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Exploring overlooked opportunities, innovations, and what’s shaping the future of parcel shipping in 2025…
Over 40 discussions later, it’s clear: parcel shipping is having a moment. I recently posed a few questions to my 9K+ LinkedIn connections, asking what people really think shippers are overlooking right now. The public post got some traction, but the real heat came in behind the scenes – in the DMs and a few very interesting emails. From supply chain veterans to scrappy up-and-comers, people had opinions — and a lot of them.
Turns out, while everyone loves to talk about carrier rate changes and goosebump-provoking tariffs (note “tariffs” won’t be a discussion point – I’m not even going to pretend to know what to tell you), it’s the unsexy details that are bleeding profits and holding shippers back. Let’s get into the most overlooked elements of parcel shipping right now, with plenty of hot takes, data-backed advice, and some of my own thoughts sprinkled in.
1. Carrier Diversification is Cool Again
There was a time when putting all your eggs in one carrier basket felt like the dream—one contract, one relationship, one big, fat discount. But in 2025? That’s a risk most businesses can’t afford. Aaron Hatfield of Arvist says it plainly, “The market, just like history, is cyclical & often time repeats itself. Diversification is simply good business sense.”
Still, let’s not kid ourselves—most so-called “diversified” carrier strategies only involve a handful of options, not a buffet of 10+. As William Carver of ProShip, Inc. put it: “The goal isn’t more carriers, it’s the right mix, dynamically routed.”
The smart play isn’t to chase every carrier under the sun—it’s to understand which ones actually fit your business and how to use them strategically. That means knowing your most-used service types, where your customers are, and how your shipments behave.
I also feel that it’s important to highlight that several contributors noted that not all carriers even want all your packages. As industry maven, Bill Schroeder pointed out: “Every carrier has package parameters that fit their network best. If you know what those are, you’ll get the best pricing on packages that fit their operations.” Matthew Chapa of Crunchyroll agrees, “Always work with carriers who compliment your niche.”
But of the big three national carriers, two want your B2C business—yet still punish residential deliveries. The third? A reliable workhorse, but a little slower than the others. No wonder we’re seeing so many new players enter the market—there still are some real gaps. OnTrac, for example, grew by focusing on B2C instead of B2B. And as same-day carriers move toward next-day capabilities, they’re eyeing those same B2C gaps.
Getting the mix right builds resilience, unlocks better rates, and keeps you from scrambling every time there’s a delay, strike, or pricing/rate change.
And no, you don’t need a PhD in routing logic. Today’s smart shipping execution tech and decision-making tools make it more manageable than ever. Shameless plug for ProShip, Inc.—but not even sorry because I KNOW it would change the game for some of you.
2. The Hidden Cost of the Label
Freight rates are easy to see. It’s the other charges—the ones buried in the fine print—that quietly wreck your budget.
Mahidhar Rao V from ShipMatrix, Inc. / SJ Consulting Group, Inc. pointed out that while many companies obsess over negotiating base rates, it’s the hidden costs—accessorial charges and avoidable redelivery fees—where the budget starts to bleed.
He’s not alone. Several experts flagged the often-overlooked world of accessorials: residential surcharges, fuel surcharges, bad address penalties, redelivery charges. These aren’t always top-of-mind—until they show up on your invoice. You can spend weeks grinding down your base rate, only to watch those hard-won savings disappear thanks to issues that could’ve been prevented with better data, smarter delivery windows, or simply implementing a carrier that doesn’t ding you for delivering in the suburbs (ahem, thank you United States Postal Service).
This is where operational visibility becomes more than a buzzword. It’s a financial strategy. Validate addresses upfront. Automate where you can. Find a way to utilize the right blend of dynamic & static business rules (thanks Dave Salter). Make sure your internal rules align with how things actually work on the ground.
3. Your Parcel Data is a Goldmine. Use it.
[Read this section if you read nothing else.]
“Know your shipments” and “cost visibility” always leads to one thing: data. Multiple folks shouted this from the (virtual) rooftops—and they’re absolutely right. Your parcel data—especially around dimensions, surcharges, and delivery outcomes—isn’t just admin work. It’s leverage.
Chelsea Snedden from Infios shared a perfect real-life example:
“Our less successful shippers did not accurately leverage their spend data to make better decisions. A shipper was rapidly losing revenue due to the demand – residential surcharge and instead of pushing their incumbent carrier for an incentive, they instead negotiated using 20% less volume. Why would carriers be incentivized to help a smaller program when your issue was the accessorials?”
The point? If you can’t see the data, you can’t identify the problem(s), and therefore, you can’t solve it. Worse, you may be shrinking your leverage without realizing it.
And it’s not just about money—it’s about credibility and partners are paying attention. Ben Emmrich of Tusk Logistics noted: “It continues to surprise me how tough it is for most shippers to pull a PLD file. The ones who have that data ready get our attention quickly—huge signal that they are strong operators.”
If you don’t know your package profiles, surcharge exposure, or delivery success rates by region or customer type, you’re probably leaving serious value on the table. Start mining your data—or make sure someone on your team is. And always tie insights back to customer outcomes.
