LTL Carrier Selection Guide for Ecommerce Fulfillment

Selecting the right less-than-truckload (LTL) carrier for Amazon fulfillment is critical to ensuring smooth and cost-effective logistics for your ecommerce business.

With Amazon’s strict delivery windows and complex requirements, choosing an unreliable carrier can result in missed deadlines, costly chargebacks, and negative impacts on seller performance metrics. In fact, delays in shipment can lead to stockouts, which in turn decrease your Buy Box eligibility and overall sales potential.

Other common pain points for sellers include inconsistent delivery times, hidden fees, and poor tracking visibility—all of which can disrupt your supply chain and customer satisfaction. 

By selecting a reliable and experienced LTL carrier, however, you can not only avoid these logistical nightmares but also benefit from more predictable and transparent shipping costs.

In our comprehensive guide, we’ll teach you how to choose the best LTL carriers that offer cost-effective, reliable shipping solutions. Mastering this aspect of logistics can help you optimize your supply chain and maintain compliance with Amazon carrier requirements, leading to smoother operations and improved profitability.

What is LTL (Less-Than-Truckload) Freight?

LTL freight is a shipping method commonly used by Amazon sellers to transport goods that don’t require a full truckload. Instead of paying for an entire truck, multiple sellers’ shipments are consolidated into one truck, allowing them to share the cost. This is ideal for sellers who need to ship smaller quantities of inventory to Amazon’s fulfillment centers.

For Amazon sellers, LTL freight is often used for restocking products in fulfillment centers via the Amazon Partnered Carrier Program or working directly with third-party carriers. When using LTL freight, sellers must follow specific guidelines to ensure compliance with Amazon shipping requirements, including labeling, packaging, and providing detailed shipment information.

Once the freight is picked up, it moves through a network of distribution hubs before arriving at the final destination. The LTL carrier coordinates drop-offs with Amazon, and delivery times typically range from 2-10 days, depending on the distance. However, working with the wrong carrier can cause delays, leading to stockouts or missed restock windows, potentially affecting your inventory performance and buy box ranking.

In summary, LTL freight allows sellers to ship smaller quantities of inventory in a more cost-effective way but requires careful coordination with carriers and Amazon to ensure timely and compliant deliveries.

Key Benefits of LTL Freight Shipping

The following are the key benefits of LTL freight shipping: 

Cost Effective

LTL freight offers significant cost savings compared to Full Truckload (FTL) Shipping. 

By sharing the cost of transportation with other shippers, businesses can reduce their shipping expenses and improve their profitability. More on that later.

Flexible and Adaptable

Amazon-approved carriers provide flexibility in terms of pickup and delivery locations, allowing businesses to accommodate various shipping needs, making this adaptability particularly valuable for businesses with irregular shipping volumes or diverse customer locations. 

Reduced Administrative Burden

LTL carriers typically handle a significant portion of the paperwork associated with shipping, such as preparing bills of lading, customs declarations, and other necessary documentation. 

This reduces the administrative burden on businesses, allowing them to focus on core operations. 

Improved Efficiency

LTL carriers have optimized their networks and processes to ensure efficient transportation of shipments, resulting in faster transit times and fewer delays compared to other shipping methods. 

Access to a Wider Range of Services

LTL carriers often offer a variety of additional services, such as insurance, customs clearance, and specialized handling for specific types of cargo. 

This can simplify the shipping process and provide businesses with peace of mind. 

Factors to Consider When Choosing LTL Carriers

When choosing freight carriers for ecommerce fulfillment, several key factors must be considered to ensure efficient, cost-effective shipping. These factors directly impact the quality of service, delivery times, costs, and overall fulfillment operations.

Here’s a breakdown of the essential considerations.

1. Types of LTL Carriers

LTL carriers can be classified as national, regional, or local carriers, each serving different geographic areas and offering varying levels of service.

• National Carriers operate across the country, making them suitable for sellers shipping to multiple Amazon fulfillment centers spread throughout the US. They offer broad coverage but may lack the flexibility of regional carriers.
• Regional Carriers focus on specific geographic areas, making them ideal for sellers with high volumes of shipments in particular regions. They can offer faster delivery times and personalized service within their territories.
• Local Carriers cover smaller areas, often providing more cost-effective solutions for last-mile deliveries or specialized services for specific locations.

