Unlock Faster, Cheaper Shipping - How To Build a Perfect Carrier Mix
As online retailers, brands, and marketplaces have perfected their fulfillment strategies, consumers have grown used to fast, accurate delivery.
With expectations continuing to rise, you might be facing a tricky question: How can we keep up with demand without breaking the bank?
Diversifying your carrier mix is the perfect place to get started. By adopting a multi-carrier strategy - one that relies on multiple shipping providers instead of just one—you can cut costs, ship without hiccups, and continue to delight your customers.
Why Diversify Your Carrier Mix?
Wondering whether a multi-carrier strategy is right for your business? You’re not alone.
Plenty of merchants, both small and large, are hesitant to adopt a multi-carrier strategy because of the potential time and costs involved. But you have good reason to make the switch.
The Risks of Relying on a Single Carrier
When you ship with just one carrier, you rely on them to safely deliver all your shipments. But what happens when factors outside the carrier’s control cause their operations to slow down or halt completely? What about when they unexpectedly raise their rates? Your organization is left scrambling.
The following disruptions and changes can wreak havoc on your fulfillment operations (and budget):
- Strikes: Labor strikes (like the recent Canada Post strike) can disrupt shipping schedules, causing delays and uncertainty.
- Capacity constraints: Limited shipping capacity, especially during peak seasons, often leads to backlogs, delays, and higher costs for businesses.
- Bad weather: Severe weather or natural disasters can cause transportation disruptions, affecting delivery times and potentially leading to unhappy customers.
- Rising rates: Increased shipping rates can strain a business’s budget, especially when they don’t have other carriers to turn to.
- Higher-than-usual surcharges: Base shipping rates aren’t the only cost-related factor you need to consider. Increased surcharges, such as those for fuel or oversized packages, can add up quickly and cause financial strain.
Benefits of a Multi-Carrier Shipping Strategy
A multi-carrier shipping strategy puts power in your business’s hands, not the carrier’s. If a carrier is suddenly unable to handle your shipment volume—or if they’re not performing to your standards—you can rely on other providers to deliver packages safely and promptly.
The benefits of a multi-carrier shipping strategy include:
- Uninterrupted shipping: Carriers often face disruptions that are out of their control, including labor strikes or natural disasters. A multi-carrier strategy ensures you have a backup plan whenever unexpected issues arrive, so packages don’t get delayed.
- Faster and more accurate deliveries: When you work with multiple carriers, you can carefully monitor their performance, including their on-time delivery rates and the frequency of lost or damaged shipments. This allows you to choose the best carrier and shipping method for every package, ensuring deliveries arrive on time and intact.
- Lower shipping costs: Using multiple carriers makes it easy to compare rates and choose the most affordable shipping options. On the other hand, using just one carrier means you’re stuck paying the rates they offer—even if there are better alternatives out there.
Know Your Carrier Options
Hopefully you’re convinced that a multi-carrier shipping strategy is a smart choice in 2025. To get started, you’ll want to carefully select a combination of national, regional, and local carriers.
Let’s run through the strengths and weaknesses of each carrier type.
National Carriers
National carriers are large shipping companies that operate across the entire country. These carriers, which include major players like UPS, FedEx, and USPS, are known for their reliability, wide service networks, and ability to handle large volumes of packages efficiently.
National carriers are popular for a reason: they deliver goods quickly and accurately, often with guaranteed delivery windows, and have the infrastructure to support both domestic and international shipping.
However, these large shipping companies usually charge higher rates, especially for smaller or less frequent shipments, and are more likely to face delays during peak seasons.
Use a national carrier when:
- You need broad coverage across the country
- You ship high volumes
- You need reliable tracking and guaranteed delivery
Regional Carriers
Regional carriers operate within a specific state or set of states, focusing on a smaller geographic area than national carriers. They offer competitive pricing and more personalized service, often with faster and more flexible shipping options within their designated regions. Pretty great, right?
If you’re not taking advantage of regional carriers, you should be. Just make sure you remember their limitations, too. Because these carriers have limited reach outside their operational regions, you probably won’t be able to use them for long-distance shipments.
Use a regional carrier when:
- You’re shipping within a specific region
- You want to optimize shipping costs
- You need more flexible delivery schedules within a defined area
Local Carriers
Local carriers are smaller shipping companies that operate within a city or other relatively small area. These carriers are known for their personalized, hands-on service and the ability to make very fast deliveries. If you plan to offer overnight or same-day delivery within a specific area, a local carrier is the perfect partner.
Use a local carrier when:
- You need to fulfill orders in a specific city or area
- You’re looking for a more personal touch with delivery
- You need to ship next-day or same-day
Simplify Carrier Integrations with Shipping Software
Adopting a multi-carrier shipping strategy without the right tools can be time-consuming and complicated. With each carrier you add, you’re faced with the prospect of creating an account, negotiating rates, and integrating their systems with yours.
Fortunately, you have an easier path: multi-carrier shipping software. Multi-carrier APIs like EasyPost allow merchants to connect with dozens of shipping carriers in a single integration. This technology also comes with tools for rate comparison, shipping optimization, automatic label generation, and more.
The best part? Because of their partnerships with major carriers like USPS, UPS, and FedEx, multi-carrier platforms often offer significant rate discounts, eliminating the need to handle your own rate negotiations.
If you’re looking to adopt a diversified carrier mix, multi-carrier software is a great way to get started. Learn how it worked for Radio Flyer.