Finding the best courier service for small businesses

October 2015


How many parcels do you send every day?
If you only send a couple of parcels weekly, you are best suited to using a carrier directly. If, on the other hand, you are sending multiple packages regularly (between 20 and 5,000 per day), either:

  • Locally 
  • Internationally

  • Dedicated online store 

  • From your eBay or Amazon store 

Then outsourcing to a parcel distribution provider that understands mid-market and enterprise-level shippers, such as Parcelhub, part of the Whistl Group, will empower you with increased economies of scale; by leveraging a consolidator’s buying power, you can save up to 80% on standard shipping rates. Helping hundreds of SME businesses and large multichannel retail corporations save time and money on their business parcel delivery through a carefully selected range of carrier partners. If your business sells via marketplaces, or an eCommerce platform such as Magento (or any combination), expect to receive significant cost savings. Integration with your PC or server is accessible, granting you access to bespoke business delivery services.

Which domestic or international parcel delivery company will be which is most suitable for my business?

There are four factors you should take into consideration:

  • Price: Are you willing to pay a premium for a faster and more comprehensive delivery service, such as an Express service through an aggregator?
  • Reputation/Reliability: Parcel carriers vary in reputation, and online feedback is usually the best indicator.
  • Speed: How long are your customers happy to wait?
  • Scale: Generally, due to economies of scale, larger postal organisations offer cheaper rates; however, there are exceptions.
  • Which courier service is the cheapest for small businesses?

For UK businesses, Yodel and Evri often prove to be the cheapest for domestic UK parcel deliveries; however, while their core competency lies within UK delivery, carriers such as DHL offer more competitive international rates.

Which courier service can deliver the fastest?
Same-day delivery offers the fastest way to get a product to your customer; however, because they charge on a 'pence per mile' basis, this would not be a cost-effective solution for a business wanting to generate a decent profit.

Does bigger always mean cheaper?
Larger carriers generally offer cheaper rates due to economies of scale. However, rates are usually very similar across the board. Using a parcel broker gives businesses access to much more affordable rates than buying directly from a mainstream carrier.

How important is the volume of parcels my business is sending?

Some business courier service providers can give your business access to discounted shipping rates, regardless of your daily volumes. However, this is entirely dependent on:

  • The location of your business premises
  • Daily parcel volumes
  • Despatch locations
  • Level of customer support you are seeking
  • The eCommerce platform you sell on 
  • Anticipated future parcel and packet volumes

Do I have to be an online seller to get the best commercial parcel delivery rates?

Generally, in this day and age, businesses that don’t sell their wares online are missing a trick. Being an online seller is not a prerequisite for getting the cheapest courier rates for your SME company, as there are other sales channels, including brick-and-mortar, mail-order, and many retailers that sell at markets. 

How can I add value to my business and make the delivery a competitive advantage?

There are three core methods to adding value to your firm’s offering, which can be influenced by which distribution provider you use.

  1. A multi-carrier solution will add flexibility and ensure your business offers the most appropriate and cost-effective service for each SKU (Stock Keeping Unit). Useful for companies with an extensive product range. 
  2. Consider increasing competitiveness by offering low costs or free shipping to customers. 
  3. Outsource fulfilment: If your business is despatching hundreds of items a day, outsourcing your fulfilment could be time and cost-efficient.

About Parcelhub, part of the Whistl Group  

Parcelhub is a multi-carrier shipping and eCommerce customer services solution. Flexible and scalable, it integrates seamlessly with order management systems, providing hundreds of multichannel retailers, global brands, and wholesalers with one access point to many of the largest UK and international parcel carriers.

 Multichannel eCommerce platforms are easily integrated and dedicated; proactive parcel management comes as standard.

With multi-carrier shipping software, thousands of national and global businesses access to 'pooled volume' discounted rates from a carefully selected range of carrier partners, including Yodel, Evri, DPD, UK Mail, DHL, Whistl, UPS, DX, Parcelforce, CollectPlus, SkyNet, ArrowXL, Interpost, Panther Logistics, Direct Link and Palletforce.

About the Whistl Group 

 

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