If you’ve ever packed your own ecommerce orders at 2 a.m. with tape stuck to your elbow and boxes stacked to the ceiling, you already know why pick and pack fulfillment services exist.
As brands scale, so do the complexities of order fulfillment. That’s where outsourcing pick and pack operations can become a game-changer. The right partner takes fulfillment off your plate while keeping your customers happy and your shipping costs in check.
So what exactly are pick and pack order fulfillment services, and how do you find a provider that fits your business? Let’s walk through the essentials—and how platforms like eHub can help you simplify the entire process.
What Are Pick n Pack Order Fulfillment Services?
“Pick and pack” refers to the hands-on process of preparing online orders for shipment. It includes:
Picking: locating the ordered items from warehouse inventory
Packing: boxing them up securely with the right materials and labels
Shipping: handing off to the appropriate carrier for delivery
These services are usually handled by third-party logistics providers (3PLs) that specialize in e-commerce fulfillment. They store your inventory, process orders as they come in, and ensure that each package goes out quickly and accurately.
Whether you’re shipping apparel, supplements, or custom kits, a solid pick and pack partner helps you deliver a consistent, professional experience at scale.
What’s Typically Included in Pick n Pack Order Fulfillment Services?
Here’s what you can expect from a full-service pick and pack fulfillment partner:
Inventory Receiving & Storage They accept, organize, and store your inventory in a secure warehouse.
Order Picking When an order comes in, warehouse staff pick the correct SKUs from inventory.
Packing Materials & Assembly Boxes, padding, inserts, branded elements—your items are packed per your specifications.
Labeling & Shipping Carriers are selected, labels are printed, and the order is shipped.
Returns Handling(Optional) Some providers manage returns, restocking, and reverse logistics for you.
When Should You Outsource Pick and Pack Fulfillment?
Outsourcing isn’t just for mega-brands. It’s a smart move when:
Multi-location coverage can reduce shipping times and costs.
Packaging Flexibility
Can they support branded inserts, eco-friendly materials, or custom kitting?
Transparent Pricing
Watch for hidden fees in storage, pick/pack, materials, or returns.
Returns Management
If returns are a major part of your business, make sure it’s built into their workflow.
How eHub Helps You Find (and Optimize) Pick and Pack Fulfillment
At eHub, we connect you with trusted fulfillment partners who are already dialed into the pick and pack process.
But we don’t stop there.
Here’s how eHub makes fulfillment easier:
3PL Matching That Makes Sense
We work with a network of vetted 3PLs, and we help you find one that fits your size, SKUs, and business model. Whether you need regional fulfillment or nationwide reach, we help you choose smart.
Shipping Automation Built In
Once your orders are packed, eHub automatically selects the best shipping method and rate using our intelligent platform. No guesswork, no wasted spend.
Real-Time Order Flow
We connect your e-commerce store directly into your fulfillment stack. Orders flow instantly—there is no manual processing or delay.
Lower Label Costs
Our multi-carrier rate shopping engine helps you save on every shipment by comparing USPS, UPS, DHL, FedEx, GLS, and more.
eHub is the layer that makes your fulfillment partner faster, smarter, and more cost-effective.
Is It Time to Hand Off Pick and Pack?
If you’re burning out on boxes or worried about scaling into Q4, it might be time to outsource your pick and pack operations—and we can help you make the move with confidence.
In the world of e-commerce, the moment an order is placed is just the beginning. What happens next—how that order is processed, packed, shipped, and tracked—can make or break your customer’s experience. That’s why choosing the right ecommerce order processing services is critical to growing your brand and meeting rising customer expectations.
Whether you process 50 orders a day or 5,000, efficient order fulfillment is no longer a back-office function—it’s a core part of your brand promise.
So, what should you look for in a reliable ecommerce order processing solution? And how can platforms like eHub help you scale smarter without sacrificing visibility, speed, or cost?
Let’s break it down.
What Are Ecommerce Order Processing Services?
