GLOBAL SELLING BLOG
What is shipping? Know its types and process
Shipping is the process of sending goods, commodities, merchandise, and cargo from one place to another. Learn more about its process and benefits in blog.
With the rise of global e-commerce, customers today can order a product online and receive it at their doorstep within two days. This seamless delivery experience is made possible by shipping. Shipping is a crucial component of global trade and e-commerce. It enables businesses to transport goods, merchandise, and cargo from one location to another, whether it is a small local delivery or a large international shipment. Understanding how shipping works can help businesses streamline logistics, reduce costs, and improve customer satisfaction. This blog post covers the fundamentals of shipping, its role in e-commerce, different shipping methods, and how to choose the right option for your business.
What is shipping?
Shipping is the physical movement of goods, commodities, merchandise, and cargo from one place to another. It is a complex process that includes packaging, labeling, documentation, customs clearance, transportation, and tracking of the shipment’s journey. Shipping involves a wide range of transportation methods, including sea transport, land transport like trucks and trains, and air freight using airplanes. The purpose of shipping is to move products efficiently, safely, and cost-effectively, ensuring they arrive at their destination on time and in good condition.
Role of shipping in e-commerce exports
A well-executed shipping strategy is important in e-commerce exports. It plays the following roles:
Types of shipping
Common shipping categories include:
Road shipping
Shipping by road is a cost-effective choice for domestic shipments. However, delivery times can fluctuate depending on distance and infrastructure.
Air shipping
Air shipping is useful for moving goods quickly over long distances. While faster than ground or sea shipping, it is costly and can have cargo size and weight limitations.
Sea or maritime shipping
Sea shipping uses cargo ships to transport large, heavy, or bulk shipments. It is cost-effective for international trade but has longer transit times than air shipping.
Rail shipping
Rail shipping is ideal for transporting large quantities of goods over long distances on land. It’s more fuel-efficient than road transport and can handle heavy or bulky items.
How does the shipping process work?
Here is an overview of how shipping works in e-commerce:
Order processing
Once a customer places an order, the business verifies the product availability and processes payment.
Picking and packing
The ordered items are retrieved from inventory, inspected for quality, and securely packaged for shipment.
Labeling
Packages are labeled with shipping information, including the recipient’s address and the tracking number.
Carrier selection
A shipping carrier is chosen based on factors like destination, delivery speed, and cost.
Transportation
The package is transported to the carrier’s facility and then to the destination.
Delivery
The package is delivered to the customer’s address, completing the shipping process.4
Types of shipping methods
Businesses can choose from various shipping methods based on speed, cost, and customer preferences. Some options include:
Standard shipping
Balances cost and delivery time, typically taking five to seven business days for domestic deliveries.
Expedited shipping
Provides faster delivery times than standard shipping, often within two to three business days.
Overnight shipping
Ensures delivery by the next business day. It’s the fastest option available and is suitable for urgent shipments.
International shipping
Covers shipments across international borders, involving additional considerations like customs, duties, and international regulations.5
Pro tip
Get hassle-free logistics with Fulfillment by Amazon (FBA)
You sell it, we ship it. With Fulfillment by Amazon (FBA), you can store your products in Amazon global fulfillment centers while we pick, pack, ship your customer orders and provide customer service. FBA is designed to help you focus on your business while Amazon stores your inventory and takes care of shipping and last mile logistics (onward and return).
How to choose the right shipping method?
Some key factors to consider when choosing the right shipping method are:
• Destination: The destination plays a key role in choosing the right shipping method as domestic shipments typically rely on over-land shipping, while international deliveries often require air or sea freight.
• Speed: Speed is another critical factor. Urgent orders may require expedited or overnight shipping, whereas standard methods are sufficient for less time-sensitive shipments.
• Budget: Budget considerations are also important. Businesses must balance shipping costs with customer expectations by offering varying delivery timelines at various price points.
• Product characteristics: Product characteristics influence shipping choices. Fragile items require special handling, which can increase costs, while perishable goods demand temperature control and faster delivery.
