How to choose the best shipping carrier for your e-commerce brand
When it comes to getting goods from one place to another, a reliable shipping carrier can make all the difference. Choosing a shipping carrier is like picking a partner in life. It has a huge impact on your business's operations and ultimately success.
In this article, we'll explore the world of shipping carriers, examining the different types of carriers, factors to consider when choosing a carrier, and the pros and cons of common shipping providers.
What is a shipping carrier?
Shipping carriers transport goods from one location to another. They ensure that products move from warehouses to customers' doorsteps efficiently and on time.
Shipping carriers come in all shapes and sizes, ranging from national postal services to private courier companies. Each carrier offers its own services, rates, and delivery options. Some carriers specialize in last-mile delivery services, while others focus on overnight express shipping, and others on cost-effective ground shipping.
Different types of carriers
National carriers: These carriers, such as USPS, operate within a country, offering extensive domestic services.
International carriers: Companies like DHL and FedEx specialize in cross-border shipping, managing complex international logistics such as customs clearance and documentation support.
Regional carriers: These carriers, such as OnTrac, focus on specific geographic areas, or regions, often providing faster and more personalized service within those regions. This local focus allows them to optimize their routes, better understand regional preferences and constraints, and offer more flexible delivery options tailored to the needs of businesses and customers in those areas.
Top shipping carriers
FedEx: Known for its reliable express shipping services.
UPS: Offers a wide range of ground and air shipping options and is good for larger packages.
DHL: Known for international shipping.
USPS: Provides affordable shipping options within the United States.
How to choose the right shipping carrier: 7 Factors to consider
Every e-commerce business has different business needs based on its products, the number of SKUs, and the delivery service customers expect. Here are some factors to consider when choosing a shipping carrier:
Cost
Start by comparing base rates across different carriers. This initial comparison gives you a baseline and point of comparison to evaluate each option. Beyond base rates, analyze additional fees such as fuel surcharges and residential delivery fees, which can significantly impact the total cost. E-commerce brands shipping in large volumes should consider bulk shipping discounts and negotiate rates based on your shipping volume. Effective negotiation can lead to substantial savings, especially for growing e-commerce businesses.
Speed
Evaluate standard, expedited, and overnight delivery options offered by different carriers. Each option comes with different costs and benefits, so it's important to determine the importance of same-day or next-day delivery for your business and customers. Understanding your customers' expectations and balancing speed with cost can help you choose the right shipping options to enhance your service.
Reliability and reputation
Review carrier performance metrics, including on-time delivery rates and package loss rates, to ensure you choose a carrier with a proven track record. Read customer reviews and industry reports to gauge the overall reliability of each carrier. A reliable carrier delivers on time and is trusted by customers.
Coverage and location
Ensure the carrier’s service areas align with your customer base. This means checking that they can deliver to all the regions where your customers are located. Additionally, check for any service limitations in rural or remote areas. Some carriers may not provide comprehensive coverage in these locations, which could affect your ability to serve certain customers.
Customer service
Evaluate the availability of customer support, as responsive and accessible support can make a significant difference when issues arise. Determine if the shipping company offers 24/7 support or if it's limited to weekdays. Also, try to get a sense of how easy or difficult it is to contact support via phone, email, or chat. Good customer service can help quickly resolve issues and maintain customer satisfaction.
Technology
Tracking shipments in real-time is a must, so make sure the shipping company has high-quality and accurate tracking systems in place. Also, check if the carrier’s technology integrates with your e-commerce platform and order management systems. Efficient integration can streamline operations and improve overall efficiency.
Special services
Consider any special services that might be necessary for your products. Determine if the carrier can handle fragile, hazardous, or oversized goods. Look for additional services like shipping insurance, signature confirmation, and specialized packaging. These services can provide added protection and assurance for your shipments.
Practical shipping provider tips for e-commerce brands
Working with a shipping carrier is a core part of your supply chain and e-commerce operations. Consider these tips to set you up for success:
Test and evaluate different shipping carriers: Run pilot programs with multiple carriers, and track key metrics during the evaluation period to determine the best fit.
Diversify shipping methods: Consider the benefits of using multiple carriers to balance cost and speed.
Solicit customer feedback to improve shipping practices: Collect and analyze shipping-related feedback from customers. Implement changes based on insights to improve your shipping strategy.
View it as a partnership: Establish long-term partnerships with carriers. Maintain positive relationships with account representatives to facilitate better service and rates.
How shipping carriers work with 3PLs
Third-party logistics providers (3PLs) work with various shipping carriers to pick up and physically deliver packages once the 3PL has prepared them. Partnering with a 3PL gives you the ability to offer multiple shipping methods and transparency on shipping to customers.
Choosing a strong shipping partner can drive efficiency, cost savings, and customer satisfaction. Stay adaptable and forward-thinking in your shipping strategies to keep pace with the evolving e-commerce landscape.