Order processing refers to every step between a customer clicking “Buy” and the order arriving at their doorstep. These services often include:
Order confirmation
Pick and pack operations
Label generation and shipping
Tracking updates and delivery confirmation
Returns handling
Some brands build these capabilities in-house, while others outsource them to third-party logistics providers (3PLs) or fulfillment partners to reduce overhead, improve speed, and focus on growth.
Why It Matters More Than Ever
Order processing used to be something you figured out after you scaled. Today, it’s a competitive edge—and a potential risk if mishandled.
Here’s why brands are doubling down on fulfillment:
Customer expectations are higher than ever Fast shipping, real-time tracking, and frictionless returns aren’t luxuries—they’re the standard.
Manual processes break at scale What worked at 100 orders/month becomes a bottleneck at 1,000.
Shipping costs continue to climb Without multi-carrier rate shopping or intelligent packing, you’re likely overspending on every label.
A great order processing setup can cut costs, reduce WISMO tickets (“Where is my order?”), and increase repeat purchases.
What to Look for in Ecommerce Order Processing Services
Not all fulfillment partners—or platforms—are created equal. Here’s what to prioritize when evaluating ecommerce order processing solutions:
1. Speed and Accuracy
You need a team that consistently ships fast and gets it right. Even a 1% error rate can snowball into lost customers and support costs.
2. Tech Integrations
Look for services that integrate with your e-commerce stack, such as Shopify, WooCommerce, BigCommerce, marketplaces, and more.
3. Shipping Automation
Manual label generation or carrier selection is a red flag. The best solutions use automation to choose the most cost-effective shipping method for every order.
4. Real-Time Visibility
Both you and your customers should be able to track orders through every step, from processing to doorstep delivery.
5. Returns Management
Returns are part of e-commerce. Make sure the provider offers a clear, scalable way to manage them without creating friction.
6. Transparent Pricing
You shouldn’t have to guess what you’re paying for. Look for clear pricing on storage, pick/pack, materials, and shipping.
How eHub Helps You Simplify and Scale Order Processing
At eHub, we don’t operate warehouses—we connect you to top-tier fulfillment partners and give you the tools to optimize your entire shipping layer.
Here’s how we fit in:
Seamless 3PL Connections
We match you with vetted 3PLs that specialize in ecommerce order processing. Whether you need regional coverage or specific service levels, we help you find the right fit.
eHub integrates directly with your order sources—no more downloading CSVs or copy-pasting into shipping software. Your fulfillment partners get what they need in real time.
Hands-On Support
We don’t just plug you in and disappear. Our team works with you to ensure smooth onboarding, cost optimization, and growth planning.
eHub makes ecommerce order processing easier, more affordable, and more flexible—whether you’re just starting or scaling fast.
Is It Time to Outsource Your Order Processing?
If your in-house team is overwhelmed, accuracy is slipping, or you’re spending too much on shipping, it might be time to explore new options.
The good news? You don’t need to guess.
Our fulfillment advisors can help you explore options that fit your current needs and grow with you. Whether you need multi-warehouse support, better shipping rates, or just a reliable partner, we’ll help you get there.
Louis DeJoy has officially stepped down as Postmaster General and CEO of the U.S. Postal Service, ending a nearly five-year tenure marked by sweeping operational changes and bold modernization efforts.
Doug Tulino, the current Deputy Postmaster General, will serve as acting Postmaster General while the USPS Board of Governors searches for DeJoy’s permanent successor. Global leadership advisory firm Egon Zehnder is leading that search.
DeJoy’s time at USPS was defined by a push for financial sustainability through major network consolidations, shifts in transportation strategy, and a more competitive stance against private carriers like FedEx and UPS. He also sought to modernize USPS’s relationships with package consolidators and launch new products aimed at bolstering its parcel delivery presence.
In his official statement, DeJoy expressed confidence in the agency’s direction, noting that USPS is “well positioned and capable of carrying forward” its transformation strategy.
Why It Matters
Leadership transitions at USPS often ripple across the logistics and e-commerce world. For merchants, shippers, and 3PLs who depend on USPS for affordable and reliable last-mile delivery, the coming months may bring shifts in pricing structures, service offerings, or strategic focus.
