What Is a Shipping API and How It Revolutionizes The Logistic Industry

Shipping API is irreplaceable in modern logistics due to this industry's rapid digitizing over the past decade. Such APIs are helping to improve the profitability of enterprises of various sizes very well. Many business owners say that it is long and expensive to implement new digital solutions into pipelines without disrupting established internal processes. However, this is just a stereotype since there is a way to speed up and reduce the cost of implementation thanks to various shipping APIs.

In this article, we will discuss what shipping API is and what benefits it brings to businesses and consider some types of APIs. So, without further ado, let’s get started.

A shipping API stands for a shipping application programming interface, a programming tool that enables seamless communication between different logistics and e-commerce platforms without user intervention. It acts as a bridge between shipping carriers, online stores, and other digital solutions and automates tasks such as rate calculation, label generation, and tracking updates to ensure smooth and efficient shipping operations.

However, what is such a connection for? In abstract terms, let's imagine that one program speaks Spanish and the other speaks English. It is quite difficult for them to interact because they do not understand each other. The API, in turn, is a translator who knows both Spanish and English and can pass messages between them. More technically, this is bilingual software that can freely transfer information between two interfaces of different programs to get up-to-date information.

In the case of the logistics industry and specifically shipping APIs, this is a special type of integration technology that allows logistics management system software to interact as a whole. For example, it can be an online store union, software for warehouse inventory management, order management systems, and advanced delivery options.

Digitalization and the popularity of APIs would hardly have grown so fast if they did not benefit those who invested in their implementation. Right now, logistics enterprises that are on the cutting edge of technology are reaping the following benefits of using shipping APIs:

Lower shipping rates

Various shipping APIs allow you to compare shipping rates due to the fact that a large number of companies provide the services. For example, some shipping APIs can help you save on FedEx and USPS packages. As a result, you can use the saved money to develop business efficiency.

Reduced checkout abandonment

Reducing checkout abandonment by API is one of the main goals of many businesses. In addition to dissatisfaction with the visual part and the process flow, the client may not like the terms of delivery and will leave the purchase without completing it.

Increased overall business efficiency

API gives a much-needed boost to a business, not just through cost savings. They enable enterprises to respond faster to market demands and improve overall productivity by the main tools for optimizing internal processes, the significance of which is not so great, or the simplification of routine pipelines.

Real-time tracking

Customers want to stay in the know where the goods they ordered are located, and what happens to them during delivery, and shipping APIs make it possible. Forbes reports that shipping APIs can also help respond quickly by showing real-time updates across the whole supply chain, tracking how materials and products move, spotting delays as they occur, and alerting those who will be affected.

Address validation

Losing parcels or delivering them to non-existent addresses is a rather big problem for logistics businesses. The Times reports that 67% of parcel recipients have encountered issues with delivery, which reduces the level of the sipping experience. By improving this aspect with shipping API, you will get an advantage over your competitors.

Shipping API is extremely flexible and can be customized for a wide variety of logistics tasks. Proper use of these features will allow you to automate a wide range of internal processes and make them more efficient. However, before that, you should know the main features of the API in logistics that you can integrate into your business.

As soon as you receive notification of a new order, the logistics providers must process and prepare it for shipment. This whole process is called order manifestation, which consists of many steps. Previously, all these steps had to be done manually by individual employees, but APIs allow you to automate the entire pipeline. According to Forbes, APIs increase processing speed by automating tasks.

Once the order details are on the partner's platform, the API creates an order, generating an AWB ID to track the order through all stages of its life. Next, a label is automatically generated with all the information about the order, after which the delivery provider transfers the order to the company.

In addition to automating order preparation, APIs also can be useful even before this process. For example, you can drive sales of certain products by showing customers the Estimated Delivery Date (EDD), which they constantly look for on pages with products of interest. The faster the possible delivery, the higher the chance that the buyer will order the goods.

However, how do such EDD APIs actually work? Everything is quite simple and complicated at the same time. The right shipping API will take the pin data provided by customers on the platform and parse it against past shipment data to that delivery location by the respective delivery partners. After analyzing the data, it is possible to calculate the approximate delivery time from the location of the goods in the warehouse to the threshold of the buyer's house.

Order tracking is something that many logistics companies want to have in their arsenal. GrandViewResearch reports that the global API logistics market is projected to grow at a 20.2% CAGR from 2024 to 2030. This growth shows the expansion of e-commerce and the increasing demand for real-time tracking and visibility.

