What Is Joint Shipment? Everything You Need to Know

Time: Mar 21,2025 Author: SFC Source: www.sendfromchina.com

If you’ve ever winced at a shipping quote or watched profit margins vanish due to logistics costs, you’re not alone. Small and mid-sized businesses (SMBs) lose an estimated 12–15% of annual revenue to shipping expenses, according to a 2023 report by Freightos. Enter joint shipment—a strategy quietly revolutionizing how goods move globally. But what exactly is it, and why should you care? Let’s break it down.

Key Takeaways

- Joint shipment involves combining multiple shipments from different customers into a single delivery.

- It reduces costs, increases efficiency, and helps businesses manage their shipping expenses better.

- There are several types of joint shipments, each suited for different business needs.

- Joint shipment is distinct from split shipment, which separates goods based on destinations.

1. What Is Joint Shipment

Joint shipment refers to the practice of merging multiple shipments into one, typically by combining separate orders from the same buyer into a single package.

In e-commerce, this often happens when a customer places more than one order within a short time frame going to the same address. Rather than sending each order in its own box, the seller consolidates them into one shipment. For example, if a shopper buys a phone case in the morning and a charger in the afternoon, a joint shipment would pack both items together in one parcel instead of delivering two packages separately. Joint shipment reduces duplicate deliveries and packaging waste, benefiting both the business and the customer.

The term “joint shipment” was popularized by online retailers like SHEIN, which introduced a 24-hour joint shipping policy to combine orders to the same address. Many other retailers simply call this order consolidation or combined shipping, but the concept is the same. Joint shipments are feasible when the items can be fulfilled from the same location within the needed timeframe.

In practice, that means the products are in the same warehouse (or can be brought together quickly) so they can ship out together without delaying processing. When these conditions are met, joint shipping simplifies order fulfillment operations and provides a more efficient delivery process for the customer. In essence, joint shipment is all about smarter shipping – merging what can be sent together so that delivery is economical and convenient.

2. Benefits of Joint Shipment

Implementing joint shipments can offer significant advantages for e-commerce sellers. Key benefits include:

Lower Shipping Costs

Shipping one consolidated package is generally cheaper than sending multiple packages separately. You pay for postage and handling once instead of multiple times. For the seller, this means reduced logistics expenses, which helps maintain healthy profit margins. For the customer, it could translate to lower (or single) shipping costs on multiple orders.

Operational Efficiency

Joint shipping streamlines the fulfillment process. Warehouse staff only pick and pack one package, and there’s just one label and tracking number to manage. Fewer shipments mean fewer delivery trips and fewer chances for errors. In fact, consolidating orders simplifies inventory management and order tracking, making the back-end workflow more efficient. It also frees up carrier capacity since one delivery can cover what would have been multiple stops.

Improved Customer Experience

Combining orders into one delivery is simply more convenient for the buyer. They receive all their items at once, rather than having to track and wait for multiple packages on different days. It prevents “tracking fatigue” and reduces the likelihood of missed deliveries, since the customer only needs to be available for a single drop-off. A joint shipment can boost satisfaction by providing a seamless, one-and-done delivery experience.

Environmental Sustainability: Fewer boxes and fewer delivery trips mean a greener operation. Joint shipments cut down on packaging material and fuel usage, helping decrease each sale's carbon footprint. It aligns with the values of eco-conscious consumers and can enhance your brand’s reputation. For example, Amazon’s optional consolidated delivery service (“Amazon Day”) reportedly uses 30% fewer boxes and eliminated the use of 136 million shipping boxes in 2022 through bundling deliveries. Shoppers are increasingly aware of such issues – over 52% of U.S. and U.K. consumers want brands to use less packaging – so joint shipping can be a selling point for sustainability.

3. How Does Joint Shipment Work

Joint shipment in an e-commerce setting requires coordination across ordering, inventory, and fulfillment systems. Here’s how it typically works for a seller:

Customer Places Multiple Orders

A buyer makes separate purchases from the same online store within a defined time window (for instance, within 24 hours) and to the same shipping address. These orders enter your system as distinct orders initially.

Orders Flagged for Consolidation

Your order management system (OMS) detects that there are multiple orders going to the same customer/address in a short span. It flags them as eligible for joint shipment based on your consolidation policy. (For example, you might configure your platform to automatically merge orders made within a day to the same destination.)

