Vijay Ramachandran, VP of Marketing, Product Strategy and Marketplaces

As parcel-carrier consolidation accelerates, many retailers are confronting a growing gap between what legacy freight-oriented systems can provide and what modern e-commerce demands.

This widening gap has elevated the importance of alternative carrier networks and positioned OnTrac as a central player in the next phase of parcel delivery. The company reaches a delivery network of more than 75 percent of the U.S. shoppers, with delivery up to 2 days faster and significantly lower costs than traditional carriers. For retailers, that scale allows them to move beyond regional and gig networks and adopt a truly scaled alternative carrier as a core part of their last-mile delivery strategy.

“In the past year, we have witnessed dramatic change in the parcel industry with carriers exiting and partnerships dissolving,” says Vijay Ramachandran, VP of marketing, product strategy and marketplaces. “As a result of this chaos, exacerbated by punitive rate increases and slowing service standards from the legacy national carriers, we are seeing unprecedented demand for our ecommerce delivery services.”

A Delivery Partner Built for Today’s Retailer

OnTrac operates as the #1 alternative carrier network dedicated exclusively to residential e-commerce delivery in the U.S. The company works with enterprise retailers, direct-to-consumer brands, marketplace sellers, small and mid-sized businesses, and third-party logistics providers. Today, eight out of 10—and 400 of the top 1,000—ecommerce retailers use OnTrac’s services. For many of these customers, OnTrac functions as the primary carrier, a role rarely held by alternative carriers.

The company aligns its account teams and operating model with how digital businesses grow. Dedicated e-commerce specialists work with customers on network design, shipping strategy, and long-term scale, positioning delivery as a strategic growth lever rather than a fixed constraint.

Built for Speed and Scale

Retailers experience the impact of the OnTrac model through advantages that influence how quickly orders move, how widely they can be delivered, and how easily operations adapt to changing business needs.

Their latest research, a one-of-a-kind decision mirror study, State of Speed states, 88 percent of retailers still display broad ‘four-to-six business day’ delivery ranges at checkout, making precise delivery-date visibility increasingly valuable. Retailers using precise delivery dates supported by seven-day/week delivery replace vague ranges with clear delivery commitments. This combination of faster delivery and more explicit promises has generated sales lifts of up to 15 percent by reducing shopper hesitation at checkout.

The model is designed to adapt as customer needs evolve. It charges fewer surcharges and fees than national carriers while offering a high-touch, expertise-driven approach to account management. This flexibility allows customers to build shipping strategies around business outcomes rather than conforming to rigid carrier rules.

Turning Network Design into Measurable Results

Retailers apply the OnTrac model across use cases that support growth and operational efficiency. One of the most widely adopted strategies is air avoidance. The network enables fast ground delivery across many delivery zones, allowing retailers to replace costly air shipments with a more economical alternative. For one premium national apparel retail chain, this shift preserved fast delivery promises while eliminating nearly 40 percent of air freight, which previously averaged more than two dollars per package.

The company also plays a central role in modern fulfillment design. The network supports both short-distance and long-distance shipping under a single operating model, enabling retailers to consolidate facilities or realign distribution footprints without compromising delivery performance. Customers can align fulfillment strategy with financial targets while maintaining the delivery experience shoppers expect.

Precision at checkout represents another significant advantage. Integrated delivery-promise technology, developed in partnership with Fenix Commerce, enables retailers to surface exact arrival timelines directly on product and checkout pages. Paired with seven-day/week operations, this turns delivery from an uncertain variable into a defined experience that reinforces conversion, basket completion, and repeat purchasing behavior. In parallel, the company launched 7 Day Play, which integrates precise checkout delivery promises with weekend warehouse operations and seven-day transportation. This enables retailers that previously lacked weekend fulfillment capabilities to activate faster delivery with minimal operational disruption.

OnTrac extends these capabilities to sellers in major online marketplaces, where the company serves as a preferred carrier and provides access to both fast and economy delivery without requiring proprietary fulfillment infrastructure.

Scaled Growth, Future Capabilities, and Long-Term Stability

Customer adoption of the OnTrac model continues to accelerate. Over the past year, the company recorded nearly 40 percent growth in domestic shipping volume, reflecting rising confidence among retailers seeking scalable and cost-efficient national delivery alternatives.

To support this momentum, the company is expanding the service portfolio. It recently announced a new national Express Delivery offering designed to provide two-to-three-day delivery across the country by leveraging its seven-day/ week operating model. It has also introduced Ground Essentials, an economy service that matches standard national ground transit speeds at a lower total cost.

Recently, OnTrac has significantly expanded its marketplace integrations, positioning the company to support a broader range of sellers as marketplaces continue to capture a growing share of U.S. e-commerce volume.

As the alternative carrier network market consolidates, long-term stability has become a defining factor in retailer decision-making. Many smaller carriers that emerged during the pandemic are now exiting the market, and analysts expect further consolidation as costs rise and access to capital tightens. OnTrac, by contrast, operates at a national scale and is supported by long-standing relationships with the largest retailers in the country, reinforcing confidence in the durability of its network. That confidence is increasingly critical as last-mile delivery directly influences conversion, loyalty, and brand perception.

For retailers navigating today’s demanding environment, success depends on aligning delivery performance with financial discipline and customer expectations. By enabling faster delivery without added costs, broad coverage without constant surcharge exposure, and tailored strategies without rigid constraints, retailers can compete more effectively. As the industry advances, the retailers that outperform will be those who evolve their delivery mix, incorporating solutions like OnTrac that bring greater agility and cost discipline.