How to contract with shipping companies in Saudi Arabia and what is the best alternative?
Jun 11, 2025
The factors for contracting with shipping companies include: defining needs, geographical coverage, service quality, prices, delivery speed, types of services, and availability of technical support. To avoid complex contracts, the OTO platform provides a better alternative with immediate shipping through more than 25 companies without a prior commitment.
There is a close link between the growth of the e-commerce sector and the logistics services sector in the Kingdom of Saudi Arabia, which was confirmed by the latest imarc report, which indicated that the volume of e-commerce reached $222.9 billion in 2024 and is expected to reach $708.7 billion by 2033, with a compound annual growth rate of 12.8%.
This will certainly be reflected in the logistics and transportation sector – especially the Last Mile Delivery market – which is expected to grow at a compound annual growth rate of 19.6% between 2017 and 2022.
Therefore, as the number of e-stores and their visitors increases, the demand for shipping and transport services increases, and the urgent need for merchants to contract with shipping companies that meet customers' needs and offer them a unique shopping experience emerges.
In this article, we will discuss everything you may need to know about how to contract with delivery companies in Saudi Arabia, how to contact them, as well as highlighting the most important considerations that must be taken into account when choosing these companies, and the best alternative to contracting.
Let's start by quickly clarifying the concept of contracting...
What is meant by contracting with shipping companies?
In general, contracting is the conclusion of an agreement between two or more parties that requires their commitment to certain pre-established conditions to achieve a specific purpose, and this agreement is documented in the form of contracts.
Contracts are documents that clearly define the legal relationship between all parties (for example: the merchant and the shipping company). Since a contract is a long-term relationship between two parties, you must carefully choose who you partner with.
To help you choose the right shipping partner who will help you achieve your business goals and provide a great shopping experience for your customers, let's review the most important selection factors 👇
Important factors to consider when contracting with delivery companies
Define your requirements and priorities
Targeted area coverage
Verify the level of service quality
Check the prices for contracting with shipping companies
Test the speed of delivery
Ensure the suitability of shipping costs
Know the types of services and options available
The ability to provide a high level of technical support
Let's discuss each factor in more detail and clarification.
1. Define your requirements and priorities
Before entering into any contract with a delivery company and in order to determine the shipping options appropriate to your capabilities, you must first define your commercial activity requirements and study the target market. At least you must understand and know:
Your customers' needs.
Their concentration areas.
The extent of their need for your products.
The cost they can bear for shipping products to them.
This is at the customer and market level, but as for your products themselves, you must be fully aware of:
The average size and weight of your products.
The average value of customer orders.
The expected number of orders to be shipped daily or weekly.
The expected amount of expansion in the future.
The bottom line here is that determining the priority of shipping companies depends primarily on choosing the right company for you specifically, which is, of course, the one that can meet all your needs.
2. Targeted area coverage
One of the obvious considerations that must be taken into account when choosing the right shipping company is its ability to reach all areas targeted by your business, whether at the local or international level.
In this context, you can contract with a company that covers a specific area within the country or a company that covers all areas, or contract with two companies, one for domestic shipping and the other for international shipping, according to your priorities, capabilities, and business size.
3. Verify the level of service quality
The quality of service that the delivery company will provide to your customers and the extent of its adherence to the terms of the Service Level Agreement is one of the most important characteristics that must be considered.
You must certainly choose a company with a good reputation and a high degree of experience and efficiency; in order to ensure the effective completion of shipping and delivery operations, and avoid any problems or complications that may affect your store’s activity.
But how do you ensure the quality factor? 🤔
Quality assurance usually only comes through testing. Here, before starting the contract with the shipping company, you can try shipping one or more orders to the area where your customers are most located or shipping to several other areas and measuring the efficiency of their delivery tasks and the extent of your customers’ satisfaction with the service, and thus you will be able to make your decision based on a real experience and not assumptions.
You can also look at shipping company reviews written by previous customers on the Internet, and this is a common method followed by many. Just type the name of the company you want to contract with in the Google, Facebook, or Twitter search bar and explore what others are saying about it.
4. Check the prices for contracting with shipping companies
Checking the prices for contracting with shipping companies and comparing them with the quality of services provided is one of the most important factors that must be taken into account when choosing the right shipping company for your needs, and this requires you to:
Compare contract prices between different shipping companies to get the appropriate offer according to your needs and requirements.
Know the basic shipping costs, which are the fees the company imposes for transporting products from one point to another, and whether these costs include all fees or if there are additional costs that may be added later.
Check for additional fees that the shipping company may impose for obtaining certain services such as storage, insurance, or handling sensitive goods, etc.
Ensure there are no hidden costs that may appear later, such as fuel fees, or port fees. It is essential to read the contract carefully and understand all clauses related to costs.
