In parcel shipping, a single “forever” carrier isn’t a safety net; it’s a bottleneck. In extreme situations, it’s a liability.  Volumes rise, surcharges shift, and customer promises don’t budge.  

Market shifts; customer shifts.  How can you not?

The durable play is policy, not panic: a rules-driven, multi-carrier parcel strategy that protects both cost and delivery commitments, especially when conditions change hour to hour.

With peak volume set to hit 2.3B parcels (+5% YoY) this holiday, the only durable way to protect cost and promise dates is by curating a bench that flexes when the network doesn’t – or can’t.

The Case for a Flexible Parcel Strategy

Parcel networks are living systems: capacity swings, lane performance drifts, and GRIs compound quietly until margin disappears. If your plan assumes one carrier can be all things, you’ll overpay when rates rise and underperform when service wobbles. 

A flexible, multi-carrier position gives you options before you need them:

The point isn’t to add carriers for sport—it’s to insulate your promises from volatility. A flexible bench buys you time and control, so your team can respond with policy, not panic.

Designing Your Parcel Bench (North America Focus)

You don’t need to rebuild your stack to get multi-carrier right. Start with the lanes you already run, the promises you already make, and the exceptions that trip you up. Then add targeted coverage where it moves the needle most.

GLS notes that shipments that take 3–4 days with national carriers will often be delivered in 1–2 days with GLS, depending on the shipping location.  GLS broadly serves the western US, enabling broader 1–2-day reach from West Coast origins.

Take a methodical approach to reviewing, then adjusting, your strategy:

  1. Portfolio review. Map lanes by zone/weight and flag single points of failure. Add regional/specialist last-mile where they’re strongest.
  2. Promises to tiers. Define Economy (3–5d), Standard (2–3d), Expedited (1–2d), and Returns. Reserve LTL for true oversize/exception paths.
  3. Automated rate-shopping + policy routing. “Route to lowest landed cost that meets the promise,” with guardrails for performance, DIM risk, and cutoffs.
  4. Pilot → measure → repeat. Treat carriers as interchangeable modules. Keep what hits thresholds; pause what doesn’t.

This is less a tech project and more an operating rhythm. Continuous improvement should not be downplayed here.  Set and forget got you here; don’t be lulled into doing it again.  A clear tier map and a few enforceable rules turn your carrier list into a real bench—one that gets better every week.

Make the Bench Tangible: Roles × Tiers

Teams move faster when they can “see” the plan. A simple roles-by-tier matrix removes guesswork at the station and makes policy decisions obvious in the WMS/OMS.

Service TierPrimary RoleBackup/FailoverWhen to PreferExample Rule
Economy (3–5d)Regional(s)National GroundDense regional coverage, lightweight parcels“Zone ≤4 & DIM <10 lb → Regional A”
Standard (2–3d)National GroundRegional(s)Broad coverage, stable SLAs“If Regional 2-day hit <95% (14d) → National B”
Expedited (1–2d)Express/AirAlt PremiumPromise-critical, late cutoffs“If promise <48h → Express C”
Oversize/ExceptionsSpecialty ParcelLTL (rare)DIM/oversize only“If DIM>139 or >50 lb → Specialty D”

Regional / Specialist Examples

When the matrix is visible and rules are explicit, planners stop debating hypotheticals. The system routes the routine; humans focus on exceptions that actually need judgment.

From Bottleneck to Balanced SLAs (Why it Pays Off)

Optionality only matters if it shows up in your numbers – ideally, in your company’s bank account. These four KPIs translate strategy into outcomes you can hold the network—and yourselves—accountable to.

