13 Types of Shipping Methods for Your Business in 2025

In 2025, businesses face rising customer expectations for fast and flexible delivery. Choosing the right types of shipping can directly influence costs, satisfaction, and loyalty. From free shipping to expedited services, each method offers unique advantages and trade-offs. This guide breaks down 13 popular shipping methods every business should know. Mastering these options helps brands stay competitive and optimize logistics strategies.

1. Free Shipping

Free shipping is one of the most effective marketing tools in eCommerce, and it remains highly influential in 2025. Customers are more likely to complete a purchase when shipping costs are eliminated, even if the product price itself is slightly higher. This makes free shipping not only a delivery option but also a psychological trigger that boosts trust and satisfaction. Many businesses use it strategically during promotions, seasonal sales, or for orders above a certain value.

• Benefits:
  • Boosts conversion rates: Studies show that unexpected shipping fees are the leading cause of cart abandonment. Offering free shipping directly addresses this pain point.
  • Enhances customer loyalty: Buyers are more inclined to return to a store that consistently offers free delivery.
  • Strong marketing appeal: “Free shipping” banners on websites, emails, and ads significantly improve click-through and conversion rates.
• Challenges:
  • Profit margin pressure: Businesses must absorb the cost, which can erode profits if pricing strategies are not adjusted.
  • Not suitable for all products: Heavy or oversized items often make free shipping impractical.
  • Requires careful planning: Retailers often set minimum order values (e.g., “Free shipping on orders above $50”) to balance customer appeal and operational costs.

Best for: Online retailers in competitive markets, subscription-based businesses, and brands targeting impulse buyers. By combining free shipping with loyalty programs or bundling strategies, businesses can reduce financial risk while still reaping the marketing benefits.

2. Same-Day Delivery

In today’s on-demand economy, same-day delivery has moved from being a luxury to an expectation in certain markets. Customers value speed as much as product quality, and many are willing to pay extra for the convenience of receiving items within hours of purchase. This method relies on optimized warehouse locations, real-time inventory tracking, and strong last-mile delivery networks.

• Benefits:
  • Customer satisfaction boost: Rapid delivery reduces waiting time, which can be critical for essentials like medicine, groceries, or urgent electronics.
  • Competitive advantage: Businesses offering same-day shipping stand out in crowded markets, particularly in urban areas where quick fulfillment is feasible.
    Higher conversion rates: Shoppers are more likely to finalize purchases when instant delivery is available.
• Challenges:
  • Operational complexity: Requires advanced logistics, local fulfillment centers, and efficient route planning.
  • Higher costs: Same-day shipping often involves premium courier services, raising delivery expenses.
  • Limited coverage: This method is typically restricted to metropolitan areas with dense populations.

Best for: Pharmacies, grocery chains, electronics retailers, and eCommerce platforms serving urban markets. By partnering with local couriers or using micro-fulfillment centers, businesses can manage costs while meeting the growing demand for instant delivery.

3. Overnight Shipping

Overnight shipping guarantees that customers receive their orders the next business day. It strikes a balance between the urgency of same-day delivery and the affordability of standard options. This method is widely used by eCommerce platforms and B2B suppliers who need to deliver quickly without the extreme costs of immediate dispatch. Reliable overnight shipping depends on cut-off times, efficient sorting facilities, and trusted carrier partnerships.

• Benefits:
  • Speed without chaos: Customers get rapid delivery without the operational strain of same-day fulfillment.
  • Trust-building: Businesses that consistently meet next-day promises strengthen credibility and loyalty.
  • Broad appeal: Overnight delivery is suitable for both personal shoppers and corporate clients needing urgent supplies.
• Challenges:
  • Higher cost than standard shipping: Premium rates can deter customers unless the product is time-sensitive.
  • Strict cut-off times: Orders placed after a certain hour cannot be guaranteed for next-day delivery.
  • Geographic limitations: Remote or rural areas may not be covered.

