String
Rate Selection

One carrier partnership, applied to every order

A carrier relationship that solved a real reliability problem, then kept being applied to orders it was no longer the right answer for.

Ready-to-drink beverage · Heavy and fragile 3 min read Data from 2023

Anonymized to protect customer confidentiality

Ready-to-drink beverage manufacturer

Outcome

Average label cost

$15.57 → $13.59

First month

$6,000+

Carrier decision

Per order, not standing

Also covers · Multi-package Optimization

01 The operation

A ready-to-drink beverage manufacturer selling millions of cans a year, with a direct-to-consumer channel running on ShipStation and a thin operations team.

Canned beverages are an unusually punishing parcel profile. The product is heavy, which makes it expensive, and it is delicate, which makes damage and re-ships expensive in a second, less visible way.

02 The problem

The operation had been through genuine reliability problems with parcel providers — damages, and insufficient support when things went wrong. It resolved this by consolidating onto a single carrier relationship that performed well and came with a level of partnership a small operations team could actually lean on.

That was a correct decision, and it is worth being clear that it solved the problem it was chosen to solve. What it did not solve was cost. Every online order went to the same carrier regardless of whether that carrier was the right answer for that particular parcel and destination.

The result is a specific and common pattern: a good decision, made for good reasons, applied indiscriminately because applying it selectively would have required per-order comparison the team had no capacity for.

03 Why existing software couldn't solve it

ShipStation was doing what it was configured to do, and the configuration reflected a deliberate operational choice rather than an oversight.

The limitation was that the platform offered no way to programmatically select the least-cost qualifying option per order. The choice available was a standing rule — this carrier, this service — not a per-order evaluation of which of several qualifying services was actually cheapest for that shipment.

This matters more for heavy goods than for light ones. As cubic weight rises, the spread between service tiers widens, and the cost of applying one service to everything grows with it. The same standing rule that costs a light-parcel operation very little costs a beverage operation a great deal.

04 The operational logic

The decisions that had to interact for this to improve without giving up the carrier relationship:

Cubic weight first
Dimensions and cubic weight determine which services an order qualifies for at all. Until that is known, the cost comparison is not meaningful.
Qualifying tiers, not default tiers
Orders frequently qualify for lower service tiers that a standing rule never reaches — a cubic-priced option or a ground service instead of a residential home-delivery product.
Live rates across both relationships
The existing carrier partnership retained, but priced against the alternative for each order rather than assumed to win every one.

The partnership was never the problem and was not disturbed. What changed is that it stopped being the answer to a question nobody was asking per order. The carrier still wins the orders it should win — it simply has to win them.

05 The outcome

Average label cost fell from $15.57 to $13.59, and the first month returned more than $6,000.

Order processing time also came down, which for a thin operations team is the change that is felt daily. Carrier selection stopped being a standing decision that someone had to own and periodically defend.

There was a commercial effect the team valued beyond the direct saving: once every order is priced across carriers, carriers compete for the volume continuously rather than holding it by default. The rate structure improved because it was being tested.

"String has not only allowed us to take full advantage of our current parcel rate structures but has also helped us improve them. We have parcel carriers now fighting for our business while we are enjoying lowered order processing times!"
Director of Operations — Ready-to-drink beverage manufacturer

06 Operational takeaways

What another operator can take from this review, whether or not their operation looks anything like this one.

  1. 01

    A carrier consolidation that solved a service problem is not automatically the right answer to a cost question. Both can be true and they need separate review.

  2. 02

    The cost of applying one service to everything scales with weight. Heavy and dimensional goods punish standing rules far harder than light ones.

  3. 03

    Orders routinely qualify for cheaper service tiers that a standing rule will never select, because the rule was written before those tiers were relevant.

  4. 04

    Pricing every order across carriers changes your commercial position, not just your postage line. Carriers compete differently for volume they can lose.

Start here

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