Combined Fulfillment Preparation

In the warehouse, the items from the separate orders are picked together and set aside to be packed in a single box. Inventory systems must update stock levels for all the merged orders accurately, as if it were one large order, to avoid confusion. It’s important that all items are available in the same fulfillment center; if some products are stored in different warehouses or won’t arrive in time, they usually cannot be included in the joint shipment.

Single Package Packing and Labeling

All the items are packed into one parcel with appropriate packaging. Only one shipping label is generated for the entire combined order, and therefore one tracking number covers all items. The label might include references to all original order numbers inside the package for clarity, but outwardly it’s one shipment.

Shipment and Delivery

The consolidated package is shipped out via the carrier as a normal shipment. The customer receives one package containing all their products, with one tracking link to follow. If the customer was initially charged separate shipping fees for each order, you may issue a shipping cost refund or adjustment so they aren’t overcharged for a single delivery. In the end, the customer gets all their items together, completing the joint shipment process.

4. Types of Joint Shipment

Not all joint shipments are identical. In e-commerce, joint shipping can occur in a couple of different contexts. Here are two main types of joint shipment scenarios relevant to online sellers:

Type 1: Single-Customer Order Consolidation

It is the most common scenario, as described above. Multiple orders from one customer, headed to the same address, are consolidated into one shipment. The trigger is usually time-based: separate orders placed within a short window (such as the same day) are eligible to be merged. Many direct-to-consumer brands and marketplaces implement this to improve efficiency. For example, a fashion retailer might automatically combine any orders a shopper places within 24 hours into one package (SHEIN’s policy is a well-known case of this practice).

The type of joint shipment benefits from full control – since it’s all within one seller’s operation – and is straightforward if inventory for all items is under one roof. It’s essentially an order consolidation service the seller provides to the customer to reduce duplicate shipments. Sellers often advertise this as a feature (“We’ll combine your orders into one shipment whenever possible”) to encourage repeat purchases without extra shipping charges.

Type 2: Multi-Source or Supplier Consolidation

Joint shipment involves consolidating items from different sources into one delivery, ideal for global e-commerce or dropshipping. The method combines products from multiple warehouses, suppliers, or sellers into a single package for the customer, reducing shipping costs and tracking numbers. While it requires coordination and may cause shipping delays, it’s efficient when cost savings outweigh complexity.

Businesses use the for logistics consolidation, especially when inventory is scattered. If synchronization isn’t possible, partial consolidation or split shipments may be used. Both types focus on grouping goods for the same destination, with e-commerce sellers often using single-customer order consolidation. Understanding this concept is crucial for operations with multiple fulfillment centers or suppliers.

5. Joint Shipment vs Split Shipment

Joint shipments are essentially the opposite of split shipments. Split shipment means a single order is divided into two or more shipments, whereas joint shipment means multiple orders are combined into one shipment. Below is a comparison of how they differ:

Aspect	Joint Shipment (Combined Orders)	Split Shipment (Divided Order)
Definition	Merges multiple orders into one delivery.	Splits one order into multiple deliveries.
Number of Packages	One consolidated package for all items.	Several packages (each part of the order ships separately).
Typical Use Case	Customer places multiple orders to same address in short time; seller combines them to ship together.	One order’s items are in different warehouses, or too large to ship together, so they are sent separately.
Shipping Cost	Lower overall cost – pay for one shipment instead of many.	Higher total cost – multiple shipping fees and handling for the seller (unless passed on).
Delivery Speed	Single delivery; might wait until all items available, but then all arrive together.	Items arrive in stages; some parts of the order may arrive sooner, others later.
Customer Experience	Convenient: one tracking number, one delivery to receive. Less confusion and less effort for the customer.	Can be confusing or inconvenient: multiple tracking numbers and delivery times. Customer might be annoyed receiving an order in pieces.
Environmental Impact	More eco-friendly – fewer boxes and trips, reducing waste and emissions.	Less eco-friendly – more packaging and more delivery trips needed.
When Necessary	Possible when all items can be fulfilled together (same warehouse and time frame).	Necessary when items are in different locations, oversized, back-ordered, or require separate handling.

6. Key Considerations for Joint Shipment

While joint shipment offers many advantages, it also requires careful planning and execution. E-commerce sellers should keep several considerations in mind:

Eligibility and Timing

Define a clear policy for when you will consolidate orders. Most sellers use a time-based window (e.g., combine orders placed within 24 hours to the same address). Ensure this window is communicated to customers and understood by your team. If orders come in outside the window, or if addresses don’t match exactly, those typically won’t be combined.

