Offering diverse shipping methods can significantly boost sales. Today’s customers expect options that cater to their needs for convenience and speed, with fast delivery often being a deciding factor. Studies reveal that 46% of customers choose marketplaces over retailers for faster shipping options, while 44% abandon their orders due to unsatisfactory delivery estimates. Additionally, 28% of customers are willing to pay extra for expedited shipping.
This data underscores the importance of expedited shipping in your eCommerce strategy, as it directly influences purchasing decisions. However, implementing expedited shipping also brings operational challenges and costs that must be carefully managed.
In this article, we’ll explore expedited shipping, how it compares to other methods, and how to weigh its costs and benefits.
Understanding Expedited Shipping
Expedited shipping does not refer to a fixed delivery timeframe. Instead, it prioritizes orders over standard deliveries. Delivery times for expedited shipping vary based on the carrier and factors such as distance and item location.
For example, a package that typically takes two days with standard shipping might arrive overnight with expedited shipping. For longer distances, a standard five-day delivery could be shortened to two to three days.
These faster delivery options come at a higher cost, as carriers must adjust their logistics to accommodate tighter delivery windows. This often involves using different transportation methods, consolidating shipments, or scheduling longer shifts for delivery staff, increasing operational expenses.
It’s also important to distinguish expedited shipping from express shipping, which offers even faster delivery speeds and typically guarantees overnight or same-day delivery.
Expedited Shipping Compared to Other Methods
Since your business’s profit margins can vary depending on your delivery methods, understanding how expedited shipping compares to other options is essential for effectively planning your fulfillment process.
When reviewing estimates, keep in mind that shipping times are calculated from the moment the order is shipped, not when the order is placed.
Let’s examine expedited shipping more closely to help you determine which method best meets your business needs and customer expectations.
Standard vs. Expedited Shipping
Standard shipping is usually the most affordable delivery option for customers and businesses, with typical delivery times ranging from 3 to 7 business days.
On the other hand, expedited shipping may still be offered by businesses that already provide fast standard delivery times, such as 2 to 3 days. In such cases, customers paying for expedited shipping would expect even faster timelines, like overnight or same-day delivery. Ultimately, the specifics depend on what the business decides to offer.
Express vs. Expedited
Express shipping is often confused with expedited shipping, but it is a distinct option that delivers packages even faster and comes with higher costs for both businesses and customers. Typically, express shipping ensures delivery within 1 to 2 days, making it the fastest standard shipping method available.
However, it’s important to note that, like expedited shipping, express shipping does not guarantee a fixed delivery timeframe. Factors such as the distance between the origin and destination, carrier logistics, and external conditions can still impact delivery times. Despite these variables, express shipping consistently outpaces both expedited and standard methods, offering the quickest solution for time-sensitive orders.
Next-Day vs. Expedited
eCommerce businesses define their own delivery standards, which is why terms like “standard,” “expedited,” and “express” can signify different timeframes depending on the company. For example, some businesses offer 2-day shipping as their standard option. In such cases, expedited shipping would promise delivery even faster, such as next-day or same-day.
Amazon Prime’s 2-day delivery model has set a high bar, creating pressure for other businesses to match this speed. Studies show that 25% of customers won’t order an item without a same-day delivery option, making fast shipping a critical factor in customer retention.
By providing premium shipping options like 2-day or next-day delivery, e-commerce businesses can reduce cart abandonment and compete effectively in an industry where Amazon dominates. Unlike expedited shipping, these premium services often come with a guaranteed delivery window, offering greater clarity and reliability for customers.
The Costs of Expedited Shipping
The cost of expedited shipping is influenced by three main factors: the distance the order needs to travel, the weight of the package, and the carrier you choose. While distance and weight are relatively fixed costs, the carrier plays a significant role in determining the final price.
Here’s a quick overview of expedited shipping costs with major carriers like UPS, USPS, and FedEx to help you understand your options.
UPS
UPS offers several expedited shipping options, including Next Day Air, 2nd Day Air, and 3 Day Select. The cost depends on the weight and size of the package, as well as the delivery distance. Expedited services with UPS tend to be more expensive than standard shipping due to the faster delivery times and priority handling.
