FirstMile FAQs

DDP and DDU are international shipping terms that define who pays customs duties & taxes on an imported package.

Pros & Cons of Each Method:

✔️ DDP Ensures Faster Delivery – No customs delays

✔️ DDU Can Be Cheaper – Buyer handles local import fees

How FirstMile Handles International Shipping With DDP/DDU Options:

📦 Works with DHL eCommerce, USPS, & Xparcel International for customs clearance

🚀 Optimized routing selects the best DDP or DDU strategy for each country

💰 Ensures international eCommerce sellers get competitive shipping rates

Parcel induction refers to the process of injecting packages into a carrier’s network at an optimized location to improve shipping costs and transit times.

Why Parcel Induction Is Important:

✔️ Faster delivery by entering the carrier network closer to final destination

✔️ Lower shipping costs through workshare discounts

✔️ Improves delivery accuracy & tracking visibility

How FirstMile Uses Optimized Parcel Induction:

📦 Inducts shipments into multiple carrier networks to reduce costs

🚀 Leverages regional sortation hubs for speed & efficiency

💰 Ensures eCommerce brands get the best rates through dynamic routing

Multi-carrier shipping is a logistics strategy where multiple shipping carriers are used instead of relying on one carrier like UPS, FedEx, or USPS.

How FirstMile’s Xparcel Multi-Carrier System Works:

🚀 AI-driven routing selects the most cost-effective carrier for each shipment

📦 Hybrid last-mile options like USPS, UPS, OnTrac, and LaserShip lower costs

💰 Reduces reliance on major carriers, minimizing rate hikes & surcharges

Peak season surcharges are temporary fees imposed by carriers during high-demand shipping periods, such as the holiday season (November–December).

How to Reduce Peak Season Surcharges:

✔️ Ship before peak periods (October & early November)

✔️ Use hybrid carriers like Xparcel for lower surcharges

✔️ Offer in-store pickup or local delivery alternatives

How FirstMile Helps Businesses Manage Peak Season Shipping Costs:

📦 Xparcel dynamically selects the lowest-cost carrier to minimize surcharges

💰 Multi-carrier options allow businesses to shift volume away from costly routes

🚀 Predictive shipping analytics help prepare for holiday demand

A carrier invoice audit is a process where shipping invoices are reviewed for errors, overcharges, and discrepancies before payment is made. It helps businesses avoid unnecessary shipping costs and ensures accurate billing.

Why Carrier Invoice Auditing Matters:

✔️ Saves businesses 2-5% on shipping costs annually

✔️ Identifies incorrect fees before payments are processed

✔️ Improves shipping data accuracy for future rate negotiations

How FirstMile’s Audit Queue Ensures Billing Accuracy:

🚀 Pre-audit invoices before billing to detect discrepancies

📦 Automatic validation of weight, ZIP codes, and carrier rates

💰 Reduces overcharges through proactive dispute management

APO/FPO/DPO shipping refers to shipments sent to U.S. military personnel stationed at domestic or overseas bases.

Key Facts About Military Shipping:

• USPS is the primary carrier for APO/FPO/DPO addresses.
• Packages must be labeled with military ZIP codes (e.g., APO AE, FPO AP).
• Some carriers do not ship directly to military addresses.

How FirstMile Supports Military Shipping:

📦 Optimized routing for APO/FPO shipments using USPS.

🚀 Alternative international carriers for faster delivery.

💰 Reduced costs for eCommerce brands shipping to military customers.

A Delivery Area Surcharge (DAS) is an extra fee carriers charge for deliveries to remote or less accessible locations.

How DAS Fees Are Calculated:

• Based on ZIP codes identified as "remote" or "difficult to access."
• DAS applies to both residential and business addresses.
• May be combined with Extended DAS (EDAS) fees for extremely rural locations.

How FirstMile Helps Avoid DAS Charges:

🚀 Uses regional carriers that do not charge DAS fees.

📦 Zone-skipping to move packages closer to final delivery.

💰 Dynamically selects alternative carriers to minimize surcharge impact.

USPS Ground Advantage is a cost-effective shipping service for domestic packages up to 70 lbs, replacing USPS Retail Ground, Parcel Select Ground, and First-Class Package Service.

Advantages of USPS Ground Advantage:

✔️ Lower shipping rates than Priority Mail.

✔️ Reliable tracking included.

✔️ Ideal for lightweight shipments under 10 lbs.

How FirstMile’s Xparcel Compares to USPS Ground Advantage:

🚀 Lower costs for zone-skipping shipments.

📦 Faster transit times by dynamically selecting carriers.

💰 Better alternative for volume-based pricing & accessorial fee reduction.

