Carrier
A company that performs shipping: DHL, UPS, USPS, FedEx. Each has different pricing, speed, coverage, and reliability.
In practice
Don't rely on a single carrier. Each has strengths: a national postal service is cheap, a courier service is fast, DHL is international.
Common misconception
'Price is the only factor.' A carrier with a 15% failure rate costs more through customer service, returns, and chargebacks.
How to fix it
Carrier underperforming? (1) a monthly SLA report, (2) clear KPIs in the contract, (3) a backup carrier, (4) an annual review.
Example
A cosmetics store: a single carrier. During a holiday peak: a 5-day delay, 340 complaints, 80 chargebacks. A second carrier is now used during peak seasons.
Priority
Review monthly carrier performance: on-time rate, delivery success, damage rate.
Related terms
Keep learning. Metrics that touch the same area:
- 3PL – Third Party LogisticsLogisticsAn external company for storage, picking, packing, and shipping. The store owner sends inventory to the 3PL, receives orders, and the 3PL handles fulfillment.
- Last Mile DeliveryLogisticsThe final leg of shipping — from the logistics center to the customer's door. 53% of shipping costs.
- Reverse LogisticsLogisticsManaging product returns: collection, inspection, sorting, restocking, or recycling. Costs 2-3x regular shipping.
- Cross-Border CommerceLogisticsSelling internationally — currencies, languages, taxes, customs, shipping reliability.
- FBA – Fulfillment by AmazonLogisticsAmazon stores, packs, and ships for you. Includes the Prime badge and higher ranking. Fees: referral + FBA + storage.
- Safety StockLogisticsExtra inventory held beyond what average demand requires — protects against demand fluctuations, lead-time delays, and forecasting errors. Safety Stock = Z × √Lead Time × Demand STD.
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