What Is Shipping Software? Types, Features and Examples

TL;DR

• What is shipping software? It connects your orders to carriers so you can compare rates, print labels, track parcels, and manage returns.
• The main types are carrier-specific tools, platform built-in tools, multi-carrier software, shipping APIs, order and warehouse systems, enterprise delivery platforms and freight software.
• Core features include order import, rate shopping, carrier rules, labels, tracking, returns, customs documents and analytics.
• This guide gives example products for each type, so you can see what the category looks like in practice.
• Choose by parcel volume, carrier mix, sales channels and growth plans, then test on your own parcels.

In 2024, U.S. parcel volume reached 22.4 billion shipments, up 3.4% on the year before, according to the Pitney Bowes Parcel Shipping Index. Every one of those parcels needed a rate, a label, a tracking link and a plan for returns.

Managing shipments through individual carrier websites and spreadsheets may seem manageable at first. But as order volumes grow, tracking deliveries, comparing carrier rates, and handling shipping operations across platforms becomes increasingly complicated.

Shipping software brings these tasks together in one place. It comes in different forms, each designed to address specific shipping needs, from basic label creation to managing complex, multi-carrier operations.

Let’s understand in detail.

What Is Shipping Software?

Shipping software is a tool that connects your orders to carriers. It lets you compare rates, print labels, track parcels and handle returns from one screen. It replaces manual work across carrier websites and spreadsheets.

If you are still asking what is shipping software in practical terms, think of it as the control desk for every parcel you send. It takes in an order, picks a service and hands back a label and a tracking number.

Here is what it usually replaces.

• Logging in to several carrier websites
• Copying addresses from orders by hand
• Tracking costs and parcels in spreadsheets
• Sending tracking updates to customers one by one

The scope here covers parcel and freight shipping execution for businesses. That means the work between “order placed” and “order delivered or returned.”

How Shipping Software Works?

Shipping software brings the different stages of order fulfilment into one place, from the moment an order comes in to the time it reaches the customer.

Instead of checking orders on one platform and tracking deliveries separately, your team can manage most of the work through a single system.

Here is how the process typically works.

Orders Come In From Different Sales Channels

Once a customer places an order, the shipping software collects the order details from your online store, marketplace or other sales channel. This usually includes the delivery address, product details, parcel weight and order value.

For businesses selling through multiple channels, this means the team does not have to download order files and enter the same information into different systems. New orders appear in one place, ready for processing.

The Software Helps You Choose the Right Carrier

Not every shipment needs the same delivery service. A customer in a nearby city might be fine with standard delivery, while an urgent international order may need a faster service.

Shipping software compares available carrier rates, delivery timelines and service options. You can also set rules based on factors such as destination, parcel weight, delivery preference or shipping cost. This helps your team choose a suitable carrier without checking every option manually.

Shipping Labels and Documents Are Generated

After selecting a carrier, the software generates the shipping label using the order information already available in the system. Depending on the shipment and carrier, it can also prepare manifests, packing slips and customs documents.

This saves time, particularly when processing dozens or hundreds of orders together. Your team does not need to enter the same address and parcel details repeatedly or visit individual carrier websites to create labels.

Shipments Are Handed Over to Carriers and Tracked

Once parcels are packed and ready, they are handed over to the selected carrier for delivery. The shipping software keeps the tracking information connected to each order and brings carrier updates into one place.

Your team can check whether a shipment has been picked up, reached a sorting facility or is out for delivery without opening multiple tracking websites. Customers can also receive tracking updates, depending on the software and integrations being used.

Delivery Issues and Returns Are Handled

A shipment does not always reach the customer on the first attempt. Incorrect addresses, missed deliveries, damaged parcels and other exceptions can interrupt the process.

Shipping software helps teams keep track of these situations instead of relying on separate spreadsheets or messages from carriers. Depending on the platform, teams can manage delivery exceptions, arrange another delivery attempt and process return requests from the same system.

Shipping Costs and Carrier Performance Are Reviewed

Once shipments start moving through the system, the collected data becomes useful for reviewing shipping performance. You can look at how much you are spending with different carriers, how often deliveries arrive on time and where delays or failed deliveries occur.

When these steps live in one tool, your team stops switching between screens. That alone saves hours each week once volume grows.

Types of Shipping Software

There is no single standard list, and sources group tools in different ways. This guide uses seven types of shipping software, from the simplest to the most complex. The lines overlap because vendors keep adding features, so treat each type as a starting point.

1. Carrier-Specific Shipping Software

Carrier-specific shipping software is built by one carrier for use on its own network. UPS, FedEx and USPS all offer tools like this, and many national carriers, such as DHL, Royal Mail, Australia Post and DPD, run online portals too.

You enter the parcel, choose a service and print the label. The tool is simple and often free, but it works with one carrier only.

Best for: Sellers who ship with a single carrier.

Strengths: Free or low cost, quick to learn.

Trade-off: No rate comparison across carriers.

Examples: FedEx Ship Manager, UPS WorldShip, USPS Click-N-Ship.