Freight consolidation is the process of combining multiple shipments into a single, larger shipment to reduce transportation costs and improve logistics efficiency.

How Freight Consolidation Works:

1. Multiple smaller shipments from different customers or locations are collected at a central facility.
2. Shipments are grouped together based on destination zones to maximize space utilization.
3. The consolidated shipment moves through linehaul to the final delivery hub.
4. Individual packages are sorted and delivered to customers.

Benefits of Freight Consolidation:

✔️ Lower Shipping Costs – Reduces per-package transportation costs.

✔️ Improved Delivery Efficiency – Fewer touchpoints mean less risk of delays.

✔️ Minimized Environmental Impact – Fewer trucks = lower carbon footprint.

How FirstMile Uses Consolidation to Reduce Shipping Costs:

🚀 We consolidate packages at our sortation hubs before induction.

💰 Reduces shipping costs through bulk transport savings.

📦 Optimizes shipping lanes for faster and cheaper delivery.

Hybrid shipping is a logistics model where multiple carriers work together to complete a shipment. Instead of one carrier handling the entire route, packages are transferred between different services to reduce costs and improve delivery efficiency.

How Hybrid Shipping Works:

1. A national carrier (e.g., UPS, FedEx, or FirstMile) picks up the package.
2. The package is transported via linehaul to a regional hub.
3. Final-mile delivery is completed by USPS or a regional courier.

Why Hybrid Shipping Matters for eCommerce:

✔️ Lowers Costs – Hybrid services use low-cost last-mile carriers like USPS.

✔️ Flexible Delivery Speeds – Businesses can choose between economy and expedited hybrid options.

✔️ More Carrier Options – Reduces dependency on one carrier’s pricing & network.

How FirstMile’s Xparcel Hybrid Shipping Works:

🚀 Automatically selects the best combination of national and regional carriers.

💰 Reduces overall shipping costs while maintaining fast delivery speeds.

📦 Optimizes final-mile delivery using multiple network options.

A workshare partner is a logistics provider that sorts, processes, and inducts packages into USPS or other carriers at a discounted rate. These partners help reduce costs & improve efficiency.

How Workshare Partners Operate:

1. Packages are picked up & sorted by a workshare partner (e.g., FirstMile).
2. Shipments are inducted into USPS closer to the delivery destination.
3. Final-mile delivery is completed by USPS or another last-mile carrier.

Benefits of Workshare Partnerships:

✔️ Lower Shipping Costs – Reduces USPS processing & handling fees.

✔️ Faster Transit Times – Packages enter the USPS network closer to final delivery.

✔️ Scalability for High-Volume Shippers – Supports large ecommerce fulfillment.

How FirstMile Uses Workshare Partnerships:

🚀 Inducts packages into USPS, DHL eCommerce & regional carriers

💰 Reduces postage & last-mile fees for high-volume shippers

📦 Optimizes shipping zones for faster transit

Fuel surcharges are extra fees carriers charge to adjust for fluctuating fuel prices. These costs are added on top of the base shipping rate.

How Carriers Calculate Fuel Surcharges:

• Fuel Index-Based Pricing – Rates change weekly based on the U.S. Energy Information Administration (EIA) fuel index.
• Flat-Rate Fuel Charges – Some regional carriers use a fixed percentage surcharge.
• Variable Pricing by Zone – Long-distance shipping incurs higher fuel surcharges.

How FirstMile Helps Reduce Fuel Surcharges:

💰 Optimized Carrier Selection – Chooses lower surcharge carriers

📦 Zone-Skipping & Consolidation – Reduces long-haul fuel costs

🚀 Xparcel Dynamic Routing – Adjusts routes based on fuel cost fluctuations

USPS shipping rates are based on zones, which are determined by the distance between the origin and destination ZIP codes.

How to Reduce USPS Zone Pricing Costs:

✔️ Use Zone-Skipping – Induct packages closer to the final delivery zone

✔️ Switch to Xparcel Hybrid Shipping – Dynamically selects cost-efficient carrier alternatives

✔️ Leverage Regional Carriers – For lower intra-zone rates

Last-mile delivery refers to the final step in the shipping process, where a package is delivered from a distribution hub to the customer’s address. It is often the most expensive & time-consuming part of logistics.

Challenges of Last-Mile Delivery:

1. High Costs – Fuel, labor, and residential delivery fees drive up pricing.
2. Delivery Delays – Traffic, weather, and incorrect addresses can slow shipments.
3. Customer Expectations – Consumers now expect same-day or next-day delivery.

