How To Use Rate Shopping Software

When you ship with just one carrier, you often have to fight tooth and claw to negotiate lower rates. Researching other carriers’ rates gives you more bargaining power, but it can be stressful and time-consuming.

And in the end, you still don’t know if you’re getting the best deal possible.

Thankfully, there’s a better way.

Rate shopping software lets you see rates from dozens of carriers, then choose the services that best align with your shipping needs. 

In this article, we’ll explain what rate shopping software is, how it works, and how to choose and implement the right solution.

What is rate shopping software?

Rate shopping software is technology that compares shipping rates across multiple carriers, allowing businesses to choose the most affordable carrier and service level for every package they send.

But how exactly does it work? Let’s dive a little deeper.

Unless you only sell one product, the parcels you ship vary in size, weight, and shape. Similarly, no two carriers are the same; they all have unique base pricing models, with additional fees based on package characteristics, distance, and other factors. Each customer also has different preferences for shipping speed, and certain products require expedited delivery. 

That’s a lot of factors to consider when choosing a shipping method!

Rate shopping software takes in all of this information—package details, carrier rates, and shipping requirements (like transit time or estimated delivery date)—to find the optimal service levels and create shipping labels. You’ll end up with the lowest possible rates without needing to integrate or negotiate with multiple carriers.

For example, if you’re shipping a lightweight package and need it to arrive fast, rate shopping software might reveal that USPS Priority Mail Express® is your best bet. If you’re sending a heavier package, the program will likely suggest FedEx or UPS services. And if you’re shipping within a relatively small geographic area, you’ll be able to see which regional carrier offers amazing deals. 

That’s the power of rate shopping software.

Benefits of rate shopping software

Rate shopping software provides some seriously cool benefits that will take your logistics to the next level. 

• Cost savings. The most important benefit of rate shopping software? Saving money on shipping. When you can browse rates from many carriers and choose the lowest ones, you’re not left wondering whether you’re getting a good deal—you can see the impact in your per-package fulfillment costs.
• Better customer experience. You don’t want to overpay for shipping, and neither do your customers. If you pass shipping costs on to shoppers, lower rates will go a long way toward creating a better purchasing experience. 
• Operational efficiency improvements. Working with individual carriers to negotiate rates takes time that could be spent on more strategic tasks. And the more carriers you add, the more work you have to do. With rate-shopping software, shipping becomes faster and more scalable.
• Competitive advantage. Shipping costs can determine whether a customer completes a purchase or abandons their cart and checks out a competitor’s website. To stay competitive, you’ll want a sure-fire way to offer affordable rates.
• Data-driven decision making. With AI-driven rate shopping tools, you don’t just get a list of options—you also get a data-backed analysis of the best choices. With accurate information on delivery times and on-time delivery rates, it’s easy to optimize for cost and performance.

How to shop shipping rates

Getting started with rate shopping software—and using it to find the best deals—is easier than you might think.

1. Choose reliable rate shopping software

It all starts with choosing the right rate shopping technology. We recommend using a shipping API with multi-carrier functionality. There are several options out there, so make sure to research a few solutions and choose the one that best meets your business needs. 

Not sure what to look for? The checklists below can help you identify the best API.

Features of a great shipping API:

• Rate calculation
• Carrier integration
• Label generation
• Shipping discounts
• Package tracking
• Address verification
• Shipping insurance
• Shipping analytics
• Automated decision-making

Qualities of a great shipping API:

• Wide carrier network
• Flexible delivery options
• High reliability
• High uptime (aim for at least 99%)
• Fast response times
• The ability to scale with your business
• High data protection standards
• Great documentation and support

A good place to start your research? Check out the EasyPost Shipping API. It checks all the boxes above, complete with the features you need to streamline parcel shipping. And with 99.99% uptime, the EasyPost API can easily keep up with your business growth—it’s used by SMBs and enterprises alike. 

To simplify rate shopping even more, check out Luma by EasyPost. Luma harnesses the power of AI (and data from billions of historical shipments) to analyze your shipping, make cost-saving recommendations, and implement them automatically. 

Whichever rate shopping software you end up selecting, the next step is to get integrated.

2. Integrate with your existing systems

Most shipping APIs provide documentation to help your development team get everything up and running—the more detailed, the better. Depending on your business size, you might also have access to email or phone support for troubleshooting. 

Integration usually takes anywhere from a few days to a few weeks, depending on how complex your shipping operations are. 

3. Find the best rates and purchase shipping labels

Once you’re integrated, the real fun begins! 

For every customer order, the shipping API will compile a list of shipping options from your preferred carriers. From there, it’s simple to select the most affordable ones, display rates on the checkout page, and generate shipping labels. 

For even better (and hands-off) results, you can use an AI tool like Luma to automatically select the best-value labels, giving you the best mix of cost, speed, and reliability based on your shipping preferences.

Find the cheapest rates with EasyPost

Rate shopping software will make your life a lot easier—but its impact depends on the solution you choose. As ecommerce becomes more competitive, and shipping costs can make or break consumer purchasing decisions, you need technology that’s not only powerful but also simple to use.

Meet EasyPost.

EasyPost offers integrations with over 100 carriers, including USPS, UPS, FedEx, and DHL. You can shop rates, access exclusive discounts of up to 83%, verify addresses, easily track and insure packages, and more!