Small business shippers are calling for clear and transparent pricing from their freight providers. It’s no surprise: for these shippers, unexpected freight costs can add up and hamper plans.
But what does “transparency” mean to them?
Drawing from candid insights expressed in an Amazon Freight survey, we have uncovered the nuances of pricing transparency, its distinction from service transparency, and how it can affect your bottom line.
Service transparency vs. pricing transparency
While excellent communication and responsive customer service are standard freight shipping practices, they don’t necessarily translate into pricing clarity. Transparent communication is key to solving issues and answering questions, but our survey shows that many shippers look for a separate, specific set of practices that eliminate guesswork.
According to the shippers, eliminating guesswork involves prioritizing clarity, predictability, and accessibility. In fact, one shipper remarked that pricing clarity means “you see what you are paying for and can compare pricing and services with other providers. This enables you to make the best decision for your business needs.”
Additionally, when we asked participants to rank their preferred indicators of transparent pricing, three specifics rose to the top. The first is a clear pricing structure, meaning shippers want an outline with all the accessorials/fees and line items. Second, they expect upfront pricing availability with no surprises. And, finally, shippers want it all tracked properly with detailed, itemized invoicing to clarify where costs are allocated.
Some may be surprised to learn that more hands-on solutions like account manager-guided quotes or personalized pricing explanations ranked lower for the small business shippers we surveyed. As we see it, the message is loud and clear—shippers want to access pricing details immediately, without involving extra communication channels.
Finding freight confidence
With these insights in hand, it begs the question: What brings shippers the most confidence in a freight provider? Our survey participants gave their thoughts, which included:
- Fixed costs whenever possible, without hidden accessorials baked in.
- Data-backed justification for charges included in invoices.
- Predictive information, such as advance notice for rate hikes or market fluctuations.
- Proactive updates to ensure smooth shipping operations.
One shipper shared that the more detailed the pricing sheet, the more confidence they’ll likely have in their provider.
To us, this revealed that transparent pricing is more than financial clarity. It’s a way to put shippers in the budgetary driver’s seat, empowering efficient workflows and strengthening provider-client relationships. It’s also a way for them to be able to get more efficient in their cost outcomes, as there are cost reduction strategies that surface when you know what drives it.
For instance, another respondent told us that “the biggest thing to realize about successful transparency is that part of what is being paid for is the ability to KNOW, and therefore not worry about any added financial surprises.”
Get pricing
At Amazon Freight, we strive to take the challenge out of freight pricing for shippers by blending our wide network with advanced tech in an easy-to-use portal. Our prices are surfaced at the time of booking along with a cost breakdown, and we provide visibility into spot rates up to 14 days in advance.
See it for yourself by creating your account and getting an instant quote for your next shipment.