• Destination: The destination plays a key role in choosing the right shipping method as domestic shipments typically rely on over-land shipping, while international deliveries often require air or sea freight.
• Speed: Speed is another critical factor. Urgent orders may require expedited or overnight shipping, whereas standard methods are sufficient for less time-sensitive shipments.
• Budget: Budget considerations are also important. Businesses must balance shipping costs with customer expectations by offering varying delivery timelines at various price points.
• Product characteristics: Product characteristics influence shipping choices. Fragile items require special handling, which can increase costs, while perishable goods demand temperature control and faster delivery.
Documents required for shipping
Some common documents required for international shipping include:
Bill of lading
A bill of lading is a contract between the shipper and carrier detailing the goods being transported.
Commercial invoice
A commercial invoice is an itemized list of the goods, including prices, used for customs clearance.
Packing list
A packing list is a detailed breakdown of the shipment’s contents, including weight and dimensions.
Customs declaration
Customs declaration is required for international shipping to declare the nature and value of goods.
Certificate of origin
A certificate of origin (COO) is a document certifying the country where the goods were manufactured, often required for international trade agreements and customs clearance.7
Benefits of shipping
Effective shipping strategies offer numerous advantages, including:
• Market expansion
Shipping enables businesses to reach customers beyond their local area for national and international growth.
• Inventory management
Efficient shipping improves inventory control, reducing storage costs and stockouts.
• Competitive advantage
Faster, more reliable shipping helps businesses stand out and attract more customers.
• Flexibility and scalability
Shipping can adapt to seasonal demand, business growth, and customer needs.
• Competitive advantage
Faster, more reliable shipping helps businesses stand out and attract more customers.
Challenges in shipping
Some common challenges in shipping are:
• High shipping costs: Fuel prices, carrier fees, and customs duties increase overall shipping expenses.
• Delays in delivery: Weather, logistical errors, and carrier inefficiencies can cause shipment delays.
• Customs and regulatory issues: Complex international regulations can lead to delays, fines, or seized goods.
• Damage or loss of goods: Accidental loss or damage of cargo during transit can result in financial losses.
• Tracking and visibility issues: Poor tracking systems create confusion and reduce customer satisfaction.8
• High shipping costs: Fuel prices, carrier fees, and customs duties increase overall shipping expenses.
• Delays in delivery: Weather, logistical errors, and carrier inefficiencies can cause shipment delays.
• Customs and regulatory issues: Complex international regulations can lead to delays, fines, or seized goods.
• Damage or loss of goods: Accidental loss or damage of cargo during transit can result in financial losses.
• Tracking and visibility issues: Poor tracking systems create confusion and reduce customer satisfaction.8
Tips for choosing the right shipping partner
Consider the following when choosing a shipping partner for your e-commerce business:
Compare pricing and services
Evaluate pricing structures and services of different providers. Consider the cost of additional services like insurance, tracking, and packaging support.
Check delivery timelines and reliability
Research delivery times for different providers. You can gauge reliability and consistency by reading customer reviews.
Evaluate customer support and tracking capabilities
Ensure the shipping partner offers robust customer support and advanced tracking systems for real-time shipment monitoring.
Consider experience in handling similar shipments
Choose a partner with experience handling goods similar to yours. For fragile or perishable items, look for expertise in handling such products.
Assess network coverage and scalability
Ensure wide network coverage, especially when shipping to multiple regions or countries. Check if the provider can scale services to meet your business’s growing needs.
Review sustainability practices
Consider partnering with providers that prioritize sustainability. Look for eco-friendly initiatives like carbon-neutral shipping or the use of electric vehicles.9
Ship internationally with Amazon Global Selling SEND
Amazon Global Selling SEND is a cross-border carrier shipping solution that allows you to ship your inventory from anywhere in India to Amazon’s global FCs in a cost-effective manner and hassle-free manner. Get your shipment ready and the partnered carrier will handle the end-to-end shipping experience, from pick up and custom processes to delivery at the fulfillment center.
