Supply chain disruptions happen all the time, and history proves it. Back in 2020, the COVID-19 pandemic triggered a global semiconductor chip shortage, halting production across industries from automobiles to consumer electronics. Thereafter in 2021, the Suez Canal blockage stalled nearly 12% of global trade, causing supply chain chaos that lasted for months. These events prove one thing: supply chain instability is an ongoing challenge.
Now, imagine relying on just one shipping carrier to deliver all your online orders. If a disruption hits – like a strike, extreme weather, or fuel price surges – your entire fulfillment operation is at risk. That’s where multi-carrier shipping solutions come in.
Here’s what we will cover that will also help you decide if diversifying carriers makes sense for your business:
- What are multi-carrier shipping solutions, and how do they work?
- The risks of relying on a single carrier and how disruptions can throw your shipping off track.
- Simple ways to improve your supply chain performance.
- What’s next for eCommerce shipping, and if multi-carrier shipping is the way forward?
TLDR- In eCommerce, relying on a single carrier is a risky game. Shipping rates fluctuate, service delays happen, and customer expectations keep growing. A multi-carrier shipping solution gives you the flexibility to pivot – choosing the best carrier for each situation. This isn’t just about avoiding disruptions; it’s about building a smarter, more resilient shipping strategy that keeps your fulfillment efficient and your customers happy, no matter what the market throws your way.
Understanding Multi-Carrier Shipping Solutions
A multi-carrier shipping solution allows shippers to partner and integrate multiple shipping carriers into their logistics operations. Instead of being locked into a single carrier, you gain flexibility in choosing the best carrier for each order based on cost, speed, or customer preferences.
How It Works
A multi-carrier approach allows you to:
- Compare rates across multiple carriers in real time
- Automate carrier selection based on business rules
- Optimize delivery times and costs by dynamically switching carriers
Did you know? The average shipping cost per package in the U.S. was $9.33 in 2022, a 6.75% increase year-over-year. Undoubtedly, multi-carrier shipping strategies will help you combat the rising shipping costs.
The Risks of Relying on a Single Carrier
Many eCommerce businesses start with a single shipping carrier because it’s simple. However, as they scale, depending on a single provider can create significant challenges. Here’s why having multiple carriers is a smart move:
1. Protection Against Carrier Disruptions
Carrier strikes, service suspensions, and network congestion are common. However, with a multi-carrier shipping solution, you can reroute shipments to alternative carriers without major disruptions.
2. Adapting to Market Volatility
Fuel prices, tariffs, and carrier pricing fluctuate constantly. By having multiple carriers, you can choose cost-effective options during volatile market conditions.
3. Limited Shipping Options Frustrate Customers
Not all customers want the same thing. Some prefer fast delivery, while others prioritize lower costs or eco-friendly shipping. If you only use one carrier, you may not be able to offer these choices.
4. International Expansion Becomes Difficult
If your business grows internationally, relying on a single carrier can lead to high customs fees, slow transit times, and lack of tracking visibility. Altogether, working with multiple carriers helps optimize costs and delivery speed worldwide.
Improving Supply Chain Resilience With Multi-Carrier Shipping
A resilient supply chain not only adapts to change but also minimizes potential risks. Here’s how multi-carrier shipping solutions improve supply chain:
1. Flexibility
- Switch between carriers based on real-time conditions (weather, delays, costs).
- Adjust strategies for peak seasons without delays or inflated costs.
2. Scalability
- As your business grows, carrier capacity limits can be a bottleneck.
- With multiple carriers, you can scale without worrying about constraints.
3. Continuity
- A single-carrier failure doesn’t mean business failure.
- Merchants using multiple carriers ensure timely order fulfillment even during peak demand or unforeseen events.
What’s Next for Multi-Carrier Shipping Solutions?
Looking ahead, eCommerce shipping is obviously evolving at a fast pace. Here are key trends shaping the future:
- AI-Powered Carrier Selection: For instance, AI-driven shipping solutions can predict demand, optimize carrier choices, and reduce delivery delays.
- Same-Day & Ultra-Fast Delivery: With Amazon setting high expectations, multi-carrier solutions will help shippers offer same-day or faster delivery in more areas.
- Sustainable Logistics: In truth, more brands are now choosing eco-friendly carriers to meet growing consumer demand for green shipping solutions.
Therefore, with these changes coming, eCommerce brands that use a multi-carrier approach will have a competitive advantage.
Streamlining Multi-Carrier Shipping with ShipperHQ
Managing multiple shipping carriers comes with its unique challenges, but ShipperHQ simplifies the process by giving you full control over your shipping strategy. Here’s how it helps:
- Real-time rate comparisons: See real-time rates from multiple carriers to choose the most affordable shipping option.
- Automated carrier selection: Set rules to automatically select the best carrier based on speed, cost, address or delivery time.
- Accurate delivery dates at Checkout: Provide customers with reliable delivery dates and increase conversions.
- Seamless International Shipping: Easily manage cross-border shipping by calculating duties and taxes at checkout.
- Optimized order fulfillment: Gain end-to-end shipment information to ensure a smooth delivery process.
The time to optimize your shipping strategy is now. Don’t wait for the next disruption to take action.
Start a 15-day free trial of ShipperHQ today.
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