efficiency, which is where next-generation shipping software comes into play.

What is Amazon Buy Shipping API? Benefits & Limitations

Amazon provides the Buy Shipping API to Sellers, either when buying postage directly through Seller Central, or as a tool for Sellers looking to ensure compliance with its stringent shipping standards.

Benefits of Amazon Buy Shipping API:

• Guaranteed Valid Tracking: Ensures every order includes a valid tracking number.
• Seller Protection: Orders shipped through Buy Shipping are eligible for Amazon’s Seller protection against A-to-Z claims.
• Automatic Performance Tracking: Amazon monitors compliance and reduces the risk of penalties.
• Multi-Carrier Rate Shopping: Sellers can compare rates across Amazon’s partnered carriers and select the best shipping option.
• Late Delivery Exceptions: Orders that are delivered late can be exempted from performance metrics as long as they were shipped on time.

Limitations of Amazon Buy Shipping API:

• Limited Carrier Choices: Not all carriers are available through Amazon’s Buy Shipping service, which can prevent access to better rates elsewhere.
• Support for 1 Carrier Account Each: Sellers that have multiple carrier rate cards from the same carrier for different size, weight, and/or shipping zone products cannot rate shop across them; Seller Central only supports the use of 1 negotiated account per carrier.
• Potentially Higher Costs: Rates may not always be the lowest available, making third-party rate shopping essential.

While Buy Shipping API has some nice benefits, merchants looking to maximize cost savings and flexibility often pair it with an advanced shipping platform that optimizes fulfillment and reverse logistics beyond Amazon’s system.

Why Cahoot is the Best Software for Shipping Amazon Orders (Including Seller Fulfilled Prime)

Not all shipping software is created equal. Cahoot is purpose-built to meet Amazon’s demanding requirements, ensuring seamless SFP compliance and cost-optimized standard fulfillment.

1. Purpose-Built for Seller Fulfilled Prime (SFP)

Unlike generic shipping solutions, Cahoot was designed from the ground up to handle Seller Fulfilled Prime orders. With automated compliance to Amazon’s performance requirements, weekend fulfillment support, and same-day shipping automation, Cahoot ensures Sellers maintain their Prime eligibility without penalty risks.

2. Automated Rate Shopping for Maximum Savings

Cahoot intelligently compares real-time shipping rates for all the carriers and services you support and creates the cheapest labels that will deliver on time, ensuring all orders always ship at the lowest cost without compromising delivery speed.

3. Multi-Channel Fulfillment Beyond Amazon

Cahoot seamlessly integrates with Walmart, Shopify, eBay, TikTok Shop, and more, providing a centralized dashboard for fulfilling orders across all platforms.

4. Intelligent Order Routing for Faster Fulfillment

Cahoot’s advanced AI-driven order routing automatically assigns orders to the nearest warehouse with stock availability, minimizing transit time and reducing shipping costs.

5. Bulk Label Printing and 1-Click Shipping

With Cahoot, Shipping Labels are created autonomously, no human, so Sellers can print labels for thousands of orders in minutes, eliminating repetitive manual work and improving warehouse efficiency.

6. Effortless Weekend and Same-Day Fulfillment

By automating fulfillment workflows and ensuring weekend processing capabilities, Cahoot helps Sellers stay compliant with Amazon’s Prime-level shipping expectations.

The Future of Amazon Fulfillment is Here

Shipping on Amazon has never been more complex, and Sellers who rely on outdated tools risk falling behind. Cahoot’s next-generation shipping software ensures merchants can meet Amazon’s performance metrics, reduce shipping costs, and streamline multi-channel fulfillment—all from a single platform.

For businesses looking to scale efficiently, grow into or maintain Seller Fulfilled Prime eligibility, and optimize fulfillment operations, Cahoot provides a game-changing advantage.

Are you ready to take your Amazon fulfillment to the next level? It’s time to ditch legacy shipping tools and embrace automation, intelligence, and efficiency with Cahoot.

Frequently Asked Questions

What is a shipping solution?

Shipping solutions are a combination of services, strategies, and tools aimed at managing and streamlining the process of sending products from one location to another.

What’s the difference between Cahoot’s network and Cahoot’s shipping software?

Cahoot’s platform is a peer-to-peer order fulfillment services network where top-rated merchants share warehouse space and fulfillment services with one another. Cahoot’s shipping software is next-generation ecommerce shipping software that can support any size merchant, including high-volume merchants shipping millions of parcels per year. Merchants can use either or both. Our fastest-growing clients use both.

What are the carriers for ecommerce shipping?

The most common national carriers are UPS, USPS, and FedEx, while popular regional carriers include OnTrac, Courier Express, and PITT OHIO, among others. Amazon Shipping will soon be matching the last mile delivery reach of the national carriers. For international shipments, DHL Express and GlobalPost are most common, however, UPS, USPS, FedEx and many other carriers also support international deliveries.

How to ship items you sell online?

To ship products from your house, you can use a shipping carrier like USPS, FedEx, or UPS. First, package your product securely and weigh it to determine the shipping cost. Then, create a shipping label online and schedule a pickup or drop off at a carrier location. You can also purchase shipping and dropoff packages at the same time at any post office, The UPS Store, and/or FedEx Office location.

How can I reduce shipping costs?

To reduce shipping costs, optimize packaging for weight and size, utilize flat-rate shipping options for heavy items, explore discounted shipping rates, offer local delivery or pickup, and consider prepaid shipping. Many platforms like Cahoot and ShipStation offer discounted shipping rates through their carrier relationships that can save many thousands of dollars.

Written By:

Indy Pereria

Indy is the Head of People Operations at Cahoot, fosters innovation, develops recruitment strategies, and scales the company’s culture.

Looking for the top ecommerce shipping solutions to improve your business? This guide highlights the best options for 2025 to streamline delivery, cut costs, and boost customer satisfaction. Pay special attention to those that are future proof.

Key Takeaways

• Ecommerce shipping solutions are critical for optimizing delivery processes and enhancing customer satisfaction, emphasizing the need for efficient strategies amidst industry competition.
• Key features for effective shipping solutions include integration capabilities, multi-carrier support, automation, and cost optimization, which are essential for improving operational efficiency.
• Future trends in ecommerce shipping focus on sustainability and technology, with advancements such as AI and machine learning optimizing logistics and enhancing eco-friendly practices.

Understanding Ecommerce Shipping Solutions

Ecommerce shipping solutions manage the entire fulfillment workflow: delivering products from the point of order completion to the customer’s doorstep, making them essential for business success. These solutions are not just about moving packages from point A to point B; they are about optimizing every step of the shipping process to ensure efficiency and customer satisfaction. Therefore, shipping solutions play a critical role in differentiating your business and keeping customers happy.

Online businesses face unique challenges in shipping, such as managing costs while meeting customer expectations for timely delivery. An effective shipping strategy must include key components like carrier selection, tracking methods, and cost management to navigate these challenges successfully. The shipping process directly impacts customer experience, with efficient packaging and timely delivery being crucial for customer satisfaction and retention.

Looking ahead, future trends in ecommerce shipping are focused on technological advancements and sustainable practices. These aim to improve efficiency and meet the evolving demands of customers, making it more important than ever to stay ahead of the curve.

Key Features to Look for in Ecommerce Shipping Solutions

Identifying the right ecommerce shipping solution begins with understanding its integration capabilities with existing sales channels and business software.

Factors to consider when selecting shipping solutions include:

• Integration capabilities
• Scalability
• Automation
• Flexibility
• Cost optimization

These features are crucial for ensuring efficient operations and meeting customer expectations. Prioritizing these features helps businesses optimize shipping processes and enhance overall performance. Key features to consider in ecommerce shipping solutions include integration capabilities, multi-carrier support, and automated label creation and printing.

Integration Capabilities

Seamless integration with your existing tech stack is a game-changer. It’s almost table stakes today, but suffice to say that robust shipping software allows for seamless integration with your channels as well as all of the different order management and fulfillment processes, improving overall efficiency. Integrating shipping software with ecommerce platforms automates tasks like order import, updating stock levels, and reducing manual data entry and errors. This creates a workflow where orders from your ecommerce platform automatically sync with your shipping software, but without overselling, ensuring a seamless customer experience.

Cahoot, for instance, integrates with all popular marketplaces and ecommerce platforms and can connect with custom-built software via an API. This level of integration not only streamlines shipping workflows but also enhances inventory management, ensuring that your stock levels are always accurate across all sales channels.

Multi-Carrier Support

Having access to multiple shipping carriers is a significant advantage. It enables businesses to offer competitive rates and diverse delivery options to customers of all demographics. Shoppers today expect a variety of shipping options, including next-day delivery, flat-rate shipping, and international shipping.

Shipping software with multi-carrier support facilitates rate comparisons, optimizing delivery times and costs. UPS, USPS, DHL Express, and Canada Post, for example, offer pre-negotiated rates that can provide cost savings to customers during checkout. This flexibility ensures that you can meet customer expectations without breaking the bank, especially when using the best shipping software, and efficient and reliable shipping services that deliver on time.

Automated Label Creation and Printing

Automated label creation and printing solutions significantly expedite the preparation of packages, enhancing operational efficiency while ensuring the optimal label is used for the specific shipping circumstance. Autonomous label creation reduces manual work, minimizes errors, accelerates fulfillment, and creates the cheapest shipping label using real-time carrier rate shopping, which is particularly beneficial as shipping volume increases.

Shipping platforms should feature batch shipping label creation and printing capabilities to prepare all necessary labels for the day’s shipments autonomously with just a few clicks to dramatically speed up order fulfillment and reduce the risk of errors.

Choosing the Right Shipping Solution for Your Business

Selecting the right shipping solution is crucial for ecommerce businesses to improve efficiency and meet their specific logistics needs. An ecommerce fulfillment warehouse plays a key role in managing order processing and shipping, making it essential to choose a solution that complements your fulfillment strategy.

Deciding on shipping rates and methods is a critical first step before shipping ecommerce orders. Next-generation shipping software must simplify operational complexities, drive efficiencies, and generate meaningful cost savings. Legacy shipping software can create more problems for Sellers as it is not equipped to handle the complexities of distributed fulfillment.

Understanding your shipping volume, managing costs, and ensuring international compliance are key factors in this decision-making process. Let’s explore these in more detail.

Assessing Your Shipping Volume

Understanding your shipping volume is essential for choosing a solution that can grow with your operational needs. It needs to accommodate seasonal spikes and consistent growth.

Recognizing and preparing for shipping volume fluctuations can help ensure that the selected solution meets both current and future business demands. This preparation is vital for maintaining efficiency and customer satisfaction during peak times.

Cost Management and Discounted Rates

Cost management is a cornerstone of any effective shipping strategy. Negotiating shipping contracts for bulk shipments often leads to favorable rates and significant savings. Analyzing shipping costs as a percentage of sales can highlight the impact of shipping on overall profitability.

Data analysis can uncover specific shipping routes and methods that lead to higher costs, allowing businesses to adjust their strategies for savings. Using shipping software can enhance carrier rate negotiations and streamline shipping processes, making cost management more efficient.

International Shipping Compliance

Compliance with international regulations is crucial to avoid delays in package delivery. Customers are responsible for additional customs fees at delivery, which can cause friction if not handled properly.

Accurate completion of customs forms is necessary to prevent packages from being held up. These forms can be obtained online or at local post office/shipping retail locations. Ensuring compliance can help businesses avoid potential fines and restrictions on future shipments.

Top Ecommerce Shipping Solutions in 2025

Several top-tier ecommerce shipping solutions have emerged as leaders in 2025, each offering unique features and benefits. These include Cahoot, ShipStation, and Easyship. Each of these solutions provides distinct advantages that can help streamline your shipping workflow and wow your customers.

Exploring these options helps you find the best fit for your business needs and budget:

Cahoot

Cahoot is a next-generation, humanless ecommerce shipping software designed for high-volume merchants, but is so easy to use that businesses of any size can take advantage of the future proof technology. Because 97%+ of shipping labels are rate shopped and pre-created before you show up to the warehouse with coffee in-hand, it allows users to bulk-print labels with just one click, enabling immediate shipping. This feature streamlines order fulfillment by eliminating the need for manual rate comparisons and speeding up the shipping process by as much as 21X or more.

Cahoot integrates with all popular marketplaces, ecommerce platforms, and carriers, and can connect with custom-built software via an API. It notifies Sellers whenever a problem occurs with carriers delivering packages, allowing for proactive resolution and a better customer experience than competitive solutions.

ShipStation

ShipStation supports multi-carrier shipping, allowing businesses to compare rates and choose the best option for each shipment. It incorporates automation rules to efficiently manage shipping tasks, significantly reducing manual intervention and errors. And it has more integrations available than just about any other solution, including very niche and long-tail platforms.

Through branded tracking pages, ShipStation enhances the customer experience by allowing businesses to maintain their branding throughout the delivery process. This feature ensures that customers have a consistent brand experience from purchase to delivery.

Easyship

Easyship is a cloud-based shipping solution that offers discounted shipping rates, customer tracking, seamless integration, and dynamic rates at checkout. These discounted shipping rates can significantly reduce costs for businesses.

The dynamic rates at checkout improve conversion rates by providing customers with real-time shipping costs. Additionally, Easyship’s comprehensive tracking features allow customers to monitor their shipments effectively, enhancing the overall customer experience.

Enhancing Customer Experience with Shipping Solutions

Delivering an exceptional customer experience is of utmost importance (no pun intended). Efficient shipping not only improves the bottom line, but it supports ongoing customer relationships, potentially increasing sales and loyalty. Shipping costs play a crucial role in ecommerce profitability, making cost reduction vital for retaining customers. An effective shipping strategy can reduce customer inquiries about order statuses, allowing support teams to focus on other issues.

