Balancing Shipping Costs vs. Customer Experience: Choosing the Right Carrier
Is this the delivery driver you want for your brand? We’ll dive into the story behind this image but, first, let’s look at some of the trade-offs in selecting the best shipping carrier for your business.
Today’s e-commerce customers expect more than just fast delivery—they demand professionalism and a seamless, consistent brand experience, right to their front door. Every aspect of last mile delivery reflects directly on your business, including but not limited to:
Regular accurate tracking updates
Appearance of the delivery vehicle
The attitude of the driver
Package handling and resulting damage
Discretion: Did the driver ring the doorbell late at night after the baby was almost asleep?
Respect for customer property: How a driver navigates residential spaces—whether they follow walkways, avoid trampling gardens, or leave packages in appropriate locations—reflects on your brand.
For e-commerce brands, balancing the cost of shipping with maintaining control over the customer experience is a challenge. Choosing the right ecommerce shipping solution can mean the difference between customer delight and disappointment. As companies explore ways to cut costs and streamline operations, it’s crucial to understand how those decisions might impact your brand perception.
Every carrier builds and manages its pickup and delivery networks differently. Carriers directly operating their own fleets (or not) and directly hiring their own delivery drivers (or not) are a couple of the many variables that impact your customers’ experience with your brand’s deliveries.
This post will compare the structure of several major shipping carriers’ transportation networks and their level of driver professionalism, focusing on how this affects the customer experience during the last mile.
From USPS to FedEx, UPS, DHL eCommerce, OSM, GLS, OnTrac, and Amazon, we’ll explore their strengths and weaknesses in providing the best ecommerce shipping solutions. Ultimately, we aim to help you strike the right balance between cost-effectiveness and delivering a top-tier customer experience with the right last mile delivery solution.
Why Last-Mile Delivery Matters for Your Brand
For e-commerce businesses, the last mile of delivery is not just a logistical step—it’s often the only in-person interaction between your brand and the customer. How that delivery is executed can shape your brand’s image in the eyes of your customers. Regardless of which ecommerce shipping solution you choose, the carrier delivering your package is an extension of your brand, and the customer’s experience with that delivery can leave a lasting impression. That’s why the shipping solution for e-commerce plays such a critical role in customer satisfaction.
Appearance and Professionalism: The Face of Your Brand
Different carriers manage their fleets and delivery networks in distinct ways, which can directly influence how customers perceive your brand. For example, carriers like UPS operate their own fleet of branded trucks, with uniformed employees who are trained to follow company standards. A typical UPS delivery features a clean, branded vehicle, a driver in a sharp, recognizable uniform, and a professional demeanor. This level of consistency reassures customers that they are dealing with a reputable service, which, in turn, reflects positively on your e-commerce brand.
Contrast this with carriers like OnTrac, where deliveries are sometimes made by independent contractors who may use personal vehicles. Imagine receiving a package from a driver in a standard minivan with a temporary logo magnet on the door, wearing casual clothes without any identifiable uniform. While OnTrac might offer competitive pricing, the delivery experience lacks the polished, professional appearance that customers associate with trusted brands. This is a stark difference from UPS, where every aspect of the interaction feels structured and reliable.
These two examples highlight the variability in professionalism across different ecommerce shipping and fulfillment solutions. The level of professionalism isn’t just a matter of aesthetics—it has a tangible impact on how customers perceive the quality and reliability of your brand.
Cost vs. Customer Experience: Where Do You Draw the Line?
Many e-commerce companies face a difficult decision when selecting the best eCommerce shipping solution: balancing the need to control shipping costs with maintaining a high level of customer experience. Choosing a lower-cost carrier might save money upfront, but if the delivery experience is subpar, it can hurt customer retention in the long run.
Let’s take FedEx as another example. FedEx operates a contractor model for most of its ground deliveries, which introduces a level of variability similar to OnTrac, GLS, and other regional carriers. While FedEx drivers often wear uniforms and drive branded FedEx vehicles, there can still be inconsistencies in the customer’s experience. Compare this to UPS or USPS, which directly hire their drivers and typically maintain stricter oversight over the delivery process.
However, if budget is a concern, regional carriers like OSM, GLS, and OnTrac may offer cost-effective shipping solutions for e-commerce. While these carriers may use a mix of branded and non-branded vehicles, they generally offer competitive pricing for last-mile deliveries in specific regions, making them a viable option for certain types of shipments. The tradeoff, though, often comes in the form of a less uniform customer experience, which may or may not align with your brand’s values.