We’ll continue monitoring developments as the USPS board selects its next leader—and what that might signal for the future of U.S. shipping infrastructure.
Change is on the horizon for the U.S. Postal Service (USPS) as Postmaster General Louis DeJoy has announced his plans to step down. After leading the USPS for over four years and spearheading significant operational shifts under the “Delivering for America” initiative, DeJoy has tasked the USPS Board of Governors with selecting his successor. While no specific timeline has been outlined, the transition is set to have significant implications for the shipping and logistics industry.
For businesses that rely on USPS for package delivery, this leadership shift raises essential questions about the future of shipping rates, service levels, and operational changes. Here’s what we know and what it could mean for shippers.
DeJoy’s Tenure: A Period of Transformation and Controversy
Since assuming the role of Postmaster General in 2020, Louis DeJoy has overseen sweeping changes at USPS, many of which have directly impacted the logistics and e-commerce industries. His “Delivering for America” plan aimed to modernize USPS operations, reduce costs, and reposition the agency as a competitive force in the package delivery market.
Key initiatives under his leadership included:
Network Overhaul – Consolidating and streamlining USPS distribution to integrate mail and package delivery more efficiently.
Service Standard Adjustments – Extending delivery times for certain mail classes to cut costs.
Financial Reforms – Implementing strategies that aimed to save over $4 billion annually and generate $5 billion in revenue growth.
While DeJoy’s vision sought to make USPS more financially viable, it has faced criticism over service slowdowns, pricing adjustments, and concerns about accessibility, particularly in rural areas.
What This Means for Shippers and the Industry
With DeJoy preparing to step down, businesses that depend on USPS for last-mile delivery, e-commerce fulfillment, and cost-effective shipping should be paying close attention. The appointment of a new Postmaster General could signal changes in key areas:
Rate Adjustments – Will the USPS continue its aggressive pricing changes, or will a new leader take a different approach?
Service Standards – Potential shifts in delivery times and package handling procedures could impact reliability.
Competitive Positioning – With growing pressure from private carriers like UPS, FedEx, and Amazon, the next Postmaster General may redefine USPS’s role in the shipping industry.
What’s Next for USPS?
The shipping and logistics industry will watch closely as USPS prepares for a leadership transition. The decisions made in the coming months will have lasting effects on businesses of all sizes, particularly e-commerce merchants and fulfillment providers.
At eHub, we stay ahead of industry shifts to help businesses optimize their shipping strategies no matter what changes come their way. Whether it’s navigating USPS pricing adjustments, finding the most efficient carrier mix, or leveraging multi-carrier solutions to stay competitive, we provide the tools and insights to keep your business moving forward.
Want to future-proof your shipping strategy?Connect with us today to explore how eHub can help you adapt to USPS changes and make smarter shipping decisions.
Introduction
Logiwa, a leading warehouse management system (WMS), is built for high-volume e-commerce and fulfillment operations. To enhance shipping efficiency, Logiwa seamlessly integrates with eHub’s shipping platform, unlocking access to competitive carrier contracts and powerful automation. This partnership streamlines shipping, reduces costs, and maximizes efficiency for e-commerce businesses.
Cut costs through competitive carrier rates and strategic rate shopping.
Maximize efficiency with batch processing, data-driven decisions, and integrated fulfillment solutions.
Ready to optimize your shipping with Logiwa and eHub? Contact us today!
As the demands of enterprise logistics grow more complex, success hinges on streamlined operations and strategic shipping. That’s why eHub and Deposco have joined forces to transform how businesses manage shipping and fulfillment.
Deposco, a leader in enterprise-level Warehouse Management Systems (WMS), empowers organizations to streamline their operations. eHub enhances this offering with a full-service shipping platform that simplifies logistics, reduces costs, and provides data-driven insights. Together, these tools give enterprise clients an unmatched advantage in today’s complex logistics landscape.
Here’s how this powerful partnership is reshaping shipping for enterprises:
What the Integration Offers
a. Plug & Play Shipping Efficiency
eHub’s Ship API seamlessly integrates with Deposco’s WMS, creating a plug-and-play solution that eliminates technical headaches.
