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[PL] Parcel distribution – when is it worth opting for a courier service?

4min read 19/08/2023

Courier services are used by both individual customers and entrepreneurs (usually small and medium-sized business owners, usually online shops). However, much depends on the frequency and size of the shipments. Private individuals rarely make regular parcel shipments. Parcel distribution usually concerns wholesalers and online shops – i.e. representatives of the e-commerce industry. It is worthwhile for them to decide to sign a contract with a carrier (or carriers) of their choice. It is a very cost-effective solution. What is worth knowing about the distribution of goods in e-commerce?

Does an e-commerce business need to use a courier service?

Having your own e-commerce business comes with several responsibilities. If you want to carry out large-scale shipment of goods (which is most likely what you are aiming for), you need to expect that you will not miss out on signing a contract with a courier company. This is a purely economic decision and very cost-effective.

A contract with a potential carrier means discounts, promotions. If you do not have a binding document, the cost of transporting your shipments will be significantly higher. You cannot then count on being treated favourably – courier companies tend to give priority to those mail order shops with which they have a contract, while the others cannot count on the courier turning up on the exact day, time you have set. The contract with the carrier also imposes an obligation on the carrier to handle complaints first. You can read more here: Courier service complaint – how does it work? The other rules on how to send a parcel by courier do not change.

Many successful mail order wholesalers choose to sign a contract with not one, but several carriers. This is a pro-consumer solution – potential customers like to be able to choose between different delivery options, selecting according to the lowest price or fastest shipping.

Not just online sales – what is omnichannel?

It is worth mentioning that the most favourable option for a given e-commerce business is the decision to move towards multi-channel sales (so-called omnichannel), i.e. online and offline. Many customers will welcome the opportunity to visit a stationary shop (especially if the showroom is located close to where they live), where they can pick up the ordered goods in person.

Omnichannel involves the use of special, decorative packaging for multichannel sales. Entrepreneurs choose to use various types of personalised gift bags or bags with individual printing. The interiors of decorative boxes are often filled with SizzlePak parcel filler or plain tissue paper. Multichannel sales do not tend to use traditional brown corrugated cardboard boxes – the emphasis is on decorative packaging that encourages repeat purchases and increases brand recognition and sales levels.

Fulfillment – distributing goods in e-commerce at a high level

Signing a contract with a carrier is not the only option facing an e-commerce company. The distribution of online orders to the customer (the recipient of the parcel) may involve the establishment of a Fulfillment cooperation model. What does this consist of? A given online shop hires an external outsourcing company (one or several), which takes care of stocking the assortment, picking, packing, shipping, transporting the parcels. The entrepreneur who opts for Fulfillment – in fact – runs his or her own mail-order warehouse from the couch in his or her own living room.

Despite its growing popularity, there are (and are still) many e-commerce companies that have their own warehouse and employees.

When is it still a good idea to opt for courier distribution?

Distribution of online orders – from shops and wholesalers – is not the only example of regular cooperation with carriers. A variety of authorities and sectoral companies also decide to cooperate with courier companies on a regular basis. What is it all about in practice? Although an increasing number of companies are now abandoning traditional documentation in favour of so-called electronic document workflows, some places still attach considerable importance to the presence of unscanned, tangible documents – these are mainly smaller companies that do not have the funds to order their own EOD service. Such companies usually do not have an in-house accounting department, but use outsourcing (remote accounting offices). Despite digital communication, regular dispatch of documentation (invoices, contracts) to accounting is needed. Looking for savings, in this case you can also opt for a permanent cooperation with a selected carrier.

A similar situation occurs when many employees of a company work remotely (a popular solution in IT, marketing). Employees sometimes have to sign various contracts, monthly summaries (something like pay slips), annexes by hand – modern companies organise and pay for the dispatch of such documents, precisely through couriers with whom they have signed contracts.

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