What is the difference when unloading to a shipping, commercial and a residential address?4 min read

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You have registered your business on a private address, but would that make any difference in the shipping process? Imagine you want an FTL delivery to a shipping address, but instead, have provided the residential one. Would the courier be able to unload the truck? Let us tell you why it is important to have a separate shipping address if you are selling physical items, as well as the costs that come with it.

What do couriers consider as a residential address?

Shipping to a residential, or private address would be the place where someone lives in. Usually smaller packages and envelopes are being delivered to a residential address. Delivering at such addresses could mean that the recipient is not always present so the courier would have to bring the package back to the warehouse. This causes additional cost to the courier.

What do couriers consider as a commercial address?

A business address is where clients and customers, banks, manufacturers etc. would be sending invoices, bills and other. You are running a business and you want it registered on a private residential address. Would shipping still be possible? The answer is yes, it is possible. However, not only that these districts are less reachable and are more populated, there is less space for the courier to make the pick-up. Some businesses decide to have the same addresses, and some put a different commercial and residential one.

I need a big load of pallets to be unloaded. Where is it most convenient?

There is an alternative to these two if you are receiving a big load of pallets. That is where the shipping address comes to importance and it does not necessarily mean that it is the same as the commercial. These 3 can be all different. But how do they differ from one another?

A shipping address is where you would have the warehouse for instance or any other place that you wish the packages to be delivered to. It is important to mention that not all business need a shipping address, as some do not receive anything else but letters. When unloading to a shipping address, there is usually someone that would be responsible for accepting the delivery.

Having an FTL delivery to a shipping address that is in a higher density area would make much more sense than having it delivered to a residential address. Unloading to a shipping address and getting them directly to the warehouse would mean fewer costs for both the courier and the company.

If you make this type of delivery to a residential address, it could happen that the courier must park the vehicle further from the place, meaning the parcels would have to be carried to the designated place.

Is there any difference in the cost when unloading to a shipping address and a residential one?

Most couriers do not charge different rates when shipping to different addresses. However, there are private mail carriers that could charge different rates for both locations. You may wonder why and let us tell you the reason.

Delivering parcels to a private address could mean additional costs to the carrier, thus the higher price. If there is no one present to accept the parcel on a private address, then the carrier would have to bring it back to the warehouse or the nearest parcel shop. What it means for the carrier is that he would have to cover the additional transportation costs and the extra storage costs.

How could you minimize these costs?

Shippers like USPS could charge different rates for both addresses. So, having an RDI would be the answer! RDI stands for Residential Delivery Indicator and it basically tells you if an address is registered as a residential or shipping address.

Can I have more than one shipping address?

You can have one, or more shipping addresses! It all depends on the businesses and capacity for storage. Contact one of our agents to tell you about our quotas when you need an FTL delivery to a shipping address.

Last modified: September 4, 2019

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