Shipping costs can quickly eat into your profit margins, but with the right strategies, you can effectively lower these expenses without sacrificing service quality. This guide outlines ten actionable methods to help your business save money on shipping. Learn how to reduce shipping costs right away.

Key Takeaways  

– Negotiate carrier rates: Use your shipping volume and service needs to secure better pricing.  

– Optimize packaging: Minimize weight and dimensions to avoid unnecessary fees.  

– Stay informed: Regular shipment audits and awareness of rate changes can uncover savings opportunities.  

1. Negotiate Competitive Carrier Rates 

Carriers play a significant role in your shipping expenses, and negotiating favorable rates can make a big difference. Leverage your shipping volume, compare multiple carriers, and consider bundling services for better terms.  

– Volume Discounts: Commit to higher shipping volumes to access lower per-shipment rates.  

– Carrier Comparison: Use your existing contract as leverage to shop for better offers.  

– Service Bundling: Combine shipping and warehousing services for potential discounts—though this approach may limit future flexibility.

Pro Tip: Negotiating with carriers can be complex. A third-party expert, like eHub, can help you secure the best terms by analyzing your shipping data and carrier contracts.

2. Optimize Package Weight and Dimensions  

Shipping costs often depend on the size and weight of your packages. Optimizing packaging can significantly reduce costs.  

– Custom Packaging: Use the right-sized packaging to minimize wasted space.  

– Lightweight Materials: Swap heavy materials for lighter options like poly mailers or air pillows.  

– Accurate Reporting: Ensure your shipments’ dimensional weight and size are correct to avoid overcharges.

3. Use Carrier-Provided Packaging 

Take advantage of free or discounted packaging from carriers like USPS, UPS, or FedEx. Using their standardized options can reduce dimensional fees and save up to 20% on costs.

4. Source Discounted Shipping Supplies  

Buying shipping materials in bulk can lead to substantial savings. Check with wholesalers, local suppliers, and online marketplaces for discounted boxes, bubble wrap, and mailers.

5. Adopt Prepaid Shipping  

Prepaid shipping labels allow you to lock in discounted rates for consistent shipment sizes. Many carriers and eCommerce platforms offer prepaid options that can save up to 20%.  

– Simplified Pricing: Prepaid labels make it easier to calculate shipping costs and offer flat-rate shipping to customers.  

– Predictable Costs: Ideal for businesses with uniform shipment sizes.  

6. Utilize Third-Party Insurance  

Third-party insurance is often more affordable than carrier-provided options. For example, insuring $100 through a carrier might cost $0.90, while third-party providers charge around $0.55.  

Switching to third-party insurance can reduce expenses while protecting against shipping risks.

7. Explore Hybrid Shipping Solutions  

Hybrid shipping services combine the strengths of multiple carriers to cut costs. For instance, UPS can handle initial transit, while USPS manages last-mile delivery.  

– Cost Savings: Save up to 50% compared to a single carrier.  

– Tradeoffs: This may result in slightly longer delivery times.  

8. Audit Your Shipping Processes  

Regular audits can help you uncover cost-saving opportunities. By reviewing invoices and shipment details, you can:  

– Identify overcharges.  

– Verify package dimensions.  

– Optimize routes and shipping speeds.  

At eHub, we provide tools to help you stay on top of your shipping data, ensuring maximum efficiency and savings.

9. Leverage Technology for Rate Comparison  

Shipping rate comparison tools simplify finding the most affordable options for each shipment. eHub’s platform lets you compare rates across carriers and integrate seamlessly with your systems to streamline the entire process.

10. Partner with a 3PL Provider  

Third-party logistics (3PL) providers like those in eHub’s exclusive network can help optimize your entire fulfillment process. With services like inventory management, kitting, and shipping optimization, 3PLs ensure your products reach customers efficiently and affordably.  

Save More with eHub  

At eHub, we specialize in helping businesses reduce shipping costs through tailored solutions, expert negotiation, and access to discounted rates. Whether you’re looking for carrier comparisons, 3PL matching, or advanced shipping analytics, we’re here to help your business thrive.

Introduction

The Canada Post strike, which began on November 15, has disrupted parcel deliveries across the country at one of the busiest times of the year. With over 55,000 postal workers off the job, negotiations between Canada Post and the Canadian Union of Postal Workers remain ongoing. Meanwhile, shippers are left scrambling to find alternatives during the holiday peak season.

Here’s what you need to know about the strike and how it’s affecting shippers across Canada.

A Logistical Standstill

At the heart of the strike are demands for better wages, improved safety conditions, and an expansion of public postal services. While both sides are still negotiating, delays have begun piling up. Even when the strike ends, Canada Post has indicated it will take time to clear the backlog of packages, which could stretch for up to 10 days.