  1. Blended Cost Per Parcel (BCPP).
    Watch total parcel spend divided by parcels shipped, weekly. If it rises ≥5% week-over-week without a clear mix shift, expand regional share where SLAs allow and re-shop DIM-sensitive SKUs.  This is your margin early-warning system; it tells you when policy needs to step in before finance does.
  2. Promise Hit Rate (By Zone & Method).
    Track the percentage of orders that meet their promised date, segmented by zone/tier. Hold Zones 2–4 at ≥95%; if a carrier misses the threshold for two consecutive weeks, auto-failover per policy.  Promised Hit Rate is your brand in a number; protect it with guardrails you rigorously enforce.
  3. Failover Success Rate.
    Of orders that triggered a policy failover, what percentage still arrived on time and on budget? Target ≥97%; if it dips, retune backups, cutoffs, or packing times.  Failover only counts if it saves the promise, not just the shipment.
  4. DIM/Surcharge Rate.
    Monitor the share of parcels incurring DIM/accessorials and the $/parcel impact. Trigger “DIM defense” to re-shop methods when projected surcharges exceed your threshold.  Surcharges are where quiet leakage lives; making them visible makes them manageable.

Finally, 86% of consumers define “fast delivery” as two days or less, and 63% will switch retailers if they can’t get it. Redundant carriers help you hit those promises.  Ensure that all the hard policy work reaches the customer’s front and center attention. Often, your fulfillment execution is just as powerful for capturing and retaining customers as the product or service you are delivering.

World-Class Execution Calls For Strong Technology Partners

Good policy needs good plumbing.

eHub centralizes carrier connections and live quotes.  They give you access to options that you didn’t consider and manage those connections, eliminating technical lift while defending your margins. 

Deposco executes your new rules with order, promise, and inventory context—so routing stays accurate at ship time and auditable at close.  Dynamic rate shopping and systemic support ensure predictable execution.  Every package optimized, every time.


Clear rules and a supply chain execution system that can follow them turn your strategy into muscle memory: repeatable, observable, and easy to iterate and improve.

Parcel Optionality = Resilience

When a national carrier surges, a lane slips, or demand spikes north of the border, single-threaded networks stall. A multi-carrier bench stays on-promise and on-budget by design.  You don’t have the time to reconfigure your network every shock, you need the confidence that your response flexes automatically.

The U.S. parcel market is projected to grow 36% by 2030, so the ability to scale across multiple carriers isn’t optional—it’s how you keep pace.

You’re not guessing. You’re executing.

With eHub curating your carrier bench and Deposco enforcing optimal fulfillment locations and modes, your playbook truly is policy, not panic.  

Most brands are laser-focused on the last mile. That final stretch between the carrier and the customer’s doorstep gets all the attention. And for good reason—it’s where most shipping-related complaints happen. But without a solid firstmile process, the last mile doesn’t stand a chance.

The truth is, the last mile can’t go smoothly if the first mile is already broken.

If you’ve ever had a package “stuck in pre-transit,” lost between scan events, or delayed without warning, chances are the issue wasn’t with the carrier. It started earlier—at the very first step of fulfillment.

That’s where the firstmile comes in.

What Is Firstmile Shipping?

In ecommerce and logistics, the firstmile refers to the initial leg of a shipment’s journey: the moment a package is picked, packed, labeled, and handed off from the seller or fulfillment center to the carrier.

It’s everything that happens before the carrier begins moving the parcel through their network. That includes:

If you’re working with a 3PL, the firstmile starts inside the warehouse and ends when the carrier truck pulls away with the day’s shipments.

It might only span a few blocks—but this tiny stretch of distance can carry enormous operational consequences.

What Causes Firstmile Delays?

There are a few common breakdowns that disrupt firstmile performance:

In short, when fulfillment and carrier coordination fall out of sync, the entire customer experience suffers.

Why the First Mile Deserves More Attention

Fast-growing brands can’t afford to overlook firstmile performance. Here’s why:

The firstmile is where operational excellence begins—or where avoidable chaos creeps in.

How to Optimize the Firstmile

To improve your first mile, you don’t need to overhaul your entire operation. But you do need to tighten up the handoff between fulfillment and shipping.

