You’ve developed exciting new products, built your brand, and created a marketing strategy. What now? Whether you’re just starting to ship orders or looking to scale, the next challenge is delivering those finished goods to customers efficiently and profitably.

Shipping affects more than just customer satisfaction—it directly influences costs, margins, and long-term growth. McKinsey estimates that logistics costs can consume up to 20% of ecommerce revenue. Not to mention, nearly half of consumers say a poor delivery or packaging experience affects their willingness to buy from the same brand again, according to Sifted.

This is where smart shipping logistics strategies come in, helping ecommerce businesses streamline fulfillment, reduce costs, and deliver products effectively. Here you’ll learn the main types of shipping logistics and discover best practices and tools to improve your fulfillment process.

What is shipping logistics?

Shipping logistics refers to how an ecommerce business manages and coordinates the movement of goods from their point of origin to the end customer.

Shipping logistics includes both the physical act of shipping and the broader logistics systems that support it.

This comprises:

• Sourcing and storing inventory

• Picking and packing orders

• Choosing carriers

• Tracking deliveries

• Managing post proof of delivery

• Customer communications

• Coordinating returns and exchanges

An efficient shipping logistics strategy reduces costs and delivery times by cutting down on storage inefficiencies, consolidating shipments, and automating manual tasks. It shortens delivery times by improving warehouse coordination and route planning. Just as importantly, reliable delivery builds customer satisfaction and brand loyalty, since shoppers are more likely to reorder from businesses that deliver quickly and keep them informed.

Types of shipping logistics

There are three main types of shipping logistics, and ecommerce entrepreneurs must manage all three to deliver products effectively. Let’s take a look at each:

Inbound logistics

Inbound logistics covers the systems used to manage shipments coming to you—the raw materials, product components, or finished goods your business receives. This includes sourcing products or materials from suppliers and receiving them at a warehouse or distribution center.

Effective inbound logistics requires processes for receiving incoming goods and verifying orders for accuracy (such as checking purchase orders). It also involves storing items in an organized system for easy access later.

Outbound logistics

Outbound logistics involves managing shipments from your own warehouse or distribution center to customers or clients. This process includes receiving and managing customer orders, picking and packing the correct items, and coordinating delivery to the final destination. 

At this stage, businesses need to determine the best transportation methods for their products and customers. That may be ground, sea, or air shipping; international freight shipping for bulk inventory; or expedited shipping for urgent deliveries. The right choice depends on factors like delivery speed, shipping distance, cost, and product characteristics. For example, lightweight or time-sensitive items may justify air freight, while heavier or lower-margin products often ship more cost-effectively by ground or sea.

Outbound logistics also includes scheduling carrier pickups and tracking shipments to ensure timely and accurate delivery. 

Reverse logistics

Reverse logistics refers to the management of goods from customers back to your warehouse or distribution center to facilitate returns or exchanges. Depending on your company’s return policy, customers might initiate returns for incorrect, damaged, or defective items—or simply because they changed their mind. 

The goal of reverse logistics is to make returns or exchanges as easy as possible. Customers receive return labels and instructions, and once you receive the item, you decide whether to repair, recycle, or send a replacement in the case of exchanges.

Strong reverse logistics systems help you avoid waste, recover the value from returned goods, and maintain customer trust.

5 tips to optimize shipping logistics

• Use shipping software
• Invest in inventory tools
• Improve shipment tracking
• Track logistics performance
• Partner with a 3PL

Optimizing shipping logistics doesn’t have to be difficult. Below are best practices for improving your inbound, outbound, and reverse shipping logistics operations:

Use shipping software

Shipping logistics software helps automate key tasks like label creation, carrier rate comparison, and order tracking—all from a single dashboard. These platforms streamline fulfillment operations, reduce human error, and save time on repetitive processes. Popular options include ShipStation, Easyship, and ShippingEasy, which integrate with major ecommerce platforms to manage carrier selection, label printing, and real-time shipment tracking.

If you’re already using Shopify, you can manage everything in one place with Shopify Shipping. It lets you operate from a single dashboard and access pre-negotiated, discounted rates from major carriers.