For shippers relying on Canada Post, this means bracing for continued disruptions and potentially seeking alternative carriers.

The Ripple Effect on Carriers

The strike has sent ripple effects throughout the industry. Major carriers like UPS and Purolator are taking on extra volume, but their networks are already stretched thin. Some are freezing shipments or limiting package intake to maintain operations. FedEx, for example, has implemented temporary restrictions at its retail locations, while Purolator has paused service for select shipping partners.

This influx of volume is creating a bottleneck, with on-time delivery rates in Canada reportedly dropping by 14% since late October.

How Shippers Can Adapt

To navigate the disruptions, shippers are exploring creative solutions:

Diversify Carrier Options: Relying on one carrier is a risk—now more than ever. Regional and niche providers can help cover gaps, especially in less urban areas.

Use Door-to-Door Services: Opt for services that manage deliveries end-to-end to ensure your U.S.-to-Canada shipments bypass Canada Post entirely.

Keep Customers Informed: Clear communication about potential delays, pickup options, or alternative shipping methods can help maintain customer satisfaction.

These strategies not only address immediate challenges but also help build long-term resilience.

A Call to Prepare for the Future

The Canada Post strike highlights the importance of having a robust logistics strategy. While the strike will eventually end, it’s a stark reminder of how dependent many shippers are on a single provider. Diversifying carrier networks, leveraging new technologies, and maintaining flexibility are key to staying ahead in an unpredictable industry.

At eHub, we’re here to help shippers navigate challenges like these with ease. Whether it’s finding the right carrier or optimizing your shipping strategy, our expertise ensures you’re ready for whatever comes next.

Introduction

On January 19, 2025, the U.S. Postal Service (USPS) will implement a series of rate increases for its shipping services, including a significant rise in Parcel Select rates. These changes are part of USPS’s ongoing efforts to bolster its financial health and compete in an increasingly competitive delivery market. For eCommerce businesses, understanding the details of these USPS 2025 rate hikes is crucial for maintaining cost-effective shipping strategies.

Breaking Down the Rate Hikes  

The planned increases span several services, with Parcel Select seeing the steepest hike:  

The Parcel Select increases are particularly noteworthy, with entry at last-mile delivery units experiencing a jump of 10.3%. In contrast, some entries, such as hub-level injections, will not increase, reflecting USPS’s strategy to encourage earlier package integration into its network.

Why Is USPS Raising Rates?  

USPS faces significant financial challenges, posting a $9.5 billion net loss in fiscal year 2024 despite a slight revenue increase to $79.5 billion. These rate hikes are designed to:  

1. Support Network Investments: USPS is modernizing its infrastructure to improve efficiency and service reliability.  

2. Align Pricing with Goals: The agency aims to incentivize volume entry further upstream in its network, optimizing its operational model.  

3. Compete with FedEx and UPS: By implementing rate hikes lower than those of its competitors, USPS seeks to remain an attractive option for merchants.  

Key Impacts on Merchants  

1. Higher Parcel Select Costs 

Parcel Select is popular among eCommerce businesses relying on USPS for last-mile delivery. However, a 9.2% average increase—following a 25% jump earlier this year—raises concerns about cost sustainability for high-volume shippers.  

2. Live Animals and Perishables Fees  

USPS is introducing new fees for shipping live animals and perishable goods. These include:  

– $7.50 per shipment for Ground Advantage and Priority Mail Express.  

– $15 per shipment for Priority Mail.  

While the fees aim to offset handling costs, they could impact businesses in specialized sectors, such as pet supplies or food delivery services.  

3. Competitive Pricing Strategy  

Although the increases are significant, USPS’s rate hikes remain more modest compared to FedEx and UPS. This strategic pricing could make USPS a viable alternative for merchants looking to mitigate rising shipping costs.

How eHub Can Help You Navigate These Changes  

At eHub, we understand how sudden rate changes can disrupt your shipping operations. Our advanced tools and access to pre-vetted 3PL partners can help you:  

– Find Cost-Effective Shipping Solutions: Leverage our network to secure competitive rates and reduce your shipping expenses.  

– Adapt to New Challenges: Our technology enables seamless integration with USPS and other carriers, ensuring you can pivot quickly to new cost structures.  

– Maximize Efficiency: Optimize your fulfillment strategy with data-driven insights, saving both time and money.  

Conclusion  

The USPS 2025 rate hikes underscore the importance of staying informed and proactive in managing shipping costs. Whether you’re navigating Parcel Select increases or new fees for specialized shipments, eHub is here to help. Our industry experts can help ensure your business remains competitive and resilient in the face of these changes.  

