Rethinking small parcel shipping: 3 tips for long-term success 

It may not be as glamorous as a perfectly executed marketing campaign, but small parcel shipping is still the engine behind nearly every ecommerce order. In 2024, parcel volumes hit $23.8 billion, a whopping 50% increase since pre-pandemic times.  

That growth alone reflects how essential ecommerce small parcel shipping has become. Yet it’s often treated like background noise; something set up once and forgotten until a problem arises.  

That approach is risky. 

Shipping rates are climbing. Customer expectations are shifting. To top it off, global disruptions continue to ripple through supply chains. Brands that treat their small parcel strategy as an afterthought are likely to fall behind on both customer experience and cost efficiency. 

The reality is: small parcel is not a set-it-and-forget-it strategy. 

For ecommerce businesses, small parcel shipping is one of the most important (and expensive) parts of fulfillment. It represents a significant portion of logistics costs and directly shapes how customers perceive the post-purchase experience.   

Have you ever thought twice about ordering a product due to high shipping costs or slow delivery times? High shipping costs, unclear delivery times, or unreliable tracking are all small parcel issues, and they can directly erode trust at the doorstep. 

To stay competitive, brands need to get smarter about their small parcel strategy. When it’s not continuously optimized, there’s an increased risk in delivery delays, lost visibility, and growing costs. But, more importantly, losing consumer trust. 

What is small parcel shipping?  

Small parcel shipping refers to lightweight packages that can be lifted without any special equipment. These shipments are usually packed in branded or carrier-provided boxes and handled by national or local courier services. Key characteristics include: 

• Packages typically fall between 1-15 pounds (USPS defines small parcels as weighing less than 70 pounds, and fitting into 30X30X30 boxes) 

• Delivered via vans or trucks under 28 feet long 

• Vehicles typically carry 50–100 parcels 

• Carriers make multiple stops throughout the day for door-to-door deliveries  

When well-managed, this model works incredibly well for ecommerce. 

The small parcel challenge 

Streamlined small parcel shipping requires regular recalibration. Fluctuations in fuel costs, emerging regional delivery services, and growing customer focus on eco-friendly options can all impact shipping strategies. Smart retailers adapt their approach accordingly.  

But, streamlined small parcel shipping is no easy feat. At scale, it introduces plenty of operational and financial pressures. Brands often face: 

• Lack of visibility after handoff to the carrier 

• Inefficient packaging leading to inflated DIM weight and costs 

• High expectations for free or fast shipping, without margin to support it 

• Delivery variability that’s often out of the brand’s control 

None of these challenges are new, but in today’s climate they carry more weight. Customers expect reliability and speed, while brands are under increasing pressure to improve efficiency.  

Getting smarter with small parcel? That’s a key differentiator.  

A smarter approach to small parcel  

Focus on customer experience, not just transit time  

No two companies are the same, and every brand has their own experience. Small parcel plays a large role in it, yet too often it defaults to shipping speed. The thing is, speedy delivery doesn’t always equal good customer experience. What matters more is consistency, clarity, and brand alignment. 

Not every brand needs to offer same-day or even two-day delivery. What matters is that shipping options are transparent, on-brand, and operationally sustainable. 

 “The customer experience isn’t static. It shifts with economic conditions, consumer behavior, and global trade dynamics,” says Sean Kim, VP of Parcel & Ecommerce at WSI. “Brands that are able to navigate these shifts thoughtfully are more likely to adapt without sacrificing what matters most to their customers.” 

In practice, this might mean introducing slower, more affordable shipping options. Or revisiting a free shipping threshold to better align with changing customer expectations. The goal should be to offer delivery experiences that make sense for your customers AND your business.  

Go carrier agnostic  

Consumers don’t limit their spending to one brand. And businesses shouldn’t limit theirs to one parcel carrier.  

While sticking with a single carrier might feel simpler, it restricts flexibility. Being locked into a sole provider exposes brands to service outages, pricing changes, and missed opportunities to optimize for cost or speed. 

Carrier-agnostic shipping, on the other hand, expands the playing field. With a network of regional and national carriers, brands can: 

• Mitigate risk by routing around service disruptions 

• Take advantage of zone skipping or regional hubs 

• Match service levels to customer expectations without overspending 

A flexible carrier strategy enables smarter routing and more cost-effective decisions, especially as a retailer’s network scales or their customer base shifts geographically. 

Don’t set it and forget it  

Customer expectations, shipping costs, consumer behaviors… none of it stands still. Small parcel strategy should evolve alongside both a brand’s business and the market. 

Amazon’s shift from 2-day to 3-day Prime is just one example of changing expectations. Free shipping is no longer a guarantee, and in some cases, charging for delivery may actually improve perceived value or sustainability. 

When retailers stick with the same carriers, service levels, and thresholds year after year, they miss an opportunity to adapt proactively and stay competitive in a crowded industry. The key is to keep revisiting your strategy. Regularly reviewing shipping data, customer feedback, and carrier performance can uncover areas to improve cost, reliability, or experience.  

The key to optimized small parcel solutions? A customer-centric 3PL.  

WSI’s approach to small parcel shipping focuses on the customer experience first and foremost. We see small parcel as an extension of the brand, not just a cost center.  

We start with understanding the customer experience our partners want to create and then designing a small parcel solution that aligns with operational goals and budget. 

That means evaluating carriers, optimizing packaging, and using data to improve over time. During periods of economic uncertainty or change in global trade, we work closely with our customers to adapt and adjust—without compromising the end experience. 

“Every brand defines customer experience differently. Our role is to help translate that vision into a parcel strategy that works. Not just for their customers, but for their budget,” says Kim. “That’s what the solutioning process is all about.”