Ensure that the chosen shipping company achieves the equation between shipping cost and quality of service provided in a way that does not affect your budget and customer satisfaction.
To choose the best shipping company based on contract prices to meet your needs, you can use these tips:
Get price quotes from several shipping companies, and try to make these offers as similar as possible in terms of terms and services provided so that you can compare prices accurately. Then analyze the components of each price quote, such as basic transport cost, additional fees, and hidden costs.
Check for transparency in prices when contracting, and ensure that the shipping company clearly states all additional fees, including fuel fees, storage fees, insurance fees, etc.
Ask about available discounts for large shipments or long-term contracts, and check for any promotions or packages that include additional services at reduced prices.
Do not hesitate to negotiate prices, and look for shipping companies that offer flexible pricing plans that adapt to changes in your business volume or seasonal requirements.
Inquire about the company's experience and track record in providing shipping services, and look for reviews and evaluations from previous customers to form an impression about the quality of services provided and their suitability to the contract prices.
5. Test the speed of delivery
The speed of delivering products to customers is one of the most important factors that help increase sales, and it is a factor that greatly influences customers' purchase decisions, as 85% of online shoppers look for goods elsewhere when the delivery time is too long.
Therefore, it is preferable to contract with a shipping company that offers fast delivery options. You can easily find this out by checking the website of the chosen shipping company and asking if it provides the fast shipping services you desire.
6. Ensure the suitability of shipping costs
Here, two factors must be considered. The first is the shipping cost, as it is necessary to ensure that the prices of shipping services are commensurate with your budget, as well as being suitable for customers so that you do not have to lose a large number of purchases due to high shipping prices. Here you can include part of the shipping cost in the product cost so that your customers do not see shipping prices as too high.
The second factor is the availability of different payment options. Although cards as a payment mechanism have the most dominant market share in the e-commerce industry in the Kingdom of Saudi Arabia, bank transfers, cash on delivery, direct debit, and e-wallet options will continue to occupy their positions in the Saudi market in the coming years.
7. Know the types of services and options available
The types of shipping companies in Saudi Arabia vary, and when choosing a shipping company, you must ensure the type of services and features it provides, which will help facilitate the performance of your commercial activity tasks, in addition to enhancing customer satisfaction levels, such as:
The shipment tracking feature for you and customers, which saves a lot of effort related to dealing with customer inquiries regarding the status of their orders.
Specialized shipping options that suit different types of products, especially high-value goods or perishable or breakable goods.
Shipping calculator options that allow the requester to calculate their shipping cost easily and accurately by entering the shipping weight, box dimensions, and delivery destination.
Different payment options as mentioned in the previous point.
8. The ability to provide a high level of technical support
It is important that the shipping company you choose is characterized by its ability to provide appropriate technical support through an active and professional customer service team, in order to deal quickly and efficiently with any problems or obstacles that may face the product shipping operations, as there are many shipping company problems that require rapid action to address.
Based on the above elements, you can differentiate between the different types of shipping companies and determine the most suitable company for your business.
After comparing the different shipping companies based on the quality of services they provide and the terms and policies of these services, you can proceed to contact them to make an agreement and contract with the most suitable company for you, and if you are wondering "How do I contact a shipping company?" Let us answer your question in the following lines.
How to contact a shipping company you want to contract with?
You can contact the shipping company by visiting the company's website or its social media accounts, calling it by phone, emailing it, or by visiting the company's headquarters or one of its branches if it is located near you or in the same city.
But before you ask yourself about the method of contracting with shipping companies, it is important to review two essential matters:
First: The liability limitation conditions related to shipping company problems and determining their obligations in cases of damage or loss of some shipments and the amount of compensation due as a result, and ensuring that these conditions are suitable for your trade activity, the quality of your products, and their value. For example, if your products are of high value, these conditions must allow you to obtain financial compensation commensurate with this value.
Second: The use policy of the shipping company you intend to contract with, related to the conditions for compensating the shipping company in the event that the customer violates the terms of the use policy, the extent of the company's commitment to maintaining the privacy and confidentiality of your transactions, determining responsibility for any fault or delay in transport operations, and guarantees for money back in case of failed shipment delivery.
Now, if you have decided which companies you will contract with, you must prepare the questions on your mind about contracting with shipping companies and direct them to the chosen company.
Important questions to ask the shipping company before contracting
If you have decided which shipping companies you will choose to contract with, you must contact one of their customer service representatives and ask any questions that may come to your mind about contracting matters and so on. Here we suggest some questions that can be asked when contracting with shipping companies:
General questions:
What is the shipping cost? Is there a price reduction when purchasing a large number of shipment shipping policies?
Can wholesale shipping services be provided for companies and individuals?