2. Shipping Tools Built Into Ecommerce Platforms

Some ecommerce platforms include shipping features in the same dashboard where you manage orders. You buy labels with a few clicks and tracking links go to customers on their own.

Setup is easy because the store and the shipping tool are already connected. The trade-off is a smaller choice of carriers and fewer advanced features.

Best for: New online stores that want shipping working on day one.

Strengths: Easy setup, no extra system to learn.

Trade-off: Fewer carriers and limited rules.

Examples: Shopify Shipping.

3. Multi-Carrier Shipping Software

Multi-carrier shipping software connects many carriers in one place. It shows live rates side by side, applies rules and prints labels for whichever carrier wins.

This type supports multi-carrier management, which means each parcel can go with the best courier for its size, speed and cost. It suits sellers who use two or more carriers, and the cost is usually a monthly plan or a fee per label.

Best for: Growing sellers with several carriers and sales channels.

Strengths: Rate shopping, rules, labels and tracking in one view.

Trade-off: Monthly or per-label cost, and some setup time.

Examples: ShipStation, Easyship, Sendcloud, ShippyPro.

4. Shipping APIs

A shipping API is a set of connections that lets developers add shipping features to their own apps. It returns rates, creates labels and pulls tracking data, but it has no screen of its own.

Companies that build their own checkout or platform often choose this type. The trade-off is that your team must build and maintain everything around it.

Best for: Software teams that want full control.

Strengths: Flexible and easy to embed in your own product.

Trade-off: Needs developer time and has no ready-made interface.

Examples: EasyPost, plus carrier APIs.

5. Order and Warehouse Systems With Shipping Built In

These systems manage orders, stock and warehouse work, and shipping sits inside the same workflow. Pickers pack the order, the system picks a carrier and the label prints at the packing bench.

A 3PL or a brand with its own warehouse gets one system instead of three. The trade-off is that shipping features may be lighter than in a dedicated tool.

Best for: Brands and 3PLs that run a warehouse.

Strengths: Orders, stock and shipping in one system.

Trade-off: Shipping depth can be lighter than in a specialist tool.

Examples: Veeqo, Mintsoft.

6. Enterprise Delivery and Carrier Management Platforms

Enterprise platforms handle high volumes across many carriers, regions and brands. They add allocation rules, delivery options at checkout, performance scorecards and invoice checks.

Large shippers often look at carrier management software when they need to control cost and service across dozens of carriers. These tools take more time and budget to roll out.

Best for: Large retailers, brands and multi-country shippers.

Strengths: Scale, allocation rules and carrier performance control.

Trade-off: Longer rollout and higher cost.

Examples: nShift, Metapack, Scurri.

7. Freight and Transportation Management Software

Freight software plans and runs larger moves, such as pallets, trucks and containers. A transportation management system covers tendering, routing and freight costs, and parcel shipping is only one part of it. It suits manufacturers, distributors and freight forwarders. For a seller who ships boxes, it is usually more than needed.

Best for: Shippers who move pallets, trucks and containers.

Strengths: Planning, freight cost control and carrier tendering.

Trade-off: Heavier than parcel tools.

Examples: Kuebix TMS.

This table sums up the 7 types of shipping software.

Examples of Shipping Software Products

Here are shipping software products grouped by type, with the regions where each is most used. The table is illustrative and not a ranking. Readers who want a closer UK comparison often start with the best shipping management systems and their pricing.

What Are The Key Features of Shipping Software?

Shipping software can do much more than generate labels and track parcels. Depending on the platform, it can handle everything from importing orders and comparing carrier rates to managing returns and reviewing shipping costs.

Here are the features to check before choosing a tool.

Order Import Across Stores and Marketplaces

If you sell through multiple channels, manually collecting orders from each platform can quickly become a daily headache. Shipping software connects with online stores and marketplaces to bring incoming orders into one place.

It pulls in details such as customer addresses, product information, parcel weight and order value. Thus, it gives your team a single view of orders waiting to be shipped and reduces the chances of missing an order or entering incorrect details.

Rate Shopping and Carrier Selection Rules

Choosing a carrier based only on price does not always work. A cheaper service might take longer to deliver, while a slightly more expensive option could offer better coverage or fewer delivery delays.

Rate shopping lets you compare available carrier services based on shipping costs, delivery timelines and service availability. Some platforms also let you create shipping rules, so parcels are assigned to carriers based on their destination, weight, or delivery requirements.

Shipping Label and Document Generation

Creating shipping labels one order at a time is manageable when you have a handful of parcels. It becomes tedious when hundreds of orders are waiting to go out.

Shipping software generates labels using the order and carrier information already available in the system. Most tools also support batch label printing, along with documents such as packing slips, shipping manifests and customs forms where required.

Shipment Tracking and Customer Notifications

Customers want to know where their orders are, especially when a delivery takes longer than expected. Without a central tracking system, your support team may have to check individual carrier websites every time someone asks for an update.

Good shipment tracking brings tracking information from different carriers into one view. Your team can check shipment progress, identify delays and keep customers informed through automated notifications, depending on the platform’s capabilities.

