From factories to warehouses and from delivery agents to the hands of customers, the delivery of goods is a long and complicated process. While shipping and delivery software solutions can manage the process, eCommerce business managers often find themselves at a crossroads when picking one tool because of their similar functionalities.
However, focusing on your business type can help decide which tool is right for you. If you’re responsible for shipping goods to various locations, shipping software is your answer. Whereas, if your business hands over the goods to the customer, opting for a delivery tool will help.
To help you clearly differentiate between the two tools, this article discusses the similarities and differences between shipping vs delivery software so you can select the right one for your needs. We've also included each category's top five products based on verified software reviews. Read more.
What is shipping software?
Shipping software helps manage the shipping process of any business that ships goods, including eCommerce businesses and logistics companies. It simplifies the entire shipping workflow, from importing orders to generating shipping labels and selecting the most cost-effective carriers. It also ensures address accuracy, offers real-time shipping rates, and provides visibility into the status of shipments. Some shipping software solutions even include inventory management features, making it easier for businesses to track stock levels and automate reorder processes.
Core features of shipping software
The core features of shipping software include:
Order management: | Track and manage incoming orders by automating tasks such as order validation and address verification. It enhances the overall shipping efficiency, reducing errors and delays in fulfilling customer orders. |
Shipment price calculation: | Determine the cost of shipping a package by getting real-time shipping rate insights from various carriers. It enables you to compare the rates and choose the cost-effective option based on numerous factors, including package size, weight, destination, and delivery speed. |
Shipment tracking: | Monitor the real-time status and location of packages in transit by tracking the packages’ journey, including their current location and expected delivery time. This feature enhances customer satisfaction by offering transparency and enabling proactive communication about delivery timelines. |
What is delivery software?
Delivery software enhances the delivery process for businesses involved in transporting goods and services to customers. It offers features such as order management and route optimization that help efficiently manage incoming deliveries and minimize travel time and fuel costs by planning the most efficient delivery routes. It also provides visibility into the location of delivery vehicles, providing customers with estimated delivery times and allowing businesses to monitor the progress of deliveries. Businesses such as courier services, eCommerce companies, and food delivery partners can benefit from this tool to manage their delivery requests and improve customer satisfaction and operational efficiency.
Core features of delivery software
The core features of delivery software are:
Delivery tracking: | Monitor the location and status of deliveries in real time by enabling the dynamic map view, which allows businesses and customers to track the deliveries and estimated delivery times. This feature enhances transparency, reduces uncertainty, and facilitates proactive communication with customers. |
Dispatch management: | Assign and dispatch delivery orders to drivers or couriers by automating the allocation process based on factors such as order location, vehicle capacity, and driver availability. This feature helps simplify delivery operations, optimizes routes, and ensures timely deliveries. |
Driver management: | Oversee and optimize driver-related tasks, including driver scheduling, driver assignment, and driver performance monitoring. This feature helps assign the right driver to each delivery, track driver activities in real time, and manage their workloads efficiently. |
Routing: | Optimize delivery routes for maximum efficiency by analyzing various factors, including delivery locations, traffic conditions, and vehicle capacity, to generate the most efficient delivery sequences. This minimizes travel time, fuel costs, and delivery delays. |
What are the differences between shipping and delivery software?
Both shipping and delivery software leverage features such as order management and real-time tracking to help manage orders and track their current status or location. However, there are certain differences between the two tools that make them stand apart. These differences are defined below:
Business focus: Shipping software primarily deals with the process of preparing and shipping goods from a business's location to various destinations, often involving multiple carriers and distribution centers. Delivery software, on the other hand, focuses on last-mile delivery, managing the movement of goods from a central hub or warehouse to the final destination, typically using a business's own delivery fleet or local couriers.
Driver and fleet management: Delivery software often includes features for driver and fleet management, helping businesses schedule and manage their own delivery personnel. These features include driver scheduling, navigation assistance, and vehicle management. In contrast, shipping software deals with the broader process of preparing goods for shipment and selecting carriers. It focuses on carrier management and integration with various shipping providers rather than the day-to-day operations of a dedicated delivery fleet.
Pricing: Shipping software typically lies between $9 and $59 per month. However, delivery software is priced between $20 and $99 per month. The variation in pricing depends on factors such as the number of deliveries and shipments, geographic coverage, and integration options.
What are the similarities between shipping and delivery software?