The rise of Chinese e-commerce giants like Temu and Shein is hard to ignore. They’ve already disrupted the online shopping experience with ultra-low prices and trend-chasing speed. But their latest move might be the biggest game-changer yet: investing in U.S. warehousing and fulfillment operations.

It’s no secret that U.S. consumers love a good deal, and these companies have built their brands around satisfying that appetite. However, the question remains: how will their new U.S. warehousing strategy impact American fulfillment, shipping rates, and carrier relationships? Let’s dive in.

Why Are They Investing in U.S. Warehousing?

Faster Delivery, Faster Growth

      One reason for this move is speed. While shipping directly from China kept costs low for the Chinese e-commerce giants, it meant longer delivery times that didn’t always meet U.S. consumers’ expectations for quick turnaround. By storing products domestically, they can cut down on delivery windows, aiming to satisfy the “I need it now” mentality.

      Avoiding Compliance Headaches

        Bringing inventory into the U.S. earlier in the process also helps navigate import compliance issues. With shifting tariffs and regulations (think de minimis thresholds and tariff disputes), this strategy can help reduce costs associated with customs compliance.

        Adapting to Market Demand

          The e-commerce boom is still driving significant parcel volume in the U.S.; these companies are all about capitalizing on that. However, they still demand rock-bottom shipping rates, creating a unique pressure on the carriers they work with.

          Carrier Reactions: A Mixed Bag

          With Temu and Shein putting pressure on shipping costs, U.S. carriers feel the squeeze between taking on the volume and determining if it really means good business. Here’s what we’re seeing across the industry:

          The Big Questions for Temu, Shein, and U.S. Carriers

          The shift to domestic fulfillment for Chinese e-commerce giants brings up some critical questions:

          1. How Long Will Carriers Offer Discounted Rates?

              Carriers that agree to these low-cost partnerships must make it worthwhile in terms of volume and value. At some point, they’ll have to weigh the trade-offs between volume and profitability.

              2. Will More Carriers Start Limiting Volume?

                As carriers become more strategic about their partnerships, they may start turning away low-profit volume to protect their margins, which could change the dynamics for Temu and Shein.

                3. Will leaving some or all of the low-priced volume impact other carrier customers?

                  With reduced cost and volume density coverage for those carriers who decide to reduce or eliminate low-margin volume, the carriers may need to adjust their networks, including potential service expectations and pricing to other customers.

                  4. Will Temu and Shein Build or Buy Their Own Carriers?

                    Given the challenges in securing affordable shipping, Temu and Shein might explore acquiring U.S.-based carriers or building their own last-mile infrastructure, similar to Amazon’s approach.

                    What’s Next?

                    As these companies scale up their U.S. warehousing, we’re likely to see continued growth in parcel volume across the board, putting pressure on carriers. High-volume, low-cost partnerships may tempt some carriers, while others will be cautious, focusing on profitability and risk mitigation. This balancing act could eventually force Temu and Shein to either accept slightly higher rates or look for alternatives—such as deeper vertical integration across their delivery networks.

                    What This Means for Merchants and 3PLs

                    The competitive landscape for brands and third-party logistics (3PL) providers is shifting. The demand for faster, cheaper delivery is here to stay, and companies like Temu and Shein are proving that it can be done—if the right fulfillment strategies are in place. Merchants might feel the ripple effects as carriers adjust their rate structures, especially if they compete for capacity with high-volume shippers. In addition, Merchants may feel additional competitive pressure because consumers see better delivery times for products bought via Temu and Shein as more inventory moves on-shore and near-shore.

                    The entry of foreign giants into U.S. warehousing and fulfillment isn’t just a trend; it’s a shift that could reshape logistics strategies for everyone involved. And as we’ve seen time and time again in e-commerce, when one player shakes things up, the ripple effects are felt industry-wide.

                    At eHub, we’re watching these trends closely, ready to help merchants navigate an evolving logistics landscape confidently. Whether finding the right 3PL, getting competitive shipping rates, or scaling with flexibility, we’re here to ensure your logistics are set up for success—no matter what changes the future brings.

                    When it comes to logistics and fulfillment, warehouse space is more than just square footage—it’s a valuable asset that, when managed correctly, can drive efficiency, reduce costs, and improve your overall operations. But maintaining that space effectively requires more than just stacking boxes neatly. It’s about strategic planning, smart organization, and ongoing attention to detail. In this guide, we’ll walk you through the key guidelines for maintaining warehouse space to ensure your operations run smoothly and efficiently.