There are quite a few different APIs on the market that allow you to track orders. Many of them work to get tracking information from shipping partner platforms at regular intervals. After passing each conditional "checkpoint", from packaging to delivery to the doorstep, the API passes the specified information first to the e-commerce business and then to the client.

It is difficult to imagine a logistics business without canceled orders. As a result, most companies use specialized shipping APIs that take effect as soon as a customer requests a cancellation of an order and the e-commerce business accepts it.

This technology automatically creates a new canceled order on the shipping partner page, then starts the order back to the warehouse, regardless of the stage of the order, and plays a big role in warehouse management systems. After that, it becomes possible to track this order until it returns to the warehouse, after which it is possible to fill the inventory again with this product and sell it.

Users should have the opportunity to edit orders, and there are quite a few parameters that they can edit, ranging from changing the delivery address to calculating discounts and much more. This flexibility is crucial for both customer experience and operational efficiency, which will have a positive impact on your business.

The system must transfer all updated information to the shipping partner if the order data is edited, regardless of who does it. After that, it should change the order itself no matter what stage it is at. This comprehensive update process maintains data integrity and consistency across the logistics systems.

The Non-Delivery Report (NDR) consists of several steps: a delivery failure notification, data collection from customers to ensure successful delivery, and then the transmission of new delivery instructions to the delivery partner. Using a shipping API plays a big role in this process and in improving the shipping experience as they pass instructions and information received from customers to the delivery partner and, hence, the delivery agent. Automation significantly reduces the likelihood of losing important information at any stage.

Looking for the best shipping API is a vital part that directs all your operations, whether logistics or ecommerce. A correctly chosen and integrated API streamlines shipping processes, deliver parcels promptly, and erases errors. You should consider the key factors below before making a choice.

Budget plays a big role in choosing the shipping API. Vendors will either charge per shipment, or vendors will charge by subscription with varying levels of cost. Be careful for additional charges, such as setup charges or premium charges. The goal is to achieve a balance of shipping costs and shipping capabilities and, at the same time, not compromise the quality of the service.

Not all shipping APIs provide the same level of functionality. Some permit you to generate standard shipping labels, but others enable more advanced functions. Logistics companies are using APIs to provide real-time tracking, rate comparisons with automatic updates, and multi-carrier support. Begin by establishing what your business needs. For instance, in case you need to provide customers with estimated delivery times based on real-time carrier data, select a shipping API that includes tracking details and address validation.

Fast data transmission speeds ensure quick order processing and information availability in real time. A slow or lagging API in shipping delays transactions and frustrates customers who expect accurate tracking information. Look for an API with low latency and high uptime to keep your shipping operations running smoothly.

A rigid shipping API integration holds your team back and adds unwanted complexity. The best shipping API must have clear documentation, developer-centric resources, quick Electronic Data Interchange (EDI), and simple onboarding processes. Shipping API FAQs provide valuable insights into these features, helping developers provide integration capabilities more efficiently. A simple-to-use APIs save time and money and decrease errors, which allows your business to scale rapidly.

Seamless integration matters. Vendors must provide smooth shipping integration API into your existing software, whether you need shipping software or an order fulfillment tool.

Here are the key business systems that a shipping API can integrate with:

• Enterprise Resource Planning (ERP)
• E-commerce platforms
• Order management systems (OMS)
• Warehouse management systems (WMS)
• Customer relationship management (CRM)
• Accounting and invoicing software
• Supply chain management (SCM)
• Marketplace integrations

If there are compatibility issues, you might face delays, added development costs, or lost functionality. Prior to purchasing, the shipping API needs to support the platforms and applications you use.

With so many shipping APIs available, the correct one can be overwhelming to select. A reputable software provider with development expertise will help you assess your needs, weigh options, and provide customers with smooth integration.

As we said earlier, there are quite a few different APIs designed to meet various businesses’ logistical needs. To avoid getting lost in all this diversity, we decided to break the most popular solutions into categories for various businesses.