Incorporating features like real-time tracking and notifications, flexible delivery options, and branded packaging and tracking pages can elevate your shipping strategy to new heights.

Real-Time Tracking and Notifications

Real-time tracking is essential for keeping customers informed about their orders. Shipping solutions should provide visibility into shipment tracking, consolidating all orders in one interface for wider visibility and easier management. Automated notifications throughout the fulfillment and shipping timeline can reduce customer anxiety, improve satisfaction, and limit the customer service burden.

Shipment notifications can be delivered via various channels, including email, SMS, and mobile app alerts, keeping customers engaged and informed. This level of transparency and meeting the customer where they are can significantly boost their confidence in your business.

Flexible Delivery Options

Offering flexible delivery options is crucial for today’s online shopper. According to many studies, customers prefer flexible delivery options. Providing diverse shipping methods allows customers to select options that best meet their needs, budgets, and availability.

Having multiple delivery options can enhance customer satisfaction and minimize the likelihood of cart abandonment. This flexibility ensures that your customers can choose the delivery method that works best for them, making their shopping experience more convenient and enjoyable.

Branded Packaging and Tracking Pages

Branded packaging and custom tracking pages play a crucial role in shaping customer perceptions and experiences during the shipping process. Customized tracking pages can enhance the customer experience by providing a branded touchpoint during the shipping process.

Integrating branded packaging and custom tracking pages not only elevates the customer experience but also fosters brand loyalty and reduces the likelihood of cart abandonment. This cohesive branding can make a lasting impression on your customers, encouraging repeat business and positive reviews.

Reducing Shipping Costs with Advanced Solutions

Shipping costs are a significant expense for ecommerce businesses, and reducing these costs can improve profitability. Key metrics to monitor include on-time delivery rates, shipping costs per shipment, and carrier performance on speed and reliability. Tracking shipping expenses over time allows businesses to identify cost trends and potential financial issues.

Advanced solutions like rate comparison tools, volume discounts, and efficient packaging strategies can help reduce shipping costs and streamline operations.

Rate Comparison Tools

Shipping rates are influenced by various factors, including courier options and unique business variables. Using rate comparison tools in ecommerce shipping allows businesses to identify the best shipping rate deals available in the market.

Cahoot, for example, automatically finds and assigns the lowest cost labels for each order, ensuring users save money on every package shipped without compromising delivery speed. Utilizing lightweight packaging like poly mailers can further reduce shipping costs as they adjust to different volumes and weights.

Volume Discounts

Consolidating shipping volumes helps businesses negotiate better rates with carriers. Volume discounts can significantly lower shipping expenses for ecommerce businesses. Securing volume discounts allows businesses to optimize their shipping costs and improve profit margins.

Overall, leveraging volume discounts through an effective ecommerce shipping strategy can enhance the efficiency and cost-effectiveness of ecommerce operations.

Efficient Packaging Strategies

Optimizing packaging can lead to lower shipping rates and reduced operational costs. Understanding the average package weight can help in optimizing packaging to minimize shipping costs.

Businesses should consider carrying a variety of package sizes and materials to meet diverse shipping needs efficiently. This approach not only reduces packaging costs but also ensures that products are protected during transit, reducing the risk of damage and returns.

Streamlining Your Order Fulfillment Process

Streamlining your order fulfillment process is necessary for improving efficiency and customer satisfaction. Fulfillment services can enhance the efficiency of order processing by managing logistics and inventory storage. Using platforms like ShipStation simplifies the management of orders and fulfillment workflow by automating order imports and logistics.

Partnering with third-party logistics providers can significantly improve customer experience by streamlining logistics operations. Regularly monitoring shipping metrics such as delivery times and order accuracy will help you stay on top of your shipping performance and bring clarity when deciding if outsourcing fulfillment should be considered.

Leveraging route optimization tools can significantly reduce delivery times by identifying the fastest paths for shipment.

Batch Processing and Automation

Implementing batch processing can significantly enhance the speed of order packing and shipping. Automated systems can cut down the time required for packing and shipping orders. Data analytics can pinpoint inefficiencies in shipping routes and processes, enabling targeted cost-reduction strategies.

This level of automation and data-driven decision-making can make a substantial difference in your order fulfillment efficiency.

Inventory Management Integration

Integrating shipping solutions with inventory management software ensures that stock levels remain accurate across all sales platforms, and minimizes double data entry (or triple, or more!). Or better yet, select a solution that has inventory management capabilities built-in.

Effective integration with ecommerce platforms can streamline the order fulfillment process, ensuring that your inventory is always up to date and that orders are processed efficiently.

Scheduling Carrier Pickups

Scheduling carrier pickups helps businesses manage their shipping tasks more effectively. Scheduling pickups helps businesses streamline the shipping workflow, provide predictability, and reduce time spent dropping off packages at carrier hubs. Arranging carrier pickups can eliminate the need to stand in lines, saving time and resulting in smoother operations. Some ecommerce shipping solutions such as ShipStation will allow you to schedule pickups from within their software.

Ensuring Security and Compliance

Ensuring security and compliance is essential for maintaining customer trust and avoiding legal issues. Ecommerce businesses must implement robust security measures to protect customer data. Ecommerce brands face increased risks just having access to this sensitive information due to multiple parties needing access to order data, making shipping insurance essential.

International regulations, paperwork, customs forms, and duties calculations are required for shipping to ensure compliance. Regulations are increasingly mandating reduced packaging waste, pushing ecommerce brands to adopt sustainable packaging solutions.

Shipping Insurance

Shipping insurance is vital for protecting shipments, helping ecommerce businesses manage risks associated with theft, loss, and damage during transit. For imported inventory, marine cargo insurance provides comprehensive coverage for the full value of goods throughout their shipping journey from overseas. Consumer delivery insurance allows customers to insure their shipments during checkout, addressing concerns about theft or damage. Limited liability insurance relies on carriers’ own policies, which typically cover only minimal amounts, resulting in a riskier option for ecommerce companies. While this latter option is free up to $50 or $100 declared value, depending on the carrier used, getting claims approved is often impossible, so it’s best to protect the goods when it makes sense to do so. Using inexpensive third-party cargo insurance is recommended.

Data Security Measures

Shipping solutions must implement robust data security measures to protect sensitive customer information from unauthorized access. Encryption protocols are essential for protecting customer data during transactions and communications. Encrypting sensitive information, using firewalls, and maintaining antivirus protection are essential for data security in ecommerce.

Authentication methods such as two-factor verification and IP monitoring help ensure secure online transactions. And sensitive data should be redacted from ecommerce shipping solutions after transactions are settled and no longer needed.

Using Analytics to Optimize Shipping Operations

Using analytics in shipping operations can significantly enhance overall efficiency by identifying areas for improvement. Regular updates and audits of ecommerce software are critical in preventing vulnerabilities from being exploited. Emerging technology in shipping includes AI and predictive analytics, which enhance demand forecasting and operational efficiency.

AI applications in shipping help companies predict demand by analyzing historical data and live market trends. Agentic AI solutions can act on their findings independently and create Purchase Orders with vendors within established budget guidelines. By leveraging advanced analytics, businesses can make data-driven decisions that improve their shipping and procurement operations.

Tracking Performance Metrics

Tracking key performance metrics is essential for evaluating shipping efficiency and delighting customers. Use tools to monitor on-time delivery rates as higher percentages correlate with customer happiness.

Average delivery time is also an important metric, helping businesses gauge their shipping efficiency against industry standards and delivery promises. Shipping software analyzes shipping data to provide insights into business performance and optimize logistical efficiency.

Identifying Cost-Saving Opportunities

Analytics can reveal cost drivers linked to various carriers and services, shipping supplies, and waste from inefficient shipping such as using boxes that are too large and push the shipment into more expensive dimensional weight rates. Reviewing the data enables businesses to negotiate better rates on the shipping weights, sizes, and zones they are actually using while minimizing unnecessary expenses.

Improving Delivery Times

Utilizing data insights can significantly enhance the optimization of delivery routes for ecommerce businesses. Advanced analytics enable companies to analyze traffic patterns, weather conditions, and delivery performance to select the most efficient routes and shipping locations to reduce transit times, fuel consumption, and operational costs. The effective application of data insights in delivery planning leads to faster delivery times, higher customer satisfaction, and improved overall efficiency.

Summary

Choosing the right ecommerce shipping solution involves understanding your business needs and the key features that can optimize your workflows and deliver meaningful business impact. From integration capabilities and multi-carrier support to automated label creation and printing, these features play a crucial role in enhancing operational efficiency and customer satisfaction. As ecommerce continues to evolve, adopting advanced shipping strategies and the solutions that support them will be key to maintaining a competitive edge and ensuring long-term success.

Frequently Asked Questions

What are the key features to look for in ecommerce shipping solutions?

When selecting ecommerce shipping solutions, prioritize integration capabilities, multi-carrier support, automated label creation and printing, cost management, and compliance with domestic and international regulations.

How can I reduce shipping costs for my ecommerce business?

To effectively reduce shipping costs for your ecommerce business, optimize packaging for weight and size, utilize flat-rate shipping options for heavy items, explore discounted shipping rates, and offer local delivery or pickup. Many platforms like Cahoot, ShipStation, and Easyship offer discounted shipping rates through their carrier relationships that can save many thousands of dollars. Also, utilize rate comparison tools, secure volume discounts, and optimize your packaging strategies (shipping supplies and cartonization technology). These approaches will help you streamline expenses and enhance profitability.

Why is real-time tracking important for ecommerce shipping?

Real-time tracking is crucial for ecommerce shipping as it enhances customer satisfaction by keeping them informed about their order status, thereby reducing anxiety associated with uncertainty. This transparency fosters trust and loyalty towards the brand.

What is the best online shipping service?

The Top 3 Online Shipping Services are:

• Cahoot
• ShipStation
• EasyShip

What’s the difference between Cahoot’s network and Cahoot’s shipping software?

Cahoot’s platform is a peer-to-peer order fulfillment services network where top-rated merchants share warehouse space and fulfillment services with one another. Cahoot’s shipping software is next-generation ecommerce shipping software that can support any size merchant, including high-volume merchants shipping millions of parcels per year. Merchants can use either or both. Our fastest-growing clients use both.

What are the carriers for ecommerce shipping?

The most common national carriers are UPS, USPS, and FedEx, while popular regional carriers include OnTrac, Courier Express, and PITT OHIO, among others. Amazon Shipping will soon be matching the last-mile delivery reach of the national carriers. For international shipments, DHL Express and GlobalPost are most common, however, UPS, USPS, FedEx, and many other carriers also support international deliveries.

How to ship items you sell online?

To ship products from your house, you can use a shipping carrier like USPS, FedEx, or UPS. First, package your product securely and weigh it to determine the shipping cost. Then, create a shipping label online and either schedule a carrier pickup or drop them off at a carrier location. You can also purchase postage and drop your packages off at the same time at any post office, The UPS Store, and/or FedEx Office location.

Written By:

Indy Pereria

Indy is the Head of People Operations at Cahoot, fosters innovation, develops recruitment strategies, and scales the company’s culture.

Deciding between Shopify vs Amazon for your ecommerce business? Shopify lets you create a custom online store, while Amazon provides instant access to millions of customers. This article will compare their differences, costs, and benefits of each to help you choose the right platform in the Shopify vs Amazon debate.

Key Takeaways

• Shopify offers greater customization and branding options, allowing you to create a unique online store, while Amazon is a marketplace with a uniform design that limits individual branding.
• Setting up a store on Shopify involves a guided process, making it beginner-friendly, whereas Amazon allows quicker product listing but requires strict adherence to selling standards.
• Shopify has a more flexible pricing model without transaction fees on its payment system, while Amazon imposes referral fees that can eat into Seller profits; understanding these costs is key to choosing the right platform.

Key Differences Between Shopify and Amazon

When it comes to selling products online, both Amazon and Shopify are giants in their own right, but they serve different purposes. Shopify is an ecommerce platform that allows you to sell online and create your own online stores, providing a blank canvas for your brand. In contrast, Amazon is a vast online marketplace where multiple Sellers list their products, akin to owning a stand at a busy market. In the debate of Shopify vs Amazon, each platform has its unique strengths.

Listing products on Amazon can be a bit more cumbersome as it requires Sellers to provide documentation for account approval, which can delay the setup process. On the other hand, Shopify offers more freedom in entering product information, making it easier to get your shop up and running quickly.

Customization is another area where Shopify shines. Amazon’s layout significantly influences a merchant’s store page design, limiting how much you can personalize your shop. Shopify, however, allows for extensive branding and customization options, letting you create a cohesive brand experience that stands out. Whether you’re a small business or a larger enterprise, Shopify provides the tools to build a unique online presence.

New Amazon merchants often face challenges such as strict requirements for product descriptions and listings, which can be daunting. In contrast, Shopify offers a more flexible and supportive environment, making it a preferred choice for many online Sellers.

Ease of Setting Up Your Online Store

Setting up an online store should be as straightforward as possible, and both Shopify and Amazon offer different experiences in this regard. Shopify’s setup process includes a comprehensive 8-step guide, ensuring users receive support while customizing their online store. This guide, combined with Shopify’s user-friendly tools like the AI assistant for writing product descriptions and the drag-and-drop website builder, makes it an excellent choice for individuals without technical skills.

Amazon allows users to start listing products almost immediately after creating an account, streamlining the process significantly compared to Shopify. This immediate access to a huge customer base can be a major advantage for Sellers looking to start selling online quickly. However, selling on Amazon resembles operating a booth in a crowded market, whereas Shopify allows you to create your own branded online storefront.

Shopify’s pricing structure allows selling an unlimited number of products without incurring additional listing fees, making it a cost-effective option for growing businesses. Whether you want to build your own online store with customizable templates or leverage Amazon’s vast marketplace, understanding these differences can help you choose the best platform for your business.

