Council Post: How To Pick The Best Shipping Carrier For Your Online Business

CEO at Parcel Consulting. I help businesses small and large gain access to new shipping technology and the best shipping rates available. 

Setting up an online store is exciting for e-commerce-minded entrepreneurs. They get to be creative with a new business name, logo and website design. There are seemingly endless options for what to sell, and the whole world of online retail is full of possibilities. Of course, the less fun realities soon follow, and sellers must determine how they’re going to get their products to their customers. In the end, they must choose a shipping carrier. 

There are dozens of shipping carriers in operation today, and all of them have unique offerings. What works for one business might not be the best fit for yours, so it’s important to do your due diligence before signing any contracts or committing to any carriers.  

Here are the most important aspects I’ve learned to consider when choosing a carrier for your business: 

Product Categories

Launching an e-commerce store and choosing a shipping carrier both start with products. The former requires determining which products to sell, while the latter requires consideration of the products you’re going to ship. While conducting research, be sure to review the shapes and sizes carriers can ship without added steps or other difficulties. It’s helpful to come prepared with the size and weight of your shipments in mind, so the process is easier. 

Additionally, you might run into restrictions on certain items or categories. Some carriers will not transport food and beverage products, and others have policies against perfumes. Still others refuse to ship fragile items. There could also be size, weight and item price limits, so sellers hoping to ship exceptionally bulky, heavy or expensive items will have to rule out those carriers. 

Shipping Supplies

Low shipping rates only go so far if the packaging materials are costly. UPS, USPS, FedEx and DHL are four major shipping carriers that currently offer free materials for their customers. Boxes, envelopes and labels can quickly add up, so don’t discount the costs of these materials when putting together your shipping expenses. If you can get them for free with a more expensive carrier but have to pay for them yourself with a budget carrier, you might be overpaying for shipping in the second scenario. Be sure to check your shipping volume before choosing a carrier to get the most value out of your spending. 

Location, Location, Location

When you set up your online store, you were likely thinking of domestic customers first. Shipping within the country is easier than trying to reach customers abroad, but sellers would be remiss to not research local and regional shipping carriers to get the best rates and service. 

International shipping is more complicated, which is why many e-tailers don’t consider expanding to international markets until later on down the line. This is a prudent approach that allows you to gather steam before scaling your business, but it’s in your best interest to understand the process of international shipping whether you see it in your immediate or distant future.

International shipping requires using the services of both international and national carriers. For example, shipping from the U.S. to Canada requires getting packages into the country and then relying on Canada Post or another local company to get the packages to their final destinations on time. 

Carriers’ Reputations

Be sure to conduct a thorough search into your prospective carriers’ track records to help avoid lost or delayed shipments or other undesirable results. 

Reputable shipping carriers typically offer both tracking services and insurance. Tracking allows both you and your customers to go online and see where a package is in transit, so there are no surprises. Customers also get the transparency they expect from businesses. Insurance is less of a necessity, but many shippers find that it gives them peace of mind to have shipments covered.

Speed Expectations

Ever since Amazon released its free two-day shipping for Prime members, consumers have raised their expectations for shipping across the board. Many online shoppers now expect to receive their deliveries within 72 hours of placing their orders, and it has led to increased demand for same-day and next-day delivery. This is not always the case, as some consumers choose “free” over “fast” in terms of shipping and will wait for many days to avoid incurring additional fees.

However, it is sensible to offer your customers shipping options so as to provide them with the best service and save on costs when possible. The carrier you choose should match your vision of how quickly you hope to get your items delivered. Local shipping carriers can bring same-day delivery to life, whereas international carriers can deliver your products to more places. 

Pricing And Surcharges

Pricing is naturally the first aspect of a shipping carrier that businesses seek, but it does not always tell the full story. It is certainly wise to use real-time shipping rate calculators to determine which carrier will offer you the best rates, but you have to read the fine print in case of any surcharges. 

Some common shipping surcharges are related to destination and delivery expectations. For example, some carriers apply a surcharge when delivering to residential addresses, so sellers should forecast whether they’ll primarily ship to homes or businesses. Other carriers apply a surcharge for Saturday delivery. There also might be fees associated with volume — if you do not meet the minimum, the carrier could charge a pickup fee. 

Shipping Software

Some carriers provide shipping software, which streamlines your entire shipping workflow and saves you time. The right software can help you avoid errors like mislabeling shipments, selecting the wrong service level or forgetting an item in an order. It can also help you choose the smallest box possible for each order so you don’t end up wasting money on larger shipments than necessary. 

The software you choose is nearly as important as the carrier, so make sure it’s a comfortable fit before you commit to adding it into your back-office workflow. 

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