16 Shipping Strategies to Implement for Retailers & Distributors

mark599704
Sep 12
11 min read

Updated: Sep 19

16 Shipping Strategies to Implement for Retailers & Distributors in 2026

In 2026, the global supply chain and logistics will face big pressure. Suppliers, manufacturers, distributors, and retailers need shipping to deliver products to customers. Many may have to change how they work to keep things running smoothly. Let’s look at the main factors and see shipping strategies businesses can use to stay competitive, make customers happy, and grow.

What Is a Shipping Strategy?

A shipping strategy is a plan for online stores. It helps make shipping easier and faster. It includes working with shipping companies. It also means choosing which shipping methods to offer. The store decides the price for each type of order. The goal is to make shipping smooth for customers. At the same time, it keeps costs low and protects profits.

Key Takeaways

Good shipping strategies help increase sales, revenue, and profits.
They make shipping more efficient and improve customer experience.
Rising costs, world events, changing customer habits, and environmental issues mean companies must adapt.
New ideas, like hybrid shipping and subscription models, can create growth opportunities.

Shipping Strategies Explained

Shipping strategies are very important for a company. Moving goods well needs careful checking of delivery time, accuracy, cost, and customer feedback. These details help retailers and distributors choose the best carriers, shipping methods, and prices. Shipment size, distance, packaging, and insurance also affect the strategy. But using good shipping strategies is getting harder in today’s business world.

Rising costs, service disruptions, and limited carrier options make shipping more complicated, creating big challenges for suppliers, manufacturers, distributors, and retailers. A few major parcel carriers dominate the market, making it hard to get competitive prices. In fact, these carriers raised rates by 5.9% in 2026. Worker shortages and labor disputes delay deliveries. Other problems include blocked trade routes due to geopolitical conflicts and tariffs that raise costs.

Companies often face a choice between running operations and keeping customers happy. Customers want fast, cheap, or free shipping, but this can reduce profits. To handle this, businesses can use tiered strategies with different delivery options by speed and price. They can also use hybrid strategies that mix shipping methods to save money without hurting service.

Other considerations include picking faster but costlier carriers to avoid bad reviews and diversifying suppliers, which can slow efficiency but strengthen the supply chain. Automation, AI, and other tech tools help Retailers & Distributors to make data-based shipping decisions that meet their needs and customer expectations.

16 Shipping Strategies to Explore in 2026

Changes in what customers want, global events, and environmental concerns are changing the shipping industry. Suppliers, manufacturers, distributors, and retailers need strategies that handle these challenges and also increase sales and profits. Next, we look at 10 popular shipping strategies. We will explain their benefits, best uses, and possible problems to help businesses make smart choices.

1. Flat-Rate Shipping

Flat-rate shipping lets companies charge the same shipping fee for all orders or for orders in a certain size, weight, or price range. For example, a home goods store might charge $10 for orders up to 20 pounds. A clothing shop could charge $5 for any order under $100.

To set effective flat rates, retailers and distributors should calculate their average shipping costs to ensure expenses are covered without overcharging or undercharging customers.

This strategy simplifies the checkout process, which can reduce cart abandonment. It works best for companies that ship products of similar size and weight, particularly when items fit within carriers’ flat-rate envelopes or boxes.

2. Free Shipping

Free shipping lets businesses absorb delivery costs instead of passing them on to customers. It can be offered universally, used as an incentive for orders that meet a minimum threshold, or included as a perk in loyalty programs.

This strategy can increase customer lifetime value, boost sales, and reduce cart abandonment, with 82% of shoppers more likely to complete purchases when shipping is free. However, businesses need a clear understanding of their shipping costs and average order value (AOV) to ensure profitability.

Free shipping works best in industries with high profit margins, such as electronics or fashion, where shipping costs can be incorporated into product prices without reducing competitiveness.

3. Real-Time Carrier Rates

Real-time carrier rates show live prices from shipping companies during checkout. An online calculator gives customers different delivery options and exact costs.

This strategy works well for large or expensive orders, where covering shipping costs is too high. It gives clear prices and choice, which helps build trust and increases sales.

Real-time rates also protect companies from sudden price changes by carriers. But if a company pays part of the shipping cost, sudden price hikes can hurt profits. High costs may also scare customers away. Businesses can reduce these risks by making deals for lower rates with carriers.

4. Local Delivery and Pickup

Local delivery and pickup help businesses avoid third-party carrier costs by offering same-day delivery, local drop-off, or in-store pickup. This strategy works well for retailers and distributors with a local footprint, such as grocery stores, florists, restaurants, and big-box retailers.

Local drop-off uses company staff, gig workers, or local couriers to deliver orders directly from a nearby store or warehouse, bypassing national carriers. In-store pickup allows customers to collect purchases at a retail location, often at a lower cost since it relies on existing staff and infrastructure.

