Best Shipping Software for Small Business: 2025 Guide

Figuring out shipping can feel like a huge puzzle for any small business. You want to get your products to your customers quickly and safely, but you also need to keep costs from eating into your profits. Juggling different carrier websites, manually typing addresses, and standing in line at the post office just isn’t scalable. This is where shipping software comes in, acting as your command center for everything related to getting packages out the door. While the best shipping software for a small business ultimately depends on your specific needs, platforms like Pirate Ship are often the top choice for cost-conscious beginners, while ShipStation excels for businesses needing powerful automation and multi-channel support.

This guide will walk you through everything you need to know to find the best shipping software for your small business. We will break down what these tools do, what features matter most, and review the top options available today, helping you save time, reduce costs, and keep your customers happy.

What is Shipping Software and Why Does Your Small Business Need It?

Before diving into the options, let’s cover the basics. Understanding what shipping software does and how it can directly impact your bottom line is the first step toward making a smart choice.

A Simple Definition of Shipping Software

Shipping software is a digital tool that helps businesses manage and automate their entire shipping process. Think of it as a central hub that connects your online store (like Shopify or Etsy) with multiple shipping carriers (like USPS, UPS, and FedEx). Instead of logging into different websites to compare rates or print labels, you can do it all from one place. These platforms handle everything from automatically importing your orders to printing labels, tracking packages, and even managing returns.

The global shipping software market was valued at around $1.5 billion in 2024 and is expected to grow significantly, which shows just how vital these tools have become for online sellers of all sizes.

The Real World Benefits of Shipping Software

Using the right platform provides tangible advantages that can make a huge difference for a small operation. The main goal is to make your shipping cheaper, faster, and more accurate.

Massive Cost Savings: The number one benefit is access to discounted shipping rates. Software providers negotiate bulk discounts with carriers and pass those savings on to you. It’s not uncommon for businesses to save up to 89% on shipping costs compared to retail prices you would pay at the counter.
Increased Efficiency: Automation is a game changer. Instead of manually copying and pasting addresses, the software imports order details automatically. You can print labels in batches, for dozens or hundreds of orders at once, which drastically cuts down on fulfillment time.
Fewer Errors: Features like automatic address validation catch mistakes before a package is sent, reducing the chance of costly returns or delays. By automating repetitive tasks, you minimize the risk of human error.
Better Customer Experience: Happy customers are repeat customers. With shipping software, you can provide real time tracking updates and professional notifications. Fast and reliable shipping is a top priority for online shoppers, with 76% of U.S. customers citing it as the most important part of their experience.
Simplified Returns: Returns are a reality of e commerce, accounting for nearly 17% of all retail sales in the U.S. Good software makes this process painless by letting you generate return labels with a single click.

How to Choose the Best Shipping Software for Small Business

With so many options on the market, finding the perfect fit can seem daunting. The key is to understand your own needs first and then evaluate platforms based on the features that will serve you best. The best shipping software for a small business is one that simplifies your life, not complicates it.

First, Define Your Shipping Goals

Before you start comparing software, ask yourself what you hope to achieve. Being clear about your goals will make your decision much easier. Are you trying to:

Reduce Costs? If your primary goal is saving money, you will want to focus on platforms known for offering the deepest discounts and the best rate comparison tools. Not sure which carrier is cheaper for your box? See our guide on which is cheaper, UPS or USPS.
Save Time? If you are spending hours on fulfillment, your goal is efficiency. Look for strong automation features, batch label printing, and seamless e commerce integration.
Improve Customer Service? To make customers happier, prioritize software with branded tracking pages, automated notifications, and easy returns management.
Scale Your Operations? If you expect your business to grow, you need a solution that can handle increasing order volume without slowing down. Look for tiered plans and powerful features that you can grow into.

Key Features to Evaluate

Once you know your goals, you can assess different software options based on these essential features. Not sure how the math works? Learn how to calculate shipping costs to estimate your spend before you choose.