With the right data in hand, you can take real action—whether it’s rethinking your carrier mix (see #1), renegotiating rates (next up in #4), or introducing smarter processes.
Two solutioning examples using the right data:
- Mahidhar Rao V pleaded that a big opportunity can be found in carrier service type substitutions, and I couldn’t agree more. He says, “Many times you’re paying for Air when Ground would get the job done just as well. If speed isn’t mission-critical, this is low-hanging fruit for cutting costs.”
- Will Hennessy highlighted how a good inline scale and dimensioner alone could save hundreds of thousands annually.
And to bring it home, my friend Michael Falls offers this simple but crucial analytics advice: “Most shippers still use spreadsheets or a legacy parcel audit or freight payment solution. It’s 2025—better technology exists and is easy to adopt.” (Cough, check out Reveel when you get a min.)
4. Don’t Negotiate Blind
Building on that point—Chelsea Snedden raised another critical issue: too many shippers accept the first carrier contract offer without doing their homework.
“Most overlooked is how much the shipper is willing to fight during negotiations,” she said. “Shippers can decide if they want to push the carriers to five rounds—plus bring in smaller carriers to manage costs—or if they’ll accept the first flimsy offer without letting us evaluate. Both have happened this year alone.”
Strong negotiations don’t start at the table. They start with knowing your own numbers—your volume, spend, service mix, pain points, and true leverage. That data? It’s your foundation. And even if negotiating isn’t your day job, someone on your team needs to be able to interpret what your data is really saying and bring it to the table with confidence.
5. Amazon is Entering the Chat (Again)
Opinions were very split here, and for good reason. Some folks see Amazon Shipping as an inevitability, while others are pumping the brakes, hard.
Will Carver likened Amazon’s strategy to AWS: “They want merchants to use Amazon not just to sell, but to ship, store, advertise, and grow. If they succeed, they become the default infra layer for e-commerce.” On the flip side, Matthew Chapa simply said, “Absolutely never ship with Amazon.” 😅
No matter where you land, the reality is this: Amazon has infrastructure, address data, warehousing muscle, and customer recognition. That makes them a serious player. But shippers need to tread thoughtfully. What’s the cost of convenience? Will rates hold? Will you lose flexibility or data visibility in exchange for short-term gains? Are you giving money to the “enemy”?
It’s not about being for or against Amazon. It’s about knowing where (or if) they fit into your diversified strategy.
I do, however, need to call out Kevin Lawton, CLTD of The New Warehouse here, as I think it’s great advice on Amazon (and can be applied to any trend)…
“Be cautious, but don’t be overly cautious and be too late.”
6. Bad Packaging is Costing You
On to a small but mighty topic. Let’s be honest, packaging isn’t always top of mind. But it should be. Overpack, and you get slammed with DIM fees. Under-pack, and you risk damage claims, returns, and a poor customer experience (CX) loop.
Jennifer Morris, founder of Ship Happens, put an overlooked piece of the supply chain perfectly: “Understanding that packaging can do more harm than good.” It’s not just about the unboxing experience (though that matters too) — it’s about cost and operational efficiency. Packaging is an often-overlooked lever in your margin and sustainability goals.
As Will Carver candidly shared in another comment: “Ordered a tumbler for my wildly increased water intake — arrived in a box suitable for golf clubs.” We’ve all seen it. Don’t be that shipper – your incompetence is showing.
7. Simplicity Scales. Complexity Kills.
Several pros highlighted that shippers often over-engineer their systems, trying to do everything at once. Jeffrey Lukaszewski of ProShip encouraged shippers to follow KISS: Keep It Simple, Stupid. He states, “If you’re looking to change or overhaul your current solution or process, simplify it. The less decision points and moving parts the better.”
The best-run shipping programs aren’t necessarily the ones with 10 custom business rules per ZIP code. They’re the ones where people understand the order-to-delivery flow, use good tech, and keep business rules tight and purposeful. Clint Boaz agrees – “See the journey of a parcel as a holistic lifecycle: order creation, planning, execution, visibility, returns, and billing and establish harmony between these phases using integration and best-in-class services and solutions.”
8. The Human Factor Matters
A few unexpected (but wise) insights came in around soft skills. From Matthew Chapa reminding us that your internal and external networks can make or break your ops, to Justin Cramer’s reminder that setting expectations and communicating clearly is the ultimate power move.
Empathy, partnerships, and curiosity came up again and again. And above all, find a way to be helpful, notes Timur Eligulashvili with Logistics Remix. Tech is great, but it doesn’t build trust. Data is powerful, but it can’t solve a service issue at 6pm on a Friday. People still make the supply chain run. Don’t forget to be one of the good ones.
TL;DR?
There’s a lot that goes into parcel shipping. Getting a package out the door is a lot more than slapping on a label. Advice directly from my network of logistics industry pros:
- Smart carrier diversification is everything – do it strategically, not haphazardly
- Leverage data, not just instinct, to reduce hidden fees, increase negotiating power, and find problems you can take action on
- Be cautiously curious about Amazon Shipping
- Keep it simple, smart, and scalable
- And – above all – invest in the human side
Big thanks to the experts who chimed in. These are the conversations that make LinkedIn worth it.