USPS
USPS provides expedited services like Priority Mail Express, which guarantees 1 to 2 day delivery. The cost is generally lower compared to private carriers, and USPS offers flat-rate options, which can be advantageous for heavier items. The price varies based on the package weight and destination, with specific services designed for fast delivery at competitive rates.
FedEx
FedEx offers expedited services such as FedEx Express Saver (3-day delivery), 2Day, and Standard Overnight. Like UPS, the cost is influenced by the package weight, size, and delivery distance. FedEx also offers customizable solutions, especially for businesses shipping larger volumes, which can help optimize costs.
Choosing the right carrier and expedited service depends on your specific business needs, package characteristics, and customer expectations for delivery speed.
Benefits of Expedited Shipping
Despite the higher costs, offering expedited shipping can be a valuable strategy for eCommerce businesses. While it may seem like an added expense, the benefits of providing faster delivery can outweigh the price, leading to improved customer satisfaction, retention, and increased sales.
Here’s how expedited shipping can positively impact your business:
Reduced Cart Abandonment
Studies from Baymard in 2021 found that 70% of customers abandoned their carts due to slow delivery times. By offering expedited shipping, you can meet customers’ expectations for fast deliveries, similar to Amazon’s fulfillment speed, and reduce the likelihood of cart abandonment.
Increased Customer Lifecycle
Providing timely delivery helps build customer trust, turning one-time purchases into long-term repeat business. With 40% of eCommerce sales coming from repeat customers, ensuring fast and reliable shipping will help keep customers coming back for more.
Deliver Perishable or Expensive Items
For certain industries, expedited shipping is essential. Businesses that sell perishable items, like food, rely on fast delivery to ensure their products arrive fresh and safe. Similarly, companies that sell expensive or fragile items can reduce the risk of damage by minimizing transit time.
While expedited shipping does incur additional costs, it offers several key advantages that can significantly enhance customer experience and support long-term business growth. By providing quicker delivery options, your business can increase customer loyalty, improve conversion rates, and successfully meet the demands of time-sensitive products.
Strategies for Offering Expedited Shipping in Your Business
Offering expedited shipping is a great way to enhance your eCommerce business, but the associated costs can be a concern. Consider implementing the following strategies to keep your profit margins intact while meeting customer expectations for faster delivery.
Use Multiple Fulfillment Centers
Shipping from multiple fulfillment centers can strategically position products closer to your customers, reducing shipping distances and costs. By minimizing the number of zones a package needs to cross, you’ll not only save money on shipping but also be able to use ground transportation, which is more cost-effective than air shipping.
Utilize a 3PL
Partnering with a third-party logistics (3PL) provider can help integrate expedited shipping into your business while reducing overall costs. A 3PL can offer discounted shipping rates through their established relationships with carriers and improve your fulfillment efficiency with their expertise in warehouse management and technology. Services like eWorld Fulfillment can support your business by providing affordable options for expedited shipping, easing the process, and lowering expenses.
Offer Expedited Shipping as a Premium Option
Rather than including expedited shipping as a default, consider offering it as a premium, paid option. This allows customers who prioritize fast delivery to pay for it, while customers with more flexible timelines can choose standard shipping, reducing the financial burden on your business. This strategy can help cover the higher costs of expedited services while still providing an attractive offering to customers willing to pay for convenience.
By implementing these strategies, you can effectively balance the benefits of expedited shipping with cost efficiency. Whether through better logistics, outsourcing to a 3PL, or offering it as a premium option, your business can provide faster delivery options without compromising profitability.
FAQs
How long does express shipping take?
Express shipping typically delivers packages within 1 to 2 business days, depending on the carrier and the destination. This faster option ensures quicker delivery than standard or expedited shipping methods, making it ideal for time-sensitive shipments.
What does expedited shipping mean?
Expedited shipping is a delivery service that prioritizes faster delivery times than standard shipping. While it does not guarantee a specific timeframe, expedited shipping generally speeds up the transit process by utilizing quicker routes or additional transportation methods. The delivery time can vary depending on the carrier, distance, and specific service offered, but it typically ranges from 1 to 3 days. It’s a popular choice for customers who need their orders delivered sooner than the usual shipping options.
Is expedited shipping tracked?
Yes, expedited shipping is typically tracked. Most carriers provide tracking details for expedited deliveries, allowing customers to monitor their shipment’s progress in real-time. This ensures better visibility and peace of mind for faster, priority shipments.