Both options offer additional benefits:

Boost average order value (AOV): Customers picking up in-store may make extra purchases.
Cost efficiency: Pickup is typically cheaper than delivery, while local drop-off avoids national shipping fees.
Eco-friendliness: Shorter delivery distances reduce the carbon footprint compared with long-distance shipping.

5. Dropshipping

Dropshipping lets retailers skip handling order fulfillment. It is popular in areas like furniture, health and beauty, and electronics. Instead of keeping stock, retailers work with third-party suppliers. These suppliers store the products and ship them to customers after an order is made.

This strategy eliminates inventory, warehousing, and logistics costs, improving profitability and reducing upfront overhead, which lowers the barrier to entry. However, the model also brings challenges:

High competition: Many sellers offer the same products, making differentiation difficult.
Limited control: Retailers cannot directly manage product quality or shipping speed, which can lead to unhappy customers if suppliers underperform.

Dropshipping is best suited for businesses seeking rapid scaling and a wide product selection without the complexities of traditional fulfillment.

6. Freight Shipping

Freight shipping is important for suppliers, manufacturers, and distributors that move large amounts of goods. They use full-truckload (FTL) or less-than-truckload (LTL) methods.

FTL is best for big or urgent shipments, like a furniture maker sending a full truck of chairs to a warehouse. LTL is better for smaller loads, like 200-pound pallets of clothing shipped to many stores while sharing truck space with other businesses.

To control costs, companies need to know how freight carriers classify cargo. They look at density, stowability, and liability. For example, light but bulky items like storage containers may cost more to ship than heavy but compact items like dumbbells.

Freight and transportation management systems help companies check costs, plan routes, and track shipments. This keeps FTL and LTL deliveries running smoothly.

7. Hybrid Shipping

Hybrid shipping combines multiple carriers and delivery methods to manage costs and shorten delivery times. By integrating freight and parcel shipping across air, sea, rail, and truck, businesses gain the flexibility to navigate complex supply chains and global logistics networks.

For example:

A manufacturer may use freight shipping to move bulk goods to regional distribution centers, then switch to parcel delivery for retailer orders.
An e-commerce company might employ private carriers for long-haul transport and the postal service for last-mile delivery.

Hybrid shipping is common in industries like electronics and pharmaceuticals, where both bulk transport and precise last-mile delivery are critical. Depending on factors like volume and route length, this strategy can reduce shipping expenses by 20–30%.

8. Eco-Friendly Shipping

Eco-friendly shipping is becoming increasingly important, with 73% of Americans willing to pay more for environmentally responsible delivery options. Trucking and maritime providers are adopting electric vehicles and alternative fuels to reduce greenhouse gas emissions, while AI-powered tools help identify fuel-efficient routes. Last-mile delivery increasingly uses electric vehicles, bikes, and scooters.

Sustainability also extends beyond transportation: manufacturers and retailers can reduce waste through recyclable or compostable packaging and lower carbon emissions by investing in renewable energy projects. Eco-friendly shipping not only appeals to conscious consumers but can also enhance brand reputation and long-term competitiveness.

9. Subscription-Based Shipping

Subscription shipping delivers customer orders on a set schedule and often includes lower prices, free or discounted shipping, or extra perks. It is popular in industries where people regularly buy consumable items.

Subscriptions may send the same product on a routine basis, like a water filter every three months, or offer a curated mix, such as a “chocolate of the month” box. This model creates steady, predictable revenue and builds customer loyalty through convenience. However, businesses must balance discounts or perks with higher sales or reduced fulfillment costs to keep profits strong.

10. Set a Minimum Spend Threshold

Offering free shipping above a certain order amount encourages customers to add more items while helping businesses stay profitable. A common method is to review your average order value (AOV) and set the free shipping limit slightly higher, motivating shoppers to spend more to qualify.

For example, a beauty and hair care brand first required an $80 minimum for free shipping. Many shoppers reached checkout but left their carts because of high shipping fees. By lowering the minimum to $45, the brand matched free shipping to the average abandoned cart size. This change doubled revenue and nearly tripled sales, showing the strong impact of setting the right free shipping threshold.

11. Negotiate Better Shipping Rates with Major Carriers

Cutting the cost of each shipment is an important way to make your shipping strategy more sustainable and profitable. Look into local shipping options and find ways to get better rates than standard retail pricing for the services your business uses.

Real-time shipping can be costly, and if customers see the same product with cheaper or included shipping elsewhere, they may switch to a competitor. By negotiating lower rates and working with carriers that offer discounts, retailers and distributors can cut costs, stay competitive, and protect profits.

12. Absorb Handling Costs in Product Pricing

Real-time shipping rates from carriers typically cover only the delivery cost and do not include packaging or handling expenses, such as staff time to pick and pack orders. Relying solely on these rates can erode profit margins.

To address this, consider incorporating handling and packaging costs into your product pricing. For example, if a product generates $9 in profit, you might add $1 to cover additional logistics costs. This ensures you maintain profitability while still offering competitive shipping rates to customers.