Integration with E-commerce Platforms

Your shipping software must be able to “talk” to the places you sell your products. Look for a platform that seamlessly integrates with your online store (like Shopify, WooCommerce, or BigCommerce) and any marketplaces you use (like Amazon, Etsy, or eBay). This allows for automatic order importing and syncing tracking information back to the customer, eliminating manual data entry.

Label Printing and Workflow Automation

The core of any shipping software is its ability to print labels. A key feature is batch printing, which lets you generate hundreds of labels at once. You should also look for workflow automation. This allows you to set up “if then” rules, such as “If an order is under 1 pound, use USPS Ground Advantage” (see our USPS shipping guide) or “If an order value is over $100, automatically add insurance”. This kind of automation drastically reduces manual work and ensures consistency.

Discounted Shipping Rates

This is where you see a direct return on your investment. The best shipping software for small business provides access to commercial pricing, which is significantly lower than retail rates. Platforms can do this because they aggregate the volume of all their users to negotiate discounts with carriers like USPS, UPS, and DHL Express. Before committing, you can get a sense of potential savings by using a free tool like the Online Shipping Calculator to see how commercial rates compare to what you are paying now.

Returns Management

A difficult return process can sour a customer’s experience. Look for software that simplifies returns for both you and your customers. Top solutions allow you to generate and email return labels easily, and some even offer a branded returns portal where customers can initiate the process themselves.

Reporting and Analytics

Good data leads to good decisions. The best platforms offer reporting dashboards that give you insights into your shipping operations. You can track your total shipping spend, analyze carrier performance, see your average cost per package, and identify trends to help you optimize your strategy over time. The global market for shipping analytics software is projected to reach $2.15 billion by 2028, showing how important data has become in logistics.

Thermal Label Printer Compatibility

If you ship more than a handful of packages a day, a thermal label printer is a must have. These printers are fast, reliable, and don’t require ink or toner. Ensure the software you choose is compatible with popular thermal printer models (like Zebra or Rollo) and can easily format labels to the standard 4x6 inch size. If you’re choosing hardware, see our guide to the best shipping label printers.

A Closer Look at the Top Shipping Software Options

The market is filled with excellent tools, each with its own strengths. Here’s a breakdown of some of the most popular shipping software options available.

Comprehensive Platforms

These platforms aim to be an all in one solution for managing orders, printing labels, and automating workflows across multiple channels and carriers.

ShipStation: A powerhouse in the industry, ShipStation is known for its robust automation rules and extensive integrations. It’s a great choice for businesses that sell on multiple channels and need a centralized hub to manage a high volume of orders.
Shippo: Known for its user friendly interface and flexible pricing, Shippo is trusted by over 300,000 brands. It offers a free starter plan and scales with your business, making it an accessible option for new sellers who want powerful features without a monthly commitment.
ShippingEasy: True to its name, ShippingEasy focuses on simplicity and ease of use. It combines shipping with inventory management and customer marketing tools, offering a great all in one solution for small to mid sized sellers. They also offer a free plan for merchants with very low volume.
Ordoro: Ordoro goes beyond shipping by integrating strong inventory and supplier management features. It’s an excellent choice for businesses that handle dropshipping or need to manage product bundles and purchase orders in the same system as their fulfillment.
OrderCup: A long standing and reliable solution, OrderCup offers solid multi carrier shipping features with a focus on simplicity and responsive customer support. It integrates with all major e commerce platforms and is a great choice for sellers who want a straightforward, no fuss tool.
2Ship: This is a comprehensive shipping management platform designed for businesses with more complex needs, like managing multiple locations or allocating shipping costs across departments. It allows you to plug in your own carrier accounts and enforce business rules for shipping.

Specialized and Niche Tools

Some tools focus on solving a specific part of the shipping puzzle exceptionally well.