Choosing the right type of carrier depends on your shipping destinations and volume. If you’re frequently shipping to Amazon fulfillment centers on the East Coast, regional Amazon shipping options may offer quicker, cheaper delivery than a national carrier.

2. Cost

LTL carriers price shipments based on weight, size (dimensional weight), distance, and freight class (which classifies the goods being shipped). Some carriers may offer volume discounts for regular shippers, while others have variable rates based on specific lanes.

• Freight Class: Freight is divided into classes, ranging from 50 (least expensive) to 500 (most expensive). Understanding your product’s freight class is crucial as it impacts costs. For example, lightweight but bulky items like furniture can incur higher charges than denser goods like electronics.

Comparing quotes or requests for proposals from different carriers is essential to avoid overspending. Sellers often use Amazon-preferred LTL carriers, which can provide discounted rates compared to third-party carriers.

Be aware of fuel surcharges and how they may impact your shipping costs. Consider any additional fees or surcharges that may apply, such as accessorial charges or residential delivery fees.

3. Transit Times

Shipping speed is vital for ecommerce fulfillment, especially if your products are time-sensitive or need quick replenishment in Amazon fulfillment centers to prevent stockouts. National LTL carriers typically have longer transit times than regional carriers. You should consider transit time guarantees and the carrier’s ability to deliver within your desired time frame.

For instance, regional carriers may offer faster delivery times for shipments within a concentrated area, helping sellers meet Amazon’s tight restocking deadlines during peak seasons.

4. Carrier Reliability & Track Record

A carrier’s on-time delivery rate, handling practices, and damage rates are critical in ecommerce fulfillment. You want a carrier with a strong reputation for handling goods with care and delivering shipments on schedule. A carrier with frequent delays or high damage claims can interrupt your supply chain and lead to additional costs.

Consider using Amazon's Carrier Performance List to simplify your carrier selection process. This comprehensive resource provides valuable insights into various transportation providers, helping sellers make informed decisions for their shipping needs.

The Carrier Performance List offers weekly updates on key metrics such as on-time delivery rates and no-show percentages, allowing sellers to assess which carriers consistently meet Amazon’s operational standards. By reviewing this data, sellers can identify reliable carriers that align with their logistics requirements, ensuring a more efficient shipping process.

Using this information, sellers can streamline their transportation planning, selecting Amazon delivery partners that not only fulfill the retailer’s standards but also enhance their overall supply chain performance. 

5. Freight Tracking and Visibility

Visibility into your shipment’s location and status is key to maintaining transparency and managing logistics. Most LTL carriers offer real-time tracking via GPS or other shipment tracking systems, but the quality of these services can vary.

Even Amazon requires sellers to provide a carrier tracking ID for their non-partnered carrier shipments so that fulfillment centers can get inventory checked in quickly.

Having access to up-to-date tracking information ensures you can monitor deliveries and communicate with Amazon or customers about delays or issues.

6. Customer Service and Support

Exceptional customer support is essential, especially when resolving issues like late deliveries, damaged freight, or compliance questions with Amazon’s strict LTL requirements. Choosing a carrier with 24/7 customer support or dedicated account managers can streamline problem resolution. 

7. Insurance and Liability Coverage

It’s important to consider the insurance and liability coverage the carrier provides in the event of damaged or lost goods. LTL carriers typically offer basic liability coverage, but for high-value shipments, additional coverage may be necessary. Ensure that the carrier’s liability limits meet your needs, especially if you’re shipping expensive or fragile items.

8. Amazon Compliance

Carriers need to comply with Amazon’s specific LTL shipping requirements, such as appointment scheduling, pallet labeling, and Advanced Shipping Notification (ASN) protocols. Failing to meet Amazon’s compliance standards can result in rejected shipments or costly delays. Sellers should choose carriers familiar with Amazon’s fulfillment network to minimize the risk of non-compliance.

9. Additional Services

Some LTL carriers offer value-added services such as inside delivery, lift gate service, or warehousing that may benefit your fulfillment strategy. For example, if your shipments require a lift gate at Amazon’s dock due to heavy or oversized items, ensure your carrier offers this capability.

10. Financial Stability

Evaluate the carrier's financial stability to ensure they can meet their obligations and continue providing services in the long term. 

