The recent closure of Pitney Bowes' e-commerce logistics division has sent shockwaves through the industry, leaving many sellers scrambling to find new logistics partners. Pitney Bowes had been a significant player in the e-commerce logistics space, particularly after acquiring Newgistics in 2017. Now, with Pitney Bowes out of the picture, e-commerce sellers must reassess their logistics strategies and explore other options for shipping, fulfillment, and returns.
As the e-com landscape continues to evolve, it’s crucial for sellers to understand the current state of carriers and third-party logistics providers (3PLs). There are plenty of remaining players, each with unique strengths and challenges, but choosing the right partner is key to maintaining a smooth operation.
DHL eCommerce: Affordable but Imperfect
DHL eCom is a very popular choice for e-com sellers due to its highly competitive rates. In the wake of Pitney Bowes’ closure, many sellers might turn to DHL as a cost-effective alternative. However, it’s important to note that while DHL eCom offers attractive pricing, it’s not without its drawbacks.
The primary issue is its customer experience, especially concerning tracking and communication. Customers often report slow updates and vague tracking milestones, leading to frustration. In an age where consumers expect real-time tracking and fast deliveries, these shortcomings can be detrimental to customer satisfaction. Despite these challenges, DHL remains a viable option for sellers who prioritize savings over a seamless customer experience. For many, the cost-effectiveness of DHL outweighs the potential issues with tracking and customer service.
OSM Worldwide: Reliable but Selective
OSM Worldwide is another great option for e-commerce sellers, particularly those who don’t require ultra-fast transit times. OSM is known for its reliability in standard delivery services, making it a solid choice for businesses with straightforward shipping needs. However, OSM can be selective about the clients it works with, particularly when it comes to shipping volumes.
In recent years OSM is developing a reputation for turning away businesses that don’t meet its profitability and volume criteria. This selectivity can be a hurdle for smaller eCom operations or those with irregular shipping volumes. However, for businesses with the right volume mix, OSM can be an excellent partner.
Asendia: The Best Choice for Cross-Border and International E-commerce
For sellers focusing on cross-border or international shipping, Asendia stands out as a top-tier option over Pitney Bowes. Asendia specializes in international logistics, making it an ideal partner for businesses looking to expand their global reach. Asendia offers a comprehensive range of services tailored to international e-commerce, including various DDU and DDP shipping options.
One of Asendia’s key strengths is its ability to manage complex international returns, a critical aspect of cross-border e-commerce. Returns are notoriously difficult in international logistics, with challenges like customs regulations and varying return policies across countries. Asendia’s expertise in this area helps streamline the process, reducing the burden on sellers and significantly improving the customer experience.
Niche Providers: VESYL, eHub, and Fulfillment-Focused 3PLs
In the absence of Pitney Bowes, niche discounted shipping providers like VESYL and eHub may become more attractive to e-commerce sellers with fulfillment already in place. These companies offer competitive rates and cater to businesses with particular shipping requirements. VESYL, for example, is known for its flexible pricing models, making it a good fit for high-volume shippers. Similarly, eHub aggregates rates from various carriers, allowing sellers to compare options and rate shop for the best fit.
For sellers needing both shipping and fulfillment services, “big box 3PL” options like ShipMonk, ShipBob, and ShipHero offer solutions tailored for businesses that need to scale quickly, providing inventory management, packing, and shipping. They’re also known for their fast onboarding processes, which can be critical for sellers needing to transition quickly.
Flowspace and Stord offer more boutique options for businesses anticipating significant growth or requiring fulfillment from multiple locations. Flowspace’s network is designed to scale with businesses as they grow, while Stord offers a similar scalable model with a slightly longer onboarding process. While Stord’s extended timeline may not suit every business, those that can afford to wait may find its network and especially its technology valuable.
UPS Mail Innovations: A Comprehensive Solution
With Pitney Bowes no longer in the market, UPS Mail Innovations (UPS-MI) emerges as a stable contender for sellers seeking a balance between competitive rates and comprehensive services.
UPS-MI offers a robust suite of mail services, making it an attractive option for businesses needing more than just basic shipping. Its capabilities in managing returns are particularly noteworthy, offering a seamless process that can enhance customer satisfaction. For e-commerce sellers who prioritize a smooth returns process and need a reliable partner to handle reverse logistics, UPS-MI is a strong option.
Conclusion: Navigating the Post-Pitney Bowes Landscape
The closure of Pitney Bowes’ e-commerce logistics division has left a significant void in the industry, prompting e-commerce sellers to reevaluate their logistics strategies. The remaining players in the market, of course, each have their own strengths and weaknesses.
By understanding these options, e-commerce sellers can navigate the post-Pitney Bowes landscape and choose the right logistics partners to meet their unique needs and continue to scale their eCom businesses while minimizing customer impact.
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Allison Rud is a dynamic leader and innovator in the operations and logistics sector, currently serving as the Head of Operations at Pipsticks, Inc., a company renowned for its vibrant sticker and stationery products. Based in Utah, Allison has cultivated a diverse career that spans over two decades, marked by her commitment to operational excellence and community engagement. She believes in empowering her team members and fostering a culture of creativity, which is essential in the fast-paced world of operations. Her extensive network of over 2,500+ connections on LinkedIn showcases her commitment to building relationships and sharing knowledge within her industry.
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