Carrier Diversification Is the Key to Smarter Shipping

In times of economic uncertainty, the companies that adapt can reduce costs, improve delivery performance, and create better customer experiences. 

On the other hand, those who stick with the same approach year after year might find themselves paying more while delivering less.

In a webinar hosted by Supply Chain Now, Lori Boyer and John Wharff from EasyPost joined hosts Scott Luton and Tevon Taylor to discuss the shipping trends shaping today’s market. Their conversation—which we’ve summarized in this article—offers practical advice for businesses looking to build a more flexible, resilient shipping operation.

The core message: relying on a single-carrier strategy is becoming increasingly risky.

Why carrier diversification matters

For years, many businesses built their shipping around a single primary carrier. While that approach might have worked in the past, today’s parcel shipping landscape rewards flexibility.

As carriers adjust capacity, routes, and service offerings, diversification provides an important safety net.

John explained, “The more you can diversify, the more you can split up how your volume is going out the door. … It ensures your customers are happier, and it gets rid of potential pain points.”

In addition to protecting you from disruptions, diversification gives you:

• Greater flexibility. Shift volume when service levels change.
• Lower costs. Compare rates across multiple providers.
• Improved coverage. Reach customers more efficiently in different regions.
• Better peak season readiness. Maintain options during periods of high demand.

Even if you’re currently satisfied with your primary carrier, having alternatives available can provide valuable leverage and operational stability.

Five signs your shipping strategy needs updating

Many businesses don’t realize their shipping strategy has become outdated until costs rise or customer complaints increase.

According to Lori and John, several warning signs suggest it’s time for a closer look.

1. You’re relying heavily on one carrier

Carrier loyalty can be valuable, but overreliance creates risk. If most of your volume moves through a single provider, you’re limiting your options when rates change, capacity tightens, or service disruptions happen.

2. Manual processes drive daily operations

John repeatedly emphasized the hidden costs of manual workflows.

“The more manual processes you have, the slower you’re going and the more cost you’re leaving on the table.”

If employees are still comparing rates manually, creating labels one shipment at a time, or managing exceptions through spreadsheets and email chains, opportunities for improvement likely exist.

3. Customer complaints keep repeating

Patterns matter! Late deliveries, tracking issues, communication gaps, and service complaints often reveal larger process problems.

As John noted, “If you keep hearing the same problems time and time again from both your internal stakeholders and your customers, chances are it’s a problem you need to take a look at.”

4. Shipping costs keep climbing

If you notice any of the following, it might be time to reevaluate your shipping strategy:

• Shipping spend rises faster than order volume
• Service levels remain unchanged despite higher costs
• Carrier invoices become harder to understand

Small inefficiencies can compound quickly when shipping hundreds or thousands of orders.

5. Your tech feels outdated

Many shipping operations still rely on systems that haven’t evolved with the market. If your tools make it difficult to compare rates, access data, automate workflows, or manage multiple carriers, Lori and John recommend thinking about an upgrade.

The role of major carriers

When the topic of carrier diversification comes up, some shippers wonder if they’re supposed to stop using their go-tos: UPS, USPS, and FedEx. The answer is no! 

These large carriers continue to play an essential role in ecommerce fulfillment, and they all have unique strengths that make them valuable in different situations.

UPS: Strong for B2B and time-definite shipments

According to Lori, UPS is especially effective for businesses that require dependable, time-sensitive deliveries.

Its network is often a strong fit for:

• B2B shipping
• Commercial deliveries
• Time-definite services
• High-volume operations

FedEx: Residential and weekend delivery strength

FedEx excels in residential delivery scenarios. Lori highlighted its extensive weekend delivery capabilities, including Saturday and Sunday service without some of the additional fees you might encounter elsewhere.

FedEx can be particularly attractive when:

• Residential shipments dominate your volume
• Weekend delivery matters
• Fast home delivery is a priority

USPS: The lightweight shipping specialist

Lori described USPS as “the godfather of lightweight shipping.”

The Postal Service remains a powerful option for:

• Lightweight packages
• Rural destinations
• PO Box deliveries
• Residential shipments

Because USPS reaches every address in the United States and avoids certain residential surcharges, it often provides excellent value for smaller shipments. Beware, though—heavier packages might be less cost-effective as dimensional weight and transportation costs increase.