                    1. Regularly Assess Space Utilization

                    The first step in maintaining warehouse space is to understand how it’s currently being used. Regular audits of your warehouse layout and space utilization are essential. Are certain areas overcrowded while others are underutilized? Are products stored in a way that maximizes both vertical and horizontal space? By regularly assessing how your space is used, you can identify opportunities for improvement and make the necessary adjustments to optimize your layout.

                    2. Implement Efficient Storage Solutions

                    Efficient storage is the backbone of a well-maintained warehouse. Using the right storage solutions can make a world of difference in how space is utilized. Consider the following:

                    – Pallet Racking Systems: These systems allow you to make the most of vertical space, storing products securely and accessibly. They’re ideal for warehouses that handle large quantities of palletized goods.

                    – Shelving Units: For smaller items or products that aren’t stored on pallets, shelving units provide organized, easily accessible storage options that can be adjusted to fit your inventory needs.

                    – Mezzanine Floors: If you’re running out of floor space, adding a mezzanine level can effectively double your storage capacity without expanding your warehouse’s footprint.

                    3. Prioritize Organization and Labeling

                    An organized warehouse is an efficient warehouse. Implement a systematic approach to organization, ensuring that every item has a designated place. Proper labeling is crucial—use clear, easy-to-read labels on all storage units, racks, and bins. This not only helps your team locate products quickly but also reduces the likelihood of misplaced items, which can disrupt your workflow.

                    4. Maintain Cleanliness and Safety

                    Maintaining a clean and safe warehouse is essential for both efficiency and the well-being of your employees. Cluttered aisles and disorganized spaces can lead to accidents and slow down operations. Regularly schedule cleaning sessions to keep your warehouse tidy. Additionally, ensure that all safety protocols are followed, including clear signage, proper lighting, and accessible emergency exits. A clean, safe warehouse is a productive one.

                    5. Optimize Inventory Management

                    Inventory management plays a crucial role in maintaining warehouse space. Overstocking can lead to clutter and wasted space, while understocking can disrupt operations. Implement an inventory management system that helps you maintain optimal stock levels. Use data to forecast demand accurately and adjust your inventory accordingly. This approach not only saves space but also ensures that your warehouse operates at peak efficiency.

                    6. Leverage Technology for Space Optimization

                    Modern technology offers powerful tools for optimizing warehouse space. Warehouse Management Systems (WMS) can provide real-time data on inventory levels, storage locations, and space utilization. These systems help you make informed decisions about where to store products and how to rearrange your warehouse layout to maximize space. Additionally, automation tools like conveyor systems and robotic pickers can streamline operations, reducing the need for excessive storage space.

                    7. Regular Maintenance and Upgrades

                    Maintaining warehouse space isn’t a one-time task—it’s an ongoing process. Regularly inspect your storage systems, equipment, and infrastructure to ensure they’re in good condition. Address any issues promptly to avoid disruptions. Additionally, consider upgrading your storage solutions and equipment as your business grows. Investing in newer, more efficient systems can pay off in the long run by improving space utilization and operational efficiency.

                    How eHub Can Help

                    At eHub, we understand the challenges of maintaining warehouse space and its impact on your business. That’s why we’ve built a network of expert 3PL partners who are masters at optimizing warehouse operations. Our advanced matching technology connects you with a 3PL partner who not only meets your storage needs but also excels at maintaining an organized, efficient warehouse.

                    Whether you’re looking to streamline your existing operations or expand into new markets, eHub has the resources and expertise to help you succeed. With our guidance and the right warehouse partner, you can maintain your warehouse space like a pro, ensuring that your business runs smoothly and efficiently.

                    When you’re expecting a new piece of furniture, whether it’s a sleek new sofa or a much-needed dining table, there’s more to consider than just the excitement of getting your new item. One common question that pops up is, “Do you tip furniture delivery drivers?” It’s a fair question, and like many aspects of service, the answer isn’t always straightforward. Let’s break it down and explore the etiquette of tipping for furniture delivery.

                    The Short Answer: It Depends

                    Tipping is a way to show appreciation for good service, but it’s not always expected. In some industries, like dining or ride-sharing, tipping is almost second nature. But when it comes to furniture delivery, the practice isn’t as clear-cut. Whether you should tip—and how much—depends on several factors, including the level of service provided, local customs, and your own discretion.

                    Factors to Consider When Tipping Furniture Delivery

                    1. The Complexity of the Delivery

                    If your delivery involves more than just dropping a box at your door, tipping becomes more relevant. Did the delivery team navigate tight spaces, stairs, or tricky turns? Did they assemble the furniture or take extra care to place it exactly where you wanted it? These added services can merit a tip as a way of saying thank you for the extra effort.

