In ecommerce logistics, terminology often gets blurred. The word “shipping” and “freight” are used interchangeably to describe getting products from point A to point B. But, in professional logistics, they represent entirely different operational frameworks, cost structures, and handling requirements.
Misunderstanding where shipping ends and freight begins can lead to misallocated budgets, unexpected carrier surcharges, and friction in your customer experience. In this article, you’ll learn how to distinguish between the two.
What is Shipping in eCommerce?
Shipping refers to the delivery of individual parcel orders directly to the end customer (often called “last-mile” delivery). When a customer buys an item from your online store, and you pack it into a box, satchel, or mailer to send to an address, you’re utilising a shipping network.
Characteristics of parcel shipping:
- Weight and volume: parcel shipping networks are designed for smaller, lighter packages. Typically, a parcel must weigh under 22–30 kg to fit standard courier and postal guidelines.
- Network infrastructure: shipping relies on automated, national postal or courier networks, such as Australia Post or Aramex.
- Focus: the destination is mostly a residential address or parcel locker, requiring flexible delivery vehicles (motorbikes or vans) that can navigate streets easily.
- Use case: outbound customer orders (DTC).
Related: The Difference Between 3PL, 2PL, and 4PL You Need to Understand Before Choosing a Logistics Partner
What is Freight in eCommerce?
If you try to move an oversized, bulky item, you need to book a freight carrier. Freight refers to the commercial transport of bulk goods, heavy cargo, or large volumes of stock.
For an ecommerce brand, freight is the method used to transport inventory from an international or a domestic supplier to your warehouse, or to move bulk pallets of stock from your primary storage facility to a regional 3PL partner.
Characteristics of freight:
- Weight and volume limits: freight is used when cargo exceeds standard parcel shipping limits. This includes palletised goods, oversized crates, and shipping containers (typically where the total consignment weight is over 70 kg).
- Transport modes: freight logistics utilises heavy machinery and multiple modes of transport categorised by volume:
- LCL (Less-than-Container Load) and FCL (Full Container Load): these are ocean cargo terms. With LCL, your inventory shares container space with other businesses. With FCL, you rent an entire container solely for your stock.
- LTL (Less-than-Truckload) and FTL (Full Truckload): these are road transport methods. LTL moves several pallets (ranging from 1 to 6, or depending on the carrier) that don’t require an entire semi-trailer, meaning you only pay for the space you use. Conversely, FTL means you pay for the entire truck and can carry up to 26 pallets.
- PTL (Partial Truckload): ideal for larger bulk shipments (over 6 pallets) that don’t need a fully dedicated semi-trailer but need to stay on a single vehicle until it arrives at your warehouse or 3PL dock.
- Beyond the road and ocean modes, large-volume businesses also employ rail freight, air freight, and intermodal transport (combining multiple modes).
- Focus: freight deliveries occur between commercial hubs, warehouses, or retail distribution centers equipped with loading docks, forklifts, or a specialised truck.
- Use case: inbound inventory replenishment (B2B).
Related: What is Kitting in Fulfilment and How Does the Process Work?
An efficient ecommerce business can use both strategically. You need reliable freight management to keep your warehouse stocked efficiently, paired with an optimised, multi-carrier outbound shipping network to deliver customer orders quickly and affordably. However, managing this hybrid logistics internally requires extra hours and negotiation mastery with multiple carrier types.
Partnering with a specialised 3PL allows you to consolidate both processes. By using an established fulfilment network, your business gains access to discounted freight rates and optimised parcel routing for your customer orders.
Want to stop overpaying on bulky freight and parcel shipping? Contact our team at TSF Logistics today to learn more.