How Ecommerce Shipping Works: Checkout to Doorstep Delivery

Online shopping or ecommerce has made buying items at home very easy for everyone. Today with the help of a smartphone, you can search for products online and have them delivered in only a few days. Sometimes, you even receive the item the same day, thanks to quick-commerce and hyperlocal delivery companies.

But, what appears to be a simple delivery hides a complex shipping process. Every ecommerce order goes through many steps before it reaches your door. One of the key steps here is the shipping process.

When you own an ecommerce business, you have a choice in how you handle shipping operations. The shipping step plays an important role in managing the complete supply chain process. This includes from the moment an order is placed to the time it is sent out. This step affects the experience your customers have with your business.

Before you decide on a shipping method for your ecommerce business, you must understand how online shipping works. You also need to know which methods work well and which shipping integrations and APIs can help you set up your ecommerce shipping process with a few clicks.

Let’s break down how to deliver products to customers in India and worldwide by first defining what online shipping involves.

What Is Online Shipping?

Online shipping covers each & every step that is needed to deliver products from the seller’s warehouse to the buyer’s address. It is important to choose the right shipping partner for a business to sell products online.

Logistics company will help manage the delivery of packages in a fast, and budget-friendly manner. Businesses must consider factors such as delivery speed, shipping costs, and shipping integrations to optimize their logistics operations.

A well-structured product shipping strategy can significantly impact customer satisfaction and brand reputation. Let’s explore closely some of the different steps involved in shipping a package from start to end.

Order Fulfillment Process Explained: A Step-by-Step Guide for E-commerce Sellers

When a customer places an order, multiple steps ensure the item reaches them efficiently and accurately. The entire process can be broken down into three key stages:

1. Pre-Shipment: Order Confirmation & Verifying Product Availability

The first step in ecommerce shipping is confirming that the ordered products are available in stock. Ecommerce inventory management systems play an important role here, helping businesses prevent stockouts and overselling.

2. Order Handling: Picking & Packing

Once inventory is verified, businesses must ensure that order details and customer information are accurate. Address verification tools help minimize errors and reduce the risk of failed deliveries. This stage also involves physically preparing the order for shipment. The right items are picked, securely packed to prevent damage, labeled with tracking details, and dispatched via a shipping carrier.

3. Shipping & Order Completion: From Warehouse to Last-mile

This is the final stage of the shipping process, which involves giving the parcel to the shipping carrier for the actual delivery of goods to the customer. This stage also involves tracking the parcel while it is moving towards its destination. The post-shipment stage is the last stage of the shipping process when the customer receives the parcel and confirms the delivery. The post-shipping process also handles returns and exchanges, provides customer support, and manages lost or damaged packages.

E-commerce Shipping Process in Detail

Shipping plays a major role in ensuring a seamless e-commerce experience. A well-structured shipping process not only enhances customer satisfaction but also improves business efficiency. Here’s a detailed breakdown of key shipping components:

1. Shipping Labels: The Key to a Smooth Delivery

A shipping label is the first and most important element in the shipping process. It is like an identification card of the package, containing essential details about the sender, recipient, and package. Without a properly printed and affixed shipping label, packages may get lost or delayed.

Key Information on a Shipping Label:

Sender and Recipient Addresses – Ensures the package reaches the correct destination.
Tracking Number – Allows both the seller and buyer to monitor the package’s journey.
Shipping Class & Carrier Details – Indicates the delivery speed and the selected carrier (e.g., standard, express, overnight shipping).
Weight and Dimensions – Determines the shipping cost and eligibility for certain carrier services.
Barcode & QR Code – Enables fast processing and scanning during transit.

2. Courier Allocation: Choosing the Best Carrier for Each Order

Courier allocation is a critical step where businesses assign orders to the most suitable shipping carrier based on factors like delivery location, cost, speed, and reliability. Advanced shipping platforms use AI-driven courier allocation to select the best carrier for each package.

Why Courier Allocation Matters?

Faster Deliveries – Assigning orders to couriers with optimized routes speeds up shipping times.
Cost Savings – Choosing cost-effective carriers based on package weight and distance reduces shipping expenses.
Improved Reliability – Allocating shipments to trusted partners minimizes delivery failures.

