Best Practices Shared IP vs Dedicated IP for Transactional Email Sending: What’s Right for You? By MailChannels | 3 minute read When setting up transactional email, one of the biggest decisions you’ll make is whether to send from a shared IP or a dedicated IP. This choice directly affects your deliverability, sender reputation, and user trust, especially when it comes to time-sensitive messages like password resets or account alerts. Let’s break down what each option means, the pros and cons, and how to decide which setup is best for your needs. What Is a Shared IP? A shared IP is used by multiple senders to deliver email. That means your messages are sent through the same IP address as other businesses. When it works well: If you’re a low-volume sender, sending fewer than 50,000 emails a day, and want to avoid the hassle of managing reputation or warming up IPs, a shared IP is typically the right choice. It’s especially useful for startups, small apps, or anyone who sends transactional email on an irregular or low-volume basis. Risks: You’re affected by the behavior of others on the same IP. If another sender on the shared IP gets flagged for spam, it could impact your deliverability, even if your content is clean. What Is a Dedicated IP? A dedicated IP is reserved exclusively for your email traffic. No other company shares this IP, it’s all yours. When it’s beneficial: If you’re sending a high and steady volume of transactional email (e.g., over 100,000 emails per day), a dedicated IP gives you full control over your reputation. It’s a good option if you have the resources to monitor engagement, maintain list hygiene, and respond to deliverability issues. Challenges: Dedicated IPs require careful warming to build trust with mailbox providers. If you don’t send consistently, or you start too aggressively, your emails may get filtered or throttled. In other words, with control comes responsibility. How to Decide What’s Best for You Choose a shared IP if you: Send low to moderate volume transactional emails Prefer a low-maintenance setup Don’t want to manage warmup or monitor IP performance Trust your provider to maintain a strong reputation pool Choose a dedicated IP if you: Send high-volume email consistently Want complete control over your sender reputation Have the tools and expertise to monitor bounce rates, spam complaints, and inbox placement Need guaranteed separation from other senders’ activity The Best of Both Worlds: Smart Shared Infrastructure Some email providers, like MailChannels, offer advanced shared infrastructure that isolates traffic by type (e.g., transactional vs marketing) and sender reputation. That means even though you’re using a shared IP, you’re protected from bad actors and poor-quality traffic. It’s a great solution for businesses that want the simplicity of shared sending, without the downside of reputation bleed. Final Thoughts There’s no one-size-fits-all answer. Shared and dedicated IPs each offer unique advantages depending on how much email you send and how much control you want. If you’re unsure, start with a shared IP from a provider that offers intelligent traffic routing and reputation management. You can always move to a dedicated IP later if your volume and needs grow. Want to skip the deliverability guesswork? Get started with MailChannels Transactional Email and enjoy reliable delivery on optimized infrastructure, no warmup, no reputation risks, no stress.