How FirstMile Optimizes Last-Mile Delivery:

🚀 Multi-Carrier Routing – Uses national & regional last-mile solutions

📦 Xparcel Hybrid Shipping – Dynamically selects the best carrier mix

💰 Reduces Last-Mile Costs – Avoids high-cost final-mile fees with optimized shipping

Accessorial fees are additional charges that carriers apply for extra services beyond standard pickup and delivery. These fees can increase shipping costs significantly if not managed properly.

How FirstMile Lowers Accessorial Fees:

✅ Dynamically routes packages through carriers with lower or no DAS/EDAS fees

✅ Uses hybrid & regional shipping networks to minimize surcharges

✅ Optimizes shipping profiles to avoid unnecessary accessorial costs

A hybrid shipping model combines multiple carriers to reduce costs and optimize delivery speed. Instead of one carrier handling the entire route, packages are transferred between different carriers for efficiency.

Examples of Hybrid Shipping Services:

• UPS SurePost – UPS handles the long-haul, USPS does final delivery.
• FedEx SmartPost – FedEx linehaul, USPS delivers to the recipient.
• Xparcel by FirstMile – Dynamically selects the best mix of national & regional carriers.

Why Hybrid Shipping Works for eCommerce:

✔️ Reduces Costs – USPS delivers to all ZIP codes at lower rates.

✔️ More Carrier Options – No single-carrier dependency.

✔️ Flexible Transit Times – Balance between speed & savings.

How FirstMile’s Xparcel Uses Hybrid Shipping:

• Automatically selects the fastest, cheapest carrier mix for each package.
• Reduces fuel surcharges & delivery fees by leveraging regional carriers.
• Improves final-mile delivery performance through gig-economy networks.

Dimensional (DIM) weight pricing is a carrier pricing model where package volume (size) is factored into shipping rates instead of just weight.

Formula for DIM Weight:

DIM Weight (lbs) = (L x W x H) / DIM Factor

• UPS, FedEx, and USPS use 166 for domestic and 139 for international DIM factor calculations.
• If the DIM weight is greater than the actual weight, you’ll be charged based on the DIM weight.

How DIM Pricing Affects Shipping Costs:

🚀 Light but bulky packages are more expensive to ship.

📦 Carriers charge for wasted space in trucks/planes.

💰 DIM fees can significantly increase shipping costs if not managed properly.

How FirstMile Reduces DIM Fees:

• Carrier Selection: Xparcel dynamically chooses the best-priced carrier based on weight and dimensions.
• Box Optimization: FirstMile helps businesses choose better box sizes to minimize wasted space.
• Regional Carrier Inductions: Some regional carriers have less strict DIM pricing.

Zone skipping is a cost-saving logistics strategy where shipments are transported in bulk to a hub closer to their final destination before being inducted into a local carrier’s network.

How It Works:

1. Instead of shipping 100 packages from California to Florida individually, a business consolidates all shipments into one truckload.
2. The packages are transported to a Florida sortation hub.
3. Once at the hub, they are inducted into USPS, UPS, or FedEx’s local delivery network, skipping multiple zones.

Benefits of Zone Skipping:

✅ Lowers Shipping Costs – Avoids long-distance carrier pricing.

✅ Faster Delivery – Reduces transit times by skipping unnecessary sorting steps.

✅ Improves Efficiency – Packages reach their destination closer to final-mile delivery.

How FirstMile Uses Zone Skipping:

• We optimize package routing based on weight, zone distance, and carrier performance.
• Leverage regional carriers to further reduce cost and delivery time.
• Consolidation hubs across the U.S. allow for bulk shipments, lowering per-package costs.

Linehaul refers to the long-distance transportation of freight or parcels between carrier hubs, sortation facilities, or distribution centers. It’s a critical part of logistics, ensuring packages move efficiently across regions.

Types of Linehaul:

1. Air Linehaul – Faster but costlier (e.g., UPS Air, FedEx Express).
2. Ground Linehaul – Cost-effective trucking routes (e.g., USPS and DHL eCommerce linehaul).
3. Rail & Intermodal Linehaul – Used for bulk and freight consolidation.

Why Linehaul Matters for eCommerce:

• Reduces shipping costs by consolidating shipments before last-mile delivery.
• Enables faster cross-country shipping (e.g., a package from California to New York first moves via linehaul before entering local carrier networks).
• Minimizes reliance on a single carrier, improving efficiency.

How FirstMile Optimizes Linehaul:

• Uses dynamic routing to select the fastest & cheapest linehaul method.
• Leverages regional carriers for cost-effective linehaul operations.
• Optimizes zone skipping to reduce total transit distance.

Carrier discounts are negotiated price reductions on shipping rates, usually offered to high-volume shippers. These discounts lower the base shipping cost and may include additional savings on accessorial fees (e.g., residential delivery, fuel surcharges).

