Shipping Tool API vs SaaS Solutions: Which is Better for Ecommerce?

Shipping is a critical piece of your customer journey, and it can make or break your reputation and customer satisfaction. To ensure you meet expectations, you must bridge your digital shopping to the physical receiving experience seamlessly. The challenge of choosing the best shipping tool for the business remains, especially as you hit different growth milestones and scale up to ship hundreds or thousands of parcels per month. Efficient shipping is crucial for eCommerce businesses, retailers, and logistics companies. As businesses scale, they need streamlined shipping solutions to handle order fulfillment, tracking, and carrier integration. Today, both small and large online sellers face a critical choice between integrating Shipping Tool APIs directly into websites or adopting ready-to-use software-as-a-service (SaaS) solutions. But which one is the best fit for your business? This guide compares both options to help you make an informed decision.

Understanding the Basics

Shipping API: what is it and how does it work?

A shipping API (Application Programming Interface) is a set of code (software protocols) that allow businesses to integrate shipping functionalities directly into their existing systems. This could be your eCommerce website, platforms, marketplaces, ERP software, warehouse management system (WMS) or order management system (OMS).

This “bridge allows businesses to:

Access real-time shipping rates from multiple carriers (e.g., UPS, FedEx, USPS, DHL)
Generate and print shipping labels and manage shipments programmatically
Manage order tracking and automate shipping workflows
Integrate other shipping features like address verification directly from your website

Key Benefits of a shipping API:

Customization – Tailored integration into business operations
Automation – Reduces manual shipping processes
Scalability – Grows with business needs
Cost-Efficiency – Optimizes shipping costs with rate comparison

SaaS shipping solutions: what is it and how does it work?

A SaaS (Software as a Service) shipping solution, like ShipAccel, is a cloud-based platform that provides businesses with ready-to-use shipping and logistics management tools that don’t require complex API integrations or custom development. These platforms provide a comprehensive suite of shipping services accessible via a simple web interface, making them attractive for businesses lacking in-house technical capabilities. These cloud-based shipping solutions allow businesses to:

Access carrier rate comparisons from multiple shipping providers
Generate and print shipping labels
Track shipments in real-time
Automate order fulfillment and returns
Integrate with e-commerce platforms (e.g., Shopify, WooCommerce)

Key benefits of SaaS shipping solution:

Easy to Use – No development required, ready out-of-the-box
Quick Implementation – Can be set up in minutes
Feature-Rich – Includes analytics, automation, and reporting

Scalable Pricing – Subscription-based pricing with flexible plans

2. Pros and Cons of Shipping API vs. SaaS Shipping Solutions

Shipping API Pros

Customization and flexibility: Shipping APIs offer a highly customizable shipping experience tailored to specific business needs but require substantial technical expertise and ongoing maintenance. Businesses can integrate the API into their existing systems (e.g., e-commerce platforms, warehouse management systems) and create personalized workflows, automating various shipping processes according to their preferences.
Integration: Seamless connection with existing systems without having to use a separate software interface
Scalability: Shipping APIs are ideal for large enterprises or rapidly growing businesses. They provide the flexibility to scale as needed, supporting various shipping carriers, complex workflows, and higher transaction volumes.
Full Control: With an API, businesses maintain full control over the shipping process. They can optimize processes, adjust settings, and create specific features that suit their operational needs.
Cost Efficiency: APIs often follow a pay-per-use or volume-based pricing model, meaning businesses only pay for what they use, making them suitable for high-volume businesses that require more precise control over shipping costs.

Shipping API Cons

Technical Expertise: Implementing and managing and API requires significant technical knowledge for implementation and maintenance. Businesses without technical teams will need to outsource the integration or hire in-house developers.
Maintenance and Updates: Once integrated, APIs require ongoing maintenance to keep up with any changes made by shipping carriers or updates to the API itself. This can involve additional time and resources.
Complex Setup: Setting up a shipping API can be more time-consuming compared to using a SaaS solution, as it requires configuring multiple parameters for carriers, rates, and other shipping processes.

SaaS Shipping Solution Pros

Ease of Use: SaaS solutions are designed with user-friendly interfaces, making it simple for businesses to manage shipping without needing technical skills. Users can access all features via a web-based platform, making it easy to implement.
Quick Setup: Getting started with a SaaS solution is typically much faster than with an API. Can be sign up, access multiple carriers and start shipping in minutes. Platforms like ShipAccel offer plug-and-play integration with popular eCommerce stores (e.g., Shopify, WooCommerce, BigCommerce), so businesses can start shipping quickly.
Automatic Updates: Managed by the provider, reducing the need for technical involvement.
Feature-Rich: Many SaaS platforms come with additional features such as order management, tracking, returns management, reporting, and analytics. These features provide businesses with insights that help optimize their shipping operations.
Scalable Pricing: SaaS shipping solutions often offer tiered subscription models, so businesses can select a plan based on their shipping volume and needs. Many also provide a pay-as-you-go option, which is great for businesses with fluctuating order volumes.

SaaS Shipping Solution Cons

Less Customization: Saas Shipping platforms generally don’t provide the same level o customization as APIs. Businesses may have limitations for configurable workflows or advanced integration options.
Scalability: Some solutions may impose limits on batch printing labels or fulfillment data.
Subscription Fees: SaaS solutions come with ongoing subscription costs, which can add up over time, especially for businesses with high shipping volumes. Additionally, businesses may need to upgrade their plan as they grow, leading to higher fees.
Limited Control Over Features: Unlike with an API, where businesses can adjust shipping rules and processes, SaaS solutions provide more of a "one-size-fits-all" solution. Customization may be limited to the features available in the platform.

3. Which one should you choose?

Choosing between a Shipping API and a SaaS shipping solution depends on several factors such as:

Customization needs
Technical resources
Cost considerations
Scalability requirements
Desired support level

SaaS Shipping Solution: Best for Ease of Use & Quick Setup

For small and medium-sized businesses, a SaaS shipping solution is often the better choice. It provides a ready-to-use platform with built-in features, allowing businesses to manage orders, compare carrier rates, print labels, track shipments, and automate returns—all without complex setup or coding. With ShipAccel, for example, businesses can access discounted shipping rates, branded labels and tracking notifications, and real-time analytics across multiple carriers in a single, user-friendly interface.

Shipping API: Best for High-Volume & Custom Integration Needs

Larger eCommerce businesses and enterprises often prefer Shipping APIs because they provide greater flexibility, automation, and scalability. APIs allow for seamless integration into existing fulfillment workflows, eliminating the need for a shipping UI. This makes them ideal for businesses generating high volumes of shipping labels in a production environment, as well as those shipping to distribution centers, logistics partners, and retail locations. However, implementing an API requires developer resources and ongoing maintenance.

If you’re looking to optimize your shipping operations without the need for technical integration, a SaaS solution can save time, reduce costs, and improve customer satisfaction. To get started, consider ShipAccel, an all-in-one online shipping service designed for your eCommerce business. Sign up for a free demo and start fulfilling orders with discounted shipping labels today.