Why Businesses Should Be Rate Shopping

rate shopping

Why Businesses Should Be Rate Shopping

Shipping can often be an overwhelming process. With so many different types of carriers, rates, services and regulations, it’s easy to understand why many customers opt to choose the first carrier that comes to sight without really doing the research to find the best rate. While it may be more time efficient to settle with the first adequate carrier, a more cost-efficient way to ship packages is through rate shopping.

Rate shopping is the process of comparing different carriers– such as UPS, FedEx and USPS–to find the cheapest shipping rate for the same delivery experience. This means that instead of immediately choosing one carrier, you research several different carriers, delivery formats and service levels to find the lowest rate that still delivers the package by the expected delivery date. Shipping-Software-for-Executives_Data-Driven-Decision-MakingRates are dependent on various characteristics, such as dim weight, fuel charge, residential surcharges, freight class, and unit types, all of which carriers charge different prices for. By strategically researching and prioritizing these components, customers can avoid high margin loss when they pick the cheapest possible delivery service. In fact, rate shopping has been accredited to reducing shipping costs by up to 30%. In addition to increasing company profit, money saved in shipping relations can also increase customer acquisition rates. By providing the cheapest shipping rates, businesses are better able to maintain a competitive edge through marketing shipping, such as offering free shipping to increase eCommerce sales.

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How Can Unified Tracking Help Your Business?

unified tracking

How Can Unified Tracking Help Your Business?

Own-the-Post-Purchase-ExperienceOnce a customer has purchased your product online, shipping is the only roadblock between your eCommerce business and a happy customer receiving their item. As simple as that sounds, there are actually many factors that businesses must incorporate in order for items to be delivered exactly how and when customers want them. Items must be delivered with the correct service type, for the cheapest rate, in a timely manner, and have a package tracking system that is easily accessible and convenient.

Having an easy and transparent shipping system can increase customer experience and loyalty, which is an integral key to your business succeeding. However, the problem is that the more options that customers require, the more carriers you need to use to satisfy all their needs. In order to provide customers constant shipping updates, businesses have to either integrate each carrier’s tracking service into their platform, send customers to an external carrier site, or leverage a software solution. Having to constantly direct customers to a range of different carriers or integrate carriers one by one can be extremely time consuming and inconvenient. This brings us to the third option: integrating a software solution.

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