Which delivery service should you use for your business?

If your business relies on shipping, delivery is key for customer satisfaction and retention. The right service keeps customers happy and coming back. Cost matters, of course, but so does the experience. Fortunately, there’s a wide range of providers to choose from. In this guide, we’ll help you work out which delivery service you should use for your business.

How to choose a parcel delivery service that saves your business money

Naturally, you’ll want to keep delivery costs low, but cheapest doesn’t always mean best. A late or lost parcel means refunding an order, dealing with a complaint, or losing a customer for good. So, yes, cost is a factor – but so is service quality and reliability.

When comparing options, look at the full picture (not solely cost):

• Delivery success rates and average delivery times: Most major carriers publish performance metrics such as on-time delivery percentages and estimated transit times.

In the UK, Ofcom (the postal services regulator) releases annual reports on Royal Mail’s service performance, including delivery success rates and compliance with delivery targets.

These stats can give you a reliable benchmark when choosing between services.

• Customer reviews: First-hand feedback from other senders and recipients can reveal patterns not captured in official stats – like how couriers handle delays, customer support experiences, or how well packages are treated.

Checking independent platforms like Trustpilot, Google Reviews, or business forums can provide a clearer picture of everyday service quality.

• Insurance and compensation policies: It’s important to understand what happens if something goes wrong. Some carriers include basic insurance in the cost, while others charge extra for it.
  
  Look closely at compensation limits for lost, delayed, or damaged items, and make sure the coverage aligns with the value of what you're shipping – especially for high-value or time-sensitive goods.

It’s also worth taking a look at using services that offer volume discounts or multi-courier platforms.

Volume discounts are reduced shipping rates you can get if you’re sending a large number of parcels (either directly through a courier or via a third-party shipping provider). This can make a big difference if you're shipping a lot.

While multi-courier platforms let you compare prices and delivery times across different courier companies in one place. They often have access to pre-negotiated, lower rates due to the large shipping volume they handle.

These platforms also make it easy to choose the best option for each parcel based on factors like size, delivery speed, destination, and cost.

Find the most reliable and timely parcel delivery options

The reality is that customers expect fast and predictable delivery as standard. Your courier’s ability to deliver on time (especially during peak seasons) can make or break your reputation. Reliability matters just as much, if not more so, than price.

Look for couriers with:

• Proven on-time delivery stats.
• Real-time tracking tools.
• Proof of delivery options like signature capture.
• Fair and simple compensation policies when things go wrong.

Reputable couriers should publicise or be able to share these stats with you. If they can’t, then that’s likely a bad sign. 

Which parcel delivery service offers the best reliability at a good price?

It depends on what you’re sending and where. Many small retailers use DPD or Evri for domestic deliveries due to their speed and tracking functionality. For international shipping, UPS or DHL often provide better customs support and lead times. But using a multi-courier platform gives you the flexibility to choose per parcel.

Choosing a parcel service for local and international needs

Whether you're shipping within the UK or sending parcels abroad, your courier needs to support both local and international delivery effectively.

Local shipping is usually more straightforward. But that doesn't mean it's without challenges. For local deliveries, factors like speed, reliability, tracking accuracy, and customer service make a real difference.

Services like next-day delivery (or even same-day delivery if you can pull it off) enhance customer satisfaction and help set your business apart. Check delivery coverage in rural or remote areas, as service levels can vary.

International shipping, as you might expect, comes with more variables and risks. For overseas shipping, focus on:

1. Lead times and customs delays: International shipping often involves longer delivery windows, especially if customs clearance is required. Some destinations may experience unpredictable delays due to border checks, documentation issues, or local infrastructure. Pick a courier with a proven track record for handling international shipments efficiently – and one that communicates expected delivery times.
   
   
2. Transparency in export documentation: Mistakes in paperwork lead to costly delays, returned parcels, or fines. Your courier should provide clear guidance or tools to help you complete customs forms correctly. Some platforms even pre-fill documents based on your product type and destination, reducing the risk of errors.
   
   
3. Support for duties, taxes and returns: Duties and VAT can catch customers off guard and negatively impact their buying experience. Look for couriers or shipping platforms that offer Delivered Duty Paid (DDP) options, so you can pay import charges upfront. It's also helpful if your courier has a clear and simple process for managing international returns (especially if you’re selling products online).