Inventory & Fulfillment Locations

Joint shipping works best when all items are available at the same fulfillment center. If products are spread across different warehouses, you may not be able to wait for them to converge without delaying shipment excessively. Consider your stock distribution: if multi-warehouse orders are common, decide when to consolidate and when to split. In some cases, transferring stock internally to enable a joint shipment might make sense; in others, it could negate the time/cost benefits.

Platform and System Support

Your e-commerce platform or order management system should be configured to recognize and handle joint shipments. It may involve installing plugins or using built-in features that flag eligible orders and merge them. Ensure your inventory management software also updates correctly when multiple orders are consolidated into one shipment – all relevant SKUs must be deducted and marked as fulfilled appropriately. Without system support, trying to do this manually can be error-prone.

Warehouse Process & Training

Update your fulfillment workflows to accommodate consolidation. Warehouse staff should know when to hold an order for potential consolidation and how to pack combined orders properly. Implement standard procedures for picking items from different orders together and choosing appropriate packaging for the larger combined shipment. It can help to set up a designated “consolidation area” in the packing station for grouping items awaiting joint shipment. Training employees on these new processes is crucial so that nothing gets overlooked.

Shipping Labels & Tracking

When combining orders, generate a single shipping label for the entire package and ensure all order references are noted. All items should ship under one tracking number for simplicity. Verify that your carrier’s system won’t be confused by multiple order IDs – usually it’s fine, but some fulfillment systems allow merging orders into one shipment record. Make sure the customer automatically receives the tracking info for the joint shipment so they know to expect one package.

Customer Communication

Proactively inform customers about your joint shipping policy. For instance, you might include a message during checkout or in the order confirmation email: “If you place another order within 24 hours, we will combine it with your current shipment at no extra cost.” It sets expectations and can encourage additional purchases. Also, if a customer does place multiple orders, send a notification that you’ve combined them, so they don’t wonder why one package contains items from separate orders. Transparency here prevents confusion.

Shipping Costs and Refunds

Handle the financial side fairly. If a customer paid separate shipping fees for two orders that you then shipped together, consider refunding one of those fees or offering a credit, since they ultimately received one delivery. The goodwill gesture reinforces trust. Conversely, if you offer free shipping threshold, combining orders might push an order over the threshold (which is good), but if they were charged because orders were below it individually, you may again choose to adjust charges. Make sure your systems or customer service processes account for these scenarios.

Monitor for Errors

Keep an eye on joint shipment operations initially. There are a few pitfalls to avoid: mix-ups (accidentally combining orders for different customers if names/addresses are similar), incomplete shipments (forgetting to include one order’s item in the combined box), or delays (holding an order too long waiting for another). Use order checklists and verify contents of combined packages before sealing them. Track metrics like how often you successfully consolidate orders, and if any customer service issues arise (e.g. “I’m missing an item” which could indicate a packing mistake). These checks will help refine your process.

Know When Not to Consolidate

Sometimes, splitting might be better. If one item is on backorder for a week, it may be wiser to send the available items now (split shipping) rather than delay everything. Joint shipment should not come at the expense of unreasonably slow delivery for time-sensitive orders. Give customers an option if a significant delay is expected: they might prefer a split shipment in such cases. Your policy can state that items will be combined only if it doesn’t delay the initial order beyond normal processing times. This way, you balance speed and efficiency.

7. Conclusion

Joint shipment is a powerful strategy for e-commerce sellers to streamline their shipping process, cut costs, and deliver a better experience to customers. In simple terms, it means shipping smarter by combining orders headed to the same place. By reducing the number of packages sent out, sellers can save on shipping fees and labor, and customers enjoy the convenience of receiving everything in one delivery. It’s also an eco-friendly move, aligning with growing consumer demand for sustainable shopping practices.

8. FAQs

Q: What is a joint shipment in e-commerce?

A: Joint shipment combines multiple orders into one delivery.

Q: Is joint shipment the same as combined shipping or order consolidation?

A: Yes, they all mean merging orders into one package.

Q: How is joint shipment different from split shipment?

A: Joint shipment merges orders into one delivery, while split shipment divides one order into multiple deliveries.

Q: When should I use joint shipment as a seller?

A: Use it when combining orders saves costs without causing delays.

Q: What are the benefits of joint shipment for my online store?

A: It lowers shipping costs, reduces packaging, simplifies logistics, and improves customer satisfaction.