Despite the difference between shipping and delivery software, both software categories have some common functionality, including:
Order management: Both shipping and delivery software offer the ability to manage incoming orders. They offer tools to centralize order data, validate orders, and organize them for processing. This ensures accurate order fulfillment, minimizes errors and sets the foundation for smooth logistics operations.
Real-time order tracking: The real-time order tracking capabilities of both tools enable businesses and customers to monitor the progress and location of shipments or deliveries in real time. They provide up-to-the-minute tracking information, ensuring visibility and transparency in the movement of goods and allowing businesses to respond promptly to any delays or issues.
Reporting and analytics: The reporting and analytics similarity in shipping and delivery software empowers businesses with tools to track, analyze, and gain insights from data related to logistics operations. Both software types offer reporting dashboards and analytical features that help monitor key performance metrics, identify trends, and make data-driven decisions to optimize operations.
Shipping and delivery software: Which one is right for your business?
Shipping and delivery tools serve different purposes, and the right choice depends on your business's specific needs and priorities.
If you need a solution to manage the entire shipping process, from order processing and label generation to carrier selection and international shipping, shipping software can help you. This solution is ideal for you if you handle a wide range of shipments destined for various locations and carriers.
On the other hand, if your focus is to manage your own delivery fleet and local couriers, delivery software can be your choice as it helps with last-mile delivery of goods. It will help you optimize delivery routes and provide real-time tracking for customer visibility.
Businesses shipping globally and dealing with customs and tariffs can opt for shipping software. Whereas businesses wanting to provide a customer-centric delivery experience with live tracking and estimated time of arrival updates will benefit from delivery software.
Additionally, consider factors such as the scope of your shipping and delivery needs, budget constraints, and integration requirements to make an informed decision. Evaluate how well each software aligns with your goals and organizational processes to choose the solution that best supports your long-term success.
Once you’ve decided which software to use, head to our shipping software and delivery software category pages to find a list of products and software reviews from verified users.
If you want to narrow your search to only the most popular and highest-rated solutions, check out Capterra Shortlist reports for the top shipping software and delivery software—our reports are based on an analysis of thousands of user reviews.
How to choose between shipping and delivery software
Below are a few things to consider when selecting between shipping and delivery solutions.
Assess logistics operations: Analyze the scope and complexity of your business's shipping and delivery needs. Consider factors such as shipment volumes, geographic reach, the number of carriers or delivery vehicles used, and the diversity of products or services offered. This evaluation will help you determine whether your primary focus leans more toward managing broader shipping logistics or ensuring efficient last-mile deliveries to local or regional customers.
Consider scalability: Assess your business growth plans so that you can select a software solution that can adapt to increasing shipping volumes or delivery demands without requiring a complete overhaul. Scalable software accommodates your business's expansion seamlessly, preventing the need for frequent software changes as your logistics operations evolve.
Analyze customer expectations: Consider whether your customers require real-time tracking, precise delivery windows, or proactive communication. If your business model heavily relies on meeting these expectations, delivery software may be the better choice due to its focus on last-mile efficiency and customer-centric features. Understanding and meeting customer demands not only enhances satisfaction but also boosts your business's reputation.
5 top-rated shipping software
These products are listed in alphabetical order. (Check how we selected them.)
To present the most up-to-date information, the product information below shows the latest real-time ratings, which may differ from the ratings values at the time this report's analysis was conducted, since new reviews may have been left in the meantime.
Trial/Free Version
- Free Trial
- Free Version
Device compatibility
Trial/Free Version
- Free Trial
- Free Version
Device compatibility
Trial/Free Version
- Free Trial
- Free Version
Device compatibility
Trial/Free Version
- Free Trial
- Free Version
Device compatibility
Trial/Free Version
- Free Trial
- Free Version
Device compatibility
5 top-rated delivery software
These products are listed in alphabetical order. (Check how we selected them.)
To present the most up-to-date information, the product information below shows the latest real-time ratings, which may differ from the ratings values at the time this report's analysis was conducted, since new reviews may have been left in the meantime.
Trial/Free Version
- Free Trial
- Free Version
Device compatibility
Trial/Free Version
- Free Trial
- Free Version
Device compatibility
Trial/Free Version
- Free Trial
- Free Version
Device compatibility
Trial/Free Version
- Free Trial
- Free Version
Device compatibility
Trial/Free Version
- Free Trial
- Free Version