The decision of which type of carrier to use between single-carrier and multi-carrier shipping is not a mere logistics decision, as it directly impacts the speed of delivery, the cost of shipping, the reliability, and customer satisfaction. With the growing demand for ecommerce and the rise in delivery expectations, using the incorrect strategy may slow down growth or create a higher risk.
This guide compares single-carrier and multi-carrier shipping, highlights their actual benefits and drawbacks, and assists you in determining which shipping strategy is best for your business.
Single-Carrier vs Multi-Carrier Shipping: Which One is Better for Your Online Store or Business?
Shipping has a direct impact on costs, delivery speed, reliability, and customer satisfaction. Multi-carrier shipping tends to be more suitable for growing online stores as it is less risky, can deliver more reliably, and costs less due to rate comparison, whereas a single-carrier shipping strategy is appropriate when a small business is more concerned with simplicity and minimal volume shipping. Below is the detailed comparison between these two strategies.
What is Single-Carrier Shipping?
Single carrier shipping involves the use of a single shipping provider to do all local and international deliveries. Businesses consolidate their entire shipping volume with one carrier, one contract, one system, and one support channel. This type of strategy is mostly selected because of its simplicity and predictable operations.
Advantages of Single-Carrier Shipping
1. Ease of Shipping
Use of a Single carrier allows booking, tracking, billing, and support to be performed with one carrier workflow, minimizing the daily operational workload.
2. Easier Supplier Management
Businesses handle a single contract, single integration, and single service agreement, and this is easy to administer.
3. Volume-Based Discounts
Shipment consolidation with a single carrier can also provide businesses that have regular volumes of shipping with discounted rates.
4. Reliable Supply Chain
All orders are provided to the customers with the same tracking structures, delivery schedules, and service quality.
5. Better Carrier Relationship
The long-term partnerships might provide improved account support, speed in resolving issues, and prioritization of services.
Disadvantages of Single-Carrier Shipping
1. High Risk of Disruptions
Any delay, strike, outage, or peak-season congestion can cause all the shipments to stop without a backup plan.
2. Poor Shipping Flexibility
The businesses are limited to the services, speeds, and delivery capabilities of only one carrier.
3. Geographic Coverage Gaps
Single carriers can underperform or set higher prices in some areas, in the countryside, or on international routes.
4. Limited Supply Chain
A single supplier might not be able to handle the rapid rise of orders during selling or seasonal periods.
5. A Weaker Negotiation Strength
In the absence of competition, the pricing power reduces, and an increase in rates is more predictable.
What Is Multi-Carrier Shipping?
Multi-carrier shipping is the process of dealing with other shipping companies and choosing a carrier that is most suitable for each delivery, depending on price, shipping destination, speed, type of packages, and service needs. Businesses optimize each shipment separately to improve performance and savings instead of having a fixed carrier.
Advantages of Multi-Carrier Shipping
1. Cost-Saving and Rate Optimization
Comparison of carriers on each delivery enables companies to select the most economical one.
2. Risk Protection
In case of failure or delay of one carrier, the orders can be instantly diverted to another carrier.
3. Wider Shipping Options
Companies are able to provide same-day delivery, express delivery, standard delivery, and international delivery services to their customers through specialized carriers.
4. Better Geographic Reach
Local and domestic airlines can be merged to enhance delivery service to all destinations.
5. Better Customer Service
The speedy deliveries, wider choices, and dependable shipping raise the satisfaction and retention of customers.
6. Scalability for Growth
Multi-carrier strategies facilitate the growth into new markets and high-volume shipping seasons.
Disadvantages of Multi-Carrier Shipping
1. Increased Operational Complexity
Several carriers cannot be managed without well-defined procedures and advanced systems.
2. More Administrative Work
There are additional contracts, SLAs, billing templates, and performance measurements to manage.
3. Poor Service Standards
Various carriers could provide different levels of service, and it is necessary to monitor them more closely.
4. Software Dependency
In the absence of automation, it can be expensive to maintain several carriers.
Comparison Table
Which Shipping Strategy Best Features Your Business?
The appropriate decision is made based on the volume of shipping, expansion strategies, customer demands, and tolerance of risks.
- Single-carrier shipping is usually common in small or young firms for beginner shippers.
- Multi-carrier strategies are more beneficial in growing and scaling ecommerce stores in terms of cost and reliability.
- International or peak season shippers require various carriers to minimize the risk of disruption.
- Multi-carrier shipping allows customer-oriented brands to benefit by providing a variety of delivery speeds and choices.
Why Most Expanding Ecommerce Brands Switch to a Multi-Carrier Strategy?
Single-carrier models are early-working, but not scalable. The more order volume, the higher the business requires better rates, faster routes, and backup. Multi-carrier shipping offers such an advantage, particularly when automation is provided. It is not about strategy but about management, and this is where the correct platform is important.