What are the available shipping and delivery options that suit my commercial activity?
Are shipments insured?
Is there a minimum or maximum limit for the weights and sizes that can be shipped?
Can the shipment be returned if the customer is unable to receive it?
Can compensation be provided for damages that the shipment is exposed to during transport?
What is the company's policy in case of loss or damage to the shipment?
What is the company's policy in case of shipment delay?
Can the customer provide special delivery instructions?
Questions related to services accompanying shipping:
Does the company provide real-time order tracking service?
Can a detailed report on the shipment path be provided?
Can the shipment be stored in the shipping company's warehouses?
Are temporary storage options provided for the shipment in case it is not received on time?
Does the company provide packing and packaging services?
Are multiple payment options provided, especially Cash on Delivery?
Is 24-hour technical support available for customers in case of any problems during shipping?
Is shipment insurance available against loss or damage during shipping?
Questions related to international shipping:
Does the company provide international shipping services?
What countries does the company deal with and what is the cost of shipping to these countries?
Does the company provide customs clearance services?
Is the shipment inspected before shipping to ensure compliance with all health and environmental requirements and laws?
Are there any required papers or documents when contracting with a shipping company in Saudi Arabia?
In the case of domestic shipping, there are some papers and documents that may be required when contracting with a shipping company in Saudi Arabia, and these papers may differ slightly from one shipping company to another according to its own policies and requirements. Among the important papers required for contracting with a shipping company in Saudi Arabia are:
A copy of the national identity or passport of the customer.
A copy of the tax invoice or commercial invoice bearing the customer's name and address.
Certificate of incorporation and commercial register in the case that the customer is a company.
A bank statement bearing the customer's name.
Some companies active in the field of international shipping may also require some documents related to international shipping, such as the commercial invoice, cargo data, certificates of origin, insurance, and others.
⚠️ It is best to confirm the required papers and documents in advance by contacting the chosen shipping company and checking its specific requirements to avoid any delay or problem in the shipping process.
How to contract with a shipping company in Saudi Arabia?
You can contract with a shipping company through the following steps:
Search for companies specialized in providing shipping solutions for stores and available in Saudi Arabia, and compare their features and service prices, while checking the efficiency of the company's performance and its good reputation.
Visit the official website of the chosen shipping company.
Select the store integration page or the contracting terms page.
Review the available packages and their terms, then fill out the store registration request by entering the required data.
One of the company's employees will contact you via email or a phone call to complete the contracting procedures.
These steps may differ from one company to another, and in case of any difference or facing any difficulties in any of the previously mentioned steps, you can directly contact the technical support department of the shipping company and inform them of your desire to contract with the company, and inquire about their service packages and subscription cost, the required data and procedures, and any other details you may need to know.
How to smartly negotiate contract prices with shipping companies?
Negotiating with shipping companies is not just a discussion about prices, but it is building a partnership relationship that guarantees you the best service at the lowest cost. To achieve strong and effective results during negotiation, you should prepare well according to calculated steps, and here are the most important:
First: Carefully study your shipping needs:
Before starting any discussion, you should collect accurate data about the expected number of shipments, their weights, sizes, and the destinations they will be shipped to. Understanding your needs will give you a clear picture of your business volume and value, enabling you to demand price offers appropriate to the size of your activity.
Second: Search for more than one shipping company:
Do not settle for a price quote from one shipping company, but you should look for several companies that offer the services you need, as obtaining more than one offer allows you to compare prices and services, and gives you a strong leverage during negotiation.
Third: Define your negotiation priorities:
Before entering the negotiation, you must define exactly what you want. Are you looking for the lowest price, do you prefer fast delivery, or are you interested in customer service and support? Clarity of your priorities makes you negotiate confidently and not be swayed by offers that may seem tempting but do not suit your basic needs.
Fourth: Utilize shipment volume as a negotiation power:
If you expect a large number of shipments monthly, you can use this as leverage, as shipping companies usually offer larger discounts to customers who guarantee them a large and continuous number of regular shipments.
Fifth: Compare offer details, not just prices:
While comparing offers, do not focus only on the basic price of the shipment, but you must review other details such as:
Return fees.
And insurance.
And delivery times.
And billing terms.
And fines for delays.
These details may make a big difference in the actual cost in the long run.
Sixth: Request custom price offers:
Do not accept ready-made offers, but you should ask each shipping company on your chosen list to provide you with a customized offer that suits the nature of your business, in terms of quantities, shipping destinations, and product type, which results in lower prices and better services that suit your activity specifically.
Seventh: Use other offers as leverage:
When you negotiate with shipping companies, you should smartly indicate that you have other strong offers. This does not mean threatening the company you are negotiating with, but rather showing that you are reviewing your options well, which motivates them to improve their offer to win you as a customer.
