Rates Aren’t Everything When It Comes to Shipping

By Patrick Kelley, March 27, 2025

Some businesses prioritize competitive rates when selecting a shipping partner. While it’s true that price is an important factor, it’s not the only thing that should guide your decision. Shipping is a complex process, and the value a carrier brings goes beyond just the cost per shipment. In fact, other factors—such as reliability, transparency, support, technology and financial stability—play a critical role in the overall efficiency and success of your shipping operations. It’s important to look at the bigger picture.

Reliability

Customers expect their products to be delivered when promised, so a shipping provider’s ability to consistently deliver on time, without delays, is crucial. Let’s break down why:

• Customer trust and experience: On time deliveries enhance customers’ perception of your business, while a seamless ordering and shipping experience fulfills their growing expectations.
• Increased repeat purchases: If a customer knows they can count on your service, they’re more likely to choose your business again (and provide positive reviews).
• Reduced customer support issues: Fewer shipping delays mean fewer complaints and issues for your customer service team. This improves overall efficiency and reduces stress on your support systems.

Trust and Transparency

In shipping, as in any business relationship, trust is paramount. A partnership with a carrier that is both transparent and reliable ensures that there are no surprises when it comes to pricing, billing or service expectations. Keep these points in mind:

• Partnership beyond competitive rates: A trusted carrier will proactively offer solutions to help improve your business. They will understand your specific needs and be invested in your long-term success—not just the transaction at hand.
• No hidden fees: There is value in knowing there are no hidden charges or unexpected fees. Clear, upfront pricing helps you avoid surprises when it comes to your shipping costs and allows for better financial planning.
• Fostering trust through transparency: Knowing what to expect financially and operationally allows you to make informed decisions and focus on running your business.

Support and Flexibility

Client support should be a major component of your shipping partnership. A shipping provider that offers personalized and responsive support can resolve potential issues faster, ensuring minimal disruption to your operations. Take these factors into account:

• Dedicated client support: Having a support team that knows and understands your business means problems can be solved faster. We all know that shipping moves fast, and the ability to quickly resolve issues can minimize any negative impacts on your customers’ experiences.
• Custom solutions for your needs: Businesses sometimes have unique shipping requirements, like the need to accommodate specific delivery schedules. A good shipping partner can provide tailored solutions to meet these needs, ensuring your processes are as efficient as possible.

Technology and Integration

In today’s eCommerce shipping landscape, modern technology is no longer a luxury, it’s a necessity. Make sure your provider leverages innovation to optimize your operations and streamline your shipping processes. Here are a few things to consider:

• Optimizing the middle mile with AI: Artificial Intelligence (AI) can significantly improve operations such as package weighing, scanning and sorting. This leads to better accuracy, faster processing and fewer mistakes.
• AI-Powered route optimization: AI algorithms can optimize delivery routes, reducing transit times and minimizing costs. Faster, more efficient routes also help improve the overall customer experience.
• Seamless software integration: Look for easy integration with your existing shipping software. It saves valuable time, reduces manual entry errors and improves your overall workflow.
• Robust client portals: Ensure there is a way to get the data you need quickly and easily. OSM Worldwide’s client portal, OSMART, for example, provides interactive, visual analytics, dashboards and reporting tools that put the power of productivity in your hands.
• Full tracking transparency: Real-time tracking allows you and your customers to track packages from pickup to delivery, creating a more positive experience for everyone.

Financial Stability

While it may not be top of mind, the financial health of your shipping partner is an important consideration—one that can impact the long-term success for your business. Take these points into account:

• Minimizing disruptions: A well-established company is less likely to face operational issues, reducing delays and service interruptions that could affect your operations.
• Competitive and adaptable pricing: A secure provider is better positioned to maintain consistent pricing and adjust to market conditions, offering more predictable costs.

In the end, while rate comparison is an important part of choosing a shipping partner, it’s the total value they bring that truly matters in the long run. By considering the factors above, in addition to pricing, you can establish a strong, long-term partnership with a shipping provider that will support your business growth and improve the shipping experience for both you and your customers.

For more valuable insights, explore some of our other blogs. You can learn about mastering the art of eCommerce shipping, the value of diversifying shipping carriers and practical tips to make eCommerce shipping more sustainable.

Contact us today to optimize your middle mile with the OSM Premium Network®. It ensures fast, reliable, and cost-effective delivery, while our data-driven, consultative approach helps determine the best domestic shipping and international shipping strategies for your business.

About the Author

Patrick Kelley, executive vice president and co-founder of OSM Worldwide, leads the company in product development and price modeling. Patrick stays abreast of market trends affecting the shipping and transportation industry and works closely with partners to decode regulations and negotiate the best possible experience for customers.