The 1 × 1 of Shipping Service Providers

1. What is a shipping service provider?
2. Why is a shipping service provider necessary for your online shop?
3. Which shipping service providers exist?
4. What do you need to consider when shipping with a shipping service provider?
5. What legal processes must be observed with a shipping service provider?
6. What can be sent with a shipping service provider?
7. National and international shipping, what needs to be considered?
8. Which shipping service provider software can you use?
9. Conclusion: Let your shipping tool decide

A shipping service provider is your extended arm to the customer base. Advantages, laws, and everything you need to consider when choosing, you will find out here. With a shipping service provider, mass also becomes class.

As an online shop operator, your goal is to fully satisfy your customers. First-class products, great service, and of course reliable and punctual delivery is part of your tasks. In order for the indispensable delivery connection between you and your customer base to work, you need suitable shipping service providers. Which shipping service providers there are and which legal factors are important, you will find out here. We will also reveal to you which software your shipping processes run smoothly with.

What is a shipping service provider?

The E-Commerce industry is booming and you are part of it, as are shipping service providers. They take on the important task of transporting your packages to your customers. In addition to the physical delivery, shipping service providers usually offer a number of other services that you should take advantage of. Such as tracking packages, organizing your packaging processes, or handling customs and tax formalities for international deliveries.

Why is a shipping service provider necessary for your online shop?

While you can certainly take individual shipments to the next post office yourself, as an operator of an online shop you need a proper concept for the organization of your deliveries. And this is where the shipping service provider comes into play, who takes over the entire delivery process and helps you to organize it efficiently.

Which service provider you hire depends on factors such as cost, delivery time, reliability, and possible additional services. It is also common to use several shipping service providers to handle packages at national and international level or to outsource bottlenecks.

A good shipping service provider contributes to your customers receiving their orders quickly and reliably, which in turn improves customer satisfaction and the reputation of your online shop.

HB Package Volumes / Author: haendlerbund.de / Source: Händlerbund Statistics 2023 Logistics & Shipping (Händerbund-PDF)

Which shipping service providers exist?

In Germany there are many shipping service providers. Here are the most famous ones:

• German Post / DHL
• Hermes
• DPD
• UPS
• GLS
• FedEx
• TNT
• GO!
• trans-o-flex
• Quicargo
• iloxx

In addition, there are also regional shipping service providers who operate only in certain areas, or industry-specific deliverers for medical products, flowers, drinks, food, and much more.

HB Shipping Service Providers / Author: haendlerbund.de / Source: Händlerbund Statistics 2023 Logistics & Shipping (Händerbund-PDF)

What do you need to consider when shipping with a shipping service provider?

To find the suitable shipping service provider for your online shop, there are some important factors to consider. First of all, you should know the characteristics of your goods and seek targeted offers from various shipping service providers. As a business customer, you receive special conditions that are cheaper than standard contracts or prices for private customers. However, you are usually tied to a minimum shipping volume that you should determine yourself.

• Shipping costs: What are the shipping costs for deliveries within the country or abroad? How much of that do you have to pass on to your customers or include in the product price?
• Shipping method: Depending on weight, size and urgency, different shipping methods such as standard shipping, express shipping or same-day delivery may be considered.
• Packaging: How is your goods packed? Do you want to take care of it yourself or should it be a service of the shipping service provider? If you want to use the service of the shipping service provider, pay particular attention to safe packaging to avoid damage during transport.
• Insurance: Check if insurance is offered for your shipments and if it is sufficient for your purposes. Depending on the shipping method, there are usually very different liability and insurance conditions. It is important that you inform yourself about the liability of the shipping service provider in the event of damage and, if necessary, take out additional insurance to minimize financial risk.
• Communication: How is the communication with the shipping service provider in regular operation? Is there a portal where shipments can be managed and what support options are there if there are questions or problems?
• Tracking: How is the communication between the shipping service provider and your customers? Is there a tracking system that allows the shipping status to be tracked? And do you get informed when a package has been handed over?
• Returns: How are return shipments handled? Are pick-ups close-meshed or are there drop-off stations? Can returns be organized and tracked using suitable software?
• Customs: If you are shipping internationally, you may have to be aware of customs duties and formalities, which also your shipping service provider must reflect.
• Extras: Whether CO2-free shipping, Saturday delivery, delivery against signature, or complete fulfillment service. Each shipping service provider offers different services that you should know and calculate.

HB Shipping Destinations / Author: haendlerbund.de / Source: Händlerbund Statistics 2023 Logistics & Shipping (Händerbund-PDF)

What legal processes must be observed with a shipping service provider?

Shipping goods through an external service provider also requires compliance with certain legal processes:

Carriage contract

The carriage contract is the contract between you as the sender and the shipping service provider, and regulates the conditions for the transport of your goods. This contract also governs the duties and rights of both parties, including liability for damages, losses, or delays during transport. The carriage contract is an important legal document that you should carefully review before commissioning.