                    2. The Condition of Your Delivery

                    If the furniture arrives in perfect condition, without a scratch or dent in sight, that’s a good sign that the delivery team handled it with care. However, if there are issues with the delivery, like damage to the furniture or your home, you might want to address these concerns before considering a tip.

                    3. The Weather and Timing

                    Sometimes, the conditions under which the delivery takes place can play a role in tipping. Did the delivery team show up during a rainstorm or in the sweltering heat? Were they punctual, or did they go out of their way to accommodate your schedule? Tipping can be a way to acknowledge their effort in less-than-ideal circumstances.

                    4. Company Policy

                    It’s also worth checking if the delivery company has a tipping policy. Some companies include a service charge or delivery fee in the total cost, which may cover the workers’ compensation. Others may have policies that discourage or prohibit tipping, so it’s always good to know what’s expected.

                    Delivery Drivers and Specialized Equipment: Lift Gates and Beyond

                    When it comes to large or heavy furniture, delivery drivers often rely on specialized equipment to safely transport your items. One common piece of equipment is the liftgate—a hydraulic platform attached to the back of the delivery truck that allows heavy items to be lowered from the truck bed to the ground with ease. If your furniture delivery requires the use of a lift gate or other specialized tools, this can add to the complexity of the job.

                    Here’s why this matters:

                    If your delivery involves the use of a lift gate or other specialized equipment, it’s a good idea to consider tipping on the higher end of the scale. This acknowledges the added effort and skill required to deliver your items safely.

                    How Much Should You Tip?

                    If you decide to tip, the next question is how much. The general rule of thumb for tipping furniture delivery is between $5 and $20 per person, depending on the complexity and quality of the service. Here’s a quick guide:

                    – $5-$10 per person: For a straightforward delivery where the team just brings the furniture inside.

                    – $10-$20 per person: For deliveries involving multiple flights of stairs, tight spaces, or if they help with assembly.

                    – Above $20 per person: For exceptional service where the delivery team goes above and beyond, such as navigating challenging conditions or providing outstanding care and professionalism.

                    When Tipping Isn’t Necessary

                    While tipping is appreciated, it’s not mandatory. If the service didn’t meet your expectations, or if the delivery was part of a white-glove service that already includes a tip, you might decide to forgo it. Similarly, if the company discourages tipping or if you’re on a tight budget, it’s okay to skip it.

                    The important thing is that tipping should be a gesture of gratitude, not an obligation.

                    In the rapidly evolving landscape of e-commerce and logistics, efficiency isn’t just a buzzword; it’s the cornerstone of success. One of the unsung heroes in this efficiency quest is the humble pallet storage warehouse. At first glance, it might seem like just another facility with rows of neatly stacked pallets, but in reality, it’s a critical player in ensuring that your products move seamlessly from point A to point B—and ultimately to your customers’ doorsteps.

                    What Is a Pallet Storage Warehouse?

                    Let’s start with the basics. A pallet storage warehouse is a specialized facility designed to store goods on pallets, which are typically wooden or plastic platforms that hold large quantities of products. These pallets can be stacked vertically, maximizing the use of space in a warehouse. This vertical storage method allows businesses to store more products in less space, reducing the need for expansive facilities and cutting down on overhead costs.

                    But a pallet storage warehouse isn’t just about stacking products high and hoping for the best. It’s a well-oiled machine that requires careful planning, sophisticated management systems, and a keen understanding of supply chain dynamics.

                    Why Pallet Storage Warehouses Matter

                    In today’s world, where customers expect next-day delivery and businesses need to keep their inventory moving, having a reliable pallet storage warehouse is non-negotiable. Here’s why:

                    1. Space Optimization: As mentioned earlier, pallet storage warehouses make the most of available space. By going vertical, these warehouses can store significantly more products than traditional shelving units. This space efficiency translates into cost savings and the ability to scale operations without constantly expanding the physical footprint.

                    2. Efficient Inventory Management: Modern pallet storage warehouses are equipped with state-of-the-art Warehouse Management Systems (WMS). These systems track every pallet, ensuring that products are stored in optimal locations and can be retrieved quickly when needed. This level of organization minimizes errors and speeds up the picking and packing process, leading to faster order fulfillment.

                    3. Cost-Effective Solutions: By storing products on pallets, businesses can reduce labor costs. Moving large quantities of goods all at once is easier, reducing the need for manual handling. This efficiency lowers the overall cost per unit, which is crucial in industries where margins are razor-thin.

