Dear friend, global online retail exploded to $5.5 trillion in 2022. But with customers demanding free, fast delivery on every order, fulfillment costs threaten margins. Manual shipping management across multiple carriers also wastes valuable time.
The solution? Automated shipping APIs that seamlessly integrate delivery services into online stores and marketplaces. By some estimates, shipping APIs reduce fulfillment costs by 40% and customer service inquiries by 60%. This technology breakthrough allows online sellers to profitably scale while delighting shoppers.
In this definitive guide, you‘ll discover how shipping APIs are transforming ecommerce and why they‘re essential for sustained growth. Let‘s explore why automating shipping is critical for success.
Rising Consumer Delivery Expectations
Today‘s online shoppers demand exceptional post-purchase experiences:
- Free and fast shipping is now default expectation.
- 60% of customers track their packages online.
- 4 in 5 shoppers check expected arrival date before buying.
- 50% abandon carts with delivery dates too far out.
McKinsey found delivery speed was top factor for online shoppers worldwide. These soaring requirements put immense pressure on merchants.
Soaring Ecommerce Shipping Costs
Alongside rising expectations, shipping costs spiral ever higher. In 2022:
- Average ecommerce shipping fee was $8.03 per parcel.
- Shipping spend reached 11.5% of product cost by some analysis.
- Many DTC sellers saw 30-50% of revenue eaten by shipping.
Juggling FedEx, UPS and USPS contracts across fluctuating rates proves hugely complex. Yet consumers won‘t cover these logistics outlays. Unmanaged shipping threatens profitability.
Solving Delivery Problems With Shipping APIs
To satisfy demanding online shoppers while controlling costs, sophisticated shipping APIs automate the entire delivery workflow:
Key benefits include:
- Comparing parcel rates across carriers to find cheapest options.
- Printing shipping labels in batch for warehouse efficiency.
- Validating addresses before shipping to reduce returns.
- Enabling delivery speed and location tracking to delight shoppers.
- Streamlining returns, refunds and exchanges.
Top shipping APIs like ShipStation, Shippo and EasyPost connect with ecommerce platforms like Shopify and Amazon. This powers a unified view and management of all fulfillment activity.
By leveraging process automation and scale across carriers, shipping APIs drive down parcel delivery costs by up to 40% according to merchants. Let‘s explore leading solutions.
ShipEngine: Popular Shipping API
One of the most widely adopted shipping APIs, ShipEngine combines over 30 carriers from FedEx and UPS to regional players:
I‘ve directly implemented ShipEngine for multiple online retailers. Key benefits include:
- Discount labels using rate shopping.
- Address validation across 220+ countries.
- Branded tracking pages to wow customers.
- Returns portal to handle exchanges.
- Custom carrier integrations via API.
Usage-based pricing provides volume discounts as parcel volumes grow. With seamless scalability and diverse carrier integrations, ShipEngine suits high-growth ecommerce stores.
Top Shipping API Capabilities
While trading complexity for simplicity, here are key features effective shipping APIs provide:
Let‘s explore other leading solutions with these capabilities.
EasyPost: Trusted Global Shipping
Trusted by ecommerce providers like Shopify, EasyPost supports 100+ domestic and international carriers:
- Print USPS, FedEx, UPS, DHL Express labels.
- Compare rates across carriers for cheapest quotes.
- Validate addresses in over 200 countries.
- Research economy vs. express delivery times.
- insured, branded package tracking.
EasyPost simplifies cross-border commerce with customs documentation and international rate management. Volume-tiered pricing starts free for small businesses.
Shippo: Multi-Channel Automation
Harmonizing fulfillment across diverse sales channels, Shippo connects over 75 shipping carriers with marketplaces, platforms and ERPs:
- Print shipping labels for orders from any source.
- Validate addresses before fulfillment.
- Speedy domestic and global delivery.
- Branded tracking pages to impress shoppers.
- Returns portal works across marketplaces.
With strong reviews from developers, Shippo is trusted by brands like GE, ABCmouse and Timex. Plans scale from small startups to large enterprises.
Pitney Bowes: Specialized Solutions
Offering a century of logistics expertise, Pitney Bowes optimizes complex parcel delivery with robust capabilities:
- Daily ecommerce manifest files to carriers.
- Precise rate analysis by zone, speed, etc.
- Customs brokerage and clearance.
- Configure carrier quality of service.
- Improve inventory accuracy.
Ideal for advanced merchants with ERP integrations, Pitney Bowes provides high-touch onboarding and ongoing optimization. Custom pricing applies.
Choosing and Integrating Shipping APIs
When selecting and rolling out a shipping API:
- Audit capabilities: Match to your business model and workflows.
- Review integrations: Ensure sync with sales channels, ERP.
- Start with top domestic carriers like USPS, UPS, FedEx.
- Analyze data for delivery time, costs insights.
- Scale usage over time leveraging volume prices.
Plan at least 2 weeks from API trial to production rollout. Close cooperation with fulfillment teams ensures adoption success. Ongoing usage analysis allows cost and time optimizations.
Industry Trends
Key developments as shipping APIs gain adoption include:
- Logistics and free shipping now competitve norms.
- Custom tailored solutions for furniture, alcohol, etc.
- Focus on sustainable delivery with eco transparency.
- Request for Quote APIs simplify pricing negotiations.
By removing friction from parcel delivery, shipping APIs allow online sellers to profitably meet rising consumer expectations.
Start Automating Fulfillment Today
As you‘ve learned, shipping APIs empower ecommerce merchants to control costs and scale efficiently. Removing manual efforts, these solutions integrate delivery workflows with sales channels and ERP infrastructure.
Leading options like ShipEngine, Shippo and EasyPost balance simplicity for small businesses with advanced functionality for enterprise commerce. Forward-looking merchants are adopting shipping APIs for game-changing improvements in fulfillment performance, customer experience and profitability.
I urge you to trial top shipping APIs today. Please reach out with any questions about features, integrations or rollout best practices. Automated shipping is now imperative for online retail success. Let‘s discuss how to drive your ecommerce growth to the next level!
