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Merchants are running separate shipping operations for parcel and LTL freight, and only optimizing one
Surveyed merchants say freight still runs through brokers and separate portals, while 74% want parcel, freight and warehousing on one platform.
The Merchant Insights Report, posted Friday, found that most retail businesses operate two disconnected shipping systems: one for parcel and another for freight. This structural gap leaves many companies without unified logistics management.
Freight shipping evolved through manual workflows like phone calls and broker relationships, unlike parcel shipping which merchants have long integrated into automated software. Consequently, 58% of merchants use third-party freight providers unconnected to their parcel platforms.
Shipping and freight rates limit growth for 62% of businesses, marking the most significant challenge across all company sizes. Additionally, 75% of merchants reported shipping expenses increased over the past 12 months.
Merchants clearly recognize the need for integration, with 74% stating that having a single provider for parcel, freight, and warehousing is important. Consolidation would reduce manual handoffs and improve real-time visibility.
With 45% of merchants already preparing for peak season by the second quarter of 2026, capacity to move shipments reliably is critical. Saving money remains the top reason 32% would switch logistics providers heading into peak.