Real-World Impact on Brand Perception
Imagine this scenario: A customer orders a product from your online store, expecting it to arrive in a neat, timely fashion. If that package is delivered by a UPS driver in a clean, branded truck, their first impression is one of professionalism and trust. On the other hand, if that same package arrives from an OnTrac driver in an unmarked vehicle, the customer may question the legitimacy of the delivery.
These experiences directly affect the customer’s perception of your brand. Regardless of which shipping solution for e-commerce you choose, customers see the delivery process as a reflection of your business, not just the carrier’s performance.
Comparing Major Carriers on Professionalism and Branding (1-10 Scale)
When selecting the right ecommerce shipping solution, it’s essential to weigh both cost-effectiveness and how well each carrier aligns with your brand’s image. Below, we compare several major carriers’ transportation network designs, delivery vehicles, and delivery drivers. Each category is rated on a scale of 1 - 10 (10 being the best brand perception, 1 being the worst), along with rationale behind the score.
USPS
USPS is one of the most cost-effective options for last-mile delivery, especially for small to mid-size e-commerce businesses. Its government-backed infrastructure and flat-rate pricing make it an attractive choice for brands looking to keep shipping costs low.
Transportation network: 8/10
USPS owns and operates its own network across the US and has done so for literally centuries at this point.
That said, tracking numbers in the USPS network will tend to update a little slower and less often than FedEx and UPS. This gap in traceability is shrinking but still exists.
Delivery vehicle perception: 7/10
USPS drivers are generally beyond the wheel of branded trucks, giving them a baseline level of professionalism.
However, USPS is not always viewed as the most premium delivery service. This reputation is a decades long headwind for USPS and may not be totally accurate, but the low cost / low service level perception still exists across the US.
Still, USPS remains a reliable workhorse for affordable last-mile delivery.
Delivery driver perception: 9/10
USPS drivers are almost always uniformed (with the exception of some Amazon deliveries on Sundays we’ll ignore for the moment).
USPS drivers are often viewed positively as a well organized, well trained, unionized work force.
UPS
UPS is well-regarded for its commitment to quality service and brand consistency, making it a popular choice for businesses seeking a premium shipping experience. However, this level of service comes at a higher cost than many other carriers.
Transportation network: 9/10
UPS owns and directly operates an extensive network that is both domestic and international, providing superior tracking capabilities and timely updates.
Known for being highly reliable, UPS ensures efficient and predictable delivery times across its routes.
This direct oversight of its network helps the carrier maintain a reputation for dependability and customer satisfaction.
Delivery vehicle perception: 10/10
UPS trucks are instantly recognizable, clean, and uniformly branded in their signature brown color. The strong branding on all vehicles reinforces a sense of professionalism and trust in the service. This polished vehicle presentation is designed to ensure that customers view UPS as a high-quality, dependable carrier, ideal for brands looking to deliver a premium experience.
Delivery driver perception: 10/10
UPS drivers are unionized direct employees, fully trained, and uniformed, adding to the brand’s cohesive and professional image.
UPS’s commitment to professionalism is evident in its driver training and conduct standards, making UPS a top choice for brands that value consistent, positive customer interactions at the delivery stage.
FedEx
FedEx offers a broad range of services that provide flexible solutions for e-commerce businesses of all sizes. However, FedEx’s use of independent contractors in most of its ground operations can result in a slightly variable customer experience.
Transportation network: 8/10
FedEx operates an extensive, well-established network with strong domestic and international capabilities. While highly reliable and equipped with detailed tracking, FedEx’s contractor-based model for Ground shipments can introduce some variability. Still, FedEx’s ground network design and robust infrastructure provide a high level of dependability.
Unlike its ground network, FedEx’s Express (e.g. overnight and 2-day delivery) network is corporate-owned and operated. FedEx is world renowned for ontime expedited delivery, at least on par with UPS.
Delivery vehicle perception: 9/10
FedEx vehicles are consistently branded, clean, and recognizable. Their familiar white and purple color scheme conveys a professional image, and customers generally perceive them positively.
However, because FedEx contracts some of its drivers, vehicle branding can occasionally vary, though this is a minor issue given the overall consistency.
Delivery driver perception: 8/10
FedEx drivers typically wear branded uniforms, which adds to the professional feel. However, since many FedEx drivers are contractors, there can be slight inconsistencies in the delivery experience based on location and contractor management.
Nevertheless, FedEx is viewed as a high-quality provider with professional standards that meet most brand expectations.
