Rate Shopping
Also known as: Carrier Comparison, Multi-Carrier Rating, Shipping Comparison
Definition
Rate shopping means comparing shipping prices from multiple carriers before choosing how to send a package. Instead of always using one carrier, you check rates from USPS, UPS, FedEx, and others for each shipment and pick the best option.
Why Rate Shopping Matters
Different carriers excel in different scenarios:
| Scenario | Often Cheapest |
|---|---|
| Light packages, residential | USPS |
| Heavy packages, business | UPS/FedEx |
| Overnight delivery | Varies by zone |
| Large/oversized items | Freight carriers |
| Local delivery | Regional carriers |
Choosing the same carrier for everything leaves money on the table.
How Rate Shopping Works
- Enter package details - Weight, dimensions, origin, destination
- Query multiple carriers - Software checks all available rates
- Compare options - See prices and transit times side by side
- Select best option - Choose based on cost, speed, or preference
- Generate label - Print from chosen carrier
Rate Shopping Tools
Shipping Software
- Shippo - Multi-carrier API and dashboard
- ShipStation - E-commerce focused
- Pirate Ship - Free, USPS/UPS focused
- EasyPost - Developer-friendly API
- ShippingEasy - Small business focused
E-commerce Platforms
- Shopify Shipping
- WooCommerce Shipping
- BigCommerce
- Built-in but often limited carriers
Manual Comparison
- Check carrier websites individually
- Time-consuming but no subscription needed
- Use for occasional shipments
Rate Shopping Savings
Typical savings from rate shopping:
| Volume | Monthly Savings |
|---|---|
| 100 packages | $50-200 |
| 500 packages | $300-800 |
| 2,000 packages | $1,500-4,000 |
Even small percentage savings add up quickly.
Advanced Rate Shopping
By Speed
Compare equivalent services:
- USPS Priority vs. UPS Ground vs. FedEx Ground
- All deliver in 2-3 days, prices vary significantly
By Zone
Some carriers are cheaper for certain distances:
- USPS often wins Zones 1-4
- UPS/FedEx competitive Zones 5-8
By Package Type
- Flat Rate for heavy, distant shipments
- Cubic pricing for light, bulky items
- Ground for non-urgent deliveries
Rate Shopping Best Practices
- Automate it - Use software that auto-selects cheapest
- Set rules - Always use X carrier for overnight
- Include all fees - Fuel surcharge, residential fees
- Consider speed - Cheapest isn’t always best
- Review regularly - Carrier pricing changes frequently
- Negotiate rates - Volume discounts improve all options
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