For Example: A seller in Delhi shipping an order to Mumbai may choose Delhivery for cost-effective delivery, while for an international order, they may opt for DHL or FedEx for faster transit.

3. Shipping Insurance: Protecting Your Packages

Shipping insurance provides coverage in case a package is lost, stolen, or damaged during transit. This is particularly useful for fragile or high-value items, as it ensures compensation for the cost of the goods.

When to Consider Shipping Insurance:

If you sell expensive items like electronics, jewelry, or artwork.
If you frequently ship internationally, where lost or delayed shipments are more common.
If your products are fragile and prone to damage in transit.

For Example – A seller shipping high-end watches should include shipping insurance on each order. So, in case a package is lost or arrives damaged, the seller can claim reimbursement, preventing financial losses.

4. Tracking Orders: Keeping Customers Informed

Providing order tracking information is essential for maintaining transparency and improving the customer experience. Tracking numbers allow both businesses and customers to monitor the status and estimated arrival time of shipments.

Benefits of Shipment Tracking:

Enhances customer trust – Buyers feel more confident when they can track their orders in real time.
Reduces customer inquiries – Fewer “Where is my order?” questions lead to improved operational efficiency.
Helps resolve delivery issues – If a package is delayed or lost, tracking helps locate it quickly.

5. Handling Returns: Ensuring a Hassle-Free Process

Returns are an inevitable part of e-commerce. A complicated return process can discourage customers from shopping again, while a smooth return experience fosters loyalty.

Key Strategies for Managing Returns Efficiently:

Create a Clear Return Policy – Outline return eligibility, timelines, and refund/exchange options on your website.
Offer Prepaid Return Labels – Make returns easier by providing a pre-generated shipping label.
Inspect and Process Returns Quickly – Speedy processing of returns leads to better customer satisfaction.
Restock or Dispose of Returned Items Smartly – Determine whether returned items can be resold, refurbished, or disposed of.

Optimizing your shipping process, ensuring clear labeling, offering shipping insurance, providing efficient ecommerce shipment tracking, and streamlining returns, can significantly improve customer satisfaction and operational efficiency. E-commerce businesses that master shipping logistics build stronger customer trust and drive long-term success.

Why an Efficient Ecommerce Shipping Process Matters?

Each of these steps must be handled with precision. Mistakes such as sending the wrong item, mislabeling packages, or using inaccurate customer details can lead to delays, returns, and dissatisfied customers.

For new businesses, investing in an automated order management system and reliable shipping partners can streamline operations and enhance customer satisfaction. By optimizing the shipping process, e-commerce sellers can reduce errors, speed up delivery times, and build trust with customers.

Popular Shipping Methods for Ecommerce

Selecting the right shipping method depends on business goals, budget, and customer expectations. Here are some shipping methods you might choose for your ecommerce:

1. Two-Day Shipping: Many large online stores offer delivery within two days. This option is very popular among customers. Even though it is easiest for big businesses, smaller stores can also find ways to offer this method. Large retailers like Amazon popularized two-day shipping, but smaller businesses can also implement this by partnering with reliable carriers.

2. Same-Day Delivery: Fast delivery is a major selling point. In this method the seller sends the package on the same day the order is placed. Some of the recent research shows that many buyers are ready to pay extra for a package that arrives quickly.

3. Overnight Shipping: Overnight shipping means the package arrives the next day. As same-day and two-day shipping become more common, some businesses choose overnight delivery to stand out. Many carriers provide this service at different rates. Many sellers have found that this shipping can help them reach their sales goals quickly.

4. International Shipping: Shipping products to another country can be a difficult task for many business owners. The primary reason is different countries have their own rules about taxes, fees, and other matters.

Understanding Shipping Costs & How to Reduce Them

Here are some points to consider:

1. How to Calculate Shipping Costs

In ecommerce, there are a number of factors that affect the cost of shipping. These include the weight & size of the package, where the package is going, the carrier used, and sometimes the price of the product. Learning how these factors interact can help you find an affordable method.

