Rate Shopping

What Is Rate Shopping?

Rate shopping is the practice of comparing available carrier and service options for a shipment and selecting the one that best fits the cost and delivery time needed. Instead of shipping every order with one carrier service by default, the shipping software checks several options and applies rules to pick the best one.

How It Works

When an order is ready to ship, the system takes its weight, dimensions, destination and required delivery window, then retrieves rates for eligible carrier services. A rule set decides which option to use, for example the cheapest service that still arrives within the promised number of days. The chosen service is then used to generate the label.

Rules can be adjusted for different situations, such as requiring signature for high-value orders or excluding services that perform poorly in certain regions.

• Collect package weight, size and destination.
• Pull rates for eligible carriers and services.
• Apply rules for delivery time, cost and special requirements.
• Generate the label with the selected service.

Why It Matters for Ecommerce Brands

Shipping rates differ by carrier, service, package size and destination, and the cheapest option is not the same for every order. Choosing a service per order rather than using one default can lower average postage cost while still meeting delivery promises.

For example, a lightweight package going a short distance might be cheapest with one service, while a heavier box going cross-country might be cheaper with another. Rate shopping makes that decision automatically. Brands should keep the delivery promise at checkout in mind, since the cheapest service is only a good choice if it still arrives on time.