Why Should Online Retailers Rely on Multiple Shipping Service Providers?
While retailers can choose whether to offer multiple shipping options, the decision for the right logistics provider(s) should be well considered. Customer preferences matter significantly -- and getting this right can be a real competitive advantage.
Keep Shipping Costs Low
Many merchants prioritize cost reduction when selecting carriers, sometimes overlooking what customers actually want. Shoppers seek reliable and fast shipping -- ideally without shipping costs. Retailers must balance affordability with customer expectations to avoid losing sales at checkout.
The Status Quo
Our e-commerce shipping study examining Germany's top 100 online retailers reveals significant gaps in carrier choice:
Selection of Preferred Logistics Providers
- 79% don't allow customers to choose carriers
- 15% permit selection at the same cost
- 6% offer choice with varying prices
Carrier Preferences Among Top Retailers
- DHL: 79% usage
- Hermes: 42%
- UPS: 19%
- DPD: 13%
- GLS: 6%
Number of Carriers Used
- Nearly half use only one provider
- 34% work with two carriers
- 17% use three
- Fewer than 1% use four or more
Why Multiple Providers Matter
Key Insight
"Customers are more willing to buy from the online store that offers them the logistics provider they prefer."
Offering multiple shipping options benefits both merchants and customers through enhanced loyalty, cost optimization, and broader geographic coverage. When customers can choose their preferred carrier, conversion rates improve and post-purchase satisfaction increases.
Shipping Communication
Regardless of which carrier delivers the parcel, retailers should manage shipping communications directly. This enables them to control messaging timing and respond proactively to delivery issues, ensuring a consistent brand experience no matter which logistics provider is involved.
Working with multiple shipping providers serves everyone better, though many top German retailers still lag in offering genuine choice. The data is clear: carrier flexibility is not just a nice-to-have -- it is a competitive differentiator that directly impacts conversion and customer loyalty.
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