E-commerce businesses are thriving right now. In fact, up to 2,760 packages are shipped every second. However, despite a thriving market, shipping costs are still one of the highest expenses when it comes to order fulfillment. With the surcharge increases recently implemented by FedEx and UPS are here to stay, it comes as no surprise that many businesses are questioning their shipping carrier strategies.

Compared to traditional retail companies, e-commerce businesses typically employ small parcel providers. But it’s important to consider your options as your business grows to determine whether using multiple carriers or using a single carrier is in your best interest.

Know what your business needs

Multiple carriers aren’t for everyone, and the volume of your shipments isn’t always enough to consider making the switch away from a single-carrier arrangement. A regional carrier may be all your business needs if it’s the most efficient strategy for your shipments and if your company’s service level is your top priority. Regional carriers are typically best for when your shipments are concentrated in a single geographic location. Their rates and other fees may also be more competitive compared to national carriers.

However, it may be worth considering national carriers if your business begins to see the following:

• A dramatic increase in orders
• A surge in business in other geographic locations
• Increasing problems with your regional carrier

Keep in mind that parcel contract auditing and parcel contract optimization are both essential to the success of your shipments whether you’re using regional or national carriers or both. If your business doesn’t meet your customers’ expectations when it comes to delivery, then it’ll be your brand reputation that takes the hit, not your carrier.

Have professionals conduct a parcel audit

When your business is comparing rates and determining whether using multiple or single carriers is best, it can be helpful to understand how your shipping rates are determined with your current carrier. Professional parcel pricing experts can conduct an audit on your current parcel contract and shipping history to determine if you’ve been paying for late deliveries, returns, or overcharges.

From there, you can get a more accurate idea of what your business would be paying your carrier after parcel contract optimization is conducted. This gives you the ability to compare shipping carriers, rates, and methods more accurately when choosing whether to use multiple carriers or switching to a new regional carrier.
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If your business needs assistance with parcel contract optimization, parcel shipping contract benchmarking, or contract auditing, AFMS has you covered. For more information on our services, contact AFMS today.