What are shipping APIs?
A Shipping API is a code that enables different platforms like your e-commerce store, WMS, OMS, and TMS systems to share shipping information with each other and perform functions. You can integrate this shipping API into your website or your preferred platform to access shipping capabilities directly within the platform. The main goal behind adding a Shipping API is to automate and simplify the entire supply chain and shipping process for businesses.
Let’s understand this with an example. Suppose a customer wants to know the expected date of delivery (EDD) for an order. Now, if a shipping API (more specifically, an EDD API) is integrated with your storefront, it’ll automatically fetch the EDD information from other platforms and display it on your product or checkout page. This eliminates constant back and forth with multiple portals and makes the process more coordinated.
Why Shipping APIs Are Important for eCommerce businesses?
Here we have mentioned 5 main reasons why e-commerce businesses rely on shipping APIs:
1. Real-Time Shipping Rates
If you have been in the eCommerce industry for quite some time, you know that manually calculating shipping rates each time a customer initiates a checkout process is daunting. Not only that, but the chances of making mistakes are also high. This makes the entire dispatch workflow move more smoothly.
A shipping API automatically pulls off this task without any errors. It sends delivery information to the carrier, retrieves data from the carrier’s rate calculation system, and then shows it on your platform in real time. As a result, you can instantly show the shipping rates and the overall amount a customer needs to pay without any time wasted and create a significant improvement in your overall operations.
2. Automated Shipping Label Generation and Order Processing
The manual shipping label creation process is error-prone. You might end up entering incorrect details, paying for unnecessary shipping labels, or creating multiple labels for a single order. This situation can be even worse during peak times.
With a shipping API, you can put the entire label generation and order processing task on autopilot. When a customer places an order, it gathers all information provided, coordinates with the selected carrier, and creates a shipping label within seconds. Furthermore, it automatically generates the AWB numbers and helps manifest the orders. Most shipping APIs also handle bulk shipping label creation, which can be a game-changer if you deal with a higher volume of orders.
3. Order Tracking and Transparency
One of the greatest advantages of a shipping API is its ability to display real-time order tracking information in a consolidated manner right on your eCommerce website and preferred platform. Whenever an order crosses a specific milestone, it immediately transfers the information to the integrated systems. This simply means, you don’t need to juggle multiple platforms to get the shipment update, which saves your time and effort to a great extent.
If you look at the other side of the coin, it also relieves customers’ anxiety since they can view the entire shipment journey on your website page and stay free from unnecessary doubts.
4. Multiple Shipping Options and Carrier Integration
Most shipping APIs come pre-integrated with multiple 3PL carriers. For businesses, these multi-carrier shipping APIs open up opportunities for selecting the most suitable carrier as per their requirements. At the same time, they also help find cost-effective shipping options, which amp up their profit margin in the long run.
A few of them even provide pre-negotiated shipping rates from well-known carriers (like FedEx, USPS, and UPS) to support your shipping budget. If you’re someone who usually deals with multiple carriers, the multi-carrier shipping API becomes more convenient for you as it helps you consolidate shipping information and perform tasks across carriers in an efficient way.
5. Scalability and Efficiency
The shipping API has been specifically designed to improve logistics efficiency. When businesses hit a certain amount of monthly orders, they deal with diverse carriers and platforms like Warehouse Management Systems (WMS), Order Management Systems (OMS), and Transportation Management Systems (TMS) that work in a synchronized manner.
Now, managing these diverse platforms isn’t easy. Thanks to shipping APIs, these systems can coordinate with each other, which further facilitates seamless and errorless data sharing.
Plus, this shipping API keeps shippers, customers, and other stakeholders in the loop throughout the journey with the latest updates, leading to improved communication and greater shipping efficiency.
2. EasyPost API
With the main goal of removing logistics challenges, EasyPost API was launched. It’s mainly a RESTful API; meaning, it’s scalable and can be easily integrated with your existing tech stack. EasyPost API takes care of various logistics-related tasks, like label creation, tracking, address verification, etc.
In addition, it has connections with over 100+ domestic and international logistics companies and supports the JSON format for API calls and responses.