13. Real-Time Shipping Rates

Real-time shipping rates change based on carrier prices, which can shift often due to outside factors. While this adds some risk, it also protects your business from sudden increases, since customers pay the exact shipping cost.

Adding a real-time shipping calculator to your shipping policy page can build trust, showing that fees are fair and not used to cover product prices. This approach works well for heavy or oversized items that are expensive to ship for free, helping businesses avoid paying the full cost.

14. Table-Rate Shipping

Table-rate shipping uses a set pricing system to calculate costs based on factors like weight, size, volume, location, or shipping class. This makes shipping prices different for each order and keeps costs closely matched to the shipment.

The main benefit is that it helps businesses choose the most cost-effective option while giving customers clear prices at checkout. This reduces cart abandonment caused by unexpected fees.

But table-rate shipping can also be complex, especially when sending items of different sizes to many locations. To make it more accurate, businesses can group products with similar traits, such as weight, size, or fragility, when building shipping tiers.

15. Set Flat Rates for Standard and Expedited Shipping

Fast shipping is a major priority for online shoppers, second only to free shipping—88% of buyers are willing to pay for same-day or faster delivery. Offering flat rates for both standard and expedited shipping helps serve different customer needs and budgets.

For example, a customer who wants an order quickly might pay $20 for expedited delivery, while another who prefers saving money may choose a $5 standard option with a longer wait time.

By keeping standard shipping free and setting flat rates for faster options, businesses can upsell customers, increase satisfaction, and give shoppers flexibility when they want products sooner.

16. Offer Flat Shipping Rates for Paid Returns

Free returns are common in many industries, but they can sometimes create problems. In fashion, for example, some shoppers practice “wardrobing,” where they buy several items, wear them once, and then send them back. Charging a flat fee for returns helps reduce this fraud and encourages customers to shop more carefully and sustainably.

Flat-rate returns also give customers price clarity, as they know upfront what the return will cost, avoiding surprise charges at checkout. This fee also helps cover reverse logistics, including processing and restocking costs. Interestingly, two out of five online shoppers say they are willing to pay more for an eco-friendly and sustainable return process, making this strategy both practical and appealing.

Why Shipping Strategies Matter for Your Business

Shipping is not just a cost. It is a key strategy that affects sales, customer satisfaction, and long-term growth. On average, e-commerce companies spend 8.7% of their yearly costs on shipping. This makes it important to use that money wisely to reach business goals and manage complex supply chains.

1. Improve Customer Experience

A good shipping strategy keeps customers informed. Clear updates about delivery times, delays, or options like local delivery and curbside pickup create a positive experience. Customers are more likely to buy when shipping is reliable, clear, and easy. But slow or costly shipping pushes customers to competitors. About 23% of shoppers leave their carts because of slow delivery.

2. Boost Sales and Average Order Value (AOV)

Shipping promotions, like free or discounted shipping for orders over a set amount, encourage customers to buy more. Research shows 78% of shoppers add extra items to get free shipping. This raises the average order value and total sales. Giving customers choices in carriers, delivery speed, or fulfillment also makes checkout easier and increases sales.

3. Streamline Operations and Cut Costs

Good shipping strategies make operations more efficient. They improve workflows, reduce errors, and automate repeated tasks. Picking the right carriers, cutting packaging waste, and using bulk shipping can lower costs and increase profits. A smart plan also helps businesses handle supply chain problems, reroute shipments, and keep service steady even during busy times.

4. Support Growth

A strong shipping plan helps retailers and distributors reach new markets, even international ones. Reliable shipping lets companies serve more people, build customer loyalty, and improve their brand reputation. By working efficiently and keeping customers happy, businesses can grow steady.

5. Avoid Pitfalls

Bad shipping strategies can hurt customer trust and lower sales. Examples include high fees, slow delivery, or unreliable carriers. Speed, cost, and reliability are very important. Balancing them well makes sure shipping helps the business instead of hurting it.

Optimize Your Shipping Strategy with Dynamic Distributors

Shipping delays, rising costs, and inefficient processes can disrupt supply chains and frustrate customers. Long transit times, complex carrier relationships, and limited visibility often lead to missed deadlines and higher expenses. Retailers and distributors need solutions that streamline fulfillment workflows while addressing these challenges.

Dynamic Distributors Pick, Pack & Ship helps suppliers, manufacturers, distributors, and retailers simplify key order fulfillment tasks. Features include:

Optimized picking strategies and wave-based order releases for faster, more accurate picking
Mobile-guided warehouse workflows to reduce errors
Multi-order picking, packing support, and integrated shipping label generation

These tools enable teams to fulfill orders quickly and accurately, minimize mis-picks and duplicate trips, and efficiently manage both bulk freight and last-mile parcel deliveries. By leveraging Dynamic Distributors, businesses can maintain control over labor and shipping costs while consistently meeting customer expectations.