Split shipments occur when a single customer order is fulfilled in multiple packages, often shipped from different warehouses or on different days. It can speed up delivery but usually increases operational costs and complicates logistics. For eCommerce brands and retailers, split shipments pose a serious challenge: how to maintain profitability without compromising customer satisfaction. 

Split shipments hurt your bottom line in more ways than one: 

• Higher shipping costs from multiple origins. 

• Duplicate labor and packing materials. 

• Increased chances of errors and returns. 

• Customer dissatisfaction from fragmented delivery experiences. 

Instead of treating split shipments as a necessary evil, you should view them as an opportunity for innovation and reinforcing customer loyalty. 

13 Smart Strategies to Stay Profitable with Split Shipments 

1. Optimize Inventory Distribution 

Distribute your stock strategically across fulfillment centers based on order history and regional demand. Fewer shipments from far-off warehouses reduce costs and arrival time gaps. 

• Tip: Use zone-skipping logistics and warehouse zoning to balance the speed and cost. 

2. Use Smart Order Routing Software 

Leverage AI-powered fulfillment tools that determine the best warehouse or supplier to fulfill each item—reducing the chance that orders will need to be split in the first place. 

• Bonus: These systems also optimize for carrier rates and delivery times. 

3. Invest in Real-Time Inventory Management 

If your inventory data isn’t live, you’re flying blind. Real-time tracking ensures your storefront reflects actual stock availability, helping avoid oversells that often lead to split shipments. 

4. Create Virtual Bundles Instead of Physical Kits 

Instead of kitting products physically, create virtual bundles in your eCommerce system. Each product can then be shipped from the most efficient location. 

• Example: Bundle a t-shirt, mug, and book without requiring them to be packed together. 

5. Prioritize SKU Rationalization 

Too many SKUs can bloat your warehouse and increase the odds of stockouts. Trim down underperforming SKUs or consolidate similar variants to reduce fragmentation in orders. 

6. Set Minimum Shipment Thresholds 

Group low-cost items together and only ship when they meet a profitable minimum. Inform the customer beforehand and give them the option to wait or split. 

7. Use Backorder and Preorder Strategically 

Offer delayed fulfillment with clear messaging. Many customers are willing to wait if they know when their items will arrive. This avoids unnecessary partial shipping. 

8. Offer Incentives for Single Shipments 

Encourage customers to choose consolidated shipping by offering: 

• Extra loyalty points 

• Small discounts 

• Free gifts with delayed shipping 

This tactic also builds goodwill. 

9. Communicate Clearly with Customers 

Transparency is key. Let customers know during checkout if their order will ship in multiple packages and provide tracking for each. 

• Pro Tip: A branded tracking portal can enhance the post-purchase experience. 

10. Negotiate Carrier Contracts for Multi-Parcel Discounts 

You can often secure better rates if you consistently ship multiple parcels to the same address or meet certain volume thresholds. Leverage your carrier relationships. 

11. Automate Packing and Labeling Processes 

Automation minimizes human errors, speeds up processing, and cuts labor costs. The less time spent on duplicate packing tasks, the more profitable each order becomes. 

12. Use Split Shipping as a Customer Service Advantage 

Surprisingly, split shipping can delight customers if done right. Fast shipping of in-stock items while backordered items follow later can leave a positive impression. 

13. Analyze Split Shipment Data Regularly 

Run regular audits to identify: 

• Which SKUs are most commonly split 

• Which suppliers cause delays 

• Which customer zones have the most partial shipments 

• Use this intel to continuously improve. 

Split shipments don’t have to be a profit killer. Start by analyzing your current split rate, then implement just two or three of the strategies above. Even minor improvements can lead to major savings over time.