Verify that the carrier has adequate insurance coverage to protect your shipments in case of loss or damage.

Top Amazon Delivery Options in 2024

When selecting a LTL carrier, it's necessary to consider factors such as network coverage, service offerings, reliability, and customer satisfaction. 

Forceget: Known for its digital revolution, Forceget offers LTL and FTL freight services, allowing you to request real-time freight offers instantly with just a single button.

ABF Freight: Known for its extensive network and strong customer service, ABF Freight offers a wide range of LTL services, including expedited shipping, international shipping, and specialized transportation options. 

YRC Freight: As one of the largest LTL carriers in North America, YRC Freight provides reliable and efficient transportation solutions for businesses of all sizes. They offer a variety of services, including expedited shipping, regional shipping, and cross-border transportation. 

UPS Freight: A subsidiary of United Parcel Service (UPS), UPS Freight offers a comprehensive range of LTL services, including expedited shipping, international shipping, and specialized transportation options. UPS Freight is known for its reliable service, advanced tracking capabilities, and extensive network. 

Estes Express Lines: Estes Express Lines is a leading LTL carrier with a strong focus on customer service and on-time delivery. They offer a variety of services, including expedited shipping, regional shipping, and specialized transportation options.

Old Dominion Freight Line: Old Dominion is a major LTL carrier known for its efficient operations and competitive pricing. They offer a wide range of services, including expedited shipping, regional shipping, and specialized transportation options. 

ArcBest: ArcBest is a diversified transportation company that offers LTL services through its subsidiary, ABF Freight. They also provide other transportation services, such as truckload, air freight, and logistics solutions. 

Schneider National: Schneider National is a leading transportation company that offers a variety of services, including LTL, truckload, and international transportation. They are known for their commitment to safety, sustainability, and customer satisfaction. 

Holland America: Holland America is a regional LTL carrier with a strong presence in the Midwest and Southeast United States. They offer reliable and efficient transportation services, with a focus on customer service and on-time delivery. 

7 Top Tips for Efficient Fulfillment and Delivery

1. Choosing Between In-House and Outsourced Fulfillment

The decision of whether to handle fulfillment in-house or outsource it to a third-party logistics (3PL) provider depends on various factors, including your business size, product range, and fulfillment volume. 

• In-House Fulfillment: If you have a small product range and can efficiently manage inventory and shipping, in-house fulfillment may be a suitable option. It provides greater control over your operations but can be resource-intensive. 
• Outsourced Fulfillment: Outsourcing fulfillment to a 3PL provider can offer several benefits, such as scalability, cost savings, and expertise. 3PLs have the infrastructure and experience to handle complex fulfillment operations, allowing you to focus on other aspects of your business. 

Your choice of fulfillment strategy will significantly influence your carrier selection. If you handle fulfillment in-house, you'll need to select a carrier that aligns with your specific shipping needs and location. 

However, if you outsource fulfillment to a 3PL provider, you may need your Amazon delivery service partners to be able to have the capability to integrate seamlessly with your 3PL's systems and processes.

2. Shipping Cost Optimization

Maximize your savings by using SoStocked’s Product Resizer Tool to audit your product dimensions and find the most efficient packaging sizes.

Trimming just a few inches can shift your products into a cheaper FBA size tier, significantly reducing your storage and shipping fees. Simply input your product information, and the tool will show you opportunities to right-size your packaging for optimal cost savings.

Once you’ve resized your products, take it a step further by using Master Carton Calculator to optimize carton and pallet loads. This will help streamline your logistics and save even more on shipping.

3. Smart Packing Techniques and Materials

After right-sizing packaging, consider lightweight yet protective materials, such as air pillows, biodegradable packing peanuts, or foam inserts. These materials offer cushioning without adding significant weight, helping to lower shipping fees. Additionally, using double-walled or reinforced boxes can protect fragile items during transit, reducing the risk of damage.

Another tip is to ensure that products are packed tightly to prevent movement. For example, if you’re shipping glassware, use dividers or compartmentalized boxes to keep items secure. For sellers, testing packaging methods with a few shipments can reveal opportunities to reduce material usage while maintaining product safety.