Best for: High-value products, business supplies, fashion, and electronics. Companies that integrate overnight shipping with clear cut-off times can satisfy urgent demand while controlling costs.

4. Two-Day Shipping

Two-day shipping has become a gold standard in eCommerce, largely thanks to programs like Amazon Prime that set customer expectations. It offers a strong balance between speed and affordability, ensuring products reach customers quickly without the premium price tag of same-day or overnight delivery. This method requires a network of strategically placed warehouses and efficient order processing systems to consistently meet deadlines.

• Benefits:
  • Customer expectation alignment: Many online shoppers now assume two-day delivery as a baseline service.
  • Increased conversions: Fast, predictable delivery encourages customers to finalize purchases and reduces cart abandonment.
  • Scalable logistics: Easier for businesses to implement nationwide compared to same-day coverage.
• Challenges:
  • Operational investment: Requires multiple fulfillment centers and advanced inventory management.
  • Pressure on margins: Offering two-day shipping at low or no cost can reduce profitability.
  • Carrier reliability: Businesses must depend on logistics partners to meet guaranteed timelines.

Best for: eCommerce platforms, subscription services, and nationwide retailers. Two-day shipping is ideal for businesses seeking to balance speed, affordability, and scalability, making it one of the most widely adopted types of shipping today.

5. Economy shipping

Economy shipping is one of the most cost-effective types of shipping, designed for customers who prioritize savings over speed. Packages are delivered using the most affordable transportation routes, often taking longer than premium options. Many businesses use economy shipping to attract price-sensitive shoppers or as a default for non-urgent items. While it may lack speed, it plays a crucial role in expanding market reach and keeping costs manageable.

• Benefits:
  • Lowest delivery costs: Ideal for businesses operating on thin margins or selling low-value products.
  • Wider accessibility: Makes international and domestic shipping more affordable for both businesses and customers.
  • Customer choice: Offering economy alongside faster methods provides flexibility for diverse buyer needs.
• Challenges:
  • Longer transit times: Delivery may take a week or more, depending on distance and logistics.
  • Less tracking visibility: Some carriers offer limited updates for economy services.
  • Not suitable for urgent or perishable goods.

Best for: Books, clothing, accessories, or bulk orders where delivery speed is less important. Economy shipping allows businesses to appeal to budget-conscious customers while maintaining profitability.

6. Priority mail

Priority Mail is a popular mid-tier shipping service that balances speed and affordability. Unlike economy shipping, it ensures quicker delivery, often within 1–3 business days domestically, and includes features like tracking, insurance, and free packaging options from carriers. Businesses use this method to provide customers with reliable service without the high costs of express delivery. In many markets, Priority Mail is positioned as a practical “middle ground” among different types of shipping.

• Benefits:
  • Faster than economy: Customers receive packages in a shorter timeframe at a reasonable cost.
  • Added security: Includes tracking numbers, insurance coverage, and priority handling by carriers.
  • Customer-friendly: Often comes with flat-rate packaging, simplifying costs for both buyers and sellers.
• Challenges:
  • Higher cost than economy: Not ideal for very low-value products.
  • Limited international reach: Priority services are mostly effective for domestic deliveries.
  • Carrier dependency: Performance relies heavily on the efficiency of national postal systems or couriers.

Best for: Small to medium-sized businesses shipping non-urgent but valuable goods, such as electronics accessories, fashion items, or beauty products. Priority Mail offers the right mix of speed, cost, and reliability to keep customers satisfied.

7. Local Delivery

Local delivery is one of the fastest-growing types of shipping, especially as customers increasingly demand same-day or next-day services within their city. This method focuses on short-distance transportation, often powered by local couriers, gig-economy drivers, or in-house delivery fleets. For businesses like restaurants, grocery stores, and local retailers, local delivery is more than logistics—it’s a key part of the customer experience.

