Blog
Education

Carrier diversification: Shipping strategy for e-commerce

November 29, 2023
October 31, 2024
5 min read
Share this post

https://shipwise.com/blog/carrier-diversification

With e-commerce holiday sales projected to increase over 3% compared to last year, shipping efficiently has never been more crucial. So, how can businesses ensure their products reach customers promptly during this peak season? 

The holiday shipping paradox

The holiday season presents both opportunities and difficulties for e-commerce companies. While there's potential for increased sales and profits as customers search online for the perfect gifts, it also comes with logistical hurdles like delivery delays, lost packages, and carrier congestion, which can impact the customer experience. The solution for navigating these holiday challenges? Carrier Diversification.

What is carrier diversification?

Carrier diversification is the practice of using multiple carriers to fulfill your shipping needs. It allows e-commerce sellers and 3PLs to mitigate disruptions, service limitations, or carrier congestion from any single provider, leading to more consistent order fulfillment and improved customer satisfaction. It's a strategy that can help you mitigate risks and ensure that your customers receive their orders on time, even during the busiest time of the year. 

Benefits of carrier diversification

  • Service flexibility: By relying on multiple carriers, your business can avoid disruptions in case one carrier experiences issues such as delays, strikes, or service outages.

  • Competitive pricing: Different carriers offer various pricing structures. Diversifying your carriers allows you to compare rates and choose the most cost-effective option for each shipment.
  • Geographic reach: Some carriers may have better coverage in certain regions. Using a mix of carriers can help you reach customers across the country or even globally.

  • Scalability: As order volumes fluctuate during the holiday season, you can scale your shipping operations up or down by utilizing carriers that can accommodate your needs.

How to diversify your carrier portfolio

To diversify your carrier portfolio, begin by assessing your current shipping needs, analyzing package types, destinations, and delivery speed requirements. Research various carriers, including major players and regional options, comparing their rates, services, and geographic strengths. Negotiate contracts with selected carriers, aiming for a mix that provides flexibility in service options and pricing.

Implement your multi-carrier strategy gradually, starting with one or two new carriers alongside your primary one. Utilize shipping software to manage multiple carriers effectively, streamlining rate comparison and label creation processes. Continuously monitor carrier performance and adjust your strategy based on changing needs and market conditions, ensuring your shipping operations remain efficient and cost-effective year-round.

ShipWise: Your multi-carrier command center

ShipWise isn't just another tool; it's your strategic partner, integrating with an array of carriers to offer a centralized shipping solution, providing instantaneous updates on rates, delivery times, and service areas. Not only does it grant businesses the ability to onboard new carriers through a self-serve platform, but its advanced rate shopping feature also ensures the most cost-effective choices are always at a shipper's fingertips. 

#ShipTip: Don't have previously negotiated rates? No problem. Through curated partnerships, businesses without direct carrier accounts can access new accounts with negotiated rates based on volume and commitment. View all of our carrier integrations.

Here's why ShipWise is essential for your business:

  • Streamlined operations: ShipWise simplifies label purchasing, order processing, and pickup scheduling, enabling fulfillment companies to process orders faster. This can lead to quicker order turnaround times, a critical point for peak season.  

  • Diverse carrier options: With ShipWise, you have access to a wide range of carriers and access to big discounts on shipping. All those who ship with ShipWise have access to up to 84% off USPS retail prices and up to 82% off on UPS® services*.

    *Discounts off UPS daily rates. Rates are limited to shipping from the U.S. only. Rates and any applicable discounts are subject to change at any time without notice.

  • Enhanced customer satisfaction: Ensure customer satisfaction with fast and dependable shipping. ShipWise offers prompt and effective support, available 10 hours a day, 5 days a week, to help you deliver exceptional service!

  • Maximized savings with rate shopping: ShipWise empowers you to optimize your savings by proactively rate shopping for the most cost-effective shipping options that align with your business needs. Benefit from real-time quotes, enabling you to choose carriers based on factors like cost-effectiveness, delivery speed, or service excellence. As a result, leveraging Rate Shopping with ShipWise can yield average savings of $3.57 per order! 

Talk to a member of our sales team to see how we can help you!

Conclusion

The festive shipping season, with all its challenges and opportunities, is upon us. By adopting ShipWise's diversified carrier approach, businesses can not only meet but surpass customer delivery expectations. Embrace the power of multi-carrier shipping and leverage the efficiency of ShipWise to seamlessly navigate the holiday shipping rush.