Your logistics and shipping operations are the heart of your business. Without an efficient parcel spend management system in place, you risk incurring unnecessarily high shipping costs, experiencing poor customer satisfaction, and underperforming shipping operations.
The first step is to find the right parcel shipping partner.
The shipping partner you choose becomes an extension of your brand. Get this choice right, and you’ll see improvements in customer satisfaction, operational efficiency, and your bottom line. Get it wrong, and you’ll be dealing with frustrated customers and logistical headaches.
So what should you be looking for? Let’s break it down. Here are 5 attributes to consider when choosing a parcel shipping partner.
1. Reliability and Track Record
When it comes to shipping, consistency is everything. Your customers expect their packages to arrive when promised, and any deviation from that promise reflects directly on your business. Here are 3 ways you can evaluate your potential shipping partner’s reliability:
Dig into performance metrics
Most reputable shipping partners will share their on-time delivery rates, damage rates, and other key performance indicators. Don’t just take their word for it – ask for specific data over the past 12 months. A carrier that delivers 95% of packages on time is significantly better than one that hits 85%.
Customer reviews tell the real story
Check out what other businesses are saying about their experience. Look beyond the star ratings and read the actual feedback. Pay attention to comments about customer service, problem resolution, shipping surcharges, and how the carrier handles peak seasons like holidays.
Ask the tough questions about contingency planning
What happens during severe weather? How do they handle the holiday rush? Do they have backup plans when their primary sorting facilities go down? A reliable shipping partner will have detailed answers to these questions and proven strategies for maintaining service during disruptions.
2. Pricing Structure and Transparency
Shipping costs can quickly eat into your margins if you’re not careful. The key is understanding exactly what you’re paying for and ensuring there are no surprises down the road.
Understand the pricing models
Different carriers use different approaches – some offer flat rates regardless of weight, others price based on dimensional weight, and some use zone-based pricing. Make sure you understand how your typical shipments will be priced under each model. What seems like a great deal for lightweight items might be expensive for your heavier products.
Watch out for hidden fees
Fuel surcharges, residential delivery fees, address correction charges, and peak season surcharges can quickly add up. Get a comprehensive list of all potential additional charges upfront. Some carriers are transparent about these fees, while others aren’t, and seem to spring them on you after you’ve already committed.
Review shipping invoices for clarity
You should be able to easily understand your shipping invoices. Look for partners that provide detailed breakdowns of charges and offer online portals where you can track your spending and analyze your shipping patterns.
Consider pushing for volume discounts
If you ship regularly or in high volumes, ensure your partner offers tiered pricing that scales with your business. Many carriers offer better rates as your shipping volume increases, which can significantly impact your costs as you grow.
3. Technology Integration and Tracking Capabilities
Seamless technology integration is essential for efficient shipping operations. There are several features you should consider as you choose a shipping partner, including:
- API integrations: Your shipping partner’s technology should seamlessly integrate with your logistical operations, allowing you to generate shipping labels, calculate rates, and track packages without manually entering data across multiple systems.
- Real-time tracking: Your customers want to know where their packages are, and you want to be able to answer their questions quickly. Look for partners that offer detailed tracking information and provide updates throughout the shipping process. The best carriers will even send proactive notifications about delivery delays or issues.
- Automation features: Can you set up rules for automatic carrier selection based on destination, weight, or delivery speed? Can you automate the printing of shipping labels? These features might seem small, but they can save significant time as your shipping volume grows.
- Advanced data and analytics: High-performing shipping partners provide detailed reporting on your shipping performance, costs, and customer satisfaction. This data can help you identify trends, optimize your packaging, and make better decisions about shipping options.
4. Service Coverage and Delivery Options
Do you need your packages shipped to rural areas or across international waters? Your shipping partner’s capabilities need to match your business needs, both now and as you grow. You’ll want to consider several delivery options.
Domestic vs. international coverage
If your business plans to expand internationally, make sure your shipping partner can grow with you. International shipping comes with its own complexities around customs, duties, and regulations—having a partner that understands these requirements can save you significant headaches.
Rural and remote area coverage
Not all carriers provide the same level of service to rural or hard-to-reach areas. If you have customers in these locations, verify that your partner can deliver there reliably and at reasonable costs.
Special handling capabilities
Do you ship fragile items that need extra care? Or products that require temperature control? Oversized packages that won’t fit through a standard door? Make sure your partner has experience and systems in place to handle your specific product requirements.
Delivery speed options
Different customers have different needs. Some want the cheapest option and don’t mind waiting, while others need their package tomorrow. A good shipping partner should offer a range of delivery speeds, from same-day and overnight to standard ground delivery.
5. Customer Service and Problem Resolution
Shipping is unpredictable—packages can get lost, damaged, or delayed, but what matters is how quickly and effectively your shipping partner resolves these issues. Your shipping partner should have:
- An accessible support team. Can you reach a real person when you need help? What are their support hours? Do they offer phone, email, and chat support? If you’re shipping internationally, do they have support available in different time zones?
- Clear resolution processes. When a package is lost or damaged, what’s the process for filing a claim? How long does it typically take to resolve? What documentation do they require? A good partner will have streamlined processes that get issues resolved quickly.
- Efficient claims handling. Ask about their claims process and typical resolution times. Some carriers make claims difficult and time-consuming, while others have streamlined digital processes that get you answers quickly.
- Dedicated account management. As your shipping volume grows, having a dedicated account manager can be invaluable. They can help you optimize your shipping strategy, resolve issues quickly, and ensure you’re taking advantage of all available services and discounts.
Making the Right Choice
Choosing a shipping partner isn’t just about finding the cheapest option – it’s about finding the right fit for your business needs and growth plans. A partner that works well for a small business shipping 10 packages a week might not be the right choice for a company shipping 1,000 packages a day.
Consider where your business is headed. If you’re planning to expand internationally, make sure your partner can support that growth. If you’re in a seasonal business, ensure they can handle your peak volume periods. If customer experience is a key differentiator for your brand, prioritize partners with excellent tracking and customer service capabilities.
As your business evolves, your shipping needs will change too. Make it a practice to regularly review your shipping performance and costs, and don’t be afraid to reassess your partnership if it’s no longer serving your business well.
