Jan 19, 2026 4 min read 0 views

Retailers Shift Shipping Tactics Amid Rising Costs and Trade Uncertainty

Retailers adopt tech and multi-carrier strategies as costs rise. Cainiao launches US-Mexico logistics service. Speedora starts white-glove delivery in Arizona.

Retailers Shift Shipping Tactics Amid Rising Costs and Trade Uncertainty

As tariffs shift and shipping expenses increase, retailers are turning to technology, multiple carriers, and clearer pricing to safeguard profits and serve customers, said Josh Steinitz, chief strategy officer at ShipStation.

"Customer expectations are high and always getting higher, and that hasn’t changed despite all of the thrash in the shipping environment," Steinitz stated. "Speed, service and transparency are still key differentiators."

ShipStation, based in Austin, Texas, and powered by Auctane, provides e-commerce shipping solutions globally.

The company works with hundreds of thousands of small- and medium-sized merchants. It reports customers are reducing reliance on one carrier or fixed rates.

Merchants are now using varied carrier mixes, regional providers, and rate-shopping tools to better control shipping costs.

"Merchants are needing to take the wheel a little more of their own shipping destiny," Steinitz explained. "That means using automation and analytics to optimize their carrier mix and manage risk instead of relying on one provider."

International shipping remains a significant challenge for smaller retailers, especially with frequent tariff and customs changes. Steinitz noted many lack the resources large firms use for duties, taxes, currency, and customs.

"Historically, it’s been very hard for the average small or medium business to sell globally," he said. "They don’t have massive software teams or the volumes needed to justify custom solutions."

ShipStation has invested in tools to simplify cross-border trade, including delivery-duties-paid features that show full costs at checkout. Steinitz said transparency is vital for conversions and reducing cart abandonment.

"If I don’t know what the total cost is to get the item to my front door, I’m just not going to buy it," he remarked. "Surprise duties or fees kill conversion."

While slower shipping is often cheaper, Steinitz warned lowest cost isn’t always best. The focus is on "best value"—balancing speed, cost, and customer expectations for efficiency.

"Sometimes offering a slightly faster, slightly more expensive service is actually better because it drives higher conversion," he observed. "It depends on the product and the situation."

He likened the tradeoff to consumer behavior: paying more for urgent items but waiting for nonessentials.

Policy changes, including de minimis rules and tariff disputes, have forced carriers and retailers to rethink networks. Some cross-border sellers, especially from China to the U.S., are investing in domestic fulfillment as regulations tighten.

"Tariffs aren’t a good thing for the world," Steinitz said. "But what we can do is make the complexity easier for merchants to navigate."

For retailers facing uncertainty in 2026, Steinitz said passivity is the biggest mistake.

"Don’t rely on a single carrier, a single rate card, or a single service," he advised. "Think of shipping as a portfolio and use software to constantly ensure you’re getting the best price, best service and best customer experience."

As volatility persists in global trade, retailers investing in flexibility, transparency, and automation may better protect margins and customer loyalty.

Cainiao, Alibaba Group's logistics unit, has started a cross-border supply chain service linking the U.S. and Mexico, expanding in a busy e-commerce corridor.

This service, Cainiao's first cross-border offering in the Americas, handles parcel flows between the two countries and is expected to reach 99% of Mexico, a release said.

Cainiao stated the service will be priced around 60% of the current market average, aiming to lower cross-border shipping costs for e-commerce platforms and merchants.

The company plans to directly control key logistics nodes like sorting, line-haul, and last-mile delivery, using self-operated networks in both countries rather than outsourcing.

Speedora has launched an asset-owned logistics service in Arizona, targeting the big-and-bulky white-glove delivery market, according to a release.

The Phoenix-based company said it will operate its own fleet and employ a dedicated delivery workforce to improve control over final-mile performance for high-value shipments such as furniture and specialized equipment.

Speedora is starting operations across Phoenix and Southern California, with plans to expand into Northern California as it builds a West Coast delivery network.

Speedora founder and CEO Bob Smith said the goal is to enhance accountability and customer experience in a last-mile sector often marked by inconsistent service.

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