• Benefits:
  • Ultra-fast service: Many orders can be delivered within a few hours of purchase.
    High customer satisfaction: Builds trust and loyalty by meeting urgent or convenience-driven needs.
  • Flexibility: Local businesses can use bikes, scooters, or cars to adapt to traffic and geography.
• Challenges:
  • Operational costs: Managing local drivers or contracting with courier services can be expensive.
  • Limited scale: Local delivery is confined to specific geographic zones, often urban areas.
  • Reliability issues: Service quality depends heavily on courier performance and route optimization.

Best for: Food delivery, pharmacies, grocery chains, and retailers aiming to offer convenience. Local delivery is especially effective for businesses that want to build strong, repeat relationships with nearby customers.

8. International Shipping

International shipping is one of the most complex yet essential types of shipping for businesses expanding beyond domestic markets. It enables companies to reach global customers but requires careful coordination across carriers, customs authorities, and international trade regulations. Success in international shipping depends on accurate documentation, tariff compliance, and reliable logistics partners to ensure goods clear borders smoothly.

• Benefits:
  • Global reach: Businesses can access customers in new markets and scale internationally.
  • Revenue growth: Selling abroad increases market potential and brand visibility.
  • Multiple transport options: Air, sea, and express couriers provide flexible solutions for different budgets and timelines.
• Challenges:
  • Customs complexity: Errors in paperwork or tariff codes can cause delays or penalties.
  • High costs: International freight, duties, and taxes can be significant.
  • Longer transit times: Delivery can take weeks, especially with ocean freight.

Best for: ECommerce brands, exporters, and manufacturers aiming to expand globally. Businesses that master international shipping can compete effectively in the global economy while ensuring compliance and customer satisfaction.

9. Flat-Rate Shipping

Flat-rate shipping is a pricing model where customers pay a fixed fee for delivery, regardless of package weight or distance within certain limits. Among all types of shipping, this one is valued for its simplicity and transparency. It eliminates guesswork at checkout and allows businesses to standardize shipping costs, which can reduce cart abandonment. Many carriers also provide flat-rate packaging, making it easier for sellers to plan costs and avoid unexpected surcharges.

• Benefits:
  • Predictable costs: Customers appreciate knowing the exact shipping fee before purchase.
  • Simplifies operations: Businesses don’t have to calculate rates for each order manually.
  • Encourages larger orders: Shoppers may add more items to maximize the value of a flat fee.
• Challenges:
  • Not cost-effective for light packages: Small or low-value items may end up with higher relative shipping costs.
  • Limitations on size/weight: Carriers usually impose restrictions that businesses must follow.
  • Profit margin risk: Very heavy orders can erode profitability if not priced carefully.

Best for: Online retailers selling across wide regions who want simple, customer-friendly pricing. Flat-rate shipping is ideal for businesses seeking to balance customer trust with operational efficiency.

10. Table Rate Shipping

Table rate shipping is one of the most flexible types of shipping, allowing businesses to set costs based on predefined rules. Rates can vary by order weight, delivery region, package size, or even total cart value. This approach gives retailers control over how they balance shipping expenses and customer expectations, making it highly customizable for different business models.

• Benefits:
  • Custom pricing: Businesses can tailor shipping fees to match their cost structures and target markets.
  • Encourages higher spending: Rules such as “free shipping over $100” can drive larger cart sizes.
  • Adaptable for different regions: Useful for companies selling nationwide or internationally with varied delivery costs.
• Challenges:
  • Setup complexity: Requires detailed planning and configuration in the eCommerce system.
  • Risk of confusion: Poorly designed rules can confuse customers and lead to cart abandonment.
  • Ongoing management: Needs regular updates as carrier rates and regions change.

Best for: ECommerce businesses that want flexibility and control, particularly those with wide product ranges or customers in multiple shipping zones. Table rate shipping provides a smart balance between fairness for the customer and cost recovery for the business.

