How to Find the Cheapest Shipping With AI: 101

eCommerce in the US is booming, with the market estimated to be worth $1.2 Trillion in 2024 and forecast to reach $1.8 Trillion by 2029! However, this fast growth is attracting increasing, competition.

Businesses are expected to deliver faster, cheaper, and more eco-friendly shipping. But how can smaller eCommerce stores compete with giants like Amazon? The answer lies in shipping AI, a powerful tool that's changing how businesses manage deliveries.

This blog explores the challenges of traditional eCommerce shipping and how AI is streamlining processes. Plus, find out how to always secure the cheapest, best value or fastest shipping for your online store with the Easyship AI-powered courier comparison algorithm.

Challenges for Traditional eCommerce Shipping

eCommerce businesses face several challenges when it comes to order fulfillment and shipping costs. As delivery times shorten and global shipping demands grow, businesses need smarter ways to handle shipping. Here are some key challenges:

Rise in Demand for Same-Day Instant Deliveries

As customers increasingly expect same-day delivery, businesses are under pressure to improve efficiency in their shipping processes. In 2024, the same-day delivery market in the US is estimated to be worth $9.25 Billion, and by 2030, this market is forecasted to reach $13.15 Billion.

Same-day delivery is one of the most requested services in U.S. eCommerce, but while large companies like Amazon can easily meet these demands, smaller companies often struggle to compete. McKinsey and Company highlighted this challenge in a December 2023 report: 

“Very few retailers are likely to operate at a scale that enables them to build their own logistics networks—let alone for same-day delivery.”

Shipping AI helps by streamlining shipping processes, comparing multiple couriers, and helping companies choose the fastest and cheapest options to meet customer expectations.

Rise in Demand for Free Shipping

Many customers now expect free shipping as part of the customer experience. In fact, 62% of shoppers in 2022 said they wouldn’t buy from a retailer if it didn’t offer free shipping, a significant increase from 52% the year before. 

However, offering free shipping without driving up costs can be difficult for small businesses. AI solutions help by finding discounted rates through courier comparisons, optimizing shipping strategies, and providing real-time tracking, which also improves customer satisfaction.

Rise in Demand for Sustainable Shipping

Customers are becoming more eco-conscious and want their purchases shipped sustainably. According to a March 2023 survey, 79.6% of consumers said they would wait at least one day for their order if it was shipped more sustainably. However, this willingness drops as the wait time increases, with only 45% willing to wait two days, and just 15.6% waiting three days or more. 

The study also found that 69% of consumers have been influenced by sustainable shipping in past purchases, and 76% are even willing to pay an extra 5% for more eco-friendly shipping. 

While sustainable shipping options are often more expensive, Shipping AI can help by finding discounted rates with couriers that offer environmentally friendly options without significantly raising costs.

International Shipping Costs 

Shipping to other countries can be very expensive. Businesses must deal with international shipping costs, including fees, duties, and taxes. On top of that, shipping packages across borders usually takes more time and requires extra paperwork.

This can drive up the costs and make it harder for businesses to offer affordable shipping rates for international customers. AI helps by comparing different delivery services and finding the best options to keep costs down while ensuring timely deliveries.

How AI is Transforming Logistics

AI is playing a crucial role in transforming the logistics sector by improving shipping efficiency, reducing costs, and enhancing the overall customer experience.

With the use of shipping AI, businesses can save time and resources by automating manual processes. AI gathers data from multiple couriers, allowing businesses to make smarter decisions about which delivery service to use. 

It can also predict shipping costs, delivery times, and shipping labels based on past data, further helping eCommerce businesses stay competitive.

AI-powered tools like Easyship compare couriers and prices, allowing businesses to find the cheapest and fastest options. AI also provides real-time tracking, ensuring customers know the exact status of their orders. With this technology, businesses can save money and time, ultimately improving their bottom line.

Always Find the Cheapest Shipping with Easyship

Shipping within the US? You might be expecting expensive shipping costs and slow delivery times, however with the right tools this isn't necessarily the case. To break down the cheapest shipping rates available, in this example, we are going to ship a small package from New York City to Los Angeles.

We will use the following dimensions and plug this into the Easyship Shipping Rate Calculator to compare prenegotiated rates from 250 plus couriers:

• Weight of package: 2lb
• Box Dimensions: 12in x 11in x 1.5in
• Contents for customs forms: Accessory (no-battery)
• Origin: New York City, NY
• Destination: Los Angeles, CA

To help you analyze the cheapest international shipping options available, we have ranked each NYC to LA service for sending a package, based on the estimated prices from over 250+ global couriers. 

While also focusing on the estimated number of business days it takes to arrive at the shipping address, plus the type and quality of tracking available.

When shipping a package from New York City to Los Angeles, here are the top options based on different priorities:

Cheapest Option:

• UPS® Ground Saver – $8.97
• Delivery in 5 working days with regular tracking. This is the most affordable option for standard deliveries.

Best Value Option:

• UPS 2nd Day Air® – $10.16
• Delivery in 2 working days with excellent tracking. It offers a balance of fast delivery and a reasonable price, making it a great value for your money.

Fastest Option:

• UPS Next Day Air® Early – $79.76
• Delivery in 1 working day with excellent tracking. This is the best option if speed is your top priority, ensuring next-day delivery.

These options give you flexibility based on your needs, whether you're looking to save money, get a great deal, or ensure the fastest possible delivery.

