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How to know which carriers are best for your company

March 14, 2023
October 2, 2024
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5 min read
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Figuring out which carriers a business should use can be quite a complicated subject! At the end of the day, different e-commerce shippers choose different carriers for a variety of reasons. Choosing the best carrier for your company might be a trial-and-error situation. Though most companies choose to work with specific carriers because they can offer them a lower price, others will work with carriers because of weight restrictions or faster delivery/customer service.

 

Finding the right shipping carrier

Know your customer

If it weren't for your customers, you wouldn't have a business. When it comes to shipping and logistics, knowing your customer can tell you how quickly they want their products, how much they are willing to pay for shipping, where your customers are located, and from where they are buying your products. Naturally, every carrier's pricing is structured differently, so you will have to learn how they will send your products and how much they will cost. If your customers live in a rural area, you need to ensure that the carrier's last-mile logistics will get the order to your client. Does your target market care the most about the speed of delivery? You must factor that into your carrier choice. Listen to your customer and the data.

 

Know your logistics

Are you shipping from a 3PL? If so, you may not have control over which carrier they use. Understanding where you are shipping from and to whom is crucial, as this can affect your pricing. The further the distance, the higher the shipping zone, and the more expensive the cost. Know your supply chain logistics inside and out to anticipate any potential hiccups. By identifying potential pain points and communicating them to your carrier, you increase the chances of resolving issues effectively. Ensure you get what you need with the right carrier.

 

Know your budget

In any business situation, knowing your numbers is no joke. Don't overspend on shipping just because you don't know better. The benefit of shopping for multiple carriers is to get full disclosure about shipping costs. Sometimes, the numbers are just that, and you'll have to learn to either increase pricing on the products or ship lighter or add more distribution centers to stop the higher zone pricing. Not sure how to budget for profit? Check out this resource to learn more.

 

Know the small carriers

When we talk about carriers in the United States, we think of the big hitters: USPS, FedEx, and UPS. Don't forget about the little guys! They are still hugely influential companies; they're not household names. These smaller companies can be specialty carriers or are just as reliable as the better-known carriers. They are an excellent option for any e-commerce company. It's just a matter of establishing service with them and understanding your pain point to address service issues. Not sure which carriers to start with? Look at our list of carrier integrations to see which carriers are compatible with our system.

 

Know that you can use multiple carriers

Unless you are in a legally binding contract with a carrier to be exclusive, you should be signed up with multiple carriers. Having numerous shipping companies to either test out or commit to is hugely beneficial. On top of that, if you work with a shipping solution, then you can price shop and filter preferences to fit a particular order's needs. Juggle as many carriers as you'd like with ShipWise. We are here to ensure that you work with your favorite carriers and provide the best prices.

 

#ShipTip: Learn more about which delivery service is right for your business needs.

 

At the end of the day, when you own an e-commerce company, your logistics are absolutely a central component of your business. Picking the right carrier for your business can be difficult, but with ShipWise, your options are open! With our real-time rate shopping feature, you can find the best price per parcel, zone, weight, and size, through order details and your carriers, all in real-time.