11. Freight shipping (LTL / FTL)

Freight shipping is essential for transporting large or heavy goods, making it a core category among different types of shipping. It is usually divided into two main methods: Less-than-truckload (LTL) and Full-truckload (FTL). LTL allows multiple businesses to share space in one truck, paying only for the portion they use. FTL, on the other hand, dedicates an entire truck to one shipment, ideal for high-volume or oversized cargo. Both options give businesses flexibility based on shipment size, cost, and urgency.

• Benefits:
  • Cost optimization: LTL lowers expenses for smaller loads by consolidating shipments.
  • Flexibility: Businesses can choose LTL or FTL depending on order volume.
  • Scalability: Suitable for industries ranging from retail to manufacturing.
• Challenges:
  • Longer timelines for LTL: Shipments may take more time due to multiple stops.
  • Higher cost for FTL: Paying for a full truck can be expensive if it isn’t fully utilized.
    Complex coordination: Requires reliable freight brokers or logistics partners.

Best for: Businesses shipping bulky, heavy, or palletized products. LTL works well for small-to-mid volumes, while FTL ensures speed and control for large-scale shipments.

12. Expedited shipping

Expedited shipping is one of the fastest types of shipping, designed for urgent deliveries that cannot wait for standard timelines. It prioritizes speed over cost, often moving packages through the fastest available routes with minimal handling. This method is commonly used for medical supplies, legal documents, or high-value goods where delays could be costly. Carriers usually guarantee strict delivery windows, sometimes within 24–48 hours, depending on distance and service.

• Benefits:
  • Maximum speed: Ensures critical shipments arrive as quickly as possible.
  • Reliability: Prioritized handling reduces the risk of delays or disruptions.
  • Customer trust: Meeting urgent demands strengthens brand reputation and customer loyalty.
• Challenges:
  • High cost: Expedited shipping is significantly more expensive than standard methods.
  • Limited capacity: Not all carriers or routes support this premium service.
  • Unsuitable for all products: Cost-sensitive items may not justify expedited delivery.

Best for: Medical, legal, tech, or any business that requires time-sensitive shipping. Expedited shipping is the go-to solution when speed is non-negotiable, providing peace of mind for both businesses and customers.

13. Multiple address shipping

Multiple address shipping is a flexible option that allows customers to send items from a single order to different destinations. Among modern types of shipping, it is particularly valuable for gift-giving seasons, corporate orders, or customers managing purchases for family and friends. Instead of placing separate orders, buyers can streamline the checkout process while businesses capture more sales in one transaction.

• Benefits:
  • Convenience for customers: Shoppers can manage multiple deliveries at once, saving time and effort.
  • Increased sales opportunities: Encourages bulk orders during holidays or promotional events.
  • Operational efficiency: Retailers process one order instead of several, reducing duplicated admin work.
• Challenges:
  • Complex fulfillment: Requires advanced systems to split and manage shipments correctly.
  • Higher shipping costs: Multiple destinations often mean multiple fees, which can frustrate buyers if not communicated clearly.
  • Inventory accuracy: Businesses must ensure real-time stock visibility to avoid missed items across different addresses.

Best for: Gift retailers, subscription box services, or companies selling products frequently ordered for multiple recipients. Multiple address shipping improves customer experience and helps businesses stand out with added convenience.

The logistics landscape in 2025 offers businesses a wide range of choices, from free shipping that boosts conversions to multiple address shipping that enhances convenience during peak seasons. Each of the 13 types of shipping serves a different purpose—balancing cost, speed, and customer expectations. The key is not to rely on a single method, but to mix and match shipping strategies based on product type, customer demand, and market conditions. By understanding these options in depth, businesses can design smarter supply chains, reduce costs, and deliver experiences that build long-term loyalty.

At Keys Logistics, we simplify complex shipping challenges so your business can grow faster. From consolidated freight to last-mile delivery, we optimize every step of the journey. Our global network of warehouses in the US, UK, and Asia ensures speed, reliability, and cost savings. With advanced tools for multi-address orders, returns management, and eCommerce integrations, we align logistics with your goals. Contact us  to transform shipping into a growth advantage.