April 3, 2025

How to Choose the Right Shipping Carrier for Your Business

This guide helps you compare shipping carriers and build a strategy that improves customer satisfaction and lowers costs.

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Why Picking the Right Carrier Matters

If you run a business—especially an online store—you already know that shipping services are a big part of your day-to-day operations. Whether you’re sending items across the United States, shipping international shipments, or delivering to a specific location down the street, the right carrier can make all the difference.

But what does the right really mean?

It means:

  • Packages arrive on time.
  • Your shipping costs stay low.
  • Customer satisfaction goes up.
  • Your business grows in the long run.

The wrong choice? That could lead to delayed shipments, higher rates, broken fragile items, and unhappy customers.

Understanding Your Shipping Requirements

Before you start looking at different shipping carriers, think about your specific needs. Every small business owner has a different setup. Your shipping requirements will depend on a few key things:

  • Shipping volume: Are you sending 20 orders a week or 2,000?
  • Domestic shipping vs. international shipping: Are your packages going across the country or across borders?
  • Product type: Do you ship perishable goods, hazardous materials, or heavier items?
  • Customer expectations: Do your buyers expect same-day delivery, next-day delivery, or just a reliable delivery date?
  • Final destination: Are most packages going to metro areas, rural zones, or even international markets?

Knowing your goals will help you figure out what to prioritize—whether that’s flat rate shipping, fast delivery times, or the best rates possible.

Best Practices for Carrier Selection

1. Evaluate Your Options

Not all shipping companies are the same. Some are major carriers like United Parcel Service (UPS) or DHL Express. Others are regional carriers or local carriers that focus on specific areas.

Some specialize in freight carrier services for asset-based carriers, while others focus only on small packages for e-commerce businesses.

Here are the most important factors to consider when selecting shipping carriers:

  • Transit times: Can they meet your promised delivery date?
  • Shipping rates: Are you getting lower rates for lighter or bulk items?
  • Customer service: How quickly do they solve problems?
  • Tracking services: Is it easy for customers to track their order?
  • Insurance options: Are you protected in case of damaged or lost packages?

Tip: Choosing the cheapest option isn’t always the best option. A higher cost may mean better quality service—which can help your bottom line in the long run by keeping customers happy.

2. Compare Potential Carriers Side by Side

Create a comparison chart for the carrier selection process. Consider these critical factors:

Carrier NameSpeedCostService QualityTrackingInsuranceNotesCarrier A1-2 Days$$$GreatYesYesGood for localCarrier B3-5 Days$$OkayYesNoBudget-friendlyFirstMileFlexible$$ExcellentYesYesAccess to many international carriers, regional carriers, and major shipping carriers

With FirstMile, you don’t have to choose between speed, cost, and support. Our patented technology dynamically selects the best shipping carriers for your order, based on the final destination, weight, urgency, and more.

Shipping Options Analysis

Finding the Most Cost-Effective Option

For small businesses, every dollar matters. You want the most cost-effective option without sacrificing customer satisfaction.

FirstMile helps businesses lower the cost of shipping by using dynamic routing to find the best deal for every package. Whether you're shipping fragile items, perishable goods, or international shipments, we look at:

  • Dimensional weight
  • ZIP code
  • Delivery expectations
  • Additional fees like fuel surcharges, rural delivery, or Saturday pickup

With tools like Xparcel, we also help avoid surprises. You only pay for what you ship—no extra fees for unused return labels or hidden additional services.

Shipping Carrier Evaluation

Using Carrier Performance Metrics

You should regularly review your carrier’s track record. Here’s what to measure:

  • On-time delivery rate: Are they meeting your delivery date promises?
  • Damage rate: Are packages arriving in good condition?
  • Dispute handling: How fast do they process claims?
  • Service quality: Do customers mention them positively?

At FirstMile, we use advanced technology to monitor these metrics. If something’s off, we make proactive adjustments—often before it becomes a problem.

Customer Feedback Matters

Another great way to evaluate shipping companies is by asking your customers:

  • Were they happy with the delivery services?
  • Was the package in good condition?
  • Did they use the tracking services?

Their answers help you adjust your shipping strategy, find the best carrier for the job, and even improve your product packaging or expectations.

Beyond the Big Names: Why Flexibility Wins

Many online retailers work only with major carriers—but this limits flexibility. If you're only shipping with one or two companies, you're at risk when rates go up or services go down.

That’s where FirstMile shines. We connect your online retail business to a range of services from regional carriers, international carriers, and postal service networks, without the headache of managing them all.

You get one label, one invoice, and one point of contact—while we handle the complex supply chain routing behind the scenes.

The FirstMile Advantage: Smart Shipping Built for You

FirstMile isn’t just a shipping company. We’re a shipping partner built for small businesses and e-commerce businesses that need to ship smarter, faster, and more affordably.

What We Offer:

  • Carrier-agnostic service: We select the best option for each shipment.
  • Xparcel technology: Our patented system finds the best shipping carriers at the best rates.
  • Audit Queue: We double-check all invoices before you even see them—catching errors and saving you time.
  • Customer service: Our support team covers all your shipments, across all carriers.
  • Returns and claims: With on-demand labels and easy returns, you only pay when a return is actually sent.
  • Scalability: Whether you're growing fast or just getting started, we scale with you.

Conclusion: Choose a Carrier That Grows With You

Selecting shipping carriers is one of the most important business decisions you’ll make. It affects your shipping process, your customer expectations, and your bottom line.

By following these best practices for carrier selection, analyzing your shipping options, and using the right carrier comparison strategies, you can build a shipping strategy that supports your business now—and in the future.

Let FirstMile simplify the process for you.

We help you:

  • Find the right carrier for every shipment.
  • Navigate domestic shipping and international shipping with ease.
  • Get peace of mind with tools and service you can trust.
  • Deliver fast, save money, and keep customers happy.

Your shipping shouldn't slow you down—it should help you grow. Let’s build a smarter strategy together.

Contact Us For More
General Inquiries: 888-993-8594
Customer Support: support@firstmile.com
Sales & Partnerships: shipping@firstmile.com
Careers: recruiting@firstmile.com

Get Ready to Transform Your Shipping Experience

Complete the form and our shipping team will reach out to discuss the best plan forward to meet your operational needs.

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