Branding and Customization Options

Branding is crucial for any business, and this is where Shopify truly excels. Shopify offers extensive brand customization, allowing you to create a unique and cohesive brand experience. From customizable themes to HTML/CSS modifications, Shopify provides the tools to personalize every aspect of your online store. This means you can build your very own brand and customer experience that stands out in the crowded ecommerce space.

In contrast, Amazon’s marketplace design emphasizes uniformity, limiting individual Seller branding opportunities. While this can ensure a consistent shopping experience for customers, it restricts Sellers from fully expressing their brand identity. Selling on Shopify allows for complete ownership of your own store, providing more control over branding and pricing.

With Shopify, Sellers can build direct relationships with customers, gaining valuable information like names and emails that can be used for personalized marketing efforts. For businesses aiming to establish a strong brand presence, Shopify’s customizable templates and extensive branding tools are a major benefit. This flexibility allows you to tailor the customer experience to align with your brand values and goals.

Marketing Tools and Capabilities

Effective marketing is the key to driving traffic and sales, and Shopify and Amazon offer different ecommerce tools to help Sellers reach prospective customers. Shopify users can utilize a variety of marketing and SEO tools to enhance the visibility of their own website. From targeted advertising campaigns on platforms like Meta and Google to email marketing and marketing automation tools, Shopify provides a comprehensive suite of tools to help you grow your business online.

Shopify’s SEO tools guide users on improving their search engine rankings, aiding in better visibility for their online stores. Additionally, Shopify allows users to run targeted advertising campaigns across various platforms, only charging when conversions occur. This means you can reach your prospective customers more effectively and maximize your marketing budget.

Amazon Sellers must optimize for the Amazon search engine specifically, which requires a different approach to SEO. While Amazon provides immediate access to a wide range of customers, it also means Sellers need to invest in promotions to ensure visibility.

Shopify, on the other hand, requires more active marketing efforts since it does not benefit from the same built-in traffic that Amazon has. This means businesses on Shopify need to be more proactive in their marketing strategies to drive traffic and sales.

Pricing and Fees Comparison

Understanding the pricing and fees associated with each platform is essential for making an informed decision. Different types of fees to consider when comparing Amazon and Shopify include subscription fees, transaction fees, referral fees, and fulfillment fees.

Let’s break down these fees to see how each platform stacks up.

Subscription Fees

Shopify offers four main plans: Basic Shopify at $29 per month, Shopify at $79 per month, Advanced Shopify at $299 per month, and an enterprise plan for more complex businesses called Shopify Plus, starting at $2,300 per month for 36 months. These plans cater to businesses of varying sizes, providing flexibility and scalability as your business grows. The Basic Shopify plan is perfect for new and small businesses, while the Advanced Shopify plan offers more advanced features for larger enterprises.

Amazon, on the other hand, offers a simpler pricing structure with two plans. The Individual plan is suitable for casual Sellers who don’t need advanced features, ($0.99 per item sold, separate from other fees), while the Professional plan is recommended for business owners or professional retailers ($39.99 per month). This straightforward approach can be easier for Sellers to navigate but may not provide the same level of flexibility as Shopify’s tiered pricing plans.

Transaction and Referral Fees

One of Shopify’s significant advantages is that it does not impose transaction fees when users utilize Shopify Payments; you only pay the credit card rate, which covers the cost of processing the payment. This means Sellers can keep nearly all their profits without worrying about additional costs per transaction.

Amazon’s referral fees vary by product category and can range from 6% to as high as 45% depending on the item sold, but the most common by far is 15%. Shopify does not impose referral fees, which can lead to higher profits for sellers.

Additionally, Amazon charges a per-item fee for Sellers on the Individual plan, while Shopify allows unlimited products without additional listing fees. This can lead to substantial savings for Sellers using Shopify, making it a more cost-effective option in the long run.

Fulfillment Fees

Using Amazon FBA incurs various fulfillment fees based on the size and weight of the products, which can significantly impact overall expenses. These fees include storage and handling fees, which can add up quickly, especially for larger or heavier items.

Shopify, on the other hand, allows Sellers to manage shipping with customizable rates, weights, rules, and options to connect with third-party fulfillment services. This flexibility can help Sellers optimize their shipping process and reduce costs.

Shipping and Fulfillment Options

Shipping and fulfillment are central to any ecommerce business. Amazon FBA offers Sellers the advantage of leveraging Amazon’s extensive logistics network for handling inventory and shipping. This means businesses can benefit from Amazon’s fast and reliable shipping options, enhancing the customer experience.

Shopify provides users the flexibility to integrate with various order management systems and third-party logistics (3PL) providers for efficient fulfillment operations. Sellers on Shopify can set up shipping rates based on weight, destination, and specific conditions to customize their shipping process.

Additionally, integrating Shopify with Amazon Multi-Channel Fulfillment (MCF) can enhance the speed of order fulfillment, allowing customers to receive their orders more quickly. Shopify Buy with Prime is also an MCF solution, but adds a special buy button to Shopify checkout pages to allow customers to choose FBA fulfillment rather than Sellers deciding for them. These integrations can reduce manual labor by outsourcing the processing of customer orders and while optimizing logistics.

Payment Options

Payment options are a fundamental part of the ecommerce experience. Shopify Payments allows users to accept payments directly through their store without additional fees for credit card processing. This integrated payment gateway simplifies the checkout process and can improve conversion rates. Moreover, Shopify users can also integrate third-party payment processors, offering more flexibility in payment acceptance, and the Shop Pay app enables a quick 1-click checkout experience for shoppers.

Amazon supports various payment methods, including gift cards, bank account transfers, and mobile payments. The primary payment gateway for Amazon is Amazon Pay, which provides a seamless and secure payment experience for customers.

While both platforms offer robust payment options, Shopify’s flexibility and lack of additional fees make it a more attractive choice for many Sellers.

SEO and Organic Sales

SEO is crucial for enhancing online visibility and reaching potential customers in ecommerce. Optimizing product pages effectively can significantly improve a Shopify store’s visibility in search results, attracting more customers. Content marketing through blogging can further increase organic traffic, helping to establish authority and relevance in your category.

Sales on Amazon often require continuous promotion, as organic visibility is not guaranteed. This means Sellers need to invest in Amazon SEO and other promotional strategies to maintain a competitive edge.

While Shopify requires more active marketing efforts, the potential for building long-term organic sales through effective SEO and content marketing can be highly rewarding.

Integrating Amazon with Shopify

Integrating Amazon with Shopify can expand your reach and enhance your sales opportunities. This integration allows you to synchronize inventory and product information between Shopify and Amazon, streamlining the management of your online store. The process can involve using a built-in Amazon app, third-party applications, or custom APIs depending on your business needs.

Once integrated, users can create Amazon offers and listings directly from their Shopify store. Onboarding for integration can vary in time, with simpler setups taking as little as 15-30 minutes. This synergy between the two platforms can significantly enhance your ecommerce results, offering the best of both worlds.

Pros and Cons of Selling on Both Platforms

Selling on both Shopify and Amazon can allow businesses to maximize their reach and conversions. Amazon provides immediate access to a wide range of customers, which is crucial for driving sales. However, competition on Amazon is intense, requiring Sellers to invest in promotions to ensure visibility to sell products.

With over 1.75 million merchants using Shopify, businesses can avoid referral fees by using this platform, offering better marketing flexibility and control. Amazon’s strict policies can lead to account bans if compliance is not maintained, adding an element of risk for Sellers. ReSellers doing wholesale or retail arbitrage may find Amazon more suitable due to its vast marketplace.

A successful online business ecommerce platform presence should ideally include both an official website and a presence on platforms like Amazon for maximum impact. Balancing the strengths of both platforms can help businesses achieve their sales and branding goals more effectively by creating their own ecommerce website.

Beyond the Basics

Beyond the basics, both Shopify and Amazon offer unique features that can enhance your ecommerce experience. Shopify Capital provides merchant cash advances and loans to eligible store owners, a financial service many people don’t associate with the platform.

Amazon’s A9 Algorithm, which differs significantly from Google’s algorithm, plays a crucial role in how products are ranked on the site. Understanding these unique features can help you leverage each platform’s full potential.

Summary

Both Shopify and Amazon offer powerful tools for selling products online, but they cater to different needs and business models. Shopify provides extensive branding and customization options, making it ideal for businesses looking to build a unique online presence. Its flexible pricing plans and lack of transaction fees further enhance its appeal. Amazon, with its vast marketplace and immediate access to millions of customers, is perfect for Sellers looking to reach a large audience quickly.

Ultimately, the choice between Shopify and Amazon depends on your business goals and needs. For many Sellers, using both platforms can be the best strategy, combining the strengths of each to maximize reach and sales. By understanding the key differences and benefits of each platform, you can make an informed decision that sets your business up for success.

Frequently Asked Questions

Can I use both Shopify and Amazon to sell my products?

Absolutely, you can use both Shopify and Amazon to sell your products! By integrating them, you can sync your inventory and easily manage listings, giving your business the best of both worlds.

What are the main differences between Shopify and Amazon?

The main difference is that Shopify lets you build a customized online store where you control branding and customer relationships, while Amazon is a vast marketplace where many Sellers can reach a large audience, but have very little control. So, choose Shopify for brand control or Amazon for quick access to customers.

How do the fees compare between Shopify and Amazon?

Shopify generally offers more predictable and lower fees, especially if you use Shopify Payments and avoid additional transaction fees. In contrast, Amazon has varying referral fees by product category and additional fulfillment costs with FBA.

Which platform is easier to set up for a new business?

Shopify is generally easier to set up for a new business because it offers a comprehensive setup guide and user-friendly tools, perfect for those without technical skills. However, Amazon allows for immediate product listing, giving Sellers a quick start if speed is a priority.

What are the advantages of integrating Shopify with Amazon?

Integrating Shopify with Amazon expands your reach and boosts sales by synchronizing inventory and product information. This means you can easily manage your listings and improve your visibility across both platforms.

Written By:

Indy Pereria

Indy is the Head of People Operations at Cahoot, fosters innovation, develops recruitment strategies, and scales the company’s culture.

Selling on Amazon through the Fulfillment by Amazon (FBA) program offers tremendous opportunities for ecommerce entrepreneurs. The ability to leverage Amazon’s vast fulfillment network allows sellers to focus on growing their businesses rather than handling logistics. However, before products can enter Amazon’s fulfillment centers, they must meet specific preparation requirements. This is where FBA prep services come into play, offering a crucial intermediary step that can streamline operations and prevent costly mistakes, ultimately supporting the success of your Amazon business.

Understanding Amazon FBA Prep Service Requirements

Amazon maintains strict standards for products entering their fulfillment centers. These requirements ensure efficient processing, storage, and shipping of items to customers. Typical preparation needs include proper packaging, labeling, bundling, and protection measures tailored to different product categories.

For instance, fragile items require additional cushioning, while clothing might need polybags with suffocation warnings. Electronics often require special static-free packaging, and items with expiration dates must have visible labeling. Amazon can reject improperly prepared inventory, leading to returns at the seller’s expense, storage fees, or even inventory disposal.

These requirements can become overwhelming, especially for new sellers or those expanding their product lines. Meeting Amazon’s specifications demands time, knowledge, specialized materials, and dedicated workspace. This complexity has given rise to specialized FBA prep services that bridge the gap between manufacturers and Amazon’s fulfillment centers.

What Are FBA Prep Services?

FBA prep services are third-party operations that handle the preparation of inventory according to Amazon’s guidelines before sending products to fulfillment centers. These specialized services act as intermediaries between suppliers or manufacturers and Amazon, ensuring products meet all requirements before entering the FBA ecosystem.

These services typically offer comprehensive solutions for the Amazon FBA seller, including receiving inventory from suppliers, inspecting for quality issues, preparing according to Amazon’s category-specific guidelines, labeling with Amazon barcodes, and finally shipping to designated fulfillment centers. Many also provide additional services such as photography, bundling, kitting, and removal of supplier packaging.

The primary goal of prep services is to ensure products comply with Amazon’s requirements, preventing costly rejections or penalties while saving sellers valuable time and resources.

The Benefits of Using FBA Prep Services

Outsourcing preparation tasks to specialized services offers numerous advantages for FBA sellers of all sizes.

Time savings represent one of the most significant benefits. Properly preparing inventory for Amazon can be labor-intensive and time-consuming. By delegating these tasks to professionals, sellers can redirect their energy toward strategic activities like product sourcing, marketing, and business growth.

Cost efficiency also plays a crucial role. While prep services charge fees, they often prove more economical than handling preparation in-house, especially when considering the expenses of warehouse space, packaging materials, equipment, and labor. For many sellers, the economies of scale achieved by prep services translate to lower per-unit costs.

Professional expertise is another key advantage. Established prep services stay current with Amazon’s frequently updated requirements and possess the knowledge to handle various product types correctly. Their experience minimizes the risk of costly mistakes that could lead to inventory rejections, returns, or customer dissatisfaction.

Scalability benefits become apparent as businesses grow. Using prep services eliminates the need to expand physical workspace or hire additional staff during growth phases or seasonal peaks. These services can typically accommodate fluctuating inventory volumes without requiring sellers to adjust their infrastructure.

Geographic advantages also merit consideration. Strategically located prep services can reduce shipping costs and transit times to Amazon’s fulfillment centers. Some services maintain facilities near major Amazon hubs, optimizing the final delivery leg of the supply chain.

Common Services Offered by FBA Prep Companies

The scope of fulfillment services offered varies between providers, but most cover fundamental preparation needs while offering specialized options for specific requirements.