Eighth: Negotiate contract terms flexibly:
Try to open the door for negotiation on more than one point, such as:
Payment flexibility, such as paying every 30 days.
Reviewing and adjusting prices annually.
Obtaining additional services for free.
Do not focus only on the direct price of the shipment, as the ancillary terms may save you large amounts later.
Ninth: Document all agreements in writing:
After the negotiation is complete, all the agreed-upon terms must be written in a formal and detailed contract, and do not rely on verbal promises, as having a clear contract preserves your rights and avoids problems in the future.
Is it possible to deal with shipping companies without a contract? Yes, it is possible to deal with shipping companies without the need to sign formal contracts, especially if you run a small store or do not need shipments regularly. In individual or infrequent cases, you can simply contact the shipping company and request a direct quote.
But better than that is using the OTO platform, which provides you with an instant and easy way to ship without any contracts or prior commitments. By creating a free account on OTO, you can ship directly with more than 25 local and international shipping companies inside and outside Saudi Arabia, with discounts of up to 90%, and without the need to communicate or negotiate with each company separately.
Thus, OTO provides a flexible and fast solution for everyone who does not want to enter into the complexities of traditional contracting, with a single interface to manage all shipping operations efficiently.
Watch this video to learn the steps 👇
What is the OTO platform? The best alternative to contracting with shipping companies
The OTO platform is a smart shipping gateway specialized in linking e-stores and companies with hundreds of local and international shipping companies, without the need to sign any prior contracts or agreements. OTO is considered the ideal solution for managing shipping and delivery operations with high efficiency and low costs, and it is the best alternative to traditional contracting with shipping companies.
✅ Why is OTO the best alternative?
Shipping without contracts or commitments: Once you create a free account on OTO, you can start shipping immediately with more than 25 local and international shipping companies inside and outside Saudi Arabia, such as SMSA, Aramex, Naqel, Saudi Post, DHL, J&T and others - all without the need to sign any contract and at the cheapest shipping prices.
Instant discounts up to 90%: OTO pre-negotiates with shipping companies and provides you with extremely competitive prices, even if you are a beginner merchant or not contracted with any company.
Unified and easy control panel: Through which you manage all shipping operations, create orders, track shipments, print shipping policies, manage returns, and more - everything from one place.
Multiple shipping services: Whether you need domestic, international, express, economy, or refrigerated shipping, OTO gives you diverse options and shows you all prices and expected delivery times so you can choose the most suitable for you.
Direct integration with e-platforms and stores: OTO provides the ability to technically link with more than 30 e-commerce platforms such as Zid, Shopify, and WooCommerce, which facilitates automatic management of orders and shipping from your store.
Full support for all store sizes: Whether you are an emerging store or a major brand, OTO is designed to suit everyone and provides its services according to your needs.
Advanced systems for operations management: Such as the OTO PACK warehouse management system for organizing storage, accurately preparing orders, and efficiently managing inventory. And the customer notification system that keeps your customers constantly informed about the status of orders, which enhances the customer experience and reduces support inquiries. In addition to an innovative driver management system through the OTO FLEX application for distributing tasks and tracking driver performance in real-time, which enables you to manage last-mile delivery professionally.
💡 In short:
OTO is not just a shipping platform, but an integrated gateway that spares you the direct dealings with shipping companies or individual negotiation, and gives you complete control and flexibility to manage your logistics operations easily and at the best prices.
Also, if you already have a contract with a shipping company, you can easily link your contract/contracts and ship your orders using your own contract prices along with OTO's discounted prices, choose from the many alternatives available, and also ship with more than one shipping company at the same time.
Start now and create your free account, and start shipping immediately!
Conclusion
The growth of modern commerce has given shipping companies great importance as the link between brands and customers. This pushed merchants to contract with the most efficient and reputable delivery companies due to their prominent role in supporting the growth of commercial activities and increasing their profits, given that providing appropriate and effective shipping solutions positively reflects on increasing sales, customer satisfaction levels, retaining them, and acquiring more of them.
According to one study, 40% of consumers cancel their orders due to long delivery delays, and in another study, it was found that 60% of consumers prefer to buy from companies that offer more convenient shipping services, which confirms that the shipping experience plays a pivotal role in enhancing customer loyalty, by forming good impressions about the credibility of brands and their commitment in dealing with them.
This was the topic of the article in which we answered in detail one of our customers' questions, which is "How do I contract with a shipping company?" We explained the most important factors for choosing and comparing shipping companies for Saudi Arabia, what to ask the companies about before contracting, as well as the best and cheapest alternative to contracting with shipping services.
We hope that we have benefited you and answered some of your questions. We will be happy for you to share your opinion, experience, or questions.
Eman Ragaa