GLOBAL BRANDS LOOKING FOR UNIFIED FULFILMENT
What you ship matters. But where you ship from matters just as much.
Shipping might be the final step in your customer journey, but it’s often one of the most critical moments for conversion, loyalty and margin. And in the US, a major driver behind how fast (and how affordably) you can get a product from fulfilment centre to doorstep comes down to one thing - shipping zones.
Understanding how shipping zones work can make the difference between scaling profitably or silently leaking margin on every order.
If you’re growing your US customer base, or thinking about expanding into the US, you need to know how the zone system shapes your fulfilment strategy. It’s the key to making smart fulfilment decisions.
In this article
- What are US shipping zones and how do they work?
- Why US shipping zones matter for your business
- How to use shipping zones to your advantage
- How US shipping zones affect performance
- What to consider when choosing fulfilment locations in the US
- Why fulfilment strategy shapes profitability
- The IFGlobal advantage for US expansion
What are US shipping zones and how do they work?
Shipping zones are how carriers like USPS, UPS, and FedEx calculate the cost and speed of domestic deliveries. Instead of charging by the mile, they use zones based on the distance between the origin ZIP code (where you ship from) and the destination ZIP code (your customer). The further the zone, the more you pay.
Think of zones like ripples on a pond. Zone 1 is right where you drop the stone (your fulfilment centre). Zones 2 through 8 ripple outward in increasing distance, and increasing cost.
Here’s a rough guide to how zones are defined.
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For example, if your warehouse is in New Jersey, Zone 2 might include parts of Pennsylvania and New York. Zone 8 could be Hawaii or California. But if you fulfil from Texas, the entire map changes.
Zones are a radius from your origin point. Which means the farther away your customer is from your fulfilment centre, the higher the zone, and likely, the higher the cost and longer the delivery.
But be aware, carriers don’t use actual road miles. They base zones on ZIP code groupings, using the first 3 digits of each ZIP to assign zone relationships. So, two customers 10 miles apart may fall into different zones, depending on which ZIP code boundary they fall into.
Why US shipping zones matter for your business
Shipping zones might feel like a behind-the-scenes detail. But they shape three things that directly impact your top line and bottom line.
Let’s say you’re a UK-based skincare brand expanding into the US. You want to offer 2–3 day shipping to stay competitive, but every order from your East Coast warehouse to the West Coast means Zone 8 pricing.
Now imagine if you had inventory in a fulfilment centre in Nevada or Texas. Suddenly, a large portion of your customers shift into Zones 2–5, where shipping is faster and significantly cheaper. And at volume, that matters.
Cost
Carriers charge more for higher zones. That means longer-distance deliveries quickly become more expensive, especially for 2-day or expedited shipping. If most of your customers are in Zones 6–8, your margins could take a hit fast.
Speed
If you’re promising fast delivery nationwide but shipping from one corner of the country, something’s got to give. You’ll either need to pay premium shipping fees or compromise on delivery times.
Conversion
Shipping price and speed remain two of the biggest reasons for cart abandonment. If a customer sees a long delivery time or a surprise $14 fee at checkout, they may bounce (and not come back!).
How to use shipping zones to your advantage
You can’t control where your customers live, though you can control where you ship from. This is where your fulfilment strategy makes a real difference.
Distribute your inventory
Splitting stock across multiple fulfilment centres (e.g. East and West Coast) allows you to reach more customers in low zones. That helps lower costs and shorten delivery windows without needing to rely on express shipping.
Use data to guide location
Look at your customer data. Where are your top markets? Where are you growing fastest? Use these insights to map out an ideal fulfilment footprint.
Model zone impact on margin
Understand how zones are affecting your cost-to-serve. Often, the savings from reduced shipping costs can outweigh the cost of adding a second fulfilment location.
Choose fulfilment partners who get this
Not all providers offer this level of flexibility or visibility. Work with fulfilment partners who can simulate shipping scenarios, advise on regional hubs, and evolve your model with demand.
How US shipping zones affect performance
Let’s continue with your growing UK-based skincare brand expanding into the US. You’ve got a loyal following, your repeat purchase rate is strong, and now it’s time to scale internationally.
You know US customers expect fast, low-cost (or even free) delivery. So, you set your sights on offering 2–3 day shipping across the mainland US, but you also need to protect your margins.
Here’s where US shipping zones come into play.
If you fulfil all US orders from a single East Coast location, your West Coast customers are in Zone 8.
