Do I need dedicated IPs for transactional email?

Usually, no — you do not need dedicated IPs for transactional email.

When shared IPs are fine

For most senders, a shared IP is the better choice because:

• Transactional volume is often too low to justify a dedicated IP
• Reputable email service providers manage shared IP reputation well
• You benefit from the provider’s existing sender reputation and infrastructure
• It’s simpler and cheaper to maintain

When a dedicated IP makes sense

A dedicated IP can be worth it if you:

• Send very high volume consistently
• Need full control over your sending reputation
• Want to separate your traffic from other senders entirely
• Have strict compliance or deliverability requirements
• Send enough volume to keep the IP “warmed up” and active

Important note

For transactional email, reputation is more important than IP ownership. Inbox placement depends heavily on:

• Authentication: SPF, DKIM, DMARC
• Low complaint and bounce rates
• Consistent sending patterns
• Good list hygiene
• Engagement and content quality

If you send only password resets, receipts, alerts, and similar messages, a shared IP is usually best unless your volume is large enough to support a dedicated IP.

If you want, I can also tell you roughly what sending volume justifies a dedicated IP.