GLS
General Logistics Services (GLS) is a subsidiary of UK Royal Mail. GLS offers regional shipping within specific U.S. areas and is known for its fast service and cost-effective rates. However, its regional focus means that GLS may lack the uniform branding and professionalism of larger national carriers like FedEx and UPS.
Transportation network: 6/10
GLS is more well known in the US for its shipping services on behalf of the wine industry. However, the company is working hard to make inroads in broader product categories and in e-commerce.
GLS provides reliable, efficient service across most US states, but it lacks the national infrastructure of carriers like FedEx and UPS.
Although GLS is dependable in its regions of operation, its limited network can affect tracking and delivery time consistency on a national scale.
Delivery vehicle perception: 5/10
GLS’s vehicle presentation is inconsistent, with some branded trucks but many drivers using unmarked or minimally branded vehicles. This variability in branding can impact customer perception, especially for brands that prioritize a polished delivery experience. Customers may not immediately recognize GLS as a professional delivery service.
Delivery driver perception: 5/10
GLS drivers are not always in branded uniforms, and their presentation can vary depending on the delivery region and specific contractor. While GLS drivers are generally competent and efficient, the lack of a cohesive brand image means GLS is often perceived as a cost-effective but less premium carrier.
OSM
OSM specializes in cost-effective last-mile delivery and partners with USPS and other regional carriers (including GLS) to complete final deliveries. While this hybrid model keeps costs low, it means that OSM has limited brand control in the last-mile stage.
Transportation network: 7/10
OSM provides a strong logistical network by working with regional and national carriers, which allows for efficient, affordable last-mile delivery.
However, the reliance on partner networks like USPS means that OSM’s tracking capabilities and delivery timelines are sometimes impacted by its partners’ performance.
Delivery vehicle perception: 6/10
OSM does not operate a fully branded fleet, relying on a mix of partner vehicles for last-mile delivery. As a result, customers will often see USPS or other local carriers rather than a dedicated OSM truck, which diminishes brand recognition and consistency.
Delivery driver perception: 6/10
Because OSM relies on partners for delivery, the professionalism of the drivers can vary widely. While USPS drivers are generally uniformed, some regional carriers may use contractors without consistent branding or uniforms. This variability can detract from the overall customer experience, making OSM a functional but less polished option for last-mile delivery.
DHL eCommerce
DHL eCommerce (DHLe) provides cost-effective solutions, especially for international shipping, by partnering with USPS for last-mile delivery in the U.S. This partnership reduces costs but also means that DHLe has limited brand control over the final delivery experience.
Transportation network: 8/10
DHLe’s US network is effective and efficient. The company’s partnership with USPS in the US allows for seamless delivery to all locations.
However, this reliance on USPS means that tracking updates and delivery timelines are somewhat dependent on USPS’s capabilities.
DHLe also offers more than one service level, ranging from cheaper ground services that require over one week for delivery to their still affordable “Expedited Max” solution that commonly delivers in 2 - 3 days. At Rush Order, we’ve had particularly good luck with Expedited Max and recommend it for lighter weight and relatively low value shipments where speed of delivery is still a desired feature.
Delivery vehicle perception: 7/10
For US deliveries, DHLe currently hands off all packages to USPS, which completes the last mile. As a result, DHL’s branding is largely absent in domestic deliveries. The resulting brand perception is identical to that of USPS.
Delivery driver perception: 9/10
Again, DHL’s dependence on USPS drivers for delivery means customer perception will mirror that of USPS.
Amazon
Amazon’s logistics network is known for its speed and affordability, but its contractor-based Delivery Service Partner (DSP) program can lead to inconsistent delivery experiences that sometimes impact customer perception. As Amazon begins competing for parcels that did not only originate from its own facilities, the company will find itself directly competing for business with the other carriers on this list. And, we expect this will force adaptations in Amazon’s real and perceived capabilities in the near and medium term.
Transportation network: 9/10
Amazon’s network is expansive and designed for rapid deliveries, with widespread coverage in both urban and rural areas.
However, the network’s dependence on independent contractors can introduce variability in delivery quality, even though Amazon’s tracking capabilities are strong and user-friendly.
Delivery vehicle perception: 6/10
Amazon’s vehicle presentation varies widely; customers might receive packages from a branded Amazon van or an unmarked car driven by a contractor. This inconsistency can detract from the perceived professionalism of the delivery, as unbranded vehicles don’t provide the same sense of reliability as fully branded ones.