It also makes it easier to spot shipments that have stopped moving and may need attention.

Returns Management

Returns are part of running an online business, but handling them manually can create unnecessary work for both customers and operations teams.

Look for software that lets customers raise return requests, generates return labels and helps your team track parcels coming back. Some platforms also support return status updates and connections with warehouse systems.

The aim is to make the return process less complicated rather than treating every return as a separate shipping task.

Analytics, Carrier Scorecards and Invoice Checks

Shipping costs can be difficult to control when you work with several carriers. You might know how much you spend overall, but understanding which carrier performs well or where extra costs are coming from takes a closer look.

Reporting features help you compare delivery performance, shipping expenses, failed deliveries and carrier-wise volumes. For example, carrier performance scorecarding can help identify carriers that consistently meet delivery commitments and those that need closer attention.

Integrations and APIs

Shipping software rarely works in isolation. It needs to exchange information with the other systems your business already uses, such as:

• An eCommerce platform,
• Order management system (OMS),
• Warehouse management system (WMS), or
• Enterprise resource planning (ERP) software.

Check whether the tool offers ready-made integrations for your existing systems. If you have a more specific workflow, API support becomes important because it allows your development team to connect systems and exchange data accordingly.

Shipping Software vs Shipping API, WMS and TMS

These 4 terms sit close together, so they get mixed up. Here is how they differ.

Shipping software is a ready-made tool for rates, labels, tracking and returns. Start here if you want a working screen your team can use this week.

A shipping API is a set of connections that developers use to build shipping into their own app. Start here if you have developers and want full control.

A warehouse management system (WMS) runs stock, picking and packing inside a warehouse. Start here if warehouse work is your biggest problem, and check whether shipping comes with it.

A transportation management system (TMS) plans and runs larger freight moves. Start here if you move pallets and trucks, and parcels are a small part of your volume.

Who Needs Shipping Software?

Most businesses reach a point where manual shipping stops working.

Watch for these signs:

• Labels are printed by hand, one carrier site at a time
• You use several carriers, or want to
• Where-is-my-order messages keep rising
• Returns pile up with no clear process
• You do not know your cost per parcel

Online sellers, brands, 3PLs, distributors and manufacturers all use shipping software. The type changes with size, but the need is the same.

How to Choose Shipping Software?

The right shipping software depends on how your business handles orders, which carriers you work with and where you deliver. Check these six points before you commit to any shipping software.

Check Carrier Coverage

Start with the carriers you already use. Make sure the software supports them in your delivery regions and allows you to add new carriers as your shipping requirements change. A long carrier list means little if your preferred partners are missing.

Understand the Pricing Model

Look beyond the monthly subscription fee. Some of the best multi-carrier management software charge per shipment or label, while others offer fixed monthly or volume-based plans. Choose a model that makes sense for your current order volume without becoming expensive as shipments increase.

Check Available Integrations

Your shipping software should work with the systems you already rely on. Check its integrations with your eCommerce platforms, OMS, WMS and ERP. If your setup is more complex, ask whether the platform offers APIs for custom connections.

Consider Returns and International Shipping

If your business handles cross-border orders or frequent returns, here are the workflows you need before signing up.

Look for return label generation, customs documentation and support for international carriers. These capabilities can save considerable time once your shipping volume grows.

Look at Automation Capabilities

Manual carrier selection works until the orders start piling up. Check whether the software lets you create rules based on parcel weight, destination, delivery speed or shipping cost. Good automation should reduce repetitive decisions, not add another layer of work.

Review Security and Customer Support

Multi-carrier shipping software in the UK handles customer addresses, order details, and other business information, so security matters. Ask about data protection practices, relevant certifications and access controls. Also check support availability, response times and whether assistance is available during your business hours.

Where Shipsy Fits in the Shipping Software Landscape?

Shipsy sits at the enterprise end of the shipping software market. It’s an AI-native logistics management platform used by retailers, manufacturers, distributors and logistics providers. Its capabilities cover transportation management, route planning, delivery management, multi-carrier parcel management and warehouse operations.

What’s more?

The AgentFleet AI workforce works alongside operations teams to detect exceptions, recommend corrective actions and execute them. Teams retain oversight through human-in-the-loop controls and a full audit trail. Shipsy has also received recognition in Gartner’s Magic Quadrant for Transportation Management Systems three times.

The platform serves 150+ enterprises across 30+ countries, including Heineken, Coca-Cola, Aramex and DPD. It also processes more than 5 billion shipments annually.

Shipsy is worth considering for enterprises managing complex, multi-country logistics operations. Smaller sellers may find a simpler shipping platform more suitable.

Conclusion

So, what is shipping software? It is the tool that turns a pile of orders into labelled, tracked and returnable parcels. The right type depends on your volume, your carriers and your systems.

Shipping software also helps teams keep an eye on what happens after an order leaves the warehouse. They can check delivery progress, spot delays, and handle exceptions before customers start asking questions.

Start with the type that matches your size, then test two or three tools on real parcels. To see how this works with your own carrier mix, you can book a demo with Shipsy.