The growing role of alternative carriers

While the “big three” carriers are still essential, the shipping market now extends well beyond them. To get the most bang for your buck, you’ll want to include regional and alternative carriers in your carrier stack.

Amazon Shipping

Amazon Shipping has expanded significantly in recent years.

According to Lori, many businesses are exploring Amazon’s network for several reasons:

• Competitive pricing
• Strong metro-area coverage
• Fast delivery speeds
• Seven-day delivery capabilities
• No additional weekend surcharges in many cases

For businesses shipping into major metropolitan areas, Amazon Shipping offers compelling alternatives to traditional carriers.

Regional carriers

Regional carriers like OnTrac, SpeedX, and LSO have evolved from niche providers into major logistics players. Lori noted that approximately 3.5 billion packages now move through regional carrier networks annually.

John added, “It’s no longer uncommon to ship with regionals. It’s almost an essential part of the playbook.”

These providers often offer lower costs, faster regional delivery times, specialized geographic coverage, and greater flexibility

Crowd-sourced and final-mile networks

Many businesses are also exploring carriers such as Roadie, Uber, and DoorDash. While these options won’t replace traditional parcel carriers entirely, they can help solve specific final-mile challenges and provide additional flexibility when needed.

Balancing shipping costs with customer expectations

One of the most important insights from the webinar was that customers often care less about speed than consistency. If you assume faster delivery always wins, you’ll probably end up overspending on shipping.

John put it simply: “The time in transit is less important to consumers than keeping your promises.”

In practice, that means setting expectations by providing an accurate estimated arrival date, then communicating if the shipment gets delayed. 

Lori emphasized the importance of visibility, saying, “If [disruptions happen] … simply letting them know, ‘Hey, we’ve had a hangup’ is going to make a giant difference in that customer experience.”

Practical ways to improve communication include:

• Automated tracking notifications
• Delivery delay alerts
• Branded tracking pages
• Proactive customer outreach
• Exception management workflows

Using technology to build the ideal multi-carrier strategy

Managing multiple carriers manually is a logistical nightmare. Technology like Luma AI makes it not only possible, but simple. Lori and John discussed four areas where technology can help you create a cost-effective (and disruption-proof) carrier mix.

1. Rate shopping across carriers

One of the fastest ways to identify savings is rate shopping.

In John’s words, “If you’re not rate shopping, you need to start. End of story.”

Rate shopping allows you to compare:

• Carrier pricing
• Delivery estimates
• Service levels
• Surcharges
• Regional performance

This ensures you’re selecting the best service for each shipment rather than defaulting to the same carrier every time.

2. Using shipping data to guide decisions

The best shipping strategies are built on data, not assumptions.

Regular analysis can help you identify:

• Carrier performance trends
• Cost-saving opportunities
• Delivery bottlenecks
• Customer service issues
• Packaging inefficiencies

And even small improvements can produce significant annual savings.

3. Automating repetitive tasks

Automation reduces both costs and operational complexity.

Common automation opportunities include:

• Label generation
• Carrier selection
• Tracking notifications
• Claims management
• Reporting and analytics
• Exception handling

These improvements allow your team to focus on higher-value work rather than routine administrative tasks.

4. Optimizing packaging and cartonization

Packaging decisions directly affect shipping costs—and too many businesses ship items in too-large packaging without realizing the negative effects.

Using technology to improve cartonization can help reduce dimensional weight charges, packaging material costs, transportation expenses, and waste.

It’s one of the simplest cost-saving opportunities available.

Building a shipping strategy that keeps working

The most successful shippers aren’t necessarily the ones spending the least money. They’re the ones creating the right balance between cost, flexibility, customer satisfaction, and operational efficiency.

As the shipping landscape continues to shift, the players that stay flexible will be best positioned to adapt. 

So whether you’re evaluating new carriers, reviewing shipping costs, or looking for better visibility into your operation, remember: small improvements today will produce meaningful results over time.

To hear the complete discussion and learn directly from Lori and John, be sure to watch the full webinar recording.