Easyship: If you ship internationally, Easyship is a fantastic option. Here’s a quick guide on how to ship internationally. It provides access to over 250 courier services and automatically calculates duties and taxes, making cross border e commerce much simpler.
AfterShip: AfterShip is not for printing labels, but for what happens after. It’s a post purchase platform focused on providing a superior package tracking experience. It offers branded tracking pages and proactive customer notifications to reduce “Where is my order?” inquiries.
Pirate Ship: Beloved by the Etsy and eBay communities, Pirate Ship is a completely free software that provides access to the deepest possible discounts for USPS and UPS. There are no monthly fees, markups, or hidden costs, you just pay for the postage. It’s arguably the best shipping software for small business owners who are most sensitive to cost.

Platform Native and Outsourced Solutions

These options are a bit different, as they are either built into another platform or involve outsourcing your entire fulfillment process.

Shopify Shipping: If you run your store on Shopify, this feature is built right into your admin panel. It allows you to buy and print discounted labels from USPS, UPS, and DHL Express without ever leaving Shopify. It’s incredibly convenient for merchants who sell exclusively on the platform. You can also schedule a free USPS pickup right from your workflow.
ShipBob: ShipBob is a tech enabled third party logistics (3PL) provider. This means you store your products in their warehouses, and they pick, pack, and ship your orders for you. It’s a solution for businesses that want to outsource their fulfillment to achieve things like 2 day shipping nationwide.

Final Steps Before You Decide

You’ve defined your goals, reviewed the features, and explored the options. Here are two final considerations to help you make your choice.

Free vs. Paid Shipping Software: Which is Right for You?

Free software like Pirate Ship is an amazing value, offering deep discounts with no monthly fees. Freemium models, like Shippo’s starter plan, are also great for getting started. These are perfect for businesses with low volume or simple needs.

Paid software typically justifies its monthly fee (often starting around $20) with more advanced features, deeper integrations, more sophisticated automation, and priority customer support. As your order volume grows, the time saved through a paid tool’s efficiency features often provides a return that far exceeds the subscription cost.

Switching Software? A Quick Guide to Data Migration

If you’re already using a shipping platform and looking to switch, consider how you’ll move your data. Key information to migrate includes your customer address book, saved package sizes, and product information. Most platforms allow you to export this data as a CSV file, which you can then import into your new system. While it can seem like a hassle, the benefits of moving to a system that better fits your needs usually outweigh the one time effort of migration.

Your First Step to Cheaper Shipping

Finding the best shipping software for small business is about matching the right tool to your unique needs. Whether you prioritize cost, efficiency, or customer experience, there is a solution out there that can transform your fulfillment process from a chore into a competitive advantage.

Ready to see how much you could be saving? Before you commit to any software, take a minute to compare what different carriers would charge for your typical package. Use a free, independent tool like the Online Shipping Calculator to get instant rate comparisons and discover how much you can save with commercial pricing.

Frequently Asked Questions

1. What is the absolute cheapest shipping software for a small business?
For most users, Pirate Ship is the cheapest option because it is completely free to use with no monthly fees, and it provides access to deeply discounted USPS and UPS rates.

2. Do I need shipping software if I only sell on Shopify?
Not necessarily. Shopify Shipping is built directly into the platform and offers excellent discounted rates for USPS, UPS, and DHL Express. It’s very convenient and sufficient for many Shopify sellers. You would only need external software if you require more advanced automation or carriers not supported by Shopify.

3. Can shipping software really save me money on postage?
Absolutely. This is one of its primary benefits. By giving you access to commercial rates, which are significantly lower than retail prices, shipping software can save you up to 89% on certain services.

4. How much should I expect to pay for shipping software?
It varies. Many excellent options are free or have free starter tiers. Paid plans typically start around $20 to $30 per month and scale up based on the number of shipments and included features.

5. What is the best shipping software for small business owners on Etsy?
Many Etsy sellers love Pirate Ship for its free model and great USPS discounts. Shippo and ShippingEasy are also popular choices because they integrate well with Etsy and offer user friendly interfaces for managing orders.

6. How does shipping software handle international orders?
Most shipping software automatically generates the required customs forms based on the product information in your order. Platforms like Easyship specialize in international shipping, helping you calculate duties and taxes upfront to provide a better experience for global customers.