Conclusion
Shipping plays a fundamental role in global trade and e-commerce, ensuring goods reach customers efficiently and cost-effectively. By understanding the different types of shipping methods, businesses can optimize their logistics strategies to improve customer satisfaction and reduce costs. Choosing reliable shipping partners and investing in efficient solutions can help businesses address challenges such as high shipping costs, delays, and complex regulations.
Businesses looking to streamline international shipping can utilize the services offered by e-commerce export programs like Amazon Global Selling. By leveraging Amazon’s logistics network, sellers can expand their reach, reduce shipping complexities, and boost sales across global marketplaces.
Businesses looking to streamline international shipping can utilize the services offered by e-commerce export programs like Amazon Global Selling. By leveraging Amazon’s logistics network, sellers can expand their reach, reduce shipping complexities, and boost sales across global marketplaces.
Amazon Global Selling: Easy e-commerce exports and hassle-free shipping
If you are a business owner and you want to sell your products to the world, Amazon Global Selling enables you to list and sell ‘Made in India’ products on 18 Amazon global marketplaces. As an e-commerce export program, Amazon Global Selling provides support and guidance at every step of your export journey, connecting you to Amazon’s Service Provider Network for tailored compliance, payments, and logistics support.
Registered sellers can choose to ship their products by themselves through Merchant Fulfilled Network (MFN) or they can opt for fulfilment by Amazon (FBA) and outsource order fulfilment to Amazon including packing, storage, delivery, and returns. Amazon Global Selling simplifies the process of international shipping to the world, helping businesses navigate customs and reach a vast audience.
Registered sellers can choose to ship their products by themselves through Merchant Fulfilled Network (MFN) or they can opt for fulfilment by Amazon (FBA) and outsource order fulfilment to Amazon including packing, storage, delivery, and returns. Amazon Global Selling simplifies the process of international shipping to the world, helping businesses navigate customs and reach a vast audience.
Frequently Asked Questions
1. What are shipping logistics?
Shipping logistics involves planning, implementing, and managing the efficient transportation of goods from one location to another.
2. How can partnering with a shipping provider save costs for my business?
A reliable shipping partner can simplify the shipping process through discounted rates, optimized routes, bulk shipping options, and reduced transportation costs.
3. What are the stages of the shipping process?
The shipping process includes order processing, packaging, transportation, customs clearance, and last-mile delivery.
4. What is shipping cost?
Shipping cost refers to the expenses incurred in the shipping cost, including packaging, transportation, and customs fees.
Published on April 16, 2025.
Sources:
1. https://www.maersk.com/support/faqs/what-is-shipping
2. https://www.hopstack.io/blog/ecommerce-shipping-guide
3. https://tassgroup.com/shipping/different-types-of-shipping/
4. https://fareye.com/resources/blogs/what-is-shipping-process
5. https://www.shiprocket.in/blog/different-shipping-methods/
6. https://www.searates.com/blog/post/how-to-choose-the-right-shipping-method-an-ultimate-guide
7. https://www.shippingsolutions.com/blog/documents-required-for-international-shipping
8. https://www.youtube.com/watch?v=kAW7VnV6DRg
9. https://www.shiprocket.in/blog/international-shipping-partners/
Sources:
1. https://www.maersk.com/support/faqs/what-is-shipping
2. https://www.hopstack.io/blog/ecommerce-shipping-guide
3. https://tassgroup.com/shipping/different-types-of-shipping/
4. https://fareye.com/resources/blogs/what-is-shipping-process
5. https://www.shiprocket.in/blog/different-shipping-methods/
6. https://www.searates.com/blog/post/how-to-choose-the-right-shipping-method-an-ultimate-guide
7. https://www.shippingsolutions.com/blog/documents-required-for-international-shipping
8. https://www.youtube.com/watch?v=kAW7VnV6DRg
9. https://www.shiprocket.in/blog/international-shipping-partners/
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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.
*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.
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