If you are faced with choosing which logistics giant to cooperate with, you will have a choice between market leaders in the face of UPS, DHL, FedEx, and USPS. All of them are rightfully leaders in deliveries, have thousands of offices and distribution centers, and provide an extremely wide range of services. Let’s get a more detailed look at what they do:

• UPS Supply Chain APIs - create warehouse orders and pre-shipment notifications, query your stock inventory and statuses of shipping orders
• DHL APIs - find the location of various points DHL pick-up and drop-off points, tracking the load and the status of the parcel
• RESTful API (FedEx) - create shipping order labels, track packages, and facilitate the return process
• USPS APIs - provide price calculator, tracking and shipping information, delivery label generation, address validation, and drive pickups

If your business plan does not include finding separate carriers, organizing your storage facilities, and much more, you can turn to 3PL services for help. A 3PL or third-party logistics company that manages outsourced logistics for their client and can cover activities such as warehousing, distribution, transportation, inventory management, returns management, and more. And for this business option, there are APIs that you should pay attention to:

• C.H. Robinson APIs - create orders and tender cargoes, orders and labels for parcels, and view the movements of your supply chain
• DB Schenker APIs - provide a portal to support developers in learning, testing, and managing their APIs, such as a pricing module for rate tracking, a booking module, and more

Forwarders are companies that organize the transport of goods on behalf of shippers. They do not transport the goods themselves but organize the logistics (to simplify this process, they order to build freight forwarding software) by cooperating with several carriers for different delivery methods. Unlike 3PLs, they only provide part of the service in the form of setting up delivery services for you, acting as an intermediary between you and the carrier. Such ecosystem integration use cases with a great strategy if you are going to work with international shipping. There are the most popular APIs of such type:

• DSV APIs - provide departure booking, cargo tracking, and a module for creating transport labels
• Flexport APIs - provide cargo reservations, status tracking, and document management

If you target a specific shipping method, you will need the dedicated APIs of the respective companies specializing in the relevant shipping type:

• Delta Cargo APIs (air) - create and manage shipping orders and provide real-time updates on the status of active loads
• BNSF Railway APIs (rail) - track freights, schedule requests, retrieve waybills, update cargo status
• J.B. Hunt APIs (trucking) - track cargo, exchange data and documents, schedule transportation, create, modify, plan, and search for orders

If your company needs to process a lot of orders and work with several carriers, then connecting with them can turn into a challenge. However, there is a simpler solution, namely the shipping API aggregators. These platforms are integrated with several carriers, and you can easily implement them in your business in order to receive information through one channel. There are several popular shipping API aggregators on the market:

• EasyPost APIs - allow you to order shipping, compare prices, track your cargoes, and create labels
• Shippo APIs - allow you to query rates and ship via multiple carriers, create labels, schedule pickups, manage returns, and multi-pack deliveries

This is the last category on our list, and we decided to add online delivery marketplaces. They are designed to connect shippers who want to move their goods and carriers who can do so (or freight forwarders willing to arrange transportation). One of the best ways to see how it works is by booking a room on Airbnb - you enter your departure details and get a list of offers with rates and travel times that you can compare. Let's look at a couple of popular solutions.

• Freightos APIs - allow you to compare rates, terms, and ratings, decide who to ship with, and order delivery through Freightos
• uShip APIs - allow you to use APIs with their own uShip PRO shipping automation platform and book, manage, and track your cargoes there

Cleveroad is a professional software and mobile app development vendor with over 13 years of experience in the market. We have extensive experience in the Logistics industry and provide a wide range of services, such as developing custom solutions (LMS, TMS, SCM, ERP, and other software), third-party Integrations, and supporting and upgrading legacy software. We build solutions with lower operational expenses and optimize supply chains and warehousing, and transportation.

Cleveroad in numbers:

• 13+ years on the market
• 250+ in-house engineers
• 200+ successful projects

Benefits you’ll get by cooperating with Cleveroad:

• Practical experience in developing logistics solutions, including Warehouse Management Systems (WMS), Transport Management Systems (TMS), Fleet Management Software, Inventory Management Software, and more
• On-demand IT services, including logistics software development from scratch, modernizing legacy logistic systems, IT consulting, and more
• Proven expertise in integrating your software with third-party services and solutions, such as Xero, Salesforce, Google Maps, Logistics, etc
• Free Solution Workshop stage with our logistic specialists to align your logistic business requirements with technological implementation
• Partnership with an ISO-certified company implementing ISO 9001 quality management systems and ISO 27001 security management standards
• All guarantees for your logistic business information security and signing NDA per your request