Even its fully branded vehicles range from older gas / diesel powered vans to the fancy new all-electric Rivian-based fleet.
Delivery driver perception: 5/10
Amazon’s DSP model, which relies on independent contractors, results in a broad range of driver presentation standards. Drivers may or may not wear Amazon-branded uniforms, and interactions with customers can vary in quality (as witnessed in the example discussed below where the Amazon driver was wearing an intimidating skull mask for a delivery).
While Amazon’s rapid delivery speeds are highly valued, the variability in driver presentation can diminish brand trust and consistency, especially in comparison to carriers with direct-hire, uniformed drivers.
OnTrac
OnTrac, now merged with LaserShip, has been expanding its footprint to offer a larger regional shipping network, integrating two previously separate carriers—one on the West Coast (OnTrac) and one on the East Coast (LaserShip). While the integration is still in progress, Rush Order’s experience with OnTrac has shown reliable service to the areas within its established delivery zones.
Transportation network: 7/10
OnTrac’s integration with LaserShip expands its reach, but the process of merging two regional networks is still underway. On the West Coast, OnTrac has a well-established network that generally provides reliable delivery to its covered destinations.
However, the network is still regional, covering specific areas within the Western and Eastern US but not providing the national consistency of FedEx or UPS. As the integration continues, OnTrac’s reach may increase, but there are currently gaps in coverage as it grows.
Time in transit, to those limited delivery areas is quite fast and cost efficient in our experience.
Delivery vehicle perception: 4/10
OnTrac’s vehicles are a mix of branded and unbranded trucks, vans and personal cars, often equipped with temporary logo magnets.
This lack of consistent vehicle branding can make the delivery appear less polished than a major national carrier like UPS, USPS, or FedEx. The varying appearance can impact the customer’s perception of professionalism, as customers may not immediately recognize the delivery as coming from a reputable service.
Delivery driver perception: 5/10
OnTrac’s drivers are primarily independent contractors, meaning driver presentation and professionalism can vary. Many drivers do not wear uniforms, and interactions with customers may differ depending on the individual driver’s standards.
Despite this, Rush Order’s experience has shown that OnTrac maintains a reliable delivery track record to areas within its regional zones. While the appearance may lack the consistency of carriers with directly employed drivers, OnTrac remains dependable for businesses seeking economical ecommerce shipping solutions in specific regions of the US.
Key Takeaways
Each carrier brings unique strengths to the table, from the cost savings of DHLe, GLS, and OnTrac to the polished professionalism of UPS. For businesses seeking the best ecommerce shipping solutions, the choice of carrier depends on whether your priority is cutting costs or maintaining a premium customer experience. Sometimes a healthy mix of both lower costs and decent brand perception are obtainable as well.
Case Study – When Branding in Last Mile Delivery Goes Rogue
When customers receive a package, the delivery person becomes the face of your brand—whether that person wears a UPS uniform, drives an unbranded van, or, in extreme cases, wears something more surprising. Recently, an Amazon delivery driver was seen delivering a package to Rush Order’s HQ office while wearing a full skeleton mask, and it wasn’t even Halloween! This is a prime (pun intended) example of how brand control can be compromised during the last-mile delivery phase.
The Incident: Amazon Delivery Driver in a Mask
The driver, who is contracted through Amazon’s Delivery Service Partner (DSP) program, was delivering a package on behalf of Amazon but appeared wearing a mask that would be more appropriate for Halloween than a routine delivery. While this may have been a harmless personal choice, the appearance of the delivery person created an obvious disconnect between the expected professional service and the actual delivery experience.
Amazon's delivery network is largely operated through independent contractors, and these drivers often have more autonomy over how they present themselves. As a result, you may see delivery vehicles that range from fully branded Amazon vans to personal vehicles without clear signage. This inconsistency can lead to unpredictable customer experiences, as seen in this case where the driver’s attire was more concerning than professional.
Impact on Brand Perception
Now imagine this incident occurring at your customer's doorstep. The sight of a masked driver, regardless of the context, could create confusion or even fear and alarm. More importantly, it sends an unprofessional message that is completely out of your control as an e-commerce business. In this case, a seemingly minor detail—what the delivery driver was wearing—could have a significant negative impact on your customer’s perception of your company, not just the carrier.
This case highlights the importance of thoroughly vetting your delivery partners and understanding the level of control you have over the final mile. While cost savings are always a consideration, the long-term impact on your brand can be far more costly if customer trust is compromised.