                    4. Scalability: As your business grows, so does the need for storage space. Pallet storage warehouses offer the flexibility to scale up without significant upfront investments. Whether you’re handling seasonal peaks or experiencing steady growth, these warehouses can adapt to your needs.

                    Choosing the Right Pallet Storage Warehouse

                    Not all pallet storage warehouses are created equal. When selecting a partner, there are a few key factors to consider:

                    – Location: Proximity to major transportation hubs is critical. A well-located warehouse can reduce shipping times and costs, which directly impacts customer satisfaction.

                    – Technology: Look for a warehouse that uses advanced WMS and automation tools. These technologies ensure accuracy, speed, and efficiency—three things that every successful business needs.

                    – Capacity: Ensure that the warehouse has the capacity to handle your current needs and the flexibility to grow with you. The last thing you want is to outgrow your warehouse partner just as your business starts to take off.

                    – Service Level Agreements (SLAs): Make sure that your warehouse partner offers clear SLAs so you know exactly what to expect in terms of service quality, turnaround times, and responsiveness.

                    How eHub Can Help

                    At eHub, we understand that choosing the right pallet storage warehouse is crucial to your business’s success. That’s why we’ve built a network of pre-vetted 3PL partners who excel in pallet storage and beyond. We match you with a warehouse that not only meets your current needs but also has the capacity and technology to support your growth.

                    With our advanced matching technology, you can rest easy knowing that your products are in good hands—stored efficiently, managed with precision, and ready to ship at a moment’s notice. Whether you’re a small business just starting out or an established brand looking to optimize your supply chain, we’ve got the expertise and resources to help you succeed.

                    As we approach the new year, speculation is mounting around potential USPS rate changes for packages under one pound. A recent LinkedIn post from an industry insider hinted that USPS’s Ground Advantage (GA) rates may soon experience a significant hike—possibly exceeding 10%—by early 2025. This change could reshape the landscape for e-commerce and other businesses that rely on affordable USPS options for light package deliveries.

                    What’s Behind the Potential Hikes?

                    Over the past four years, Ground Advantage and First-Class Package (FCP) rates for sub-1lb packages have steadily climbed, often aligning with or surpassing industry-wide general rate increases (GRIs). Here’s a closer look at the yearly increases:

                    – 2021: 5.7%

                    – 2022: 7.5%

                    – 2023: 7.9%

                    – 2024: 5.5%

                    These incremental hikes suggest a trend, but some analysts argue that USPS has historically undervalued its sub-1lb pricing compared to competitors, creating room for upward adjustments. As USPS aims to boost revenue per piece (RPP) and meet competitive pressures, a more substantial rate change could be on the horizon.

                    USPS’s Bigger Strategy

                    Industry experts believe Postmaster General Louis DeJoy and his leadership team are keen on transforming USPS to stay competitive. A significant rate increase could align with USPS’s broader pricing strategy, aiming to enhance revenue while remaining competitive against major carriers like UPS and FedEx. One pivotal factor is the possible elimination of Parcel Select Lightweight (PSLW) rates offered through workshare partners. Should USPS phase out this rate category, it would gain more direct control over the sub-1lb package market, potentially paving the way for notable price adjustments with minimal outside influence.

                    Will USPS Lose Volume with a 10%+ Rate Hike?

                    A double-digit rate increase understandably raises questions about customer retention. USPS would need to weigh the potential revenue gains against the possibility of losing volume to cost-sensitive competitors. Smaller carriers are already capturing market share with sub-$4 rates, offering budget-friendly options that could appeal to price-conscious shippers.

                    That said, USPS may view some volume loss as acceptable. As insiders suggest, DeJoy might not consider these smaller carriers a significant threat if USPS can maintain higher rates on core GA shipments. Additionally, USPS might address sub-1lb volume strategically through contract pricing, such as Negotiated Service Agreements (NSAs) or platform discounts, which would help retain key customers even amidst broader rate increases.

                    What’s Next?

                    With rate changes potentially announced within the next three to four weeks, the shipping industry awaits what could be one of USPS’s most significant moves in recent years. If Ground Advantage sub-1lb pricing undergoes a marked increase, e-commerce shippers and small businesses will need to quickly adapt, possibly exploring alternative carriers or adjusting pricing models to maintain their profit margins.

                    Final Thoughts: Will USPS Go Big?

                    Given USPS’s history of incremental yet strategic rate adjustments, a 10%+ increase for sub-1lb packages seems plausible. However, the full impact remains speculative until USPS confirms its new rates. What is clear is that USPS is determined to strengthen its market position, even if it means shaking up the sub-1lb package pricing many shippers rely on.