Inspection serves as the foundation of quality control. Prep services examine incoming inventory for manufacturing defects, shipping damage, or inconsistencies before proceeding with preparation, potentially saving sellers from customer returns and negative reviews.

Packaging and protection ensure products arrive at customers in perfect condition. Services apply appropriate packaging materials according to Amazon’s guidelines and product vulnerability, which may include bubble wrap, air pillows, polybags, or custom solutions.

Labeling represents a critical compliance element. Prep services print and apply Amazon-compliant FNSKU labels, ensuring proper inventory tracking within Amazon’s system. Some also handle hazmat labels, expiration dates, or country of origin markings as required.

Bundling and kitting capabilities allow sellers to create multi-product offerings without handling the assembly themselves. Prep services can combine separate items into cohesive packages according to sellers’ specifications, creating value-added product bundles.

Inventory management features often include real-time tracking systems that allow sellers to monitor their products throughout the preparation process. Many services offer online portals where sellers can view inventory status, preparation progress, and shipping confirmations.

How to Choose the Right FBA Prep Service

Selecting an Amazon prep center requires careful consideration of several factors to ensure alignment with business needs.

Location considerations should account for proximity to suppliers and Amazon fulfillment centers. Strategic positioning can minimize shipping costs and transit times, accelerating inventory availability and reducing logistics expenses.

Pricing structures vary significantly between providers. Some charge per unit, others by weight, and some use hybrid models that include storage fees or minimum monthly charges. Understanding the fee structure and comparing total costs based on your specific product profile is essential.

Service capabilities should match your product requirements. Some prep services specialize in certain categories like apparel or electronics, while others provide broader support. Confirming they can handle your specific preparation needs prevents potential complications.

Technological integration capabilities merit evaluation, particularly for high-volume sellers. Services offering integration with inventory management systems, Amazon Seller Central, or other e-commerce platforms can streamline operations and reduce manual data entry.

Reputation and reliability should be thoroughly vetted. Reading reviews, requesting references, and testing services with small shipments before committing to larger volumes can prevent costly partnerships with underperforming providers.

Understanding Amazon FBA Prep Services Pricing

Amazon FBA prep services pricing can vary widely depending on the provider and the specific services offered. Typically, these services charge either by the item or by the volume of products being prepped. Some providers may also impose storage fees if products are held at their facility before being shipped to Amazon’s fulfillment centers.

When selecting an FBA prep service, it’s crucial to consider the pricing options and ensure they align with your business needs. Some providers offer discounts for bulk orders or long-term contracts, which can be beneficial for high-volume sellers. Others may charge extra for specialty services like kitting or bundling, so it’s important to understand all potential costs upfront.

To get the best value for your money, research and compare the pricing of different FBA prep services. Look for providers that offer transparent pricing, flexible payment options, and a clear breakdown of their services and costs. This due diligence can help you avoid unexpected expenses and ensure that the prep service you choose supports your business’s financial health.

Top Amazon FBA Prep Centers for Ecommerce Fulfillment

Choosing the right Amazon FBA prep center is crucial for the success of your ecommerce business. Here are some top Amazon FBA prep centers known for their reliability and comprehensive services:

1. AMZ Prep: A full-service FBA partner with a global reach, AMZ Prep offers a wide range of services including FBA prep, shipping, and storage. Their extensive network and expertise make them a strong choice for sellers looking to streamline their operations.
2. ShipMonk: Known for its strong focus on customer service, ShipMonk provides services such as opening and repackaging goods, labeling, and shipping. Their attention to detail and customer-centric approach make them a popular choice among Amazon sellers.
3. Fulfillment by Amazon (FBA): Amazon’s own fulfillment service offers numerous benefits, including fast and reliable shipping, customer service, and returns handling. Leveraging Amazon’s infrastructure can provide significant advantages in terms of efficiency and customer satisfaction.
4. Cahoot: While FBA Prep isn’t Cahoot’s primary business model, we do have an entire business unit and fully automated workflow within the Cahoot software that guides users on exactly how to request prep and forwarding to FBA fulfillment centers.

When choosing an FBA prep center, consider factors such as their experience with Amazon, understanding of FBA prep requirements, pricing, and customer service. Look for providers that offer flexible services, transparent pricing, and a strong focus on customer satisfaction to ensure a smooth and efficient fulfillment process.

Amazon FBA Fulfillment Costs and Strategies

Amazon FBA fulfillment costs can be a significant expense for ecommerce businesses, but with the right strategies, you can minimize these costs and maximize your profits. Here are some tips to help you reduce your Amazon FBA fulfillment costs:

1. Optimize Your Product Packaging: Proper packaging can help reduce shipping costs and prevent damage to your products. Using the right materials and packaging techniques can also ensure compliance with Amazon’s guidelines.
2. Use Amazon’s Fulfillment Centers: Amazon’s fulfillment centers are strategically located to minimize shipping costs and ensure fast delivery. By utilizing these centers, you can take advantage of Amazon’s logistics network to improve efficiency and reduce expenses.
3. Take Advantage of Amazon’s Free Services: Amazon offers a range of free services, including free storage for a limited time and customer returns handling. Leveraging these services can help you save money and streamline your operations.
4. Monitor Your Inventory Levels: Keeping track of your inventory levels can help you avoid additional costs for aged inventory and ensure you’re not overstocking. Regularly reviewing your inventory can also help you make informed decisions about restocking and managing your supply chain.
5. Use Amazon’s Revenue Calculator: Amazon’s revenue calculator can help you estimate your FBA costs and compare them to your own fulfillment method. This tool can provide valuable insights into your cost structure and help you identify areas for improvement.

By implementing these strategies, you can reduce your Amazon FBA fulfillment costs and increase your profits, ensuring a more efficient and profitable ecommerce business.

Setting Up Your FBA Prep Service Relationship

Establishing a smooth working relationship with your chosen prep service involves several key steps.

Initial onboarding typically requires creating an account with the prep service and providing essential business information. This process often includes completing seller profiles, specifying preparation instructions, and setting up billing arrangements.

Amazon permissions must be properly configured to allow the prep service to work on your behalf. This usually involves adding them as users to your Seller Central account with appropriate permission levels or sharing specific access credentials required for inventory management. Properly configuring Amazon permissions ensures that the prep service can manage your FBA shipments efficiently and in compliance with Amazon’s standards.

Communication protocols should be clearly established, defining primary contact methods, response timeframes, and escalation procedures for urgent issues. Regular check-ins and feedback sessions can help optimize the partnership over time.

Standard operating procedures documentation proves invaluable for consistent operations. Developing clear instructions for how products should be handled, special preparation requirements, and quality standards ensures the prep service understands your expectations.

Performance monitoring should be ongoing, tracking key metrics like processing times, error rates, and overall cost-effectiveness. Regular performance reviews help identify improvement opportunities and ensure the service continues meeting business needs.

Potential Challenges and Solutions

While Amazon prep centers offer significant benefits, certain challenges may arise that require proactive management.

Quality control inconsistencies can occur, especially with high-volume operations or staff turnover. Establishing clear quality standards, conducting random inspections, and providing feedback on issues can help maintain consistent preparation quality.

Communication breakdowns represent another common challenge. Maintaining open channels, documenting instructions clearly, and establishing regular update mechanisms can prevent misunderstandings and ensure timely problem resolution.

Seasonal capacity constraints may affect service levels during peak periods like Q4. Planning ahead, providing volume forecasts to your prep service, and potentially distributing inventory across multiple services for critical periods can mitigate these challenges.

Conclusion

For Amazon sellers seeking to optimize their operations, FBA prep services offer a valuable solution that balances efficiency, compliance, and scalability. By understanding the range of services available, carefully selecting the right partner, and establishing clear working relationships, sellers can leverage these specialized intermediaries to streamline their supply chains and focus on strategic business growth.

Some prep services also offer multi-channel fulfillment, enabling sellers to expand their reach beyond Amazon to other platforms like Walmart and eBay. Whether you’re a new seller looking to avoid the learning curve of Amazon’s requirements or an established business seeking to scale without expanding infrastructure, the right prep service can transform your FBA operations. As with any business partnership, success depends on careful selection, clear communication, and ongoing management – but with these elements in place, prep services can become a cornerstone of an efficient, profitable Amazon selling strategy.

Frequently Asked Questions

What is Amazon FBA prep?

Amazon FBA prep refers to the process of preparing products for sale on Amazon, including packaging, labeling, and shipping. This ensures that products meet Amazon’s requirements and are ready for fulfillment.

What are the benefits of using an FBA prep service?

Using an FBA prep service can help you save time, reduce costs, and ensure compliance with Amazon’s guidelines. These services handle the intricate details of preparation, allowing you to focus on growing your business.

How do I choose the right FBA prep service?

When choosing an FBA prep service, consider factors like their experience with Amazon, understanding of FBA prep requirements, pricing, and customer service. Look for providers that offer transparent pricing and flexible services tailored to your needs.

What are the costs associated with FBA prep services?

FBA prep services typically charge by the item or by the volume of products being prepped. Some providers may also charge storage fees if products are held at their facility before being shipped to Amazon. It’s important to understand all potential costs upfront.

Can I use an FBA prep service for specialty products?

Yes, many FBA prep services offer specialty services like kitting, bundling, and custom packaging for products that require special handling. These services can help ensure that your products are prepared correctly and meet Amazon’s specific requirements.

Written By:

Indy Pereria

Indy is the Head of People Operations at Cahoot, fosters innovation, develops recruitment strategies, and scales the company’s culture.

Shipping costs are one of the biggest challenges for ecommerce businesses today, and understanding them is essential to reducing expenses and increasing profit margins. With rising carrier fees, labor expenses, and warehouse leases, every dollar saved makes a difference. Shipping costs can vary greatly depending on several factors, including package weight, dimensions, destination, and shipping method. Traditional shipping software, built for a simpler time, often fails to optimize costs effectively, leaving businesses to absorb unnecessary expenses. By gaining a clear understanding of these costs, businesses can make informed decisions that help reduce shipping expenses and improve overall efficiency.

That’s where next-generation ecommerce shipping software comes in. Designed to reduce shipping costs at every stage, these advanced solutions automate key processes: choosing the most affordable shipping labels, optimizing package sizes to avoid dimensional weight fees, and streamlining fulfillment with minimal manual intervention. By leveraging automation and AI-driven decision-making, merchants can significantly cut costs while improving delivery efficiency.

In this article, we’ll explore how next-gen shipping software helps save money, eliminate cost leakages, and improve warehouse efficiency, giving businesses the competitive edge they need to succeed in ecommerce today.

Shipping Costs are One of the Biggest Challenges for Ecommerce Businesses Today

Shipping costs can be a significant challenge for ecommerce businesses, as they can eat into profit margins and affect customer satisfaction (and revenue) if they skimp on delivery speed. To reduce shipping costs, ecommerce businesses can implement various strategies, such as negotiating with shipping carriers, using discounted shipping supplies, and optimizing packaging. By taking proactive steps to manage shipping expenses, businesses can protect their profit margins and offer competitive shipping rates to their customers.

Calculating Shipping Costs

Calculating shipping costs involves considering all the factors mentioned above. To calculate shipping costs, ecommerce businesses can use shipping calculators, consult with shipping carriers, or connect to carrier APIs for real-time rate shopping to determine the most cost-effective option. It’s essential to factor in all shipping fees, including fuel surcharges, handling fees, delivery area surcharges, and insurance costs, among others. By accurately calculating shipping costs, businesses can set appropriate pricing strategies and avoid unexpected expenses.

Savings: Stay Ahead and Boost Margins Despite Rising Costs

We’ve now identified two key things that next-generation ecommerce shipping software must do – it must simplify operations in today’s complex world, while also boosting your team’s productivity and freeing up their time.

However, the biggest pressure merchants face today is around costs. At a time when major carriers implement annual rate increases (GRIs) and additional surcharges, along with rising worker wages and warehouse leases, Sellers need to be scrappy to save every penny to protect and increase their margins. It can make the difference between going out of business and finding success.

Legacy software does a poor job of unlocking savings because it was built for a world where resource optimization or cost‑cutting was not needed. We believe there are three key areas of the shipping workflow where software must be able to unlock cost savings:

• Does the software pick the cheapest shipping label every time?
• Does the software optimize packaging and shipping costs for large, complex orders?
• Is the software easy to use, with minimal human oversight? Can it work effectively with untrained, seasonal, or part‑time labor?

Pick the Cheapest Label Automatically, Every Time

Legacy Software – You’ll Never Know if You’re Saving Money

As we’ve seen previously, legacy software requires many manual automation rules to support workflows. But why do merchants go to all this trouble? The answer is simple – to identify the cheapest shipping label on every order.

However, the automations (mapping SKUs and customer addresses to fulfillment locations and carrier services) are simply a means to an end. There is no way to verify whether the rules ensure the cheapest option is picked every time.

To determine that, manual and deep cost comparison analysis is required. The possibility of cost leakage is real, and in a world where customers expect free and fast shipping on every order, every last dollar matters. You need certainty and confidence in the labels your shipping software selects.

Next‑Gen Software – Savings on Every Label

Cahoot’s software removes the maze of complex, human‑defined automation rules. With no rules to manage, you don’t need to worry about optimizing them for maximum savings. The system intelligently factors in all parameters to make the right choice every time.

It’s easy to overlook scenarios when defining rules manually. For example, a one-unit order might weigh less than one pound, qualifying for USPS Ground Advantage. But what if someone orders three units or six units? Cahoot’s system considers all data to make the optimal decision.

You no longer need to perform deep investigations to confirm savings. You can rest assured you’re getting the best label every time.

Pay the Right Shipping Fees, Even on Complex Orders

Legacy Software – Cost Leakages From Human Error

Legacy software leaves packaging decisions to humans, which can lead to cost leakages. Carriers charge based on dimensional weight, and oversized boxes increase costs beyond actual shipping rates.