Striking the Balance Between Cost and Customer Experience
Balancing cost efficiency and maintaining a professional brand image is a constant challenge. The carrier you choose to deliver your products can have a direct impact on your bottom line, but it also plays a critical role in how your brand is perceived by customers. Fortunately, finding a solution that maximizes cost savings without sacrificing customer experience is achievable if approached strategically.
Cost Efficiency vs. Brand Control
For many e-commerce businesses, controlling shipping costs is essential to staying competitive, especially when free or low-cost shipping is expected.
Consider a small online retailer that sells handcrafted home goods. If they choose to use a budget-friendly option like OnTrac, the package might arrive in a plain vehicle with a casually dressed driver. While this may save the company money, the customer might associate this less-polished experience with the overall quality of the brand. Contrast this with using UPS, where the customer is likely to receive their package from a driver in a branded truck, dressed in a neat, professional UPS uniform. The difference in presentation could have a significant impact on customer trust and perceived value.
For businesses selling higher-value items—like electronics, luxury goods, or health products—this inconsistency can be particularly damaging. Imagine receiving a high-end smartwatch in a tattered brown box from an unmarked car; even if the product itself is perfect, the lack of a professional touch diminishes the unboxing experience. On the flip side, opting for a premium service like FedEx or UPS adds a layer of reliability and trust, ensuring that the product feels high-quality from delivery to unboxing.
However, not every business can afford premium shipping for all orders. This is where the balance between cost and customer experience becomes key.
Recommendations for Balancing Cost and Professionalism
Blended Approach: Matching Shipping Solutions to Product Value
One of the most effective strategies for managing costs without sacrificing brand control is a blended approach. Reserve premium carriers like UPS or FedEx for high-value customers or products that require extra care. This not only ensures a consistent, professional presentation but also protects your brand reputation for orders where the customer experience matters most.
For less critical deliveries, more cost-effective options like OSM, DHL Ecommerce, or USPS can be used, especially for lower-value items or in situations where fast delivery isn’t the top priority.
Example: A beauty brand selling premium skincare products could ship expensive facial serums via UPS, offering customers the reassurance of a well-branded, professional delivery, while using DHL Ecommerce for less costly and lighter weight items like makeup brushes and accessories.
Auditing Delivery Partners: Consistency is Key
Regardless of which ecommerce shipping solution you choose, regular audits of your shipping partners are crucial. With carriers like Amazon and FedEx, which use contractor-based models, the service quality can vary from one region to another. Keeping an eye on feedback from your customers can help identify potential problems with specific carriers or geographic areas. Customer surveys and software tools that track on time delivery can be great investments here.
Many businesses overlook this step, but it’s a powerful way to maintain control over the customer experience. Some businesses even include follow-up emails or feedback requests to ask customers specifically about their delivery experience. This allows you to quickly spot patterns, such as a particular region consistently receiving poor delivery service from an independent contractor, and make adjustments accordingly.
Setting Customer Expectations: Transparency Pays Off
One of the best ways to manage both cost and customer satisfaction is through clear communication. Letting customers know what to expect in terms of delivery method and timeframe can go a long way in shaping their perception. For example, if you’re using a carrier like OnTrac or GLS that may not provide a fully branded experience, being upfront about this can help manage expectations.
Example: A fashion e-commerce store could give customers a choice between free shipping with GLS or a premium 2 - 3 day delivery option with FedEx for a moderate fee. By doing so, they allow the customer to weigh the importance of speed and professionalism themselves, which can enhance satisfaction even if they choose the free option.
The Final Balance: Flexibility is Key
Ultimately, the best shipping solution for e-commerce businesses is one that offers flexibility. Balancing cost and brand control doesn’t mean compromising one for the other—it’s about finding the right mix of shipping partners that align with your business goals. By segmenting your shipping strategy, regularly auditing carrier performance, and communicating clearly with customers, you can optimize your delivery process and protect your brand image, all while keeping shipping costs under control.
Next steps
Rush Order typically saves its new clients 20% - 50% on their existing discounted shipping rates. This opens opportunities for businesses to use premium carriers and provide a better customer experience, but at heavily reduced rates. Alternatively, for brands that prioritize cost-saving, these discounts allow you to use less polished carriers to create additional margin where it previously didn’t exist.
If you’re ready to improve your shipping strategy without compromising your brand’s reputation or breaking the bank, contact Rush Order today. Consultations with our shipping experts are free and there’s no obligation. We’ll help you strike the perfect balance between cost-effectiveness and a customer experience that reflects the quality of your brand. Schedule your timeslot here.
