Jump right in: More Shipping Options Aren’t Always Better—Here’s Why

• Introduction
• Why More Shipping Options DON’T Necessarily Work
• When More Shipping Options DO Often Work
• How To Offer Shipping Options without Backfiring
• Summary & Key Points

Introduction:

Product shipping is one of the most crucial aspects of any retail or eCommerce operation. The goal is to ensure that the ordered packages arrive at the customers’ doorsteps—on time and in a safe manner!

As such, why not give your customers various delivery options? The idea is that the more shipping choices you offer, the better. However, that isn’t always the case—especially if those options aren’t well-managed or strategically implemented.

In this article, we’ll explore why more shipping options aren’t always better. More importantly, find out when they are necessary and how to optimize them—especially when working with a trusted 3PL partner who can help you scale without the overwhelm. Read on.

Why More Shipping Options DON’T Necessarily Work

Staying on top of your shipping operations is crucial to avoid potential delays and safety issues. However, transportation is the most impacted area in the shipping and logistics industry, as 67% of respondents would agree. Even warehouse and inventory management only come next to it, as shown by the image below.

As such, some businesses think about providing customers with multiple shipping choices. They partner with various shipping companies to meet their expectations. However, offering more shipping options doesn’t necessarily work—unless you have the right infrastructure or logistics partner to manage the complexity. Here’s why:

1. It makes your brand feel inconsistent

Sure, effective order management increases brand loyalty. But when you offer too many shipping options, it creates brand inconsistency. Chances are, customers get confused about your brand and that of your shipping partners. Remember, your brand should stick to their minds at the end of the day, regardless of the shippers they’ve dealt with.

Morgan Taylor, Co-Founder of Jolly SEO, recommends highlighting your brand when collaborating with shipping partners. “When you work with different shipping partners, make sure your brand is front and center. Whether it’s tracking pages, packaging, or delivery updates, your brand should be what the customer remembers—not just the carrier’s name.”

Working with a 3PL that offers white-label fulfillment services and branded tracking tools helps ensure your brand, not the shipping carrier, is what your customer connects with.

2. It complicates your operations

More shipping options mean an increase in operational complexity. For one, you must set contractual agreements with various shipping providers in place. You should also consider local or international partnerships, delivery routes, and regular maintenance, among others. The more shippers you work with, the more complicated the operations will be.

 Stanislav Khilobochenko, VP of Customer Services at MacKeeper, suggests streamlining your shipping operations when collaborating with numerous shippers. “The more shipping partners you bring on, the more moving parts you have to manage. To keep things running smoothly, you have to streamline your operations and make sure everyone’s on the same page.”

That’s exactly where a 3PL can add value, by managing these moving parts for you through an integrated system that handles multi-carrier coordination on your behalf.

3. It leads to more shipping delays

Having multiple shipping providers means a boost in operational efficiency. You’d expect product packages to be delivered faster, whether express or no express shipping. However, this can sometimes be counterproductive, especially if these partnerships complicate your shipping operations and customers get overwhelmed with too many options.

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Over 60% of businesses experience transportation disruptions due to understaffing. Suppose you have numerous clients having requested custom t-shirts in bulk orders.However, they want to work with several service providers to ship these packages to different locations. The lack of staff to coordinate with these providers and track orders might delay shipping.

Partnering with a 3PL helps avoid these delays by centralizing fulfillment, offering carrier flexibility without operational chaos, and ensuring all logistics are managed by a single, experienced team.

4. It drives up your operating costs

Collaborating with multiple shipping providers translates to high operating costs. The more partnerships you have, the higher your contractual fees will be. Aside from the contractual agreements, you should also consider compliance costs, maintenance expenses, and other fees involved in the shipping operations.

Take it from Jeffrey Zhou, CEO and Founder of Fig Loans. He recommends robust financial management to maintain a stable cash flow for your shipping operations. “Working with multiple service providers can quickly eat into your budget if you’re not careful. Strong financial management is key to keeping your shipping operations sustainable and your cash flow steady.”

However, a 3PL with negotiated bulk shipping rates can significantly lower your overall costs, giving you access to premium carrier services at a fraction of the price you’d pay managing each one independently.

5. It overwhelms customers with too many decisions

Offering too many shipping options causes consumer decision fatigue—ironic as it may seem. This fatigue happens when customers feel overwhelmed by the numerous choices during the checkout process. As much as possible, they want the order process to be simpler, clearer, and faster. That’s why some customers tend to abandon their carts.

Learn from Michael Melen, Co-Founder at SmartSites, who recommends a more streamlined checkout process with just ample yet reliable shipping options. “Too many shipping choices can slow customers down or push them away. Keep the checkout simple with just a few well-thought-out options—that way, people can make quick decisions and complete their purchase without the headache.”

A 3PL can help you offer the right balance of delivery speeds and price points without cluttering your checkout page or confusing your customers.

When More Shipping Options DO Often Work

More shipping options could harm—instead of help—your business. As cited, they could cause inconsistent branding, complex operations, and more. However, there are instances when offering multiple choices makes absolute sense. 

That’s why some retail and e-commerce stores partner with highly reliable shipping providers. In fact, the global cargo shipping market could grow from $2.2 trillion in 2021 to $4.2 trillion by 2031 at a 7% compound annual growth rate (CAGR) during this period.

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 That said, here’s when you should offer more shipping choices to your much-valued customers:

• If you serve global consumers. You should partner with multiple shipping providers to overcome international shipping nightmares. Think of Amazon, eBay, and Shopify, which cater to a worldwide market. Not only do they work with global shipping providers but also with local shippers in the countries they operate. The right 3PL can coordinate all of this under one roof.
• If you sell a wide range of products. You need not just set up a shipping and receiving area for your retail or eCommerce business. It won’t be able to accommodate all your goods or items. Instead, you have to partner with third-party logistics (3PL) and shipping providers that can streamline your business operations.
• If your niche customers need delivery choices. You must offer other shipping options, as not everyone fits into the same shipping mold. Think of those ordering perishable goods, oversized items, or high-value products. They might want things like express delivery, temperature control, or added layers of security.

Learn practical ways to streamline shipping choices without compromise in the next section.

How To Offer Shipping Options without Backfiring

At this point, you know when you should or should not offer multiple shipping options.

If you cater to a global market or niche customers with a wide range of products, consider providing more options without compromising your business. Here’s how: 

• Know the shipping options customers want. Perform due diligence by conducting market research and analysis—What shipping needs do they have exactly? The data insights you gain will guide you in streamlining your eCommerce shipping or optimizing retail operations.

• Stick to the most valuable and reliable choices. With a list of shipping options, choose those proven to be reliable and effective. Do these shippers operate globally? Do they have efficiency and safety issues? Are they fully compliant with international laws and local regulations?

• Be upfront with clear and simple pricing. As much as possible, be transparent about the shipping or delivery fees with your customers. You don’t want them to break the bank and force them to get a debt relief program, especially if they order wholesale products from you in bulk.

• Use data to offer smarter, more relevant options. Harness the power of a digital twin to monitor and optimize your shipping operations. Leverage data analytics to gain insights and determine whether you need to offer other reliable options that will satisfy your customers’ needs.
• Offer customer service for shipment monitoring. It’s vital to provide white-label support in your shipping operations. For one, ensure it’s easy for your customers to place orders and track shipping details. Likewise, set customer support in place ready to answer their questions, fulfill their requests, and track their orders.

About the Author

Jesse Galanis is a professional writer whose aim is to make complex concepts easy to understand. He strives to provide quality content that assists people in everyday life.