When Is Commercial Shipping a Better Option Than Parcel Shipping?

Introduction

Shipping is one of the most critical pieces of your ecommerce business plan. It’s how you get the needed stock, move inventory between your warehouses, and fulfill customer orders. Commercial shipping is often the simpler and more cost-effective shipping method when shipping to warehouses (regardless of whether they’re yours or your 3PL partners’) or to other businesses.

The Differences Between Commercial Shipping and Parcel Shipping Matter

While you technically could use parcel shipping to transfer large volumes of merchandise to third-party fulfillment centers or between warehouses, it is far from the ideal solution. Commercial freight shipping is a much more cost-effective and efficient way to move inventory in bulk.

When to Use Commercial Shipping?

Heavy Shipments

Commercial shipping is usually the only option for shipping products or combinations weighing over 150 pounds. Further, most parcel shipping providers begin assessing additional fees for products weighing over 70 pounds. As such, commercial shipping is almost always more cost-effective for overweight shipments.

Large Volume Shipments

For large, bulky, awkward volume shipments, commercial shipping typically provides better rates than parcel shipping.

Inventory That Requires Specialty Loading/Unloading

Commercial shipping companies have the equipment, personnel, and protocols to load and unload large, heavy, and/or delicate freight.

Palletized Shipments

If your shipments are palletized and wrapped, commercial shipping is the best option.

Shipping a Container’s Worth of Inventory

Shipping a full container’s worth of goods can be a great option for enjoying bulk shipping discounts through a commercial provider.

When to Use Parcel Shipping?

Lightweight Shipments

Any shipment with a total weight under 70 pounds may be best suited for parcel shipping.

Low-Volume Shipments

If your total shipping volume falls within your preferred parcel carrier’s girth and length thresholds, it may be worth comparing parcel shipping rates to commercial alternatives.

Multiple Destinations

When there are multiple destinations, parcel shipping may be the best fit.

Speed Matters

Parcel shipping options are typically faster than commercial options.

How to Get the Best Value When Shopping for Commercial Shipping Options?

Compare Rates

This is the most obvious starting point when evaluating potential commercial shipping providers. Regularly reviewing your commercial shipping rates and comparing them to industry alternatives is important.

Packing Optimization

Reducing waste and unnecessary packaging size can help lead to dramatic shipping cost savings.

Consolidated Shipping

Consolidated shipping can reduce costs further.

Descartes Sellercloud’s omnichannel growth platform is the ideal partner for managing your ecommerce shipping needs.