Three Reasons Why Partnering With Multiple Couriers Will Only Increase


Three Reasons Why Partnering With Multiple Couriers Will Only Increase

A popular shoe brand in the US does a qualitative and quantitative analysis of the US shoe market for brand expansion and identifies a million-dollar business opportunity in the same-day delivery segment. However, this expansion comes with multiple considerations, comprising distributor network, courier delivery network, and carrier partnerships based on volume/speed commitments. Is it possible for the brand to scale its deliveries without crunching the bottom line and ensuring SLA adherence with the existing delivery infrastructure?

The answer is NO!

The extrapolation of this example forms the subject matter of this write-up. Working with multiple courier partners comes with various advantages, such as increased serviceability, amplified market reach, increased revenue, profitable scalability, etc. Below, we share three reasons why 2023 will see an increase in multiple courier partnerships across the globe.

Top 3 Reasons for Increase in Adoption of Multiple Couriers

#1 – Intense eCommerce Proliferation Driving Changes

As the internet penetrates deeper into the masses, the eCommerce and m-Commerce market competition become more intense, and brands look for ways to appease customer nuances; partnerships with multiple couriers are inevitable.

Stats suggest that the global courier service market will be USD 749 billion by 2031, and the global parcel shipping volume will be 205 billion parcels in 2024. Further, the last-mile delivery service requests from B2C eCommerce businesses have increased by 50% in just one year. Also, 61% of shoppers demand quick and safe deliveries, and 77% of brands offer free shipping for better CX. As the brands struggle to deliver across diverse customer expectations, their needs for efficient and optimized delivery orchestration would amplify, calling for better and multiple business partnerships.

#2 – Increased Demand for Same-Day Delivery

As much as 56% of online shoppers expect same-day delivery, and 61% are willing to pay more for it. 49% of shoppers feel more driven towards making a purchase in case same-day delivery is available. Also, 61% of shoppers’ idea of same-day delivery means delivery within 1-3 hours of placing an order.

Delivering across such delivery expectations calls for a highly agile and flexible delivery infrastructure that can be scaled up and down in any area, and that too for returns, deliveries & white-glove services. Thus, having a single courier partner no longer fits the bill, and brands would opt for multiple couriers to leverage individual strengths, unlock scalability without violating the bottom lines and amplify their reach.

#3 – Reducing the Delivery Costs 

As eCommerce gains momentum, cross-border commerce is also becoming more and more popular among the masses. This is ballooning up the already escalating delivery costs for sellers and courier providers. Rising shipping and fuel costs, staff shortages, and geopolitical constraints and sanctions – the cross-border delivery landscape is rife with multiple challenges. 

Having only one courier partner makes it impossible to scale in the case of cross-border courier operations and restricts the sellers in terms of revenue and market share. On the other hand, with multiple courier partners, businesses can orchestrate profitable deliveries across multiple geographies, thereby gaining more market share and sustaining it with reliable offerings. They can choose the most profitable option from the dedicated fleet, freelancers, and mixed fleet to reduce their delivery costs and optimize their delivery operations by opting for the most profitable vehicle and driver combination.

The expectations of digitally-powered shoppers will only evolve as they actively seek special services such as real-time tracking, proactive communication, and multiple modes of payment. Delivering across such a diverse set of expectations calls for a highly refined and diverse tech stack that empowers delivery operations, facilitates seamless management of multiple couriers, and offers a unified view of operations. This is why intelligent automation with multi-party integration and seamless stakeholder collaboration is the best option moving forward.


Related Posts

5 Reasons Why Businesses Need to Partner With Multiple Carriers

Looking for ways to scale your delivery operations across diverse delivery SLAs? Here is how having multiple 3PL partners can help you scale deliveries, widen your reach, and amplify your audiences.


3PL Logistics Solutions Guide 2023: How to Plan and Manage Third-Party Logistics

Explore how smart, scalable, and robust 3PL logistics solutions can help your business make the most of the US $4.23 trillion eCommerce opportunity in this 3PL logistics guide for 2023.