Customers enjoy a single-socket model, accessing eHub’s advanced shipping capabilities without incurring additional socket fees—a significant cost saver in enterprise logistics.
b. Comprehensive Carrier Access
Full integration with the Big Five carriers (UPS, FedEx, USPS, DHL, and Amazon Shipping) ensures wide-ranging shipping options.
Need a niche carrier? Deposco customers can leverage any carrier supported by eHub, all through the same single socket, maintaining cost-effectiveness.
The Analytics Advantage
a. Real-Time Insights
eHub provides instant visibility into key metrics like shipping costs, carrier usage, and performance.
Enterprise clients gain a competitive edge with granular data at their fingertips.
b. Actionable Data for Smarter Decisions
Optimize carrier selection and routing based on performance and cost trends.
Pinpoint cost-saving opportunities to drive down operational expenses.
Track shipping performance over time to identify bottlenecks and improve delivery accuracy.
c. ROI Through Data-Driven Shipping
By leveraging analytics, enterprise clients see measurable cost savings and improved operational efficiency.
eHub’s data tools enable smarter, faster decision-making that scales with business growth.
Value for Deposco Customers
a. Cost-Effective Solutions
Simplified pricing reduces socket fees: with eHub, all carrier integrations are accessed through one socket, saving up to $2,000 per additional carrier.
Competitive rates across multiple carriers ensure businesses are getting the best shipping deals.
b. Enhanced Operational Efficiency
Advanced tools streamline workflows, from carrier selection to rate optimization.
Flexible solutions adapt to high-volume, high-complexity shipping needs.
c. Fast & Seamless Onboarding
Integration is quick and easy, with minimal disruption to current operations.
Enterprise clients can scale their shipping capabilities without missing a beat.
Why This Partnership Stands Out
a. Built for Enterprise
Designed specifically for the complexities of high-volume, high-value logistics.
The combination of Deposco’s robust WMS and eHub’s shipping tools delivers unmatched performance.
b. Combined Expertise
Deposco brings deep expertise in managing warehouse operations at scale.
eHub offers advanced analytics and multi-carrier access, optimizing every step of the shipping process.
c. Scalable & Future-Ready
Whether you’re managing today’s shipping demands or planning for future growth, this partnership provides the flexibility and tools you need to succeed.
Unlock Your Enterprise Shipping Potential
The eHub and Deposco partnership is more than an integration—it is a solution built for enterprise success. Combining Deposco’s cutting-edge WMS with eHub’s advanced shipping capabilities gives businesses the tools to streamline logistics, cut costs, and deliver exceptional results.
Ready to see the difference? Contact us today to learn more or request a demo to experience the eHub & Deposco advantage firsthand.
Smarter Data, Smarter Shipping: The Future of Enterprise Logistics with eHub & Deposco.
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:
Parcel Select: 9.2%
Ground Advantage (retail): 4.9%
Priority Mail: 3.2%
Priority Mail Express: 3.2%
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:
Pitney Bowes’ eCommerce delivery handled a decent volume for the two; however, it could not meet business viability and has since shut down operations. The competition stepped in to take over the business, at least in the short term.
FedEx has been wary of fully committing to low-cost e-commerce partnerships. While they handle some of this volume, they are treading lightly.
UPS took a more significant plunge, integrating services like SurePost to support e-commerce demands. But they’ve also started scaling back, signaling a more cautious approach.
USPS is heavily involved in this space but faces ongoing challenges in balancing volume with profitability. They have changed how they work with Consolidators and are actively working with customers to move that Parcel Select volume directly over to the USPS. It is still being determined if this discounted direct volume will continue and if the USPS decides to behave differently once the Temu and Shein volumes include more and more packages from logistics services customers and not just volume sold on their marketplaces.
Alternative carriers, including regionals and metro/last-mile providers, are stepping up to the plate and are eager to capture as much volume as possible. They face challenges similar to those in their business cases, with constant downward price pressure.
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.