Without automation or guidance, package selection relies on human judgment, raising the risk of errors.

Next‑Gen Software – Pay the Optimal Rate Every Time

Cahoot’s Intelligent Cartonization ensures optimal box selection for even the most complex orders. You pay only the minimum required shipping rate, and errors are dramatically reduced.

Ease of Use

Legacy Software – Needs Staff to Babysit the Tool

Legacy software is clunky and requires constant manual entry, workflow updates, and oversight. Changes from carriers or product catalogs break automations, demanding dedicated resources to maintain the tool.

Many Sellers hire teams just to configure and maintain their legacy shipping software, increasing staffing costs and diverting talent from more valuable work.

Next‑Gen Software – Anyone Can Use It

Cahoot automates most workflows, adapts to changes automatically, and requires minimal setup. Untrained, part‑time, or seasonal staff can quickly learn and use the system, reducing staffing costs and freeing teams to focus on higher‑value tasks.

Summary: Why Next‑Gen Shipping Software is Essential for Cost Savings

As ecommerce businesses grow, shipping expenses rise. Legacy software leads to cost leakages, inefficient packaging, and manual labor inefficiencies, harming profit margins.

Next‑gen shipping software reduces costs by:
✅ Automatically selecting the cheapest label for every order
✅ Optimizing packaging to avoid dimensional weight fees
✅ Eliminating manual labor with intelligent automation
✅ Enabling untrained or seasonal staff to handle fulfillment easily

By embracing smarter shipping solutions, merchants can stop overpaying, streamline operations, and reinvest savings into growth.

This was Part 4 of our four‑part Next‑Generation Shipping Software Guide. To learn more, check out the other parts covering the old vs. new world, simplified fulfillment, and warehouse efficiency.

Frequently Asked Questions

What is the best shipping software?

It depends on your needs. Legacy solutions like ShipStation handle basic label printing but have limitations. Next‑gen software offers automation and optimized shipping with built‑in discounted rates.

How is Cahoot able to offer discounted shipping rates for small businesses?

Cahoot aggregates shipping volume across all users and partners with carriers and consolidators to negotiate best‑in‑class discounts, which we pass on to our users.

What shipping carriers does Cahoot work with?

Cahoot works with UPS, FedEx, USPS, DHL, Amazon Shipping, OSM Worldwide, OnTrac, Pitney Bowes, and regional carriers, ensuring you have access to the best shipping options.

How do I integrate Cahoot with my ecommerce platform?

Cahoot integrates with Shopify, WooCommerce, BigCommerce, Amazon, TikTok Shop, Rithum, and more. Native integrations let you start shipping with discounted rates quickly.

How quickly can I save on my shipping costs?

Once you sign up, you get instant access to pre‑negotiated shipping rates, letting you cut expenses from day one.

Do you provide customer support in case I need help?

Yes, Cahoot offers full customer support and an extensive self‑service help center to help with any questions or issues. Our support team is here to assist you with everything from integrating your ecommerce platforms to choosing the best shipping options and navigating packaging costs.

Can ecommerce shipping software handle returns?

Yes, Cahoot ecommerce shipping software can efficiently handle reverse logistics, automated return label generation, return order tracking, and inventory management. For peer‑to‑peer returns—where unused items move directly from one customer to the next—see our Peer‑to‑peer ecommerce returns solution, which cuts return costs by 64%, increases turnaround by 4×, and reduces CO₂ emissions by 54% on average.

Written By:

Indy Pereria

Indy is the Head of People Operations at Cahoot, fosters innovation, develops recruitment strategies, and scales the company’s culture.

Ecommerce order fulfillment is more than just packing and shipping — it’s about precision, speed, and cost efficiency. Businesses that rely on outdated legacy systems often face delays, high labor costs, and manual errors, making it difficult to meet growing customer expectations.

Enter next‑generation warehouse automation software for ecommerce: designed to optimize every step of the fulfillment process. From intelligent order routing to real‑time tracking and automated cartonization, modern shipping software maximizes warehouse efficiency, reduces costs, and ensures seamless operations. By integrating smart automation, businesses can scale effortlessly while delivering faster and more reliable shipping experiences.

In this article, we’ll explore how shipping software enhances warehouse efficiency, minimizes fulfillment challenges, and empowers merchants to stay ahead in a competitive market.

Understanding Fulfillment Challenges

Fulfillment challenges can significantly impact a business’s ability to deliver products efficiently and effectively. Understanding these challenges is crucial to implementing effective solutions.

Manual Processes and Labor Costs

Manual processes can be a significant drain on resources, leading to increased labor costs, reduced productivity, and a higher risk of errors. Tasks such as manual data entry are not only time‑consuming but also prone to mistakes, which can cause delays and escalate costs. This is where automation solutions, like warehouse management systems (WMS), come into play. By automating repetitive tasks, a WMS can streamline operations, reduce the need for manual labor, and minimize errors. This not only cuts down on labor costs but also frees up your team to focus on more strategic activities that drive business growth.

Disconnected Software Programs and Missing Tracking Info

Disconnected software programs can create a fragmented fulfillment process, leading to missing tracking information and making it difficult to monitor and manage inventory levels, shipping, and delivery. This lack of integration can result in inefficiencies and errors that disrupt the entire supply chain. Implementing a seamless integration between software programs, such as a WMS and shipping software, can significantly improve visibility and control over the fulfillment process. With integrated systems, you can ensure that all parts of your operation are synchronized, providing real‑time updates and comprehensive tracking information. This not only enhances operational efficiency but also improves customer satisfaction by ensuring timely and accurate deliveries.

Warehouse Efficiency: Supercharge Productivity for Your Team

We’ve now discussed how shipping software needs features that help you simplify the complex new world of ecommerce. But Sellers are not just focused on simplifying operations inside their businesses. Pressure from the outside continuously bears down on them – whether it’s rivals on online marketplaces, multiple channels to market and sell on, or demanding customers.

Efficient shipping processes play a necessary role in enhancing productivity by automating tasks such as creating labels, tracking packages, and handling returns, ultimately leading to improved customer satisfaction.

And all this is happening amid a competitive labor market, where staffing has become expensive and challenging. It isn’t enough for an ecommerce shipping software to reduce operational complexity. It must do so with minimal human intervention and resources, allowing you to do more with less. Crucially, the software must unlock productivity gains for today’s small teams, enabling them to focus on high‑value work.

In the previous section, you might’ve seen that legacy software has features that can simplify operational complexity. However, those features are often painful and convoluted to implement by a small team of seasonal or part-time workers. We think there are 3 major areas where shipping software must streamline workflows efficiently:

• Does the software have humanless, autonomous automation across shipping workflows, or does it require constant babysitting?

• In a world with increasing basket sizes, can it unlock time savings for warehouse staff by automating packaging selection?
• Is the product easy for seasonal or part‑time workers to use, without specialized training?

In the coming sections, we’ll examine each of these areas, showing how legacy software drains productivity and how next‑generation shipping software reclaims time, boosts efficiency, and drives growth.

Automated Shipping Workflows with Warehouse Management Systems

Legacy Software – Labor Intensive and Painful

The most important tasks in shipping software are routing orders to fulfillment locations and identifying the cheapest shipping label.

Legacy shipping software uses manual, repetitive steps for printing labels. Typically, after logging in, you must:

1. Open an order
2. Fix address issues
3. Identify which warehouse has the SKU in stock
4. Assign a “Ship From” location based on the customer’s address
5. Select packaging
6. Rate‑shop across carriers and services one at a time
7. Pick the cheapest service
8. Print the label
9. Repeat for the next order

Some of these steps can be automated through crude, hard-coded automation rules but those are time-consuming to configure and can still be inaccurate. A rule is needed for almost every single workflow. Here are some reasons why this process is so elaborate and painful:

• Automations in most legacy software require certain criteria to be defined. When orders meeting these criteria (for example, orders for a certain SKU) enter the system, the rule is triggered to execute certain actions (like assigning a certain carrier or service). But what are all these rules defined for? Their ultimate aim is to find the lowest-priced shipping label on every order. These rules simply trigger certain actions to occur, rather than rate shopping for the cheapest label by comparing carriers and services.
• Even the simple steps need a rule. For example, if you’re delivering to a residential address, then only certain services can be used – like FedEx Home Delivery, for example. A rule needs to be written to ensure this mapping is considered by the system. All this makes it enormously difficult to cut down the number of keystrokes and clicks.
• ShipStation’s ‘Auto-routing’ feature (still in Beta in 2025), only factors in which locations have a product and their distance from the customer before assigning orders to a fulfillment center. It still does not support the comparison of real-time shipping rates for each carrier and service to make a full and final, (accurate), decision.

In our estimation, it would take the average human over 5 hours to print labels for 1,000 orders!

And as we all know, a human is not a computer. When doing a repetitive task for such a long period of time, fatigue and the possibility of errors increase dramatically. It’s also worth asking – why should a human be engaged in such repetitive, low-value work all day long?

Next‑Gen Software – Humanless and Seamless

With next-generation shipping software, the difference is like night and day. The system intelligently compares warehouse locations, carriers, shipping services, inventory levels, and shipping supplies to instantly and automatically generate shipping labels for every single order, and integrating seamlessly with inventory management enhances efficiency and accuracy.

Here’s the sequence of steps to accomplish the same goal using Cahoot (after logging in):

1. Verify the address corrections made automatically by the system
2. Prints labels in bulk

The system automates many steps that legacy software doesn’t – it spots potential issues with addresses and makes suggestions to fix them, it only considers warehouses that have inventory available, it selects the smallest packaging that an order can fit into and ship safely, and it rate-shops that package weight and dimension across all carriers, services, and warehouses for the cheapest service.

It’ll take the average human just 15 minutes to print labels for 1,000 orders in Cahoot, and most of that time is waiting for the printer to finish its job. We’ve made a video where you can get a glimpse of how this works, and how we stack up against the popular legacy shipping software ShipStation (if you’d like to see a little more about how Cahoot compares to ShipStation, read our comparison here!) You can sit back and relax, knowing that the optimal selection was made for every single order using technology. You can also free up your time to work on other tasks that add more value to the bottom line. If you’re finding it difficult and expensive to hire more people, you can ensure that the people you do have are focused on the problems that matter the most.

You can see it in action, or read our ShipStation comparison to learn more.

Making Large, Complex Orders Easy to Handle

Legacy Software – Left to Humans and Heuristics

Legacy shipping software is mainly focused on one portion of the fulfillment workflow – printing shipping labels. In a world of rising basket sizes, merchants have complexity in other steps of the shipping process, including shipment packaging selection. Optimizing layout and staff allocation in a distribution center can significantly enhance shipping efficiency and reduce costs.

This is a common problem that customers of legacy software like ShipStation face. For complex orders that might require multiple boxes of various sizes, they are forced to enter the box dimensions manually each and every time based on the SKUs in the order. The customers from their community forum below are requesting a pull-down list of the common boxes they use so they can quickly make the selection rather than manually entering dims.

The customer is also highlighting a more important issue – they can add a set of boxes as a “base” in ShipStation. This feature aims to serve as a default that can be applied to most MLMQ orders. However, unless you’re lucky that most of your MLMQ orders consist of the same unique combination of SKUs, such a feature is pointless.

The list of automation rules that need to be written to map SKU combinations to boxes is dizzyingly long and involves having to figure out all the possible SKU permutations; impossible if your product catalog is any more than a couple dozen SKUs.

As the classic saying goes, customers are great at highlighting problems, but not identifying solutions. We think this is a big pain point that next-generation software already solves.

Next-Gen Software – Powered by Machine Learning for Warehouse Operations

Cahoot’s next-generation shipping software solves both of these problems. We don’t think the solution is a drop-down list, because you’re just replacing keystrokes with clicks. It’s still human effort and time.

Our software remembers the box selection you make the first time and applies it by default the next time regardless of how many SKUs and units of each are in the order. This ensures you’re freed up from repetitive manual entries and clicks.

We don’t believe the solution to picking the optimal box for every MLMQ order is an arbitrary default or crude automation rule. The Cahoot system uses breakthrough cartonization innovation to intelligently evaluate the space utilization for a group of items across all available boxes in stock and calculates the percent fit (% fit), making sure the most optimal box is automatically selected every time.

This frees your team from data entry and guesswork, letting them focus on higher‑value tasks that grow your business.

Optimizing Your Fulfillment Network and Carrier Management

Optimizing your fulfillment network and carrier management is crucial to ensuring efficient and cost-effective shipping operations.

Fulfillment Network and Carrier Performance Metrics

Monitoring fulfillment network and carrier performance metrics is essential for optimizing shipping operations. Key metrics—on‑time delivery rates, shipping costs, and customer satisfaction—provide insights into your fulfillment efficiency. Implementing a WMS offers real‑time visibility, enabling data‑driven decisions to optimize carriers, reduce costs, and improve delivery reliability.

By understanding challenges and optimizing your network and carriers, businesses can boost warehouse efficiency, cut costs, and elevate customer satisfaction through integrated, automated solutions.

Summary: Why Next‑Gen Shipping Software is a Game Changer

Traditional fulfillment systems struggle with modern ecommerce demands—high labor costs, fragmented software, and manual workflows. Next‑generation warehouse automation software transforms operations by automating workflows, optimizing packaging, and integrating sales channels.

Features like real‑time tracking, AI‑powered cartonization, and automated carrier selection let businesses scale without bottlenecks. Investing in the right software drives down costs, increases accuracy, and delivers a seamless fulfillment experience.

Learn more in our Next Generation Shipping Software Guide, Part 4: “Save Money With Ecommerce Shipping Software: Next‑Gen Solutions”.