Types of Carrier Discounts:

• Volume Discounts – The more you ship, the lower your per-package cost.
• Negotiated Service Agreements (NSAs) – Custom pricing agreements between businesses and carriers.
• Contract Pricing – Locked-in rates over a specified period.
• Regional & Hybrid Discounts – Lower rates for zone-skipping or alternative last-mile carriers.
• Marketplace Discounts – Some platforms (e.g., Shopify, Amazon) offer pre-negotiated rates with USPS, UPS, or FedEx.

How FirstMile Helps:

FirstMile leverages its multi-carrier network to provide volume-based pricing even for smaller shippers. Unlike single-carrier solutions, we compare multiple shipping options to find the best rates and transit times.

Customers can use the FirstMile Tracking link for the latest package updates.

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Packages can be tracked via the respective carrier websites or through the FirstMile Tracking platform.

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Carriers are chosen based on various factors including package size, destination, and cost-effectiveness to ensure timely and safe delivery.

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Yes, you can specify your preferred carriers, and we will do our best to accommodate these choices.

1. Account Submission: We notify you once your account is submitted.
2. Information Collection: We may request additional details or forms.
3. Payment Method Setup: Secure payment details are collected.
4. Test Label Submission: A test label is created for verification.
5. Account Manager Assignment: Your dedicated Account Manager provides training.
6. Service Activation: Once onboarding is complete, shipping services begin.

The setup process typically takes between 10-20 business days, depending on requirements.

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Our support team is available from 8:30 AM to 5:30 PM MST, Monday to Friday. After-hours contacts are also available.

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Support can be reached via phone or email during standard operating hours.

Most claims are processed and paid out within 30 days.

File claims via our Claims Portal. Required documents include:

• Wholesale invoice
• Consignee documentation

Pickups can be arranged from your warehouse, fulfillment center, or designated shipping location.

We aim to schedule pickups in the afternoon during a set 2-hour window based on your route.

Reach out to the Account Manager Team or the main dispatch line as soon as possible.

• If you are on a regular schedule, you do not need to request a pickup.
• If you are on-demand, contact your Account Manager at least 24 hours in advance to schedule a pickup.

Standard payment terms are Net 5 unless a request is submitted for special approval.

Invoices are sent out weekly in CSV and PDF format. Shipments are not billed until they receive a physical scan.

We accept credit cards, debit cards, ACH, and checking accounts via our secure payment portal.

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When a package is on it's way it is very difficult to change the direction from its intended destination.  If by some reason a package goes missing, is damaged or found itself in the outer abyss it is always a good idea to make sure you are covered.

Insurance or replacement coverage can be an extra cost so you’ll have to factor that into your profit margins, but insuring your shipments can provide extra peace of mind for both you and your customers.

Firstmile offers coverage on all mail class packages and that is typically included in the overall shipping cost.  Up to $50 coverage for every package under 1 lb and up to $100 for every package heavier then 1 lb.  If for some reason your packages need additional coverage we would encourage you to reach out to our team to help add that additional protection.

If you are tracking a package with FirstMile, DHL, USPS and other carriers and the latest tracking event says "En Route to ........." that means there was an electronic notification given to the carrier distribution center that the label has been printed and the package is on it's way.  If the package does not arrive and there is no tracking event following "En route" that would signals to us that the label was printed but the package has not yet arrived at the distribution center.

Some of the reasons a package does not arrive at a distribution center are as follows:

• The software that prints the label sent out the notification of the label being printed but the printer failed while printing therefore the label never printed out
• The label was printed but we discarded and was never applied to a package, therefore was never able to make it on a transport to the distribution center
• The label was printed and the package was picked up but during the transportation from fulfillment center to distribution center the package was misrouted and was sent to the wrong distribution center
• The label was printed, the package was delivered to the correct distribution center however the carrier failed to scan it's arrival and it is on to it's next destination and will receive a scan at it's next stop

The Dimensional weight is calculated by multiplying the length, width, and height of a package, using the longest point on each side to get the cubic size.

Then, divide the cubic size of the package in inches by the dimensional divisor to calculate the dimensional weight.

Key data point you need to know to calculate dimensional weight:

• Length = the longest side running from left to right
• Width = the perpendicular side to the length usually running front to back
• Height = the side that runs perpendicular to the length and width usually running from bottom to top
• Dimensional Divisor = The number provided by the carrier to divide into the cubic size to determine the Dimensional Weight

FirstMile is an eCommerce shipping carrier that delivers on behalf of retailers and fulfillment partners. FirstMile utilizes local, regional, national and International carrier networks to help deliver packages all over the world in a timely manner at a competitive price. FirstMile simplifies shipping by taking multiple carrier options and consolidating them into one carrier network, one invoice, one customer support, one claims department, and one pickup.