Here’s where to start:

The firstmile isn’t just about movement but visibility, timing, and control.

The Firstmile Is the First Impression

In many ways, the first mile is your brand’s first logistical handshake with the customer. It’s where you prove that you can fulfill quickly, predictably, and confidently.

If that handoff is smooth, everything else downstream benefits.

If it’s clunky? No amount of next-day delivery promises can fully make up for it.

Final Thoughts

Smart e-commerce brands are starting to rethink where fulfillment optimization begins. The focus is shifting upstream—from delivery to pickup, from doorsteps to loading docks.

When you get the first mile right, everything else moves faster, costs less, and creates better customer experiences.

See how eHub helps e-commerce brands orchestrate smarter first-mile operations.

If you’re shipping high volumes of ecommerce orders across the U.S., there’s a good chance your logistics strategy should include a Los Angeles CA distribution center. Between the nation’s busiest ports, massive consumer population, and unparalleled access to major carriers, Los Angeles is one of the most strategically important distribution hubs in North America.

But not all LA-area distribution centers are created equal — and not every brand knows when they’re ready to take advantage of one.

In this guide, we’ll break down what makes Los Angeles distribution centers so valuable, when they make sense for your brand, and how to make sure you’re choosing the right partner.

Why Los Angeles Is a Powerhouse for Ecommerce Fulfillment

Los Angeles isn’t just a shipping checkpoint — it’s the gateway to the West Coast. Here’s why:

In short: a Los Angeles CA distribution center can get your products in customers’ hands faster, especially on the West Coast.

What Kind of Distribution Centers Operate in LA?

The term “distribution center” can mean a lot of things. In the LA market, you’ll typically find:

If you’re selling online and scaling fast, a 3PL with modern tech and shipping flexibility is usually the best bet — and LA has no shortage of options.

What Makes a Good Los Angeles Fulfillment Partner?

If you’re evaluating 3PLs or distribution center services in the LA area, ask about:

Remember: proximity to the port isn’t enough. You need a partner that keeps your entire fulfillment pipeline tight and responsive.

When Does It Make Sense to Add an LA Distribution Center?

Not every brand needs to open a West Coast hub right away. But here are a few signs you might be ready:

Adding a distribution center in Los Angeles doesn’t have to be an all-or-nothing move either. Many ecommerce brands start by splitting inventory between East and West Coast locations to optimize delivery times.

How eHub Helps Ecommerce Brands Optimize West Coast Fulfillment

We’ve worked with hundreds of fast-growing brands to help them expand into new distribution nodes — including Los Angeles. Our platform connects you to a vetted network of 3PLs, and our carrier orchestration engine helps ensure your orders are routed in the smartest way possible.

Whether you need help with:

…we’re here to make it happen.

Final Thoughts

A Los Angeles CA distribution center isn’t just another warehouse — it’s a strategic lever for speed, savings, and scale. With the right partner and the right timing, it can dramatically improve your shipping performance and customer satisfaction on the West Coast.

If you’re thinking about expanding your fulfillment footprint or just want to explore what’s possible in LA, let’s talk. We’d be happy to help you find the right fit and plug into the infrastructure you’ll need to grow.

In the age of same-day and next-day delivery, customers don’t just want their orders fast—they expect it. But as a growing ecommerce brand, how do you compete with retail giants without blowing your shipping budget?

The answer for many brands is simple: a local warehouse for ecommerce fulfillment.

Whether you ship hundreds or thousands of orders each month, strategically storing inventory closer to your customers helps you speed up delivery, reduce costs, and improve the customer experience—all critical to scaling your brand successfully.

What Is a Local Warehouse for Ecommerce?

A local warehouse is a strategically placed storage and fulfillment center located near your primary customer base. These facilities can be:

The goal? Reduce last-mile delivery distances and costs while improving delivery speed. By having inventory stored closer to your customers, you can offer faster delivery without relying on expensive express shipping options.

