Rate Shopping
Rate shopping is the automatic comparison of carrier and service options for each shipment to select the cheapest one that meets the delivery promise.
Why it matters for ecommerce brands
Rate shopping lowers shipping cost on every order by choosing the cheapest service that still meets your delivery promise. It works best when you have several national and regional carriers with competitive rates, and when rules weigh transit time and reliability, not just price. For example, if 5,000 monthly orders each save an average of $0.80 from picking the best option, that is $4,000 a month. Watch that shifting volume between carriers does not drop you below the tier your contract discounts depend on.
Common questions
- Is rate shopping always the cheapest option?
- It selects the lowest rate that meets set rules, but the cheapest label may not be the best total value if it is slower or less reliable. Most setups include delivery time and service rules, not just price.
- Do 3PLs pass rate shopping savings on to brands?
- It depends on the contract. Some 3PLs bill the actual label cost or a fixed markup, while others charge a set rate per shipment and keep the savings, so ask exactly how postage is billed.
- What are regional carriers?
- Regional carriers deliver parcels within part of the country, such as the West Coast or the Northeast, often at lower rates or with faster ground transit than national carriers. They are strong rate shopping options within their coverage area.