FAQs
Shipping & Delivery Capabilities

How does ShipNetwork reduce shipping costs for businesses?

August 5, 2025
ANSWER TO QUESTION

ShipNetwork reduces shipping costs for businesses by leveraging its proprietary Xparcel system, which intelligently selects the most cost-effective shipping method for every order. This technology-driven approach evaluates real-time carrier rates, package size and weight, destination, and service level requirements to optimize each shipment for both price and performance.

Xparcel acts as a smart shipping engine that compares multiple carriers and routes at the time of order processing. Instead of locking your brand into a single carrier or flat-rate model, Xparcel dynamically chooses the best available option for each individual shipment. This ensures that you get the lowest rate possible while still meeting delivery expectations for your customers.

ShipNetwork also reduces costs by using a distributed network of fulfillment centers. By placing inventory closer to your customers, shipments stay within lower shipping zones, which significantly cuts down on distance-based carrier fees. This geographic optimization allows you to access faster ground delivery at a fraction of the cost of air or express services.

For businesses with high-volume shipping, ShipNetwork’s scale unlocks access to negotiated rates and volume discounts that are typically not available to individual merchants. These savings are passed on to you, giving your brand the pricing power of a much larger operation without the overhead.

Additional savings come from minimized accessorial charges, improved packaging efficiency, and fewer missed deliveries. ShipNetwork’s systems ensure that dimensional weight, residential surcharges, and last-mile fees are all factored into the shipping decision to avoid unnecessary costs.

By combining smart technology, carrier flexibility, strategic inventory placement, and negotiated rates, ShipNetwork provides a powerful solution for reducing shipping costs while maintaining fast, reliable delivery. This creates a major competitive advantage for eCommerce brands looking to scale profitably.

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