eCommerce: Shipping Providers

Top Shipping Providers for Online Stores in the United States: UPS and USPS Lead

More than half of U.S. online stores use USP and/or USPS to deliver products ordered online. Learn more about the rest of the rankings in our insight.

June 11, 2024

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Top Shipping Providers for Online Stores in the United States: Key Insights

  • Shipping Services: A shipping service provider handles the physical transportation of goods and offers various services such as package pickup and delivery, multiple shipping options, real-time tracking, packaging, insurance, and eco-friendly practices.

  • Leading Providers: Based on ECDB's data, the leading shipping providers for online stores in the United States are UPS, USPS, FedEx, DHL, and own delivery services. UPS and USPS are each used by 58% of online stores for their reliable and efficient services, FedEx is chosen by 50% for its fast international deliveries, DHL is preferred by 14% for its global reach, and own delivery services are explored by 2% for greater control over the delivery process.

  • Choosing the Best: To choose the right shipping provider for your eCommerce business, consider their service capacity, shipping costs, delivery speed, insurance, security, technology, tracking capabilities, and customer service. These factors will help ensure timely deliveries, minimize losses, and enhance customer satisfaction.


In a world where fast delivery is key to online shopping, how do you choose the right shipping provider for your store? Which carriers do most online businesses in the U.S. prefer?

We'll explore the top shipping providers for online stores in the United States and reveal which ones lead the pack, based on comprehensive data from ECDB.

What is eCommerce Shipping?

A shipping service provider is a company that handles the physical transportation of goods from the seller to the buyer. Shipping providers offer various delivery options, such as standard or express shipping, and can deliver to various destinations, including domestic and international locations. Examples include DHL, UPS, and FedEx.

Shipping service providers have many responsibilities beyond just transporting packages from one place to another. They provide a variety of services, including:

  • Package Pickup & Delivery: Handling both ends of the shipping process.

  • Shipping Options: Standard, express, same-day, next-day, and international shipping.

  • Tracking: Real-time shipment tracking for transparency.

  • Packaging Services: Providing necessary packaging materials.

  • Insurance: Compensation for lost or damaged goods.

  • Eco-Friendly Practices: Sustainable shipping methods.

Top 5 Shipping Providers for Online Stores in the United States

Choosing the right shipping provider is crucial for ensuring timely and safe delivery of products to customers.

Note that this ranking only includes stores in our database for which shipping provider usage is available and known. Based on 3,920 online stores in the U.S. eCommerce market, a store can offer more than one shipping provider.

Let's take a look at the leading providers based on ECDB's data.

1. UPS

Among them, 58% of online stores use UPS to deliver packages to their customers. UPS is known for its reliable and speedy delivery services, making it a favorite among online retailers.

Top 5 Shipping Providers in the United States eCommerce Market, 2023

UPS has been investing heavily in its logistics network, including advancements in drone delivery and electric vehicles to improve efficiency and sustainability. This focus on innovation helps maintain its strong position in the market.

2. USPS

Similarly, 58% of online stores use USPS, making it another top choice for online shipping. The USPS is renowned for its extensive network and affordable pricing, which appeals to a broad range of businesses.

Recently, USPS has been working on modernizing its fleet and enhancing its package tracking systems to provide better service and reliability, which are crucial for eCommerce businesses.

Stay Informed: Our rankings are continuously updated with the newest data from our models, offering valuable insights to enhance your business strategy. Curious about which stores and companies are at the forefront of eCommerce? Want to know which categories are leading in sales and popularity? Discover the answers in our rankings for companies, stores, and marketplaces. Keep ahead of the competition with ECDB.

3. FedEx

FedEx ranks third, with 50% of U.S. online stores reporting that they use this service. FedEx is often chosen for its fast and reliable shipping options, especially for international deliveries.

FedEx has been expanding its eCommerce solutions, including Sunday deliveries and advanced tracking capabilities, to better serve the growing demands of online shopping.

fedextruck

4. DHL

DHL comes in fourth, used by 14% of online stores in the U.S. This international shipping provider is known for its global reach and efficient cross-border delivery services.

DHL has been enhancing its eCommerce capabilities, focusing on improving cross-border shipping efficiency and offering solutions tailored to online retailers, which makes it a strong contender for businesses looking to expand internationally.

5. Own Delivery Service

In fifth place, with 2%, is own delivery service. This option provides flexibility for stores that want to maintain control over the entire delivery process but is less commonly used due to the logistical challenges it presents.

Some retailers are starting to explore this option more seriously as it allows them to create a unique delivery experience and potentially reduce costs in the long run. Companies like Amazon have popularized this model, inspiring other businesses to consider it.

MOST PROFITABLE CATEGORIES FOR SELLERS ON AMAZON WORLDWIDE 2

Choosing the Right Shipping Provider for Your eCommerce Business

Now that you are fully aware of the services a courier company in the U.S. offers, it’s time to choose the right one for your business. This is usually the most challenging part because you have to pay keen attention to each of the services, their viability, the cost of the services, and ultimately how important these services will be in achieving your business goals. Here are some things every eCommerce retailer should keep in mind before selecting the best courier service company in the U.S.

  • Service and Capacity: Ensure the provider can handle your order volume and deliver to your required locations.

  • Shipping Costs and Delivery Speed: Compare prices along with the delivery speed; consider providers specializing in same-day or express deliveries if needed.

  • Insurance and Security: Choose providers offering insurance and high safety standards to avoid losses on high-value items.

  • Technology and Tracking: Select providers that use the latest technology for efficient deliveries and real-time tracking.

  • Customer Service and Reviews: Check the provider’s track record and customer reviews to ensure they meet your business needs.

By considering these factors, you can make an informed decision on the best shipping provider for your eCommerce business. This choice can significantly impact customer satisfaction, delivery times, and overall business success.


Sources: Clickpost, Hopstack, ShipSigma, ECDB


FAQ: Top Shipping Providers for Online Stores in the United States

Which shipping company is best for eCommerce?

The best shipping company for eCommerce depends on your specific needs. UPS and USPS are highly popular among online retailers for their reliable and speedy services. FedEx is also a strong contender, especially for international shipping. Consider your business requirements, such as delivery speed, cost, and package size, to determine the best fit.

Which shipping company is best in the USA?

UPS and USPS are widely regarded as the best shipping companies in the USA. They offer extensive networks, competitive pricing, and reliable services. Both are frequently used by eCommerce businesses due to their ability to handle high volumes and provide timely deliveries.

What are the top delivery companies in the U.S.?

The top delivery companies in the U.S. include UPS, USPS, FedEx, and DHL. These companies are known for their robust delivery networks, range of shipping options, and reliable services. They cater to both domestic and international shipping needs, making them popular choices for businesses of all sizes.

Who is the biggest shipper in the U.S.?

UPS is often considered the biggest shipper in the U.S., given its extensive network and large market share. It handles a significant volume of parcels daily and is a preferred choice for many eCommerce businesses due to its reliable service and broad range of shipping options.