Why Local Warehousing Matters More Than Ever

If you’re fulfilling orders from a single, centralized location, you’re likely running into high shipping costs and long delivery times—especially for customers on the opposite coast or in remote regions.

Local warehousing solves these challenges by:

Signs You’re Ready for a Local Warehouse

You might be ready to add a local warehouse to your fulfillment strategy if:

How to Choose the Right Local Fulfillment Partner

Selecting the right warehouse or 3PL is about more than just proximity—it’s about finding a fulfillment partner that can help you grow without adding complexity.

Look for:

How eHub Helps You Find the Right Local Warehouse

At eHub, we specialize in helping brands simplify their fulfillment strategy with access to a vetted network of 3PL partners across the country. Whether you’re looking to reduce delivery times, lower costs, or prepare for growth, we make it easy to find the right local fulfillment solution.

Here’s How We Help:

You focus on growth—we’ll help you store, ship, and scale smarter.

Final Thoughts: Local Fulfillment Isn’t Just for the Big Brands

You don’t need a nationwide warehouse network to compete with big retailers—you just need the right fulfillment strategy. With a local warehouse, you can meet rising customer expectations, reduce costs, and build a stronger, more resilient ecommerce business.

Today’s online shoppers expect their orders to arrive fast—and often for free. That puts growing brands in a bind: How do you keep shipping speeds high without burning through your margins?

One answer: a local warehouse for ecommerce.

Whether you’re shipping from your own garage or fulfilling orders from a distant 3PL, storing inventory closer to your customers can radically improve delivery times, reduce shipping costs, and set your brand up to scale.

Let’s take a look at what a local warehouse for ecommerce actually is, how it helps, and how to find the right one for your business.

What Is a Local Warehouse for Ecommerce?

A local warehouse is a strategically located storage and fulfillment center that holds your inventory closer to your customer base. These facilities can be:

In e-commerce, the goal of using a local warehouse is simple: get orders into your customers’ hands faster and cheaper.

Why Local Warehousing Matters More Than Ever

If you’re shipping orders from one central location across the country—or even internationally—you’re likely racking up high costs on long-distance deliveries. Worse, those shipments take longer to arrive, especially to customers on the coasts or in rural zones.

Local warehousing solves that problem by cutting down the last mile.

Key Benefits of Local Fulfillment:

Whether you’re DTC, marketplace-driven, or selling across multiple channels, local fulfillment is a strategic lever you can’t afford to ignore.

Signs You’re Ready for a Local Warehouse for Ecommerce

You might be ready to explore local warehousing if:

How to Choose the Right Local Fulfillment Partner

Not all warehouses are created equal. When evaluating local options, look for:

How eHub Helps You Get Local, Fast

At eHub, we connect brands with a network of vetted 3PL warehouses—strategically located across the U.S.—to help you ship smarter, faster, and more profitably.

Here’s how we support local fulfillment strategies:

🌎 Location-Based 3PL Matching

We help you identify the best warehouse partners near your customers—so you can reduce transit time and cost.

🧠 Unified Fulfillment Management

Track orders, generate labels, and manage shipments from one platform, even if you’re using multiple warehouses or channels.

🔁 Multi-Carrier Rate Optimization

Access discounted rates across USPS, UPS, FedEx, and DHL—and route orders to the best option.

🧩 Plug-and-Play Integrations

Connect your Shopify, WooCommerce, or custom tech stack to your 3PLs and unlock smooth operational flow.

You focus on growth—we’ll help you fulfill it, one local warehouse at a time.

Final Thoughts: Fast Shipping Without the Guesswork

If you want to grow your brand without handing over control or racking up unsustainable shipping costs, local warehousing is a smart next step.

At eHub, we help you make the leap—with real support, transparent tools, and a fulfillment strategy built around your goals.

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:

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:

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.

Smart Shipping Tech

Our platform uses automation to:

Order Flow Integration

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.

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.

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.

                    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.