The Dangers of a using a single carrier for your parcel shipping
Updated: Feb 10, 2021
2020 was a year to remember, but not yet forgotten for parcel shippers. With a BOOM in e-commerce and unexpected changes from the carriers on rates and service expectations, it's a good time to review and reflect on best practices.
Why a Single-Carrier parcel shipping strategy is dangerous
Historically, companies negotiated exclusive shipping contracts with major carriers to handle all of their parcel shipments and the advantage of doing so was: predictable costs, delivery guarantees, and easy forecasting of volumes and revenues.
The issue with a single-carrier strategy in 2021 is we only have a few carriers to really choose from and because of it, you can't always offer the premium shipping options, guarantees or compare the rates out there. Without that visibility, you can't maximize your ability to reduce costs which has been even more so important with the ongoing peak surcharges that have been implemented. Beyond that, single carrier contracts can and will be either terminated and not be executable simply because of the continuous capacity restraints the carriers are experiencing.
Why it's important to Diversify
The pandemic has caused some permanent changes and although it will eventually come to an end, ecommerce has forever been affected. Today, we have a range of new consumers and there has been a massive increase from people who previously were rarely ever shopping online.
Looking at it from both a convenience and safety measure, to new online shoppers, not only do you gain access to more products (which is more than what can be offered in brick-and-mortar stores), but you can find it easily delivered to your door step for free for or at a low cost. For your business that means that having a mix of carriers is crucial to your success now and in the future. Working with both regional and national carriers will allow to ease any capacity issues, avoid surcharges and increase/provide more options to your customers.
Customer Expectations - Are you able to keep up?
Customers are relying now, more than ever, on shipping and the difference between the brand and the carriers used to ship often times gets blurred, making the delivery part of the overall brand experience. Did you know that over 80% percent of consumers commit to not returning after an unfavorable shipping experience? Shipping and logistics are now an essential way to set your brand apart and build loyalty, but what do you do about increasing costs on base rates and surcharges? Not to worry, the right multi-carrier parcel shipping solution typically saves companies 30% on their shipping costs. It also gives you more chances for you to position your company as a leader in 2021 and beyond.
To find out more and learn how to easily reduce costs ,increase efficiencies and thicken your bottom line, get in touch with us!