                    Stay tuned as we track this developing story to update you on any changes that could impact your shipping strategy.

                    The logistics landscape is evolving rapidly, with businesses striving to meet ever-increasing customer demands. At the recent Deliver America logistics conference, Adam McCoy, COO of eHub, took center stage alongside Nathan Goobie, Director of Small Parcel and Shipping Solutions at Techdinamics, to explore a game-changing strategy: Hybrid Fulfillment.

                    In their joint keynote presentation titled “Achieving Amazon-Level Success: The Power of Hybrid Fulfillment,” Adam and Nathan shared invaluable insights into how this strategic approach is shaping the future of e-commerce fulfillment.

                    What is Hybrid Fulfillment?

                    Hybrid fulfillment combines the strengths of in-house fulfillment with third-party logistics (3PL) providers to create a scalable, flexible solution for businesses. This powerful strategy allows companies to scale efficiently while maintaining control over their core competencies.

                    Key Takeaways from the Session:

                    Unpacking Amazon’s Fulfillment Secrets: Adam and Nathan discussed the methods that have made Amazon a leader in e-commerce. By analyzing and adapting Amazon’s fulfillment model, businesses of all sizes can position themselves for growth and success.

                    Innovative Approaches to Hybrid Fulfillment: The session highlighted how businesses can tailor hybrid strategies to their unique needs, ensuring they benefit from the best of both worlds – in-house fulfillment and 3PL partnerships.

                    Trends Shaping the Fulfillment Industry: Adam and Nathan also discuss emerging trends influencing the fulfillment landscape, helping attendees stay ahead in an increasingly competitive market.

                    Why Hybrid Fulfillment Matters:

                    The benefits of hybrid fulfillment go beyond just scalability and flexibility. As Adam and Nathan emphasized, this strategy helps businesses:

                    Increase Scalability: Adapt to fluctuating demand without the burden of infrastructure investment.

                    Cut Costs: Leverage 3PL providers to manage warehousing and fulfillment, avoiding large upfront expenses.

                    Boost Efficiency: Focus on core business functions while ensuring seamless order fulfillment.


                    Enhance Customer Experience: Deliver faster and meet customer expectations with a broader inventory reach.

                    Watch the Full Session

                    Want to dive deeper into the conversation? The entire keynote session, filled with actionable insights and strategic recommendations, is available to watch. Don’t miss this opportunity to learn how you can implement hybrid fulfillment and achieve Amazon-level success.

                    Ready to Transform Your Fulfillment Strategy?

                    eHub is here to help. Contact us today to learn more about how hybrid fulfillment can work for your business.

                    Summarized Transcript:

                    —

                    “Achieving Amazon-Level Success: The Power of Hybrid Fulfillment” Session

                    —

                    **Dominic:**  

                    We would like to welcome you all to the session *Achieving Amazon-Level Success: The Power of Hybrid Fulfillment*. I have two bios for you here.  

                    We have Nathan, who’s an experienced leader in IT and supply chain, focusing on parcel solutions and operational growth. He’s currently serving as the Director of Parcel and Shipping Solutions at Techdinamics.  

                    I have Adam McCoy here, who’s an accomplished product leader with over 15 years of experience in product conception, launch, and management. In 2023, Adam transitioned to the role of COO at eHub. They used to be mortal enemies, but now they’re working together to present to you their feelings of love and collaboration.  

                    Please give a silent clap for them. Look at that, everyone’s silently clapping, love it! Okay, let’s jump right into it.

                    —

                    **Adam McCoy:**  

                    Thanks, Dominic. So today, we’re going to focus on achieving Amazon-level success through hybrid fulfillment. We’ll cover different topics, including defining hybrid fulfillment, touching on automation, technology, and the network required for this setup. By the end of today, we want you to understand what hybrid fulfillment is and how it can help you compete with Amazon or achieve success similar to Amazon.

                    —

                    **Nathan Goobie:**  

                    Great, thanks, Adam.

                    Amazon has had incredible growth, and it’s amazing to watch their expansion. To put things into perspective, the Las Vegas Metro area has just under 3 million people. If you cut that in half, it roughly represents the number of employees Amazon has. Their footprint is even more impressive. Amazon has 623 million active square feet.

                    For comparison, we’re in the Horseshoe Casino, which has about 68,000 square feet. So, Amazon’s footprint equals over 9,000 Horseshoe Casinos!

                    Even more impressive than their footprint is what they’ve done from a logistics perspective. Amazon created an industry standard in logistics. They can deliver to 72% of the U.S. within 24 hours, which gives them a massive e-commerce advantage.