Managing shipping manually can lead to lost productivity and errors. An integrated tool makes it simple to create labels from your point-of-sale (POS) system, verify addresses, and track shipments, all from the same place.

Invest in inventory tools

Businesses also need reliable tools for managing inventory efficiently. These tools monitor the movement of goods, manage stock levels, and optimize replenishment to prevent stockouts—when customers find a product unavailable at checkout.

With Shopify, you can track products across sales channels, set automatic stock alerts, and integrate inventory management apps such as Stocky or ShipHero. A well-managed inventory system prevents lost sales and helps ensure customer satisfaction and smoother operations. For example, automatic restock alerts can keep popular items available during peak seasons, reducing backorders and disappointed customers.

Inventory software isn’t just for large retailers. Even small and midsize businesses gain value by preventing overselling, predicting seasonal trends, and centralizing stock visibility across multiple sales channels. Businesses that manage inventory manually often struggle with inconsistent data or delayed restocking, leading to lost sales and higher storage costs.

Improve shipment tracking

Real-time shipment tracking provides visibility for both merchants and customers. A transparent system that allows your customers to check order status and receive regular updates helps manage expectations and build trust.

When you create a shipping label in Shopify Shipping, you automatically receive a tracking number for that shipment to share with customers. It also includes the option to send automatic email updates throughout the delivery process.

Track logistics performance

Using measurable key performance indicators (KPIs) helps businesses evaluate the quality of their shipping logistics operations. Some key supply chain KPIs include:

• Customer order cycle time. Measures how long it takes for an order to arrive after purchase; shorter cycle times indicate faster fulfillment and greater operational efficiency, while longer ones may reveal shipping or processing bottlenecks.

Customer order cycle time = Actual delivery date – Purchase order creation date

• Stockout rate. Tracks the frequency of out-of-stock items when customers place orders. High stockout rates can frustrate customers and signal poor demand forecasting, whereas low rates show effective inventory control.

Stockout rate = (Total number of stockouts / Total order requests) x 100

• Perfect order rate. Measures the percentage of orders that arrive at their destination on time without issues. Higher percentages indicate more reliable fulfillment operations—typically a key driver of repeat business.

Perfect order rate = (Number of perfect orders / Total orders) x 100

• Inventory turnover rate. Tracks how often your inventory sells during a specific period. Higher turnover ratios suggest efficient inventory use and strong sales velocity, while low ratios can indicate overstocking or slow-moving products.

Inventory turnover ratio = Cost of goods sold / [(Starting inventory + Ending inventory) / 2]

• Gross margin return on investment (GMROI). Shows how much gross profit your business earns for every dollar invested in inventory. Higher GMROI means your inventory investments are yielding stronger returns—an indicator of healthy pricing and cost management.

GMROI = Gross margin (in dollars) / Average inventory cost

Tracking these KPIs can reveal bottlenecks, highlight inefficiencies, and support continuous improvement.

Partner with a 3PL

If managing fulfillment in-house is too complex or costly, consider outsourcing your shipping operations to a third-party logistics (3PL) provider. A good third-party logistics services partner handles core logistics functions, such as warehousing, inventory management, order fulfillment, and shipping. This leaves you time to focus on product development and marketing. 3PLs can also design customized solutions to match your business’s unique needs.

Popular 3PLs include ShipBob, Fulfillment by Amazon (FBA), and Red Stag Fulfillment, all of which offer nationwide warehouse networks and integrations with major ecommerce platforms. Many specialize in fast delivery and real-time inventory visibility across multiple sales channels. Shopify merchants can also use the Shopify Fulfillment Network to connect with trusted 3PL partners to manage inventory, ship orders, and track shipments. Outsourcing fulfillment can help streamline operations and reduce overhead.

Partnering with a 3PL makes the most sense once your order volume outgrows in-house storage or fulfillment capacity. For example, if shipping time or space limitations start to slow growth, a 3PL can help you expand into new regions without building your own warehouse infrastructure. Smaller businesses might start in-house and transition to a 3PL once scaling demands require additional support.