The basics are provided by the following laws:

• The HGB regulates the freight contract for the transport of goods in inland navigation and road freight transport (§§ 407 HGB) and the forwarding contract for commissioning a forwarding agent with the transport of goods (§§ 453 HGB).
• For smaller shipments of up to 20 kg maximum, the Postal Act applies. § 4 No. 1 lit. a, b of the Postal Act (PostG) regulates the obligations of Deutsche Post AG as a universal service provider in the field of postal services.

DSGVO

As you as an online shop operator transmit personal data to your shipping service provider, you should observe the data protection regulations. This includes informing your customers by means of a data protection declaration that certain personal data (name, address, possibly also telephone number and e-mail address) can be passed on to shipping services.

You act even more cleanly when you specifically ask for the consent of your customers. The easiest way to do this is via an opt-in checkbox that you include in the ordering process. You can read the details on this in Art. 6 para. 1 s. 1 lit. b DSGVO.

New Packaging Act

The new Packaging Act (VerpackG) regulates the obligations of manufacturers and distributors of packaging in Germany. It requires them to participate in a dual system and ensure that their packaging is recycled or otherwise utilized, to reduce the environmental impact of waste.

The law also includes rules for the licensing of packaging, the return of packaging by dealers, the collection of data about packaging and the monitoring of compliance with the obligations by the responsible authorities.

There are also amendments, such as most recently on July 1, 2022. The main additions are the extended manufacturer registration in the packaging register LUCID (valid for all manufacturers of packaging) as well as the inspection obligations for marketplaces and fulfillment service providers to include foreign first movers of packaging in the packaging register.

Return process

A particularly big issue in e-commerce is the return process for goods returns. Customers who are not satisfied with your goods (and there are various reasons for this) have the right to return them. Based on the EU-wide valid 14-day right of withdrawal, you not only have to take back the goods but also refund the full costs of the product and the shipping. Only possible express shipping costs must be borne by the customer base.

A top shipping service provider should therefore definitely also be able to handle your return shipments in order to keep these processes as uncomplicated as possible. You can read more about this in the OMR article Returns Online Shop.

What can be sent with a shipping service provider?

A shipping service provider can basically transport all types of shipments that comply with legal regulations and do not violate the terms of business of the shipping service provider. These usually include letters, packages, parcels and bulky goods, but also dangerous goods and special transports.

However, depending on the shipping service provider and shipping method, there may be restrictions regarding the size, weight, and type of shipment. In addition, there are certain goods that may not be shipped or only under special conditions, such as the already mentioned dangerous goods, as well as perishable food or weapons.

If you are not sure whether the shipment of a shipment goes along with the business terms of your shipping service provider, it is best to contact the customer service to clarify the necessary details.

National and international shipping, what needs to be considered?

The following points must be observed for national shipping within Germany:

• The weight and dimensions of the package must comply with the specifications of the shipping service provider.
• The shipment must be properly franked.
• The address must be correct and readable.
• Prohibited items such as weapons, narcotics or hazardous substances may not be shipped.
• Possibly the recording of the recipient's ID data

For international shipping, additional provisions apply depending on the destination country. Here, for example, customs regulations, import restrictions, and special shipping regulations need to be considered. We recommend that you also obtain appropriate information from the shipping service provider or destination country before shipping abroad.

Which shipping service provider software can you use?

Special shipping software helps you to depict your shipments electronically, optimize the shipping process, reduce costs, improve customer communication, and much more:

• Integration of the most important freight forwarders and shipping service providers
• Interfaces to shop systems, ERP tools, contract management software or merchandise management systems
• Comparison and selection of the cheapest shipping service providers (multi-carrier integration)
• Printing of shipping labels and shipping information
• Notification of shipment tracking
• Documentation of returns
• Analysis and reporting on shipping costs and processes

You can find specific software on OMR Reviews in the category Shipping Software & Tools. Based on the detailed information, you can not only find the best shipping service provider tool for you, but also determine the best shipping service provider in the future with just a few clicks.

Do you want a shortcut? Here are the best shipping service provider software at a glance:

Shipcloud

Sendcloud

Alaiko

Hive

LetMeShip

Zenfulfillment

Beckmann Systemlogistik

byrd

Shippo

We have also reported in detail about the best shipping service provider software in this article: popular Shipping Tools.

Conclusion: Let your shipping tool decide

Shipping service providers are an extension to your customers. To find the right one for your online store from the plethora of providers, it's best to use appropriate software. Not only does this manage your packages and delivery services, but it also optimizes your shipping processes. In addition, you don't need to decide on a single shipping service provider, but choose the optimal transport service depending on the shipping method or situation. After all, only the best way is good enough to deliver your customers.