                    —

                    **Adam McCoy:**  

                    How many of you have purchased a product from Amazon simply because it would arrive quickly? Almost every hand goes up. Amazon has built a competitive advantage around fast shipping, and that’s a core part of their success.

                    —

                    **Nathan Goobie:**  

                    It’s fascinating how, regardless of size, every brand faces the same challenge—reducing delivery times. Whether you’re a small retailer or a large business, we’re all trying to get products to customers faster and more affordably. Today, we’ll discuss how hybrid fulfillment can help tackle these challenges, with scalability and flexibility being key.

                    —

                    **Adam McCoy:**  

                    Nathan made a great point. Whether you’re a big or small company, the problems can be similar, just at different scales. One big challenge Amazon has tackled better than others is the regulatory landscape, especially in Europe, where fulfillment becomes complicated due to varying tax codes and compliance requirements.

                    Today, we’re going to discuss strategies for hybrid fulfillment and how it can help overcome these challenges.

                    —

                    **Nathan Goobie:**  

                    Let’s dive into what hybrid fulfillment is. Imagine you’re a brand fulfilling orders in-house on the East Coast. With hybrid fulfillment, you can partner with a 3PL on the West Coast to serve that region more efficiently. This allows you to scale while taking advantage of your strengths and those of your partners.

                    —

                    **Adam McCoy:**  

                    I love the hybrid car analogy—balancing the benefits of gas and electric cars. Hybrid fulfillment is about getting the best of both in-house and 3PL fulfillment. You scale without losing control or needing significant capital investments.

                    —

                    **Nathan Goobie:**  

                    Absolutely. And let’s not forget the importance of technology. It’s what ties everything together. Whether it’s automation or inventory management, having the right tech stack is key to making hybrid fulfillment work seamlessly.

                    —

                    **Adam McCoy:**  

                    Technology is critical, especially when managing multiple locations. Whether it’s forecasting inventory or measuring performance, analytics and transparency are essential for success.

                    —

                    **Nathan Goobie:**  

                    We’ve also seen companies like James Cargo, who started in the UK, expand globally using hybrid fulfillment. By partnering with 3PLs in the U.S. and Canada, they’ve managed to offer fast and affordable shipping while leveraging the same technology across locations. It’s a perfect example of how hybrid fulfillment enables brands to achieve Amazon-level success.

                    —

                    **Adam McCoy:**  

                    Another great example is Gab Wireless. They use hybrid fulfillment to handle products requiring serialization. Instead of managing everything in-house, they partnered with a 3PL specializing in serialized products, allowing them to scale without increasing capital expenditures.

                    —

                    **Nathan Goobie:**  

                    Exactly. It’s all about delivering a five-star experience to your customers—reducing shipping times, improving efficiency, and building a network that supports your business goals. With the right hybrid fulfillment strategy, you can compete with even the biggest players in the industry.

                    —

                    **Dominic:**  

                    Thanks to Nathan and Adam for sharing those insights. Now, let’s open it up for questions!

                    —

                    FedEx is set to increase its package and freight shipping rates by an average of 5.9%, effective January 6, 2025. The latest FedEx rate hike will affect both domestic and international deliveries, including popular services like Ground Economy, Ground Multiweight, International Premium, and various freight options.

                    In addition to the rate hike, businesses should be aware of increased fees for residential deliveries, specific ZIP codes, and packages requiring extra handling. For e-commerce shippers relying on Ground Economy, these changes mean it’s time to revisit your shipping strategies, especially when dealing with heavier packages and remote destinations.

                    Brandon Staton, founder of Shipmint, pointed out the impact on shipping costs: “E-commerce shippers using Ground Economy services will need to keep a close watch on how the increases in both minimum charges and surcharges impact their shipping costs.” 

                    With FedEx’s two-day air services facing even steeper rate hikes, some shippers may consider ground delivery as an alternative. However, Adi Karamcheti, consultant at Shipware, warns that ground delivery rates for longer-distance shipments will also see noticeable increases. “It seems FedEx thinks they can get shippers to pay more to get things delivered before the third day,” he noted.

                    While UPS has yet to announce its 2025 rate changes, both major carriers operate in a post-pandemic environment where demand is softer, giving businesses more leverage in shipping negotiations. “Never accept what the big two offer as pricing concessions as the final say,” Karamcheti advises. “Make sure that you do actually negotiate with them.”

                    What This Means for You:

                    FedEx’s annual rate adjustments are a good reminder to review your shipping mix and explore ways to minimize costs. 

                    At eHub, we’re ready to help you navigate these changes—whether it’s by finding alternative carriers, optimizing your shipping strategy, or tapping into our partner network to save you time and secure the best rates for your business.