The insights hiding in your shipping data

From transit times to return rates, here’s how to use your shipping data strategically.

Shipping data might not be as alluring as marketing metrics or customer reviews, but it’s one of the most underused tools in an e-commerce business’s toolbox. Every shipment leaves behind a trail of data on delivery times, costs, damages, returns and so much more. Are you making the most of it?

Analyzing that information isn’t only for large retailers with dedicated logistics teams. In fact, small and mid-sized businesses that take the time to dig into their shipping data can uncover powerful insights to cut costs, fine-tune fulfillment and improve customer satisfaction.

When every dollar and every delivery counts, here’s how to make that data work for you.

Spot patterns before they become problems

Even without massive shipping volumes, patterns emerge quickly if you start with the basics. Is one carrier consistently late to a specific region? Are certain items getting returned more often? And if so, why? These are the questions that your shipping data can help answer.

Related: The secret life of your shipments (and how to keep them safe)

With returns becoming a growing issue (roughly 20.4% of all online orders were returned in 2024, up from 17.6% the year prior), taking a deep dive into your data is the only way to spotlight recurring issues you may otherwise miss.

For example, tracking which SKUs are returned most frequently (and for the same reason) could reveal a deeper issue, like a manufacturing defect, a sizing mismatch or inadequate packaging. Without the data, it’s easy to misattribute the problem to customer behavior. But returns are rich with insight, and recognizing patterns here can lead to better decisions upstream.

You may spot which items may need sturdier packaging, clearer product descriptions or a different delivery method. Or you may even use these insights to proactively manage customer expectations and reduce the likelihood of a return in the first place.

Choose the right carrier for the job

Carrier-specific data — like damage rates, late deliveries and customer complaints — helps you understand which service makes the most sense for which job. During the 2024 holiday season, for example, UPS had a 96.5% on-time delivery rate, outperforming FedEx (91.8%) and USPS (90.4%). That 5-6% gap might seem small, but at volume, it means dozens or hundreds more delays. And with 70% of consumers saying they’re unlikely to reorder after a poor delivery experience, every misstep matters.

Related: How to make returns work for your business and customers

If one carrier has a higher rate of damaged deliveries for larger items, consider reserving it for lightweight shipments and routing the more fragile goods elsewhere. Likewise, some carriers excel in rural or last-mile delivery, while others shine in urban zones or specific weight brackets.

Tracking this data over time can help you hold your carriers accountable, make smarter service-level decisions and even identify when it’s time to diversify providers.

Rethink your zones to cut costs

Your shipping speed (and cost) depends heavily on how far your packages travel. Shipping data can reveal how often you’re using express service when ground would have arrived just as quickly, for less.

Take a look at your shipping zones. If you frequently pay for 2-day shipments traveling under 300 miles, switching to ground service could save money without affecting delivery time.

You might also find opportunities to strategically relocate or split inventory. For example, if a growing percentage of your orders come from the West Coast but your inventory sits on the East Coast, consider stocking a small batch of products regionally to reduce transit time and risk.

These are small changes, but over time they add up.

Use past data to prepare for seasonal shifts

Summer can sometimes be sneakier than holiday peak season when it comes to shipping issues. Returns often spike around holidays due to heat-related damage, vacation-related delays or last-minute delivery failures.

Related: High temps, high stakes: A smarter approach to summer shipping

Looking at last year’s summer returns data (especially the reasons cited) can help you prepare. Maybe your packaging needs more insulation. Maybe you need cut-off dates for event-driven items. Maybe some items need a carrier upgrade during hot months.

When you treat seasonal returns and delays like fixable problems instead of unavoidable headaches, you put yourself in a position to act early, not react late.

Watch your costs, down to the last dollar

Every shipping misstep chips away at your bottom line. On average, 11% of goods arrive at distribution centers already damaged, and nearly 1 in 10 consumer shipments suffers some form of damage in transit. Even worse, about 53% of online shoppers have reported a delivery issue in the past year.

To put it into perspective, let’s say a $100 item arrives late or damaged. Between reshipment and potential discounts to appease the customer, you might spend an additional $10-$15 on that order. Now multiply that by a few orders a month and the cost compounds fast.

Many SMBs rely on the standard $100 carrier liability, but this often excludes issues like porch piracy, weather damage or misdelivery — and filling claims can be difficult or slow. Still, most merchants don’t use third-party parcel insurance to cover that gap, leaving them vulnerable to unrecoverable losses.

That’s where having the right protection in place, like coverage from Parcel Insurance Plan, can make all the difference. With the right parcel insurance, you’re not just managing costs after the fact, you’re building resilience into your shipping strategy from the start.

Let the numbers work for you

You don’t need an in-house analyst to find insights in your data. Even basic tracking of on-time deliveries, return reasons, cost per shipment and loss frequency can help you identify issues before they become costly patterns. Maybe that means rethinking your packaging strategy for certain SKUs. Or catching a manufacturing issue based on return reason codes.

You don’t need to make sweeping changes, just micro-adjustments that can help you operate like a big e-commerce player. In fact, data is one of the few areas where SMBs can quickly close the gap with large retailers. By paying attention to shipping performance, cost trends and customer feedback, even lean teams can make powerful operational shifts.

In a market where delivery speed, reliability and service expectations keep rising, the businesses that take time to learn from their shipping data won’t just keep up, they’ll stay ahead.

Want a smarter way to protect your shipments? Learn how PIP can help.

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This material has been prepared for general informational purposes only, is intended to apply generally rather than to any specific company and presumes appropriate discretion will be exercised regarding any particular situation.