Parcel shipping is no longer just about moving packages from Point A to Point B. It’s become an integral part of the overall shopping experience, influencing everything from customer satisfaction and brand loyalty to repurchase rates. Last-mile shipping, in particular, represents a significant portion of logistics costs, accounting for over 50% of total shipping expenses in most cases.
Despite its importance, many brands still hesitate to adopt modern strategies like carrier diversification, often due to misconceptions about its complexity or value. These myths can keep brands from improving efficiency, lowering costs, and meeting shopper expectations.
Let’s set the record straight by busting some of the most common myths about carrier diversification, and how it could transform your 2025 shipping strategy.
Busting Myths About Carrier Diversification
Myth #1: "Managing Multiple Carriers Is Too Complicated"
Reality: Shipping technology developed in recent years has made managing multiple carriers easier than ever. Shipping platforms and software tools can help retailers add new carriers in minutes, automate carrier selection, personalize tracking, and compare rates in real-time.
Myth #2: "Using Multiple Carriers Is Too Expensive"
Reality: Relying on a single carrier could mean paying a premium or missing out on better pricing elsewhere. Diversification allows brands to negotiate competitive rates with multiple carriers and leverage strengths like regional expertise, ultimately reducing costs.
Myth #3: "One Carrier Can Meet All My Needs"
Reality: No single carrier excels in every area. Some specialize in regional deliveries, while others offer international shipping or sustainable last mile solutions. Diversifying ensures you're leveraging the best of all worlds.
Myth #4: "Carrier Diversification Isn’t Worth It If My Carrier Is Performing Well"
Reality: Even carriers with the best SLAs experience hiccups, like weather events, capacity constraints, or strikes and service disruptions. Having backup carriers ensures you’re not caught off guard and helps maintain consistent service levels for your shoppers. For example, Canadian brands were left stranded during the busiest shopping season thanks to the Canada Post strike.
Myth #5: "Carrier Diversification Will Hurt My Relationships with Carriers"
Diversification doesn’t mean weaker relationships with your current carriers. It’s about strategically working with carriers that align with your specific needs, and building partnerships based on their expertise. Further, with a growing list of new shipping providers, major carriers are expecting brands to shop around.
Why Carrier Diversification Should Be Part of Your Strategy in 2025
1. Risk Mitigation
When you depend on a single carrier, disruptions in their network can bring your entire operation to a standstill. Diversifying your carrier pool means you can pivot to alternatives when issues arise, keeping packages moving and shoppers happy. It’s about building resilience into your operations.
2. Cost Savings
Different carriers excel in different areas, and their pricing reflects that. By using multiple carriers, you can compare rates, take advantage of regional strengths, and optimize shipping costs for specific zones or package types. It’s a smarter approach to managing costs without sacrificing service.
3. Decreased Transit Times
No single carrier is perfect everywhere. Some perform better in urban areas, while others shine in rural or cross-border deliveries. A diversified carrier strategy lets you choose the best option for each shipment, cutting down on transit times and improving reliability.
4. Enhanced Competitiveness
Shoppers expect fast, affordable, and reliable shipping options. By offering more delivery choices (such as faster transit times or sustainable options) you can set your brand apart.
As you plan your shipping strategy for 2025, consider how diversifying your carrier network can help build resilience into your supply chain. With the right approach, you can reduce costs, adapt to challenges, and consistently deliver an exceptional experience for your shoppers.