3. ShipEngine API
ShipEngine is a multi-carrier shipping platform that offers multiple shipping APIs, so you can integrate its shipping capabilities with any of your preferred platforms. The ShipEngine shipping API helps businesses manifest shipping across 100+ carriers worldwide.
It is also a REST API and supports the HTTP protocol for headers, URLs, and status codes. ShipEngine has a free plan that supports the pay-as-you-ship model. Its paid plan starts from $75.
4. Shippo API
Shippo APIs can be used to perform various tasks of the logistics process — from pre-dispatch to return. For example, through Shippo APIs, you can find the best rates across 40+ logistics providers and create shipping labels. Not only that but you’ll also get discounted shipping rates that will further improve your bottom line. Moreover, the Shippo API will help you validate domestic and global addresses, monitor each shipment, and show the shipping rate at checkout.
Shippo API is also built on Rest. At the same time, it’s fast, reliable, and GDPR compliant. For APIs, Shippo offers two pricing plans - a free plan and a custom plan. On the free plan, you’ll get 30 free labels in a month. After that, you’ll have to pay $0.7/label.
5. AfterShip API
AfterShip’s shipping API consolidates multiple carriers’ shipping APIs into one. With this unified API, you can calculate shipping rates, print shipping labels, and generate invoices across 100+ carriers, including FedEx, UPS, USPS, and more.
The AfterShip API follows REST principles and maintains an uptime rate of 99.90% for businesses. One of the main perks that comes with AfterShip API is its comprehensive API resources. For each API, AfterShip has offered in-depth public documentation to help developers set up the integration without much hassles.
6. ShipRocket API
Like other APIs mentioned above, Shiprocket APIs also follow the REST architecture and support JSON format. ShipRocket’s APIs can be used to pull off tasks like label creation, AWB number generation, pickup schedule, order tracking, NDR management, etc.
ShipRocket has also launched an API to manage and update product inventory, so you can keep track of your product stock without any back and forth. However, the main disadvantage you may face with ShipRocket is its limited number of carrier integrations. It’s connected with only 17+ carriers, which might hinder your international growth.
7. FedEx API
FedEx APIs allow you to access most of FedEx’s services directly within your eCommerce platform. These include ETA and shipping rate prediction, shipping rate calculation, zip code validation, shipment tracking, and more.
FedEx’s shipping API uses the OAuth 2.0 authentication method to verify API requests and the HTTP method for request headers. At the same time, the FedEx API is developer-friendly and has detailed documentation to facilitate easy shipping API integration.
8. UPS API
UPS, one of the leading carrier companies in the market, offers a suite of shipping APIs to optimize logistics operations. Alongside offering basic functionalities like address validation, shipment manifestation, and shipment tracking, UPS APIs also offer advanced capabilities like delivery interception, ETA prediction, rate comparison, etc.
Please note that UPS has stopped issuing API access keys and implemented OAuth 2.0 authentication. While most UPS APIs like the tracking API, and the address verification API are free, you’ll have to pay for the DeliveryDefence API, the Interactive Commodity Description API, and the Export Assure API.
9. DHL API
DHL APIs follow the RESTful principles which makes it easier to integrate with and developer-friendly. As a result, you can easily integrate the DHL API with your eCommerce website and other systems.
It mainly supports JSON and XML formats to accept API calls and represent responses. Alongside these, the DHL shipping API implements HTTPS protocol and uses the OAuth 2.0 method for authentication.
10. USPS API
USPS APIs are RESTful APIs and use XML format for data structure and data transmission. You can integrate it with your current tech stack to obtain facilities like address validation, zip code lookup, city lookup, price calculation, etc on the website itself. The USPS APIs are a bit tricky to integrate and require deep technical expertise for setup.
11. Canada Post API
Canada Post is one of the well-known postal and logistics service providers in Canada. For eCommerce businesses, Canada Post has provided a range of shipping APIs.
If you join its developer program, you can access its eCommerce APIs for free. Canada Post provides the API code samples in Java, PHP, and C# languages and supports XML over REST and SOAP.
How Shipping APIs Work in Practice?
Simply put, a shipping API works as a middleman that adopts a systematic approach to transfer data from one platform to another. For instance:
Step 1: When customers place an order on your eCommerce website, the API automatically sends the order details to the integrated carriers.