- Longer delivery windows (typically 4–5 days)
- Higher carrier rates
- Greater risk of delays or failed delivery attempts
In contrast, shipping from a central or multi-node setup, such as one fulfilment centre on the East Coast and one near the West, means you can stay within Zones 1–5 for most of your orders.
- Faster delivery times across the board
- Lower shipping costs per order
- A stronger, more consistent brand experience
Shipping zones aren’t just a postal concept. They directly impact your operational performance, customer expectations and profitability at scale. As your US customer base grows, your fulfilment strategy needs to evolve with it.
What to consider when choosing fulfilment locations in the US
Choosing the right fulfilment locations isn’t just a logistical decision, it’s a strategic one. It’s building a model that can evolve with your ecommerce business. The aim isn’t to be everywhere. It’s to be exactly where you need to be to serve your customers efficiently, protect your margins, and scale with control.
When done right, it becomes a core part of how you protect profit, deliver consistently, and grow with confidence in the US market.
Customer density - Where are your most frequent customers located?
Start with your order data. Where are the bulk of your US customers based? Are you seeing concentrated demand in the Northeast, or is it more evenly spread across the West Coast and Midwest?
The closer your stock is to your customers, the faster and cheaper you can deliver, especially when operating at scale. Using a fulfilment centre near your densest customer regions can reduce average shipping zones and costs overnight. A simple shift in location can mean the difference between a 2-day delivery and a 5-day wait.
Growth markets - Which areas are seeing increased demand?
Look beyond where you’re strong today, and into where you’re growing tomorrow. Are certain US states or cities seeing a spike in traffic or sales? Are you planning a marketing push or retail launch in a new region?
Aligning your fulfilment setup with future growth helps you stay ahead of demand without creating logistical bottlenecks.
Product size and weight - High shipping costs hit hardest on bulky or heavy SKUs.
Shipping costs are heavily influenced by the size and weight of your products. The bigger or heavier the item, the more expensive it is to move across long distances.
If you’re selling bulky goods or multipacks, every extra shipping zone adds up. For high-weight or high-volume SKUs, even a small reduction in shipping distance can unlock significant savings.
Shipping promise - Are you offering 2-day delivery? Free shipping? Both?
Your fulfilment model must match the delivery expectations you’ve set.
Offering 2-day delivery nationwide from a single East Coast hub? That’s a tall (and expensive) order. Free shipping? Those costs must be absorbed somewhere. Many brands promise speed and affordability without the infrastructure to support it. That’s where customer experience begins to suffer. Map your fulfilment locations to your delivery promise, not just your budget.
Fulfilment flexibility - Does your fulfilment partner allow you to expand regionally if needed?
Today you might only need one US location. But what happens when demand surges on the West Coast, or you land a major retail deal in Texas? Look for a fulfilment partner who can grow with you.
- Multiple warehouse locations
- Simple multi-node inventory distribution
- Platform visibility across all locations
- The ability to switch or split fulfilment based on demand
Why fulfilment strategy shapes profitability
When you're scaling in the US, speed and cost aren’t just shipping issues, they’re strategic levers. Your fulfilment model directly affects your conversion rate, repeat purchase behaviour and margin retention.
Choosing the right locations, optimising for key shipping zones, and ensuring operational flexibility all contribute to stronger unit economics. And a better brand experience!
Before you scale in the US, you’ll need to build a fulfilment strategy that matches your growth ambitions, supports your customer promise, and protects your profitability as you grow.
The cost to serve a customer in the US isn’t just about your product, it’s also about where you’re shipping from. That’s why smart brands don’t just ask “how fast can we ship?” They ask, “from where can we ship most profitably?”
Even a small shift in fulfilment location can dramatically improve your delivery speed, reduce cart abandonment, and cut logistics costs.
The IFGlobal advantage for US expansion
At IFGlobal, we help fast-growing ecommerce brands navigate US expansion with a fulfilment model that adapts to your goals.
From our East and West Coast fulfilment centres to smart shipping strategies, regionally optimised fulfilment, and integrated tech like BladePRO, we build solutions that put you closer to your customers, without adding complexity behind the scenes.
- Fulfil from both coasts with our US fulfilment centres
- Reduce zone-related shipping costs by aligning location to customer clusters
- Smart order routing to automatically ship from the closest or most cost-effective location
- Deliver faster and maintain your brand’s customer experience promises
- Access full visibility across your stock and orders with our proprietary BladePRO tech
- Grow your Amazon channel with our in-house Amplifi team
- Scale at speed with a fulfilment partner that moves as fast as you do