2. How to Reduce Shipping Expenses

In recent times keeping the shipping costs as low as possible is very important. Some businesses work with third-party logistics providers since a 3PL partner can provide lower shipping rates. This option may also allow you to focus on some other parts of business. For small businesses and startups, keeping shipping costs low is very important. Here are some strategies to save money:

Use a Shipping Aggregator: Platforms like Shipway help businesses get discounted rates by connecting with multiple courier partners at the cheapest rates.
Work with a Third-Party Logistics Provider (3PL): Outsourcing warehousing and shipping to a 3PL can lower costs and allow businesses to focus on growth.
Negotiate with Carriers: If you ship in high volumes, negotiating better rates with carriers can lead to cost savings.
Optimize Packaging: Using the right-sized box reduces dimensional weight fees and packing costs.
Offer Local Pickup: If you have a physical store or warehouse, letting customers pick up their orders can eliminate shipping costs altogether.

Common Shipping Rate Models for Ecommerce

There are several common models for charging shipping fees:

1. Flat Rate: With a flat rate, the package is placed in a certain box or envelope and the fee does not change as long as the item fits. This method makes pricing simple for both the seller & buyer.

2. Real-Time Rates: With real-time rates, the cost is calculated at the time of checkout. The price depends on the customer’s shipping address and other preferences. The customer pays the exact cost of shipping based on current conditions.

3. Free Shipping: Many buyers are more interested in free shipping. When a store starts to provide free shipping, then it can help increase loyalty and sales. A few tactics can make free shipping work for you:

Build the cost of shipping into the price of the product.
Set a minimum order amount for free shipping.
Create a membership plan where customers pay a small fee to get free shipping on all orders.

Choosing a Leading Carrier in Online Shipping

To build a good shipping plan, you should know the main carriers in the market. Here are three well-known options:-

Calculating shipping costs, tracking packages, scheduling pickups for returns, and verifying addresses are essential logistics tasks. These services cater to both domestic and international shipments.

1. Blue Dart

Blue Dart is known for its reliable and time-definite delivery services. It provides real-time package tracking and provides express logistics solutions for businesses and individuals. Blue Dart also integrates with eCommerce platforms for seamless shipping operations.

2. Delhivery

Delhivery specializes in end-to-end logistics solutions, including express parcel delivery, freight shipping, and supply chain management. It provides businesses with real-time tracking, automated shipping tools, and nationwide coverage for efficient order fulfillment.

3. DTDC

DTDC has been a key player in the courier and logistics industry that provides services for small parcels to bulk shipments. It supports domestic & international shipping with real-time tracking, reverse logistics, pickup scheduling, and integrated business solutions for streamlined logistics management processes.

If you are an early-stage startup or a new business, working with an ecommerce shipping aggregator like Shipway can be a smart choice. Shipway helps businesses connect with multiple courier partners, automate shipping, and provide real-time tracking and notifications to customers. This makes shipping easier and more affordable for small businesses looking to scale quickly.

Essential Logistics Tools for Ecommerce Sellers

The software you use to run your online store should work well with your shipping process. Here are three popular APIs that help link your store to shipping services:

1. Shopify API

Shopify is a leading ecommerce platform for building online and physical stores. It offers an easy-to-use interface, numerous Shopify shipping apps and integrations, and a free trial to explore its features before committing. During the trial, you can set up a store, test different tools, and optimize your shipping process seamlessly.

2. WooCommerce API

WooCommerce is another option for online sellers. It connects your store with many shipping options and third-party logistics providers. The API helps you automate shipping tasks. WooCommerce also helps you to track orders and ship from major cities with ease.

3. Wix Shipping API

Wix is a platform that provides many tools for building online stores and its shipping API connects your site with shipping services and third-party fulfillment centers. With the Wix API, order handling and tracking become simpler.

Each of these APIs can help you connect your online store with your shipping process. Pick the one that best fits your business needs.

Wrapping Up

Shipping is a key part of running an online business in the ecommerce industry. A good shipping plan can help you get your products to customers on time and in a secure manner. It also plays an integral role in how customers view your brand or business.

So before you choose an ecommerce shipping partner, think about what your business needs. Consider the cost, the speed of delivery, and the overall experience you want to provide. Use a system that links all parts of your order process. This way, you can keep track of orders, manage returns, and send out packages reliably.

We hope this guide has given you a clear picture of what online shipping involves. With a good understanding of the shipping steps, methods, and tools, you can decide on a plan that works best for your business.

How Ecommerce Shipping Works: Step-by-Step Process, Costs & Strategies