In the near past, most retailers could do just fine by partnering with one shipping company to deliver their orders. Then again, this was often the preferred method of managing shipping because it allowed businesses to negotiate better shipping rates and streamline the shipping process.
Recently, however, carrier services and customer expectations have changed, so leveraging different options as part of a multi-carrier shipping strategy is critical to maintaining a competitive advantage and providing a good customer experience.
Rapid growth in online stores has provided emerging markets for delivery companies and the growth is nowhere near to flattening. While partnering with multiple delivery companies may seem to be costly, in fact, it is not. Here let’s look at why shipping through multiple delivery companies may be the right strategy for you.
Online retailers that are just kicking off may think about having a single courier company to be the most cost-effective but this is rarely true. It may work during the starting phases but as the sales grow it will have its challenges.
By having a single delivery company means that you can rarely negotiate delivery costs. Every delivery company has its own competitive advantages and while the delivery rate is just one of the competitive advantages it can be a prominent one.
With OTO you can leave all that to us. We will get you in touch with the delivery companies to negotiate the rates. A single integration will open you to multiple delivery companies, choose what works best for you, and start shipping orders.
A study conducted by Mckinsey “50 percent of respondents indicated that they would be willing to pay same-day delivery costs” - This is the future of the last-mile delivery.
By having access to multiple delivery companies will reduce the delivery SLA quite significantly. Since the number of options of courier partners is more and the delivery fleet is extended, you can deliver faster to your customers. As the courier companies have their fulfillment centers in various parts of the city, you can expect them to function with full efficiency and deliver orders sooner than a single courier partner.
Additionally, With multiple courier partners, you can expect more immediate pickups as well.
Operating with a single delivery company has a risk of not meeting demand surges. A seasonal discount or public holiday can overwhelm your orders and with it the risk of delivery delays or in extreme cases unsuccessful orders. Remember there is nothing worse for a customer than a delayed or canceled order.
By having multiple delivery companies this risk is mitigated and orders surge can be easily met by distributing fulfillment across multiple courier companies.Flexibility:
With having multiple delivery companies you can have a variety of different features at your disposal. You will have complete flexibility on which, when, and how you choose a delivery company for your orders.
Every delivery company has its own advantages and features to suit different types of customers. Having multiple shipping companies to choose from means you can offer the fastest shipping times and best customer experience for every order, all while keeping rates low.