How to Find the Cheapest Shipping With an AI-Powered Courier Comparison Algorithm

Finding the cheapest shipping options can be overwhelming, especially when dealing with multiple couriers. AI-powered courier comparison tools simplify the process. Here's how they work:

AI Gathers Data from Multiple Couriers

AI systems collect data from UPS, FedEx, USPS, and other delivery services. The algorithm compares prices, taking into account destination, weight, and service speed, ensuring you get the best price for every shipment.

AI Considers Customer Preferences

AI also factors in customer preferences, such as faster delivery or sustainable shipping. If customers are willing to wait longer for their parcel, the AI will select a slower but cheaper option. If speed is a priority, it will find the fastest option at the best price, helping you balance cost and service quality.

Automate with Shipping Rules

Using AI, businesses can set shipping rules to automatically select couriers based on factors like shipment size, destination, or shipping method. This automation streamlines the process, eliminating manual decision-making and allowing you to focus on growing your business.

AI Continuously Learns and Improves

The AI learns from previous orders, adjusting over time to further optimize shipping decisions. This helps businesses find better rates and improve order processing and order fulfillment, making their operations more efficient.

Benefits of AI-Powered Courier Comparison Tools

Here’s how AI-powered shipping solutions help eCommerce businesses save money, time, and effort:

• Find Discounted Rates: AI compares prices from hundreds of couriers, ensuring businesses get the cheapest option without sacrificing quality.
• Reduce Shipping Costs: By finding the most cost-effective options, AI helps reduce overall shipping costs, boosting profit margins.
• Improve Efficiency: AI eliminates manual processes like looking up prices for each shipment, allowing businesses to save time and improve efficiency.
• Offer Real-Time Tracking: AI tools provide real-time updates, so customers know when their parcel will arrive. This leads to fewer customer inquiries and increased customer satisfaction.
• Simplify International Shipping: For businesses handling global shipping, AI-powered tools handle all the documents and regulations for overseas shipments, making international orders easier and more cost-effective.

How AI Handles Key Shipping Challenges

1. Shipping Costs: With AI tools like Easyship, businesses can compare prices from a large number of couriers, helping them find the most affordable options.
2. Efficiency in Order Fulfillment: AI automates order fulfillment, allowing businesses to process large numbers of parcels without manual intervention.
3. Handling Multiple Couriers: AI compares multiple couriers for every order, ensuring businesses get the best shipping option at the lowest cost.
4. Security and Compliance: AI ensures that all your orders comply with international regulations and handles shipping labels and paperwork for overseas shipments.
5. Customer Experience: With branded real-time tracking, AI offers an enhanced customer experience, keeping customers informed and satisfied.
6. Inventory Management: AI helps with inventory management, ensuring that products are shipped from the closest warehouse, reducing delivery times and shipping costs.

Summary

AI-powered solutions like Easyship are transforming the way eCommerce businesses handle shipping, making it easier and cheaper to meet customer demands. By finding discounted rates, offering real-time tracking, and automating shipping tasks, AI helps businesses save money and improve efficiency. 

As customer expectations continue to rise, adopting AI technology is no longer just an option—it's the future of logistics.

Find the Cheapest Way to Send a Package with Easyship

Easyship is a leading shipping and logistics company that works with over 250 couriers around the world. Thanks to our large network, we can negotiate some of the best shipping discounts with major couriers, helping you save money on your shipping costs by up to 91%.

In addition to great discounts, we offer easy-to-use shipping tools to simplify your shipping process and enhance the customer experience. Some popular features include:

• Shipping Rate Calculator: Use our calculator to compare shipping rates from different couriers and find the best price for your package.
• Comparison Tool: Our courier comparison tool allows you to compare delivery services based on not only cost, but also speed and reliability, so you can choose the best option for your needs.
• Insurance: Protect your shipments with insurance coverage up to $10,000, giving you peace of mind that your package is safe.
• Tracking: Easyship provides real-time tracking with custom-branded emails and alerts, so your customers can follow their package throughout the delivery process.

With Easyship, you can find the cheapest way to ship and enjoy a smooth, stress-free shipping experience that benefits both you and your customers.

FAQs

What is Shipping AI?

Shipping AI is technology that uses artificial intelligence (AI) to help businesses manage shipping. It compares shipping options, finds the best prices, and helps businesses ship packages faster and cheaper. Shipping AI can also track packages and automate many tasks to make shipping easier.

What is an example of AI in logistics?

An example of AI in logistics is using an AI-powered courier comparison tool. This tool looks at different couriers, like FedEx or UPS, and finds the cheapest and fastest shipping options for your packages. Another example is AI tracking systems that provide real-time updates for where a package is.

How can AI be used in supply chain?

AI can be used in the supply chain to predict demand, manage inventory, and automate tasks like tracking orders or finding the best shipping routes. It can also help companies make smarter decisions about where to store products and when to ship them, making the supply chain faster and more efficient.

What is logistics AI?

Logistics AI is the use of artificial intelligence to improve how goods are moved and delivered. It helps businesses find the best routes for deliveries, compare shipping prices, and track shipments in real time. Logistics AI also helps reduce shipping costs by automating tasks and finding more efficient ways to deliver goods.

How to use AI in logistics?

To use AI in logistics, businesses can use AI-powered tools to compare shipping rates, track packages, and automate tasks like printing shipping labels or choosing the best courier. AI can also help predict shipping times and costs, making it easier to plan deliveries and improve customer satisfaction.

What are the problems with AI in logistics?

One problem with AI in logistics is that it needs a lot of data to work well. If a business doesn’t have enough data, the AI might not make the best decisions. Another issue is that AI systems can be expensive to set up, and some companies may not have the technology or skills to use them. Lastly, AI can sometimes make mistakes or not adapt quickly enough to unexpected events, like bad weather affecting deliveries.