eCommerce has traditionally been about two things: the availability of certain items, and the convenience of delivery. Now that the world is getting more globalized, the former factor is dwindling in significance (at least as a competitive advantage), while the latter has morphed into a broader notion of CX, that is, customer experience. Delivery times play a major role here for customers, and an even greater role for the businesses who need to be able to afford it without compromising the entire raison-d’etre of the company. Thankfully, multi-carrier shipping options have evolved alongside eCommerce itself, and the smarter shipment providers are now operating in this paradigm. Let’s see why it’s beneficial for eCommerce businesses.

The growing complexity of eCommerce logistics

eCommerce is, by now, what marketers call a “red ocean”, with plenty of fierce competition and any minor differentiator having the potential to become the defining one for success. The global online retail sales are projected to grow to $8.1 trillion by 2026, but that spells challenges to businesses, who are now finding themselves in a more tightly packed environment.

eCommerce logistics now involves more than just getting a package from point A to B. There are expectations about time (with 62% of online shoppers having grown used to their orders arriving in two days of less). There is the growing culture of cart abandonment, which is a kind of a cultural phenomenon, but can also be mitigated by addressing the main factors (in reality, 48% of abandoned carts are due to unexpected shipping costs, delays, or limited delivery options). There’s also the overall feeling that somehow, geography “doesn’t matter”, even though it does for logistics. Plus, there are seasonal fluctuations in demand.

Plus, the industry itself is under stress. There are strikes, protests, and entire companies with their whole staff being laid off due to this reason or that. Meanwhile, businesses need to safeguard against the inevitable risks. It’s not about raising the bar for everyone; it’s about keeping eCommerce alive.

There are at least five major reasons why eCommerce businesses actually need a multi-carrier shipping system and retain their options.

#1 Keeping up with the competition

As mentioned, eCommerce has long progressed beyond the point where shipping was just a matter of picking and packing things here and delivering them there. Now, customer experience is at stake, and it’s a huge factor. In fact, about 87% of customers confirm that their delivery experience impacts their decision to return to shop at a retailer again, with 2/3 considering a late delivery a dealbreaker for future business.

Plus, we are all being catered to by the likes of Amazon and other giants, what with same-day delivery or one-day delivery. While the bigger businesses use their sprawling logistics networks earned in the early days of eCommerce, smaller companies can compete by leveraging multi-carrier shipping systems, that is, choosing fulfillment providers that select carriers based on cost, speed, and reliability.

Many eCommerce businesses start out by partnering with a single major carrier such as UPS, FedEx, DHL, or USPS. While this may seem convenient, relying on a single provider comes with major drawbacks, like limited flexibility, risks of disruptions, or climatic conditions at play. This is why, instead of relying on a single shipping provider, companies can go for a multi-carrier system, which allows them to compare rates, transit times, and service reliability in real-time—choosing the best option for each order. 

And the good news is that you don’t even need to establish and try out all these connections – since shipping and fulfillment companies might have them in place already.

#2 Cost-saving benefits of multi-carrier shipping 

Shipping costs have a well-deserved place on the top expenses list for most eCommerce companies; for many, they account for as much as 20-30% of total order costs. Going multi-carrier can help establish some “wiggle room” for costs, since now you can compare rates and select the more feasible option. Different carriers have their own business models, too, meaning they offer different prices based on package size, weight, destination, and so on; forcing them to comply with your own business model would be as bad for your company as it would be for theirs. 

Additionally, some major carriers impose additional fees during peak seasons like Christmas or Black Friday, while some don’t, meaning you can have a nice alternative that keeps the margin up.

There’s also the regional factor: carriers tend to have distinctions based on the areas they are more (or less) willing to deliver to. Which means having multiple carriers in place allows you to pay less with “carrier B” where “carrier A” does not really want to deliver without a surcharge. 

Also, local and regional carriers often offer lower (up to 40%) rates than national carriers for specific routes in last-mile deliveries.

#3 Faster and more reliable deliveries

Even the best carriers can have capacity limitations or operational issues. This is why less companies are willing to “put all their eggs/packages in one basket”, and opt for a Venn-style overlapping multi-carrier network. When one carrier is experiencing operational constraints, there is always a spare option.

One notable thing about eCommerce is that it’s prone to transcending regional boundaries that logistics impose to this day. As an eCommerce brand, you can expect customers outside of your carrier’s prime area of operations. Going with nationwide carriers is, of course, also possible, especially for long-distance deliveries, but a regional one is typically faster – which is good for customer experience. Retailers using multiple carriers report a 23% reduction in late deliveries.

#4 Adaptability to peak seasons and market fluctuations

B2C eCommerce is often influenced by seasonality, even besides the obvious peak times like Black Friday, Cyber Monday, and the holiday season. Going multi-carrier allows to adapt better in several ways:

• Handling higher volumes of deliveries. Distributing shipments across multiple providers allows to prevent bottlenecks and delays. 
• Carrier-specific issues are less of a concern. Carrier networks often experience unexpected disruptions due to weather conditions, labor strikes, or technical failures. Having multiple carriers available allows businesses to reroute shipments instantly, avoiding costly delays.
• Dynamic rate optimization is available. Shipping costs are the result of several factors, supply/demand, fuel costs, regional rates, etc. With a multi-carrier network, you or your fulfillment provider can select more cost-effective options to maximize the margin and gain something to compensate for losses due to market fluctuations.
• Improved inventory distribution. Businesses with multiple fulfillment centers can strategically allocate shipments based on real-time carrier availability, reducing transit times and enhancing overall efficiency.

#5 Risk management and business continuity 

A lot can go wrong in eCommerce, especially because of supply chain disruptions or sudden regulatory changes. Working with a multi-carrier shipping strategy is a good way to mitigate risks and ensure more space for business continuity plans.

First of all, diversification reduces dependency, which is good if you don’t want things like unexpected rate increases or service disruptions to become critical. Secondly, the ability to shift orders to a different carrier seamlessly should any problems emerge is a valuable asset. For cross-border or cross-regional operations, a multi-carrier approach is also better for ensuring compliance and preventing any unexpected breeches. 

Price volatility is also a factor here, but the combination of the underlying reasons for price changes is often different for different carriers, meaning a rise in demand in one region will affect the carriers in that region, but not necessarily in an adjacent one.

Future-proofing your business with multi-carrier shipment

A multi-carrier shipping strategy not only helps businesses optimize costs and delivery times but also enhances flexibility and resilience.

A fulfillment provider with a multi-carrier network like ShipTop ensures scalability without logistical slowdowns, making it easier to handle increasing order volumes and regional expansions. By leveraging our multi-carrier network, eCommerce businesses can streamline operations, reduce costs, and enhance their ability to navigate industry challenges. This strategy positions them for long-term success while allowing them to meet customer expectations. You can request a quote from ShipTop at any moment and/or contact us to learn more about how we help businesses leverage the benefits of our multi-carrier network.