Top 5 Best Shipping Options for Small Businesses to Save Big

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Tony Pham Sep 29 2025

Shipping is a critical piece of the puzzle for small businesses, especially e-commerce stores striving to balance cost, speed, and customer satisfaction. In this article, NextSky dives into the best shipping options for small businesses, offering practical insights to optimize costs, streamline processes, and retain customers.

Top shipping carriers for small businesses

Explore the best shipping companies tailored for small businesses, highlighting their advantages and ideal use cases.

1. United States Postal Service (USPS)

USPS is a top choice for small businesses due to its low costs and nationwide coverage. It’s ideal for e-commerce stores shipping small, lightweight items like clothing or accessories.

Key features:

Competitive pricing: USPS offers the lowest rates for packages under 1–2 lbs, especially with commercial pricing (up to 90% off retail rates via platforms like Shopify Shipping).
Flat rate and dimensional pricing: Priority Mail Flat Rate boxes save costs for heavier items, while dimensional pricing, based on package size rather than weight, suits dense products.
Free packaging and pickup: Provides free Priority Mail boxes and envelopes, plus free pickups during regular mail delivery hours.
International options: First-Class Package International is affordable for packages under 4 lbs.
Best use case: Small businesses shipping lightweight, non-urgent domestic packages.
Ideal for: Lightweight packages (under 5 lbs), domestic shipping, and cost-sensitive businesses.

2. United Parcel Service (UPS)

For bulkier items like household goods or lightweight furniture, UPS is a reliable shipping partner ensuring on-time delivery. Its robust return processing system is perfect for businesses with frequent product returns.

Key features:

Small business program: UPS offers free business accounts with discounts, dimensional weight calculators, and online consultations to improve shipping processes.
UPS Simple Rate: Fixed pricing based on box size (XS to XL), making cost prediction easy without weighing packages.
Fast ground shipping: UPS Ground is often faster than USPS for mid-range distances (1–5 days in the U.S.), ideal for customers wanting quicker delivery without express fees.
Strong reverse logistics: UPS handles returns efficiently with pre-paid labels and simple processes, boosting customer satisfaction.
Free packaging: Order free envelopes, labels, and forms with a UPS account.
Best use case: Businesses shipping heavier items (over 20 lbs) or needing guaranteed delivery dates.
Ideal for: Reliable ground shipping, heavier packages, and businesses needing guaranteed delivery.

3. FedEx

For time-sensitive or high-maintenance items like food, premium cosmetics, or urgent gifts, FedEx offers superior shipping solutions to ensure products arrive quickly and intact.

Key features:

FedEx One Rate: Packages up to 50 lbs at fixed rates, including fuel and residential surcharges—great for heavy items in small boxes.
Express services: Priority Overnight (next morning) and 2Day (two business days) meet urgent needs, like seasonal orders.
Perishable shipping: FedEx provides temperature-controlled services with gel packs (32°F–60°F) or dry ice, ideal for food or pharmaceuticals.
International support: Serves over 220 countries with customs clearance tools, simplifying global shipping.
Free business accounts: Sign up for automatic discounts on FedEx Express and Ground, even for low volumes.
Best use case: Businesses prioritizing fast delivery or shipping perishables internationally.
Ideal for: Urgent deliveries, international shipping, and perishable goods.

4. DHL

With a strong focus on international customers, DHL stands out as a top shipping partner. Its lightning-fast delivery and deep customs expertise help e-commerce businesses impress global customers, turning each delivery into a memorable experience.

Key features:

Express Worldwide: Delivers in 1–3 days to many countries, often faster than USPS or even FedEx for some routes.
Customs support: DHL handles paperwork and clearance, reducing delays and unexpected costs for you and your customers.
PartnerSHIP program for small businesses: Offers volume-based discounts—the more you ship, the more you save.
Detailed tracking: Provides real-time order status updates, boosting international customer trust.
Best use case: E-commerce stores with a strong international customer base.
Ideal for: International shipping, especially to Europe, Asia, and Australia.

5. Shopify Shipping

Shopify Shipping integrates USPS, UPS, FedEx, and DHL into one platform, offering pre-negotiated discounts and a streamlined workflow. NextSky’s Shopify themes, like Glozin and Umino, integrate seamlessly with Shopify Shipping for a smooth checkout and order processing experience.

