Best Shipping Software
Ship more packages with less headache—and get better rates while you're at it
By Toolradar Editorial Team · Updated
ShipStation is the market leader with the best balance of features and usability. Shippo offers excellent rates and is easier for smaller operations. ShipBob combines software with fulfillment services if you want to outsource warehousing. For API-first needs, EasyPost provides the most flexibility.
Shipping software sits at a critical point in e-commerce operations. Without it, you're manually copying addresses, comparing carrier rates one by one, and printing labels from different systems. Good shipping software automates this chaos: import orders automatically, compare rates across carriers, print labels in batch, and track everything. The efficiency gains are massive.
What is Shipping Software?
Shipping software connects your e-commerce orders to carriers (USPS, UPS, FedEx, DHL, etc.) for label creation, rate shopping, and tracking. It imports orders from your sales channels, lets you compare shipping rates, prints labels, and updates tracking information back to customers. Some platforms also handle returns, inventory, and warehouse management.
Why Shipping Software Matters
Manual shipping doesn't scale. At 10 orders/day, it's tedious. At 100, it's impossible. Shipping software pays for itself quickly: discounted rates (often 30-60% off retail), time savings from automation, fewer errors from manual entry, and better customer experience from accurate tracking. It's essential infrastructure for any serious e-commerce operation.
Key Features to Look For
Compare rates across carriers to find the best option per shipment
Access pre-negotiated carrier discounts without volume minimums
Import orders from Shopify, Amazon, eBay, etc. automatically
Print labels and process multiple orders efficiently
Automatic tracking notifications to customers
Create return labels and manage the returns process
Automate carrier and service selection based on order attributes
Handle customs forms, duties, and international carriers
Key Factors to Consider
Evaluation Checklist
Pricing Overview
Shippo free plan, EasyPost per-label, Pirate Ship (free)
ShipStation Starter $9.99/mo (50 labels), Growth $29.99/mo (500)
ShipStation Scale $99.99/mo (2,000), High Volume $159.99/mo (7,500)
Top Picks
Based on features, user feedback, and value for money.
Growing e-commerce businesses with multiple sales channels and 100+ orders/month
Smaller sellers wanting great rates without monthly commitment
Tech teams building custom shipping into their own platform
Mistakes to Avoid
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Not rate shopping every shipment — Carrier pricing varies by 20-40% for the same route depending on package dimensions, weight, and destination zone. Always compare USPS, UPS, and FedEx before printing
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Ignoring dimensional weight — Carriers charge the greater of actual weight or dimensional weight (L×W×H ÷ 5000 for cm). A light but bulky package costs as much as a heavy one. Use the right box sizes
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Manual address entry — Automate order import from your sales channels. Manual entry causes address errors leading to returned packages ($5-15 per return) and delayed deliveries
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Not using automation rules at scale — Once you ship 50+ orders/day, rules like 'USPS Priority for orders under 1lb, UPS Ground for heavier' save hours. ShipStation excels here
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Skipping package tracking notifications — Automated tracking emails reduce 'where is my order?' support tickets by 30-50%. Every major platform supports this—enable it from day one
Expert Tips
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Rate shop by route, not carrier — USPS is cheapest for lightweight items under 1lb, UPS Ground wins for 2-5lb packages, FedEx often beats both for Zone 7-8 shipments. Test your top 10 routes
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Negotiate carrier rates at 100+ shipments/month — Contact UPS and FedEx directly for volume discounts. Even small shippers can get 15-25% off published rates on top of platform discounts
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Use flat-rate boxes strategically — USPS Priority Mail flat rate is $9.85 for a small box regardless of weight (up to 70lbs). For heavy items going long distances, flat rate often beats calculated shipping by 30-50%
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Batch process at consistent times — Pick a daily cutoff (e.g., 2pm for same-day shipment), batch print all labels, then hand off to carrier pickup. Consistency reduces errors and improves carrier relationships
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Analyze shipping costs monthly — Track your average cost per shipment, cost per order, and carrier mix. Most sellers can save 10-15% by optimizing box sizes and carrier selection based on actual data
Red Flags to Watch For
- !Platform doesn't show rate comparisons across carriers—you're locked into one carrier's pricing without knowing if it's cheapest
- !Hidden per-label surcharges on top of monthly fee—some platforms charge $0.05-0.10/label above carrier cost
- !No dimensional weight calculator—you'll get hit with unexpected carrier surcharges on lightweight but bulky packages
- !Limited to one sales channel integration on lower tiers—multi-channel sellers end up paying premium pricing immediately
The Bottom Line
ShipStation ($9.99-$159.99/month) is the safe choice for multi-channel sellers needing powerful automation and 150+ integrations. Shippo (free to $10/month) offers the best value for smaller sellers with its pay-per-label model and no monthly commitment. EasyPost ($0.01-0.04/label) is the API-first choice for developers building custom shipping. All platforms offer 30-60% off retail carrier rates—the savings alone cover software costs.
Frequently Asked Questions
How much can I save with shipping software?
Typically 30-60% off retail carrier rates for major carriers. The exact savings depend on your volume, package sizes, and destinations. Most sellers save enough to offset any software costs within the first month.
Should I use shipping software or my carrier directly?
Shipping software almost always—even if you only use one carrier. You get better rates, faster label printing, and automatic tracking updates. Direct carrier portals only make sense for very specific contract terms.
What's the difference between shipping software and 3PL?
Shipping software helps you ship from your own warehouse. 3PL (third-party logistics) companies warehouse your products and ship for you. Some tools (like ShipBob) offer both. Use 3PL when you don't want to handle physical inventory.
Related Guides
Ready to Choose?
Compare features, read reviews, and find the right tool.