Frequently Asked Questions

How does warehouse automation software improve ecommerce fulfillment?

Warehouse automation software streamlines fulfillment by automating order routing, label generation, and inventory tracking. This reduces errors, speeds processing, and optimizes carrier selection for faster, more cost-effective deliveries.

What are the key benefits of using shipping software for warehouse efficiency?

Shipping software enhances warehouse efficiency by automating label printing, integrating with multiple carriers, optimizing order packing, and providing real‑time tracking. These features reduce labor costs, minimize delays, and improve fulfillment accuracy.

Can warehouse automation software integrate with existing ecommerce platforms?

Yes. Most next‑generation warehouse automation solutions integrate seamlessly with platforms like Shopify, Amazon, Walmart, and eBay—synchronizing inventory, orders, and shipping updates in real time.

How does automated cartonization help reduce shipping costs?

Automated cartonization uses AI to select the best box size for each order, reducing dimensional weight fees and wasted space. This optimization lowers shipping costs and improves warehouse space utilization.

How do I choose the right warehouse automation software for my business?

Consider integration capabilities, ease of use, automation features, and scalability. Look for solutions supporting multiple carriers, intelligent order routing, and analytics for continuous optimization.

Written By:

Indy Pereria

Indy is the Head of People Operations at Cahoot, fosters innovation, develops recruitment strategies, and scales the company’s culture.

Ecommerce has transformed the way people shop, but behind every seamless online purchase is a complex fulfillment operation. As consumer expectations for fast and affordable shipping continue to rise, merchants face increasing pressure to optimize their logistics. Managing inventory across multiple warehouses, coordinating with various carriers, and ensuring accurate, on‑time deliveries, all while keeping costs low, has become a daunting challenge.

Legacy shipping software was built for a simpler time when most businesses operated from a single warehouse and fulfilled orders through a few standardized shipping methods. But today’s ecommerce landscape is far more dynamic. Merchants must navigate multi‑channel sales, distributed fulfillment networks, and ever‑changing carrier rates, all while maintaining a smooth customer experience. Unfortunately, traditional shipping software often falls short, forcing businesses to rely on manual workarounds that are inefficient, error‑prone, and costly.

Next‑generation shipping software changes everything. By leveraging intelligent automation, real‑time decision‑making, and deep integration with fulfillment networks, modern shipping solutions eliminate the complexity of ecommerce logistics. These systems optimize order routing, reduce shipping costs, and ensure seamless fulfillment—without the need for endless configuration or constant oversight.

In this article, we’ll explore the major ways next‑generation shipping software simplifies ecommerce fulfillment, highlighting how it outperforms legacy systems in efficiency, accuracy, and scalability. Whether you’re a growing merchant or an established seller looking to streamline your operations, the future of shipping is here—and it’s built for success.

What is Ecommerce Shipping Software?

Ecommerce shipping software is a specialized technology solution designed to streamline and optimize the shipping process for online businesses. Its primary purpose is to help ecommerce businesses manage their shipping operations efficiently, reduce shipping costs, and improve customer satisfaction. By integrating with ecommerce platforms, inventory management systems, and shipping carriers, ecommerce shipping software provides a seamless and automated shipping experience. This integration ensures that orders are processed quickly and accurately, inventory levels are synchronized, and customers receive their purchases on time, enhancing overall customer satisfaction.

Benefits and Key Features

The benefits of using ecommerce shipping software are manyfold. Firstly, it significantly reduces shipping costs by enabling businesses to compare real-time rates from multiple carriers and choose the most cost-effective option. This not only saves money but also ensures that customers receive their orders promptly. Improved customer satisfaction is another major benefit, as the software automates many aspects of the shipping process, reducing errors and delays.

Key features of ecommerce shipping software include real-time rate comparison, which allows businesses to find the best shipping rates instantly. Automated label printing streamlines the shipping process, saving time and reducing the risk of errors. Inventory management features help keep track of stock levels across multiple warehouses, ensuring that products are always available when needed. Order tracking provides customers with real-time updates on their shipments, enhancing their shopping experience.

Additionally, ecommerce shipping software supports international shipping, making it easier for businesses to expand their reach globally. The software often provides exclusive shipping discounts, further reducing shipping expenses. Multi-carrier support and integration with multiple sales channels ensure that businesses can manage all their shipping needs from a single platform, improving efficiency and supply chain visibility.

Simplifying Operations: Making Today’s Complex Ecommerce Effortless

Based on original research we’ve conducted, a merchant seeking to cover the continental U.S. (the lower 48 states) with affordable 2‑day ground shipping requires inventory to be positioned in 4 strategically located warehouses. If they’re seeking to achieve 1‑day delivery, that number rises to 9 fulfillment centers.

As the number of sales channels and warehouses increases, the operational complexity increases exponentially. Legacy shipping software was built for the old world, where fulfilling orders from just a single warehouse location was the norm. It was never built to handle the complexities of distributed fulfillment. Too many things at the core of the software would have to change to elegantly handle distributed fulfillment. This means merchants often try to get by with complex, convoluted workarounds that keep breaking. However, effective inventory management and synchronization can be achieved through the use of advanced fulfillment software, which streamlines operations, enhances accuracy, and addresses common challenges in the fulfillment lifecycle.

Today’s multi‑warehouse, multi‑channel environment creates many problem areas for Sellers to manage:

• When inventory is spread across such a large number of warehouses, which location should each order be routed to (you can’t draw a line down the middle of a map and expect to get the best shipping rate)?
• Distributed fulfillment offers possibilities if there are problems at any one warehouse location—such as receiving orders after the cut‑off time, running out of inventory, or inclement weather. How can software make identifying such exceptions and rerouting them easier?
• How can fulfillment be handled across multiple sales channels while ensuring a consistent, cohesive experience for customers?
• Can the system natively integrate with best‑in‑class fulfillment networks to unify your logistics technology and operations?
• With ecommerce growing all the time, online shoppers are sharing more sensitive data than ever. With an increased consumer demand for privacy protection, how does your shipping software keep personal information secure?

We’ll now take a look at each of these, examining the differences in the way legacy and next‑generation ecommerce shipping software handle them.

Automatic Order Routing and Label Generation

Legacy Software – Crude and Primitive Routing

Many of today’s popular legacy software have automated order routing features. However, do not be fooled—these capabilities are limited and prone to error, especially when handling diverse shipping options.

In systems like ShipStation, a “Ship From” location can be set based on specified criteria—such as the SKU ordered or the customer’s address. However, a large number of clunky automation rules have to be written—for example, writing a rule to have all orders from West Coast customers be shipped from your California warehouse. Similar rules mapping other states to respective fulfillment locations have to be manually written. Similarly, if you have certain SKUs available only in specific locations, you need to write rules to assign orders accordingly.

Creating such a large number of automation rules is an error‑prone, painful process for many reasons. Here are a few of them:

• So much to configure. Merchants need to ensure they’ve captured every business process through a rule. If they forget to set up any rule (quite possible, given the high levels of operational complexity today), it can create problems and cost leakages. Even the simplest of workflows require rules to be defined. For example, imagine that you wish to use only certain carrier services to make deliveries to residential addresses. Even in that case, you need to define automation rules mapping the address type to appropriate services.
• You’re guessing and hoping. Because your rules are manually defined by mapping SKUs or customer addresses to fulfillment locations, there could always be cases where the rules don’t make the most optimal decision. Without doing a deep, time‑consuming manual investigation, you’ll never be able to actually tell.
• Requires constant maintenance. Rules become obsolete when carriers change or update their services. For example, when USPS introduced Ground Advantage, your rules didn’t automatically update to factor in the new service. This means you had to spend hours updating and rewriting them.

Slow process. Sellers don’t feel comfortable beginning shipping with the software until they’re confident they’ve captured all of their processes through automation rules. This delays go‑live, ultimately increasing your time to value.

Next‑Gen Software – Intelligent, Powerful Routing Technology

Cahoot’s next‑generation shipping software comes with end‑to‑end intelligent automation. When you receive an order, the system intelligently compares multiple warehouse locations, inventory levels, carriers, and shipping services to pick the cheapest label that will meet the delivery SLA committed to the customer. In this way, the Cahoot shipping management software takes the thinking and error out of the rate shopping process, always providing the optimal shipping label, and improves shipping speed because it takes actual estimated real‑time delivery date into account based on ship date and day of the week.

With our technology, you won’t face the automation problems that we’ve highlighted with legacy software. Our intelligent order routing capabilities provide Sellers with many benefits:

• Nothing to configure – it just works. You don’t need to spend time worrying whether you’ve captured all your business workflows through automation rules. You don’t have to update rules and make sure they’re all compatible when business needs change. Cahoot factors in all variables like shipping services, warehouse locations, and inventory levels to pick the optimum fulfillment location on every order automatically.
• Based on the lowest cost, no more guessing. There’s no need to worry about whether your automations have been configured correctly to truly pick the best location every time. You can rest assured knowing that the decision is in the hands of technology, which makes the right choice for every order.
• No maintenance. The system automatically factors in any changes that carriers make to their services. There are no hand‑written automation rules to update or overwrite. When new services like Ground Advantage are launched, the system factors in this additional information and continues to automatically route orders correctly.
• Ready‑to‑go. Sellers can begin shipping in days or weeks with our software, not months. There’s no need to spend time wondering whether you’ve captured workflows through elaborate automations. This means you’ll be able to go live faster and shorten your time to value.

Multi‑Warehouse Exception Handling with Multi‑Carrier Shipping Software

Legacy Software – Limited Rerouting Capability

With legacy software, it’s difficult to plan for the unexpected. Let’s imagine you have 2 warehouses—one in Chicago, and the other in Southern California. Suppose a blizzard strikes the Chicago location.

When working with legacy systems, you don’t have an easy way to temporarily suspend locations. All you’re looking for is a way to temporarily put fulfillment from your Chicago location on hold, while you wait for the weather to improve.

In legacy systems like ShipStation, each SKU is mapped to a list of warehouses from where it can be shipped. You will need to update this mapping between SKUs and fulfillment locations to stop fulfillment from one of your warehouses. This is a painful workaround that you have to perform for a very short period of time—once the weather improves, you’ll have to repeat the process to restore the original configuration.

All this adds to what is already a stressful time, making it difficult for your business to quickly adjust to, and recover from unexpected events. Robust shipping software solutions can help manage these exceptions more effectively, ensuring smoother operations and better customer service.

Next Gen Software – Agile, Flexible Order Rerouting

With Cahoot’s next‑generation shipping software, adverse events don’t have to mean disaster for your business. If one of your fulfillment locations goes down, you can quickly toggle it off. The system will automate shipping from the remaining available locations, helping you keep your customer promises and continue selling.

There are other scenarios when you might require intelligent exception management which need not be emergencies. For example, if one of your warehouse locations needs to close for a holiday, the system can exclude that location and continue to simplify shipping for you across the other active locations.

There are no automations to undo or rewrite. You don’t have to spend a lot of time restoring your system to its original state once the affected location is back up and running again—it’s just a simple toggle to flip on and off. This ensures that your business can continue operating smoothly during such events, and quickly recover from them with minimal impact.

Multichannel Capabilities

Legacy Software – Many Integrations, but of What Value?

One advantage that legacy software has by virtue of having been around for a longer time is its long list of integrations. These tools, such as ShipStation, Shipwise (formerly DesktopShipper), and ShippingEasy all have a long list of integrations with shopping cart platforms, online marketplaces, and other tools that ecommerce Sellers use.

However, while this is definitely a positive, we think this is a case of winning the battle but losing the war. In the above sections, you’ve seen some of the limitations of these tools (keep reading to see more deficiencies), and how they can hamper your productivity and hurt your costs on every single order. You might save a little time with out‑of‑the‑box integrations to more platforms, but does it really matter if these tools negatively impact your bottom line?

Next‑Gen Software – All the Integrations You’re Used To

Cahoot’s next‑generation shipping software is tightly integrated with all leading online marketplaces and shopping cart platforms, including Amazon, Walmart, Shopify, eBay, BigCommerce, WooCommerce, and Adobe Commerce (formerly Magento 2). We’re also integrated with all leading shipping carriers and ecommerce tools that Sellers use today. Our ecommerce shipping solution provides robust integrations that streamline rate shopping, label creation, and order tracking, making shipping more efficient and cost effective for businesses of all sizes.

What really matters is the depth of integration between the channel and your shipping software. A simple integration may fetch orders from Shopify or Amazon into your shipping software, but fail to sync inventory or push back tracking information. With our integrations, Cahoot automatically fetches all information required to fulfill an order from the sales channel and intelligently pushes tracking information back to the channel. We also maintain an inventory sync, ensuring that you won’t accept orders on out‑of‑stock items, preventing overselling. The system also provides you with color‑coded alerts to quickly alert you to dipping inventory levels, enabling timely, proactive replenishment rather than reacting to customer frustration on canceled orders.

While our list of integrations might be comparatively smaller (but growing!), you won’t feel the difference—our API allows you to connect Cahoot with any other system you’re using. And as we’ve highlighted in the above sections (keep reading for more!), the system offers real cost savings and productivity gains on every single order.

Integration With Fulfillment Networks

Legacy Software – Cobbled Together and Disjointed

Legacy ecommerce shipping software works well if you’re fulfilling a small number of orders from your own warehouse location. However, if you’re partnering with multiple 3PLs, have a combination of in‑house and outsourced fulfillment, or are working with order fulfillment networks, cracks start to emerge. This stems from legacy software’s lack of native integration with fulfillment networks. Selecting the right shipping solution that seamlessly connects all fulfillment nodes is crucial for efficient order fulfillment and handoff to multiple carriers.

