How can your business guarantee it’s using the fastest shipping method?
In the wake of the pandemic, e-commerce has experienced accelerated growth, changing the game of parcel transportation and delivery. According to forecasts from Insider Intelligence, this year, e-commerce sales are expected to reach $1.06 trillion in the U.S. alone. As online retail giants like Amazon continue to set the standard for customer expectations of delivery times, parcel shippers have had to adapt their operations to match these competitive delivery speeds. This can be prohibitively expensive for many shippers, however, with the right tools and resources, any business can guarantee the fastest delivery method at the best shipping rates.
Is having the fastest delivery time the best strategy for your business?
Before you spend hours researching different carriers trying to find the fastest delivery method for your parcels, it's important to determine whether prioritizing speed aligns with your business strategy. For example, one carrier might have two-day shipping but at an exorbitant cost compared to a different service that can deliver your parcel by the end of the week at a much lower rate. Whether it's you or the customer who wants to cut costs, the fastest option might not always be the best for the budget.
If, however, you're shipping priority parcels and you need the fastest delivery method possible, you'll likely want to compare shipping rates between carrier services. This requires managing compliance requirements and rate shopping across your contracted carrier network — a labor-intensive and time-consuming process in and of itself. That's why many businesses opt for a multi-carrier parcel shipping solution with automatic rate shopping and carrier network management capabilities.
Breaking down shipping costs
Whether you're manually rate shopping or using parcel shipping software, it's critical to understand how shipping costs are calculated. While shipping rates vary between carriers and the calculations require a comprehensive knowledge of logistics, there are several factors that are key in determining the final charges. These include:
- Size and weight: The dimensions and weight of your package have a significant impact on the final shipping cost. Contrary to what you may think, heavier shipments don't always mean higher prices. Smaller, heavier parcels ship at a lower rate than large, light packages.
- Destination and delivery time: Depending on the distance to its final destination and the delivery timeline, parcel shipping rates can vary wildly. Longer-distance shipments tend to be more expensive, especially for faster delivery times.
- Mode of transportation: The method of transportation is often based on where you need to ship your parcel, but it still has a big influence on the shipping rate. For example, ground shipments are often more cost-effective for shorter distances. However, it's usually cheaper to ship parcels by airplane for longer distances.
- International shipping fees: For businesses shipping parcels internationally, shipping costs will also include any potential import and export fees incurred by crossing borders.
What's the fastest shipping method?
Ultimately, finding the fastest shipping method comes down to the parcel's destination and your contracted carrier network. If you're shipping across oceans and international borders, you'll likely want to utilize different methods than if you were sending a package to the next town. This is because shipping rates vary by transportation mode.
Ground vs. air shipping
Ground shipping is most useful when it comes to transporting goods across shorter distances. This can either be within a country or across neighboring borders. When traveling over land, carriers typically use trucks to transport your parcels to the last-mile delivery carrier.
Air shipping, on the other hand, uses cargo aircraft specifically designed for transporting goods. Unlike ground or sea travel, air shipping is convenient in that it's easier to overcome natural geographical barriers. While it is extremely useful and undoubtedly the fastest mode of transport currently available, air travel also comes with much higher shipping rates.
Whether you choose ground or air travel to transport your parcels will likely depend on the cost and distance to ship to the final destination. If your parcel has to cross oceans or borders, it will likely take a mix of both transportation modes.
Domestic vs. international shipping
Domestic shipments are usually cheaper and faster than those that have to cross borders. This is because the laws and regulations between states are easier to navigate, and the shorter distance between shipper and customer allows for ground shipping, reducing the price by both distance and transportation mode.
In the same vein, international shipping is often slower and more expensive. This is because parcel shipments that have to cross borders are subject to more handling and processing through customs. Additionally, there are fewer choices when it comes to shipping internationally, limiting your options for rate shopping.
Optimize your parcel shipping strategy with Logistyx
To ensure your business is choosing the fastest delivery method at the best possible rate, you'll want to implement a parcel shipping system. Logistyx TME is an all-in-one cloud-based software solution for all your multi-carrier parcel shipping needs. It consolidates your entire contracted carrier network into a single platform, enabling easy rate shopping for the fastest delivery times.
Once you select your desired carrier service, it automatically prints the shipping label. Throughout the entire process, Logistyx TME guarantees carrier compliance and can help you monitor all your parcel movements from shipping to delivery.
How Logistyx helps businesses ship faster
Logistyx has a long track record of helping businesses ship faster with the right carrier for their specific rules and practices. Recently, the multinational pharmaceutical company Pfizer used Logistyx for parcel shipping optimization. With Logistyx TME, Pfizer was able to accelerate the international shipping process for life-saving parcel shipments while increasing the speed and flexibility of their supply chain. To hear more about how Logistyx's multi-carrier shipping software benefits businesses of all sizes, read case studies directly from our customers.
Ready to find the best shipping rates for the fastest delivery times? Contact us today to get started.