Select delivery services with excellent customer support

Things do go wrong sometimes. What matters is how your delivery partner handles it. Having access to responsive, human-first customer support can save hours of stress. Look for couriers that offer:

• A dedicated support team for small businesses.
• Fast claims processes for lost or damaged parcels.
• Easy-to-reach helplines or online chat with real people.

You don’t want to be stuck in a queue while your customer (or customers) is chasing an update, or if things go south on multiple deliveries during a busy period.

Easily integrate parcel delivery into your business systems

If you're using ecommerce platforms like Shopify, WooCommerce, or Amazon, integration with parcel delivery should be simple. Many couriers now offer plug-ins or direct integrations that allow you to automate key parts of your shipping process.

For example, you should be able to automatically print shipping labels, push tracking numbers to customers as soon as orders are dispatched, and manage returns more efficiently.

These tools can also sync with your inventory or order management systems, helping you stay organised and avoid fulfilment mistakes. Automating these parts of your workflow reduces manual errors and improves the overall customer experience. 

How important is parcel delivery quality for customer satisfaction?

It’s vital. Reliable delivery will directly affect whether a customer shops with you again. Inconsistent service or unclear communication will lead to poor reviews or lost sales.

Boost customer loyalty with reliable parcel delivery

The delivery experience will leave a lasting impression on your customers. When the process goes smoothly, it reinforces trust and shows that you value their experience. But if something goes wrong, it can quickly undo all the effort that went into winning the sale in the first place.

To build loyalty, it’s essential to set clear expectations for delivery times right from the start. Let customers know when to expect their parcel and choose realistic timeframes based on the service level you’re offering.

Delays can happen (especially when shipping overseas) – and customers are far more understanding when they're kept in the loop. Providing tracking and regular updates also helps manage expectations.

The smoother the delivery process is, the more likely your customer will be to return. And perhaps more importantly, recommend your business to others. 

Scaling your parcel delivery as your business grows

As you grow, your delivery setup will need to scale with you. That might mean moving away from consumer-grade courier accounts and exploring business contracts with better rates and more features.

Consider factors like:

• Using flexible contracts that scale with volume
• Outsourcing fulfilment to third parties when your team can’t keep up
• Tracking delivery data to find the best-performing courier for each route or region

At this stage, efficiency becomes just as important as cost. A well-optimised delivery setup can simultaneously improve your margins and customer experience.

How business loans can improve your logistics and delivery efficiency

Sometimes, the barrier to better delivery isn’t about choosing the right courier – it's about having the cash on hand to invest in your operations.

Using a business loan to upgrade your fulfilment setup is a smart move. Improving your fulfilment capacity might look like:

• Investing in new software.
• Expanding your storage space.
• New machinery to help automate fulfilment or production. 
• Start working with a new or more suitable fulfilment partner.

An iwoca Flexi-Loan might be the perfect fit here. Our Flexi-Loan works similarly to a credit card or line of credit. You get a credit limit, and then you can access funding when you need it and repay early with no extra fees.

It’s designed to work with the natural ups and downs of small business cash flow, so you can grow without committing to long-term debt. That means you can improve your logistics gradually, instead of all at once, giving you more control and flexibility as you scale.

Can business loans help enhance my parcel delivery capabilities?

Yes. export finance can help cover the upfront costs of switching couriers, upgrading equipment, or investing in tech that streamlines your entire fulfilment process. Use a business loan calculator to check how much you can borrow and what your monthly repayments could be.

Want to scale up your parcel delivery?

As your business grows, so will your delivery requirements. Whether you're shipping more frequently, expanding into new markets, or just aiming to offer faster, more reliable service.

Doing this might mean upgrading your systems, switching to a more efficient (or affordable) delivery partner, hiring extra hands during busy periods, or investing in new stock to keep up with demand.

These kinds of improvements take more than just planning, though. They require capital. An iwoca Flexi-Loan gives you fast, flexible access to the funds you need to make it happen.

Buy the new equipment you need, hire seasonal or permanent staff, or fill a cash flow hole while you invest in better logistics. Our Flexi-Loan is designed to keep your business moving forward.

Learn more about how an iwoca Flexi-Loan can support your delivery and fulfilment goals. Apply now