Step 2: Based on the order details, the carriers respond with shipping options, rates, and estimated transit times. The API returns this information to the client portal (eCommerce platform or OMS systems).
Step 3: Once the shipping option is selected, an API request is again made for shipping label generation. The API then returns shipping labels that businesses can print to manifest shipping.
Step 4: Once the order is shipped, the carrier’s system updates the shipment status in its portal. The tracking API requests to the carrier’s system and sends the gathered shipment data back to the eCommerce portal or your business platform.
Oftentimes, businesses subscribe to push notifications. In such cases, the push API automatically sends notifications to the client portal without frequent API calls.
Step 5: The API also handles additional logistics-related activities, like pickup scheduling, customs forms generation, address changes, etc.
Key Factors to Consider When Choosing the Right Shipping API
1. API Features
The best shipping API you are planning to use must offer a range of features to handle the entire logistics process. These include EDD prediction, shipping rate calculation, order tracking, shipment notification, NDR management, returns management, and more. If that’s not the case, it might limit your capabilities and hinder a smooth logistics process.
2. API Integrations
Ensure the shipping API is easy to integrate with. Otherwise, it’ll take significant time to make the process up and running. To determine the ease of integration of a shipping API, check whether it’s provided well-structured API documentation, offered SDKs and client libraries in multiple languages, and provided error codes to guide the developers.
3. API Cost
Different APIs have different pricing structures. Some offer a pay-as-you-go model while some offer a subscription plan. When choosing a shipping API, always compare the price points of different APIs and check their advantages and disadvantages. Plus, check if hidden costs are being imposed if you use a particular shipping API.
4. Carrier connections
The more carrier connections a shipping API has, the more options you’ll have while choosing service options for a particular shipment. As a result, you can better meet a customer’s shipment demands. At the same time, check if it is connected with carriers from those regions where most of your orders come from. It’ll help you create a better SLA and improve shipping efficiency.
5. Speed
The main reason why businesses add a shipping API is its ability to speed up the entire process. Now, if the shipping API shows glitches and lags while fetching information, it might hinder your overall operations. So always look for a shipping API that can present information within 0.5 seconds.
6. API Documentation
A well-structured API documentation is one of the major factors you should look at when choosing a shipping API. It’ll help you with the API setup and the usage of the API. While assessing the documentation, check if it has provided sections like “Getting Started”, API endpoints, Authentication, error codes, etc.
7. Sandbox capabilities
A sandbox capability lets developers test and experiment with the API calls in a secure environment before actual usage. If any errors occur during the process, then they can immediately fix it. The shipping API you’ll choose must provide the sandbox capability, so developers can safely verify the API calls for seamless API usage.
8. Scalability
E-commerce businesses face a sudden surge in orders during peak times and festive seasons. The shipping API should handle these sudden increases in order volume and perform the tasks without any delay and errors, so you can run your businesses seamlessly in the demand period.
What are the Key Functions Performed by Shipping APIs?
A shipping API works as a magic wand that can perform every type of logistics activity right within the preferred platform.
These include:
Delivery options: Offers a range of shipping options like same-day shipping, two-day shipping, expedited shipping
Rate comparison and calculation: Lets you compare the shipping rates across carriers and calculates the shipping costs based on package weight & dimension, shipping method, and destination
Address standardization: Organizes and corrects delivery addresses to improve delivery rates
Address validation: Verifies customer addresses to avoid inaccurate and failed deliveries
Carrier selection: Assigns the most suitable carrier partner based on business requirements and preset parameters
EDD Prediction: Displays the EDDs on the checkout page and tracking page to bring in conversions and maintain transparency
Label generation: Automatically creates labels and generates AWB numbers
Customs generation: Generates custom forms and commercial invoices for global shipping
Order tracking: Provides real-time visibility of the entire shipment journey
Shipment notifications: Helps send checkpoint-specific delivery updates to shoppers
NDR management: Reduces the number of failed deliveries by coordinating customers and delivery agents
Returns Management: Streamlines the entire customer return process
Diverse integrations: Offers seamless integrations with eCommerce platforms, WMS, OMS, carriers, and payment gateways.