With tools like Flexport, you can’t expand nationwide coverage through their network while still running your own operations. For example—what if you wish to fulfill certain orders from your own warehouses if you have inventory and rates are cheaper? Flexport seeks to capture all volume even if it is inefficient to do so because they don’t integrate with all your fulfillment nodes. Many legacy software have a similar problem, where they find it difficult to manage a combination of in‑house and outsourced fulfillment. Rather than the system intelligently identifying which orders need to be outsourced, the Seller has to define this—which is time‑consuming and error‑prone.

Other forms of chaos can emerge when you’re trying to force a legacy shipping software and 3PL vendor (like Flexe, for example) to work together. The 3PL might require you to figure out which orders you’re going to ship with them, generate a file with all that information, and send it over to them. If you’re trying to participate in a program like Seller Fulfilled Prime, you have tight cut‑off times and very little room to maneuver. Imagine scrambling in the limited time you have between the cutoff time and the carrier pickup to collate and send over the information. You have to hope and pray that you haven’t made a mistake and that you’ve sent the information in time for your 3PL to process the shipments.

Lastly, let’s imagine a scenario where you’ve partnered with multiple 3PLs to achieve nationwide coverage. You have to either use the shipping software to print labels manually and hand that over to each of the 3PLs or share your credentials with all of them. This increases the number of parties your carrier credentials go to, increasing risk and vulnerability for your business.

If you’re experiencing some of these frustrations and want to migrate from your existing fulfillment partner, we know that it’s easier said than done. The process can be uncertain, confusing, and stressful for your business. We’ve put together a step‑by‑step guide to help you make the switch from one fulfillment partner to another, which you can read here!

Next‑Gen Software – Natively Integrated

Cahoot’s shipping software is tightly integrated with our order fulfillment network (having over 100 warehouses in the US). The system is also flexible enough to accommodate any fulfillment locations you run your own operations from—making handling scenarios where there is a combination of in‑house and outsourced fulfillment easy to manage. In such cases, the system is able to intelligently and automatically identify the orders where fulfillment is cheaper through outsourcing rather than being handled at your own warehouse. This frees up your time and ensures you’re getting the best deal on every order.

You also don’t need to spend time acting as the middleman between your shipping software and 3PL, where you drown in busy work generating files and handing them over to your fulfillment partner. With Cahoot, your fulfillment partners see all orders instantly and can print labels in one click. This agility and simplified workflow are just two of the reasons that help Sellers using our fulfillment network meet and surpass the challenging cut‑off times and demanding performance metrics that Amazon expects them to meet on Seller Fulfilled Prime.

It’s not just SFP where requirements are challenging. On the Walmart marketplace, merchants hoping to see increased conversion and sales must offer free nationwide 2‑day delivery with over 95% of orders expected to reach customers by the promised time.

And while you may scale to use many warehouses on the Cahoot network, none of our fulfillment partners know your carrier credentials—you share that only with us on the platform. This reduces risk and keeps your credentials safe while scaling nationwide fulfillment for you.

Information Security and Data Protection

Legacy Software – Poor Security and Privacy

Legacy ecommerce shipping software provides minimal data protection measures. Everything is fine if you own your own warehouses and are using these tools to fulfill orders. However, if you’re partnering with a 3PL (and they use legacy tools to process orders), you’ve handed over all your brand and customer data to them.

While you may sign agreements to prevent misuse, personally identifiable information about your customers (full name, address, email) and proprietary business data is openly available to your 3PL. While they may operate with good intentions, your confidential data is now at the mercy of their information security practices.

This increases the risk and exposure for your business, with little safeguards in place to protect sensitive information.

Next Gen Software – Robust Data Protection and Governance

With next‑generation shipping software, we ensure that only the essential information needed for order fulfillment is transmitted to Cahoot warehouses. We hold back or redact other information—for example, even on a shipping label, your fulfillment partner sees only the first initial of the customer’s last name—making it difficult for them to reconstruct personal customer data. And no data is copy/pasteable or exportable!

We also keep non‑essential customer, brand, and product information walled off and accessible only to you. This ensures that your data is secure and accessible to only one party—you.

The Future of Fulfillment is Here

Ecommerce logistics have evolved beyond the limitations of legacy shipping software. Today’s merchants need solutions that don’t just patch problems with complex rules and manual oversight but instead offer true automation, intelligence, and flexibility. The challenges of distributed fulfillment, multi‑channel sales, and increasing customer expectations demand technology that works for you—not against you.

Cahoot’s next‑generation shipping software isn’t just an upgrade; it’s a transformation. With intelligent automation, seamless integrations, and built‑in security, our system ensures that fulfillment is fast, cost‑effective, and effortlessly scalable. From real‑time order routing to automated packaging selection, every feature is designed to help you save time, reduce costs, and focus on growing your business rather than troubleshooting logistics.

The days of clunky, error‑prone software are over. The future belongs to merchants who embrace smarter, more efficient fulfillment—where technology does the heavy lifting, and businesses thrive. It’s time to leave behind outdated systems and step into a world where shipping works smarter, not harder.

Are you ready to experience the future of ecommerce fulfillment? The next generation of shipping starts now. If you’d like to learn more, check out our Next Generation Shipping Software Guide, Part 3: “Next‑Gen Warehouse Automation Software for Ecommerce: Fulfillment Efficiency”.

Frequently Asked Questions

Who uses shipping software?

Shipping software has features that can benefit various clients, including individual Sellers, ecommerce brands, retailers, and courier service providers. Feature‑rich software like Cahoot is autonomous and makes highly intelligent and scalable fulfillment and shipping accessible to retailers and brands of all sizes.

What is fulfillment optimization?

Fulfillment optimization is the process of determining the best options for sourcing and order fulfillment, which results in more efficient use of inventory and reduced costs.

What is a shipping platform?

A shipping platform helps you ship faster and cost‑effectively by organizing orders, offering pre‑negotiated shipping rates, enabling shipping rate comparison, and managing shipping workflow.

Written By:

Indy Pereria

Indy is the Head of People Operations at Cahoot, fosters innovation, develops recruitment strategies, and scales the company’s culture.

At Cahoot, we believe today’s ecommerce industry needs next‑generation shipping software. Selecting the best shipping software is crucial for enhancing efficiency and customer satisfaction. But before we talk about this amazing technology, it’s first worth asking – why is now the time? After all, legacy shipping software has been around for years. Thousands of Sellers are already using these tools – why make the switch?

We believe the present moment is perfect because ecommerce is dramatically different from how it looked just twenty years ago. The event that changed everything was the introduction of Amazon Prime in 2005. Just like the first iPhone revolutionized society’s experience with personal technology, Prime’s introduction transformed everything in the ecommerce industry. Sellers had to throw out old strategies and create entirely new ones to run their businesses.

The differences are stark, but we’ve summarized them in this table:

Let’s begin by going back to the 1990s and journey through the early 2000s to see what the ‘old world’ of ecommerce looked like, for Sellers and customers. By understanding these changes, we can see how modern shipping solutions can turn challenges into a competitive advantage.

The ‘Old World’ of Ecommerce: Lower Complexity

In the olden days of ecommerce, life was simpler. Fewer channels to manage, fewer customer expectations, and less technological complexity meant uncomplicated logistics and order fulfillment processes that seem almost quaint by today’s standards.

Just One Channel to Manage

In the old world, Amazon was not the ‘everything store’ yet. It was largely a first‑party Seller of a few products like books, CDs, and DVDs. They did not face much competition – Walmart and Target restricted themselves to physical stores while shopping cart platforms like Shopify and BigCommerce did not exist. All this meant that Sellers did not have multiple sales channels to sell and take care of customers on. There was usually just one channel – their own website. With just one channel to support, it was also possible to operate with smaller‑sized teams.

Minimal Competitive Pressure

In the 1990s, online marketplaces did not exist. Amazon launched its third‑party marketplace only in 2000. In this environment, customers did not have a lot of choices. Sellers had to ensure they drew customers to their website through good marketing. Once they found you, it was not easy to comparison‑shop across different listings, brands, or platforms. There was little pressure on Sellers – it was unlikely a competitor would undercut you on price or beat you on shipping speed.

Low Customer Expectations

Perhaps most importantly, customers had no expectation of free and fast shipping. Before Prime’s introduction in 2005, customers had never tasted that experience. They were willing to wait 7–10 days for orders and covered the cost of shipping. Even if they did not like this experience, there was no social media platform at the time where they could share their frustration.

Single Warehouse, Single Carrier

The combination of lower customer expectations and sales through a single channel meant that Sellers could get by with operating from a single warehouse location, or two if they really needed the space. Customers living far away were okay with waiting as long as 1–2 weeks for their orders. Because customers were willing to cover shipping costs, Sellers saw no reason to compare and find the lowest rate among multiple carriers. It was easier to just sign a contract with one carrier. Why bother with cost optimization when the customer was paying?

Small and Simple Orders

In the old world, lower basket sizes (units per transaction) were common because customers were yet to trust making payments over the internet. The least risky way to test ecommerce was to just buy one item. As confidence grew, so did basket sizes. Multi‑Line, Multi‑Quantity (MLMQ) orders were less frequent, reducing warehouse packing complexity.

In summary, Sellers faced little complexity in running their businesses in the old world. They sold on a single channel, faced minimal competitive threats, and could easily satisfy customers. All of this translated into simpler operations across the shipping lifecycle.

The ‘Old World’ of Ecommerce: Lower Costs

We’ve taken a look at how operationally simpler it was to run an ecommerce business in the old world. But this was not the biggest advantage Sellers had – we’ll now explain how costs were lower back then.

Shipping Costs Were Cheaper

Carrier General Rate Increases held steady at 4.4%–4.9% through the 1990s and into the 2010s, which provided predictability and control over delivery costs.

Labor was Cheaper

In the old world, ecommerce did not require massive warehouse labor networks. Sellers could staff warehouses at wages that protected margins, as fewer large players competed for workers.

Warehouse Space was Cheaper

Warehouse demand was lower, so Sellers could find and lease space more easily and at lower rates. Fewer ecommerce operations competed for limited industrial real estate.

Across the fulfillment workflow, Sellers had cost certainty. Carrier rates, labor wages, and warehouse leases were steady, protecting margins without constant optimization.

Inefficiency in Operations Did Not Impact Margins

In a world without marketplaces, customers paid shipping fees and lacked social media to complain. There was no pressure to optimize operations or cut costs – margins remained protected without innovation.

The ‘New World’ of Ecommerce: High Operational Complexity

Prime’s launch in 2005 changed ecommerce permanently. Today’s Sellers operate in a vastly more complex environment.

Many Channels to Manage

Amazon’s third‑party marketplace, Walmart, Target, Shopify, BigCommerce, and others mean Sellers must sell and support customers across multiple platforms. This requires larger teams and integrated shipping solutions.

Intense Competitive Pressure

Online marketplaces give customers infinite choice. Sellers face constant threats of price undercuts, faster shipping, and knock‑offs. High shipping costs further squeeze margins.

Sky High Customer Expectations

Customers now expect 1‑day and 2-day free shipping. Cart abandonment soars without transparent free, fast options and social media amplifies complaints.

Multiple Warehouses, Multiple Carriers

To meet fast, free delivery, Sellers must distribute inventory across strategically located warehouses and rate‑shop among many carriers. Multi‑carrier shipping software automates this complexity.

Large and Complex Orders

Higher free‑ship thresholds and multi‑item carts drive more Multi‑Line, Multi‑Quantity (MLMQ) orders, requiring more varied box sizes and longer packing times.

Sellers today juggle multiple channels, unrelenting competition, and sky‑high expectations — reinventing every step of shipping with distributed fulfillment and intelligent software.

Rising costs

Complexity isn’t the only challenge — costs have also soared in the new world.

Shipping Cost is Expensive

Carrier GRIs jumped to 5.9% in 2022, 6.9% in 2023, and 5.9% in 2024 and 2025 — well above historical norms and inflation, leaving Sellers scrambling to adjust budgets and operations.

Labor is Expensive

Warehouse wages have risen as Amazon, Walmart, and Target compete for labor. In some regions, $20/hr has become the baseline, making staffing more costly for smaller Sellers.

Warehouse Space is Expensive

Warehouse rents soared during COVID‑19 and remain high as supply lags demand. Over 80% of U.S. warehouses were built before 2000, driving up lease rates.

Sellers now face rising carrier rates, labor wages, and lease costs, compounding the complexity of meeting modern customer demands.

Efficient Operations Essential for Margins and Profits

In marketplaces, creative cost‑saving and resource pooling are essential. Sellers must optimize operations to preserve margins, stay competitive, and win.

Why Sellers Need to Switch to Next‑Gen Ecommerce Shipping Software

Legacy tools worked in the old world but add problems in the new one. They lack automation, cost savings, and multi‑channel flexibility, consuming time rather than simplifying workflows.

Choosing shipping software is crucial in developing an effective shipping and fulfillment strategy.

The next generation of ecommerce shipping software must solve three key problems:

• Simplify the operational complexities of the new world of ecommerce
• Drive operational efficiencies and productivity gains for your team
• Generate meaningful cost savings across each step of the shipping and order fulfillment workflow

In the coming sections, we’ll dive deeper into each of these aspects and explain how Cahoot’s next‑generation software is purpose‑built to address these challenges.

Summary

Ecommerce has come a long way. The simplicity of the past has given way to a fiercely competitive, complex environment where every decision matters. Traditional shipping software is now a relic, not a reliable tool.

To thrive today, businesses need software that simplifies complexity, enhances efficiency, and drives down costs in ways the old world never required.

At Cahoot, we’re actively shaping the future of ecommerce fulfillment. In today’s market, the right technology isn’t just helpful—it’s essential.

If you’d like to learn more, check out our Next Generation Shipping Software Guide, Part 2: “Shipping Software for Ecommerce Fulfillment: The Next Generation of Shipping Simplified”.