4. Negotiate Volume Discounts with LTL Carriers

Negotiating volume discounts with carriers and leveraging promotional offers can significantly reduce shipping costs for Amazon businesses. Start by analyzing your shipping volume and frequency. Carriers often offer better rates to businesses that ship large volumes, so it’s crucial to track your shipping data to identify patterns. 

For example, if you regularly ship 100 packages a week, you can approach carriers with this information to negotiate a better rate.

When negotiating, be transparent about your shipping needs and express interest in a long-term partnership. Many carriers have tiered pricing models, so presenting your anticipated growth can incentivize them to offer lower rates. Suppose you’re planning to expand your business, carriers might be willing to provide discounts in exchange for a commitment to increased shipping volume.

Additionally, take advantage of promotional offers. Many carriers run seasonal promotions or limited-time discounts, particularly during peak shopping seasons. Staying informed about these offers can lead to significant savings. UPS and FedEx often provide discounts during the holiday season for businesses that ship large quantities.

5. Keep Your Inventory in Check

Using inventory management software like SoStocked is crucial for effectively tracking stock levels, avoiding stockouts, and minimizing excess inventory.

Here’s how to leverage its features for optimal inventory control.

• Real-Time Stock Tracking: SoStocked provides real-time visibility into your inventory levels, allowing you to monitor stock across multiple sales channels. For example, if you notice that a particular SKU is running low, you can quickly reorder before running out, ensuring you maintain sales momentum.
• Automated Reorder Alerts: Set up automated reorder alerts to notify you when stock falls below predefined thresholds. This feature helps you avoid stockouts, which can lead to lost sales and disappointed customers. For instance, if your popular product consistently sells out, SoStocked can alert you to reorder in advance based on historical sales data.
• Demand Forecasting: SoStocked’s forecasting tools analyze sales trends and seasonality, helping you predict future inventory needs. This enables you to order the right quantities and avoid out-of-stock situations. If you notice increased sales during the holiday season, you can plan accordingly to ensure you have enough inventory on hand.
• Integration with Sales Channels: SoStocked can integrate with various sales platforms, ensuring that inventory levels are synchronized across all channels. This prevents overselling and provides a comprehensive view of your inventory status.‍
• Minimizing Excess Inventory: The software allows you to track inventory turnover rates, giving you insights into which products are moving quickly and which are stagnant. By identifying slow-moving items, you can implement promotional strategies or adjust your ordering to reduce excess inventory. For example, if you have a surplus of a specific product, you might consider running a discount campaign to clear it out.

6. Measure Fulfillment Success

Measure the effectiveness of your fulfillment process by tracking key performance indicators (KPIs) such as:

• Delivery Time: This metric tracks the average time it takes for products to reach customers from the moment an order is placed. By analyzing delivery times, sellers can identify delays in their supply chain. For instance, if the average delivery time exceeds your target, you may need to reassess your logistics partners or streamline your shipping processes.
• On-Time Delivery Rates: This KPI measures the percentage of orders delivered on or before the promised delivery date. A high on-time delivery rate indicates a reliable fulfillment process, while a low rate can signal issues in your logistics strategy. For example, if you consistently miss delivery deadlines, you might consider optimizing your route planning or using faster shipping options.
• Customer Satisfaction: Gathering customer feedback through surveys or reviews can provide insight into how satisfied customers are with your fulfillment process. Metrics like Net Promoter Score (NPS) can quantify customer satisfaction and loyalty. For example, a drop in NPS after a change in your shipping provider could highlight issues that need addressing.

Effectively track these KPIs by using analytics tools integrated into your ecommerce platform or third-party software that consolidates data from various sources. Regularly reviewing these metrics will help you make informed decisions to enhance your fulfillment process.

7. Foster Strong Connections with Freight Carriers

Establishing positive relationships with your non-Amazon and Amazon transportation services is crucial for ensuring reliable and efficient shipping.

Start by maintaining open lines of communication. Regularly discuss your shipping needs, preferences, and any issues that arise. If you’re consistently shipping larger volumes during peak seasons, inform your carrier in advance so they can allocate the necessary resources to accommodate your needs.

Another key factor is to be transparent about your business operations. Sharing your forecasted shipping volumes can help carriers plan better, resulting in improved service and potentially better rates. For example, if you inform your carrier about an upcoming product launch, they can prepare for increased shipping demands, ensuring timely deliveries.