Key features:

Compare multiple carriers: View real-time pricing to choose the cheapest or fastest option.
Automated processes: Print labels, track orders, and notify customers directly from Shopify’s dashboard.
Discounted rates: Access commercial and dimensional pricing without minimum order volumes.
Best use case: Shopify-based businesses looking to simplify shipping and save costs.
Ideal for: Shopify store owners seeking a unified, cost-effective solution.

Benefits of a multi-carrier strategy for small businesses

Maximize cost savings: Comparing prices across carriers ensures the most economical option for each order, optimizing budgets without sacrificing service quality.
Flexibility for customer needs: Customers can choose their preferred carrier or delivery speed, creating a personalized, satisfying experience.
Reduce disruption risks: Avoid relying on a single carrier to minimize impacts from service fluctuations or unexpected events like weather delays.
Leverage competitive offers: Multiple options push carriers to improve pricing and services to win your business.
Efficient returns: For products with high return rates, partner with carriers offering robust reverse logistics for seamless, time-saving return processes.

Factors to consider for small business shipping

To choose the best shipping options, evaluate these factors to shape your strategy and balance cost, speed, and customer expectations:

Order volume: With 100 orders/month, you can manually print labels and drop off at the post office. As volume grows, manual processes become a bottleneck. Consider 3PL services or platforms like Shopify to automate and optimize costs.
Delivery speed: Today, 90% of customers expect 2–3 day delivery, and 30% want same-day delivery. Balance speed and cost by offering economy options for price-sensitive customers and expedited services for those willing to pay more.
Package weight and size: Shipping costs factor in both weight and dimensions (DIM), so excess packaging increases fees. Use fitted boxes, poly mailers for lightweight items, or free USPS Priority Mail packaging.
Destination: Domestic shipping is cheaper and faster than international. For global orders, account for customs, taxes, and longer transit times. Choose DHL for international expertise or USPS for affordable international options.
Tracking and insurance: Customers expect real-time tracking. For high-value items, consider supplemental insurance through carriers or third-party providers, which can cost up to 50% less than carrier insurance.
Returns and reverse logistics: Returns are common in e-commerce, with about 30% of online orders returned. A clear policy with pre-paid return labels simplifies the process.
Fragile and perishable items: For fragile items, use sturdy packaging and “Fragile” labels. For perishables, choose expedited shipping with cooling agents to maintain 32°F–60°F temperatures.

7 proven strategies to reduce shipping costs

Here are practical ways to cut shipping costs for small businesses without compromising quality:

Leverage discounts: Use services like Shopify Shipping or Shippo for commercial or bulk rates, and always print labels online to avoid retail costs.
Optimize packaging: Use fitted boxes or poly mailers to reduce dimensional weight. Leverage free carrier packaging or buy unbranded packaging in bulk.
Consolidate shipments: Combine multiple items into one package to lower per-item costs.
Offer smart shipping options: Set free shipping thresholds (e.g., $75) to increase order value while offsetting costs. Promote local pickup for nearby customers to eliminate carrier fees.
Understand shipping zones: Operate from central distribution hubs to minimize zones and costs. Partner with reliable 3PLs like The Fulfillment Lab for efficient execution.
Negotiate rates: With under 100 orders/month, negotiate directly for better pricing and avoid exclusivity clauses.
Streamline processes: Use automated tools to reduce manual work, saving time and minimizing errors.

Shipping doesn’t have to break your budget or overwhelm your operations. With the 5 best shipping options for small businesses shared above by NextSky, you can optimize costs and satisfy customers.

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Tony Pham

Hello! I'm Tony Pham, a full-stack Shopify, Magento, and WordPress developer with over 12 years of experience in both front-end and back-end development.

Since 2016, I have been proudly working at Nextsky as the Tech Lead, where I continue to enhance my skills and contribute to exciting projects. One of my proudest works is the Agile theme, which passed Shopify's high standard and is currently available on Shopify Theme Store.

I am passionate about researching new technologies and staying updated with the latest trends in the industry. It not only makes my life more fulfilling and exciting but also allows me to bring better service to clients.