Frequently Asked Questions

How can I reduce shipping costs for my ecommerce business?

Reducing shipping costs requires a multi‑faceted approach:

• Negotiate rates with multiple carriers rather than relying on a single provider
• Consider using regional carriers for deliveries within specific areas
• Optimize packaging to reduce dimensional weight charges
• Implement zone skipping by shipping bulk orders to carrier hubs closer to final destinations
• Use shipping software that compares rates across carriers in real time
• Offer local pickup options for customers in your area
• Consider flat‑rate shipping for certain product categories

What are the most common causes of parcel delivery delays?

Several factors commonly contribute to delivery delays:

• Weather events and natural disasters
• Carrier capacity constraints during peak seasons
• Customs clearance issues for international shipments
• Address errors or incomplete delivery information
• Staffing shortages at carrier facilities
• Vehicle breakdowns or logistical issues
• High volume surges (e.g., Black Friday/Cyber Monday)
• Last‑mile delivery complications in rural or hard‑to‑access areas

How can I reduce the environmental impact of my ecommerce shipping?

To make your shipping more sustainable:

• Use right‑sized packaging to minimize waste and reduce dimensional weight
• Choose recycled or biodegradable packaging materials
• Offer carbon offset options at checkout
• Consolidate orders when possible to reduce the number of shipments
• Partner with carriers that have environmental initiatives or electric vehicle fleets
• Implement a packaging reuse program for returns
• Consider local fulfillment options to reduce transportation distances

What should I do about rising return rates in ecommerce?

To address the challenge of increasing returns:

• Provide detailed product descriptions, measurements, and high‑quality images to set accurate expectations
• Implement a clear, easy‑to‑understand return policy
• Consider offering free returns as a competitive advantage
• Use analytics to identify products with high return rates and address underlying issues
• Implement a return merchandise authorization (RMA) system to streamline the process
• Consider restocking fees for certain categories to discourage unnecessary returns
• Offer virtual try‑on or AR features for appropriate products

How can I improve last‑mile delivery efficiency?

Improving last‑mile delivery, often the most expensive part of shipping, requires:

• Partnering with multiple carriers to diversify delivery options
• Implementing delivery management software to optimize routes
• Offering alternative delivery options like BOPIS (Buy Online, Pick Up In Store)
• Using lockers or pickup points in convenient locations
• Providing narrow delivery windows to improve customer experience
• Leveraging data analytics to predict delivery challenges in specific areas
• Considering micro‑fulfillment centers in urban areas for faster delivery

What are the best practices for international shipping in ecommerce?

For effective international shipping:

• Partner with carriers experienced in global logistics
• Understand customs documentation requirements for each country
• Use harmonized system (HS) codes correctly for all products
• Be transparent about duties and taxes that customers may need to pay
• Consider using a third‑party logistics provider specializing in international shipping
• Implement reliable package tracking for international orders
• Offer DDP (Delivered Duty Paid) options for a smoother customer experience
• Research import restrictions for products in your target markets

How can I manage shipping expectations during peak seasons?

To handle peak season shipping challenges:

• Plan ahead by increasing inventory and staffing well before peak periods
• Communicate realistic delivery timeframes to customers
• Consider implementing order cutoff dates for holiday deliveries
• Diversify carrier partnerships to spread volume across multiple providers
• Use shipping software that can automatically route orders to carriers with capacity
• Offer incentives for early shopping to spread out order volume
• Maintain transparent communication about potential delays
• Consider temporary local pickup options during extremely high‑volume periods

Written By:

Indy Pereria

Indy is the Head of People Operations at Cahoot, fosters innovation, develops recruitment strategies, and scales the company’s culture.

Give Your Website Customers an Amazon-Like Delivery Experience

Today, online shoppers expect transparency at every stage of their shopping experience—including shipping. One crucial factor that influences purchasing decisions is the estimated delivery date (EDD). If customers know exactly when their order will arrive, they are more likely to complete the purchase and trust your brand for future transactions.

If you’re running a Shopify store, displaying estimated delivery dates on product pages is a simple but effective way to enhance customer satisfaction and reduce support inquiries. In this guide, we’ll dive into:

• What an estimated delivery date is
• Why displaying EDDs matters in ecommerce
• The benefits of adding estimated delivery dates to Shopify stores
• Tips for accurately calculating delivery estimates
• A step-by-step guide to adding estimated delivery dates on Shopify using code

Let’s get started!

What Is an Estimated Delivery Date?

An estimated delivery date (EDD) is the projected timeframe in which a customer can expect to receive their order after placing it. Unlike general shipping estimates (e.g., “ships in 3-5 business days”), an EDD provides a specific arrival window, such as “Arrives between March 15-18”, or it can be a specific date based on the carrier’s stated transit time from origin to destination address, such as “FREE delivery Tomorrow, March 13”.

EDD calculations take several factors into account, including:

• Processing time: The time required to prepare and package the order
• Shipping method: The carrier and shipping speed chosen by the customer or offered by the Seller
• Destination: The buyer’s location in relation to your fulfillment center
• Holidays & weekends: Non-working or non-shipping days that could delay shipping and delivery

By displaying accurate EDDs, Shopify store owners set clear expectations and build trust with customers.

Why Are Estimated Delivery Dates Important for Ecommerce?

Shoppers today value convenience, speed, and transparency. If an ecommerce store does not provide an estimated delivery date, customers might abandon their carts or seek alternatives from competitors like Amazon, where shipping timelines are clear.

Here’s why showing EDDs on Shopify product pages is critical:

✅ Reduces Cart Abandonment

Uncertainty about when an order will arrive is a major reason customers hesitate at checkout. By offering clear delivery estimates upfront, you eliminate doubts and increase conversions.

✅ Improves Customer Experience & Trust

A store that provides reliable delivery estimates appears more professional and organized. Customers appreciate clear expectations and are more likely to return for future purchases.

✅ Decreases Customer Support Inquiries

One of the most common customer service questions is “When will my order arrive?” By proactively displaying estimated delivery dates, you reduce the need for these inquiries, saving time and resources.

✅ Boosts Sales & Competitive Advantage

If a customer is deciding between your store and another with vague shipping timelines, a visible EDD can be the deciding factor in your favor. Shoppers love predictability, and showing estimated delivery dates can give you a competitive edge.

Benefits of Adding Estimated Delivery Dates to Shopify Stores

Now that we understand the importance of estimated delivery dates, let’s explore how to add them to your Shopify store using code.

How to Add Estimated Delivery Dates on Shopify Using Code

While Shopify does not have a built-in estimated delivery date feature, you can manually add it to your product pages using Liquid code. Below are the step-by-step instructions to implement this feature without relying on third-party apps.

Step 1: Identify Your Shipping Timeframes

Before adding EDDs to your store, define your shipping and processing times. Consider:

• Order processing time (e.g., 1-2 business days)
• Shipping carrier timelines (e.g., 3-5 business days for standard shipping)
• Different EDDs for various locations (if applicable)

Step 2: Open Shopify’s Theme Code Editor

1. In your Shopify Admin, go to Online Store → Themes.
2. Click on Actions (3 dots) → Edit Code.

Step 3: Add Custom Code to the Product Page

Locate the `product.liquid` file (or `product-template.liquid` in Shopify 2.0 themes) and insert the following code snippet where you want the estimated delivery date to appear:

    {% assign processing_time = 2 %} <!-- Adjust processing time in days -->
    {% assign shipping_time_min = 3 %} <!-- Minimum shipping time in days -->
    {% assign shipping_time_max = 5 %} <!-- Maximum shipping time in days -->
    {% assign min_days = processing_time | plus: shipping_time_min %}
    {% assign max_days = processing_time | plus: shipping_time_max %}
    {% assign today_date = 'now' | date: '%Y-%m-%d' %}
    {% assign min_delivery_date = today_date | date: '%s' | plus: min_days | date: '%b %d' %}
    {% assign max_delivery_date = today_date | date: '%s' | plus: max_days | date: '%b %d' %}
<p><strong>Estimated Delivery:</strong> {{ min_delivery_date }} - {{ max_delivery_date }}</p>

Step 4: Customize the Message

Modify the text within the `<p>` tags to match your store’s branding (e.g., “Your order is expected to arrive between…”).

Step 5: Save & Preview the Changes

1. Click Save in the code editor.
2. Go to a product page and refresh to see the estimated delivery date displayed.

Step 6: Test Different Scenarios

• Change the processing and shipping time variables to verify accuracy.
• Place test orders to ensure the calculations align with actual delivery times.

Pro Tips for Accurate Estimated Delivery Dates

✅ Factor in Business Days & Holidays – Ensure your estimates exclude non-working days when applicable.

✅ Offer Multiple Shipping Options – Display different EDDs based on shipping speed (e.g., Standard vs. Express).

✅ Use Location-Based Estimates – If you ship internationally, adjust the timeframe for different regions.

✅ Keep Your Shipping Speeds Updated – If carrier delays occur, update your estimates accordingly to avoid customer disappointment.

✅ Communicate Clearly – If there are unexpected delays, notify customers proactively via email or SMS.

Final Thoughts

Adding an estimated delivery date to your Shopify store is a simple yet powerful way to increase conversions, reduce customer inquiries, and improve overall satisfaction. While third-party apps exist, using custom code gives you full control and flexibility over how EDDs appear on your site.

By implementing the steps outlined in this guide, your customers will have a clear expectation of when their orders will arrive, making them more confident in their purchase decisions.

Now it’s your turn—try adding EDDs to your Shopify store today and watch your sales and customer trust grow!

Frequently Asked Questions

What is estimated delivery date?

An estimated delivery date (EDD) is the date when a package is expected to arrive at its destination. It’s a key part of the online shopping experience and can impact customer satisfaction.

Where can I find an EDD?

It can be displayed at various times and locations such as on the product page, at checkout, in the order confirmation email, on the branded tracking page, in shipment notifications, or on the “Thank You” page.

Why are accurate EDDs important?

They can help build trust and encourage repeat business, they can help reduce customer anxiety and uncertainty, and they can help retailers manage their inventory and optimize their supply chain.

Written By:

Indy Pereria

Indy is the Head of People Operations at Cahoot, fosters innovation, develops recruitment strategies, and scales the company’s culture.

The ecommerce industry has experienced a dramatic shift in recent years, with global Sellers gaining direct access to U.S. consumers. Platforms like Amazon, Temu, and Shein have made it easier than ever for international merchants, particularly those based in China, to reach American shoppers with competitively priced products. At the same time, social media trends such as the “Amazon Haul” phenomenon have fueled consumer demand for affordable and trendy products, often sourced from overseas suppliers.

This global competition presents both challenges and opportunities for U.S.-based Sellers. While international merchants benefit from cost-efficient manufacturing and logistics, American businesses can still thrive by leveraging their strengths such as superior customer service, branding, and localized marketing strategies. By understanding the changing dynamics of ecommerce and implementing smart business tactics, domestic Sellers can remain competitive and grow their market share.

Understanding the Competitive Landscape

Historically, American retailers sourced products through distributors and wholesalers, often relying on Chinese manufacturers for affordable goods. However, the rise of ecommerce platforms has eliminated many middlemen, (a phenomenon known as disintermediation), allowing manufacturers and Sellers from China to sell directly to U.S. consumers at lower prices.

A study by Marketplace Pulse found that in five major European Amazon marketplaces (Spain, France, Italy, the UK, and Germany), 41% of Sellers were based in China. In a different study by the same source, China-based sellers were found to represent nearly 50% of the top 10,000 Sellers on Amazon in the U.S. Additionally, upwards of 95% of Chinese Sellers use Fulfillment by Amazon (FBA) depending on the product category, ensuring fast and reliable shipping that levels the playing field with domestic merchants.

Despite these challenges, U.S. Sellers have unique advantages that can help them stand out in an increasingly competitive marketplace. Here’s how:

1. Competing with More Than Just Price

While low prices can attract customers, American consumers also value quality, trust, and customer service. Sellers who prioritize superior product quality, hassle-free returns, and excellent customer support can differentiate themselves from international competitors.

2. Leveraging Branding and Storytelling

Companies like Shein and Temu rely on aggressive digital marketing to promote their ultra-low-cost products. However, many consumers also seek brands that offer authenticity, transparency, and ethical sourcing. U.S. Sellers can build brand loyalty by emphasizing their company’s values, quality control, and customer engagement strategies.

3. Smart Marketing and Customer Engagement

Establishing an independent website allows Sellers to cultivate their own customer base rather than relying solely on third-party marketplaces. Targeted digital marketing, social media engagement, and partnerships with influencers can help businesses create a loyal audience and drive repeat sales.

4. Supply Chain Optimization

Efficiency in sourcing and logistics is crucial to competing with global Sellers. By improving demand forecasting, negotiating better supplier agreements, and optimizing shipping and fulfillment strategies, domestic Sellers can lower costs and improve profit margins.

5. Expanding Product Categories and Sales Channels

Instead of competing head-to-head in oversaturated categories, Sellers can explore niche markets with consistent demand. Additionally, diversifying sales across platforms like Walmart, eBay, and Shopify reduces dependence on Amazon and creates new revenue streams.

Thriving in a Global Ecommerce Market

The increasing presence of global Sellers on platforms like Amazon, Shein, and Temu has reshaped ecommerce, but it does not mean U.S. businesses cannot compete. By focusing on quality, branding, smart marketing, and operational efficiency, American Sellers can carve out a strong position in the marketplace. Success in ecommerce is not just about offering the lowest price—it’s about providing value, building customer trust, and adapting to an ever-changing digital retail environment.

Written By:

Indy Pereria

Indy is the Head of People Operations at Cahoot, fosters innovation, develops recruitment strategies, and scales the company’s culture.