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Online shoppers today want everything fast. Priority, express, two-day, next-day, and overnight delivery are some of the words that will surely drive customers to buy more. But what about expedited shipping? This increasingly popular term refers to any shipping service that is faster than the standard shipping option.
In this blog, we explain what is expedited shipping, the benefits and disadvantages, and how to make it part of your eCommerce fulfillment strategy. So let’s dive in.
Expedited shipping is a premium service designed to be faster than standard shipping. Products transported with expedited shipping options often travel from order pickup to delivery with no stops in between. The shipping speed, cost, and even the name of the service vary between carriers, so ‘expedited shipping’ can refer to 2-day shipping, priority shipping, overnight shipping, or next-day delivery.
The best way to understand expedited shipping is by comparing it to standard shipping. Here are the key differences between the two shipping models:
Delivery speed is the most essential difference. Expedited delivery can be between 1 to 3 days, especially when doing USA order fulfillment where customers are used to Amazon’s fast shipping. Standard shipping is noticeably slower, taking between 3 to 10 days depending on the store and the carrier.
Expedited shipping is more expensive than standard shipping, way more expensive. Standard shipping, on the other hand, is on the cheaper side. Some standard delivery fees can be as low as a few dollars. In addition, flat-rate shipping is often offered only with standard options.
Due to the short delivery time offered with expedited shipping, cutoff dates are more common. This means the package must be picked up and dispatched before the carrier’s cutoff time to prevent delays. The cutoff times in standard shipping are less common, except for peak times like the holiday season.
Given the exceptional speed offered with expedited shipping, it’s to no one's surprise that this delivery model comes with several benefits:
Long delivery time is considered one of the main reasons online shoppers ditch their carts. Some data suggests that as much as 45% of customers abandon their carts due to unsatisfactory delivery experience. This can be reduced by offering expedited shipping. While some customers may not opt for it, having the options could help.
Amazon and other prominent retailers have heightened customer expectations by making 2-day shipping the standard. While it’s not feasible to compete directly with retail giants, trying to be close to them by offering expedited shipping can help bring more customers.
Offering the option of expedited shipping can incentivize customers to spend more, hence increasing the average order value. Ecommerce brands can do that by offering free expedited shipping when customers reach a certain threshold in their cart.
Inventory costs tend to be lower for brands offering expedited shipping. This is because items are dispatched as soon as the order is placed.
Customers may wait longer for non-urgent items, but some products are needed quickly, like last-minute gifts, essential electronics, or seasonal apparel. With expedited shipping, you can introduce these time-sensitive products and tap into a new customer base.
Expedited shipping requires much more resources than standard shipping to always deliver on time. Here are some of its disadvantages:
High cost is the main disadvantage of using expedited shipping. Making sure every item is dispatched on time and delivered to its destination increases the order fulfillment cost significantly. The price of expedited shipping services from carriers varies widely, but they go as high as $100 sometimes.
Expedited shipping doesn’t reach all areas. Typically, it’s available in densely populated cities where residents live in close proximity. For remote locations and sparsely populated towns, standard shipping may be the only feasible option.
Express shipping is particularly popular in the US. Most big carriers offer their own expedited shipping option with different names, prices, and speeds. Here are the most popular expedited shipping services in the US:
USPS expedited shipping
USPS is among the most popular options for expedited shipping services. Its main express delivery option is called Priority Mail Express, which guarantees next-day to 2-day shipping with rates starting from $24.7.
FedEx expedited shipping
FedEx, the carrier that started its business by promising faster delivery, has several options for expedited shipping. This includes FedEx First Overnight, FedEx Priority Overnight, and FedEx Standard Overnight.
UPS expedited shipping
UPS also offers a wide variety of expedited delivery services. This ranges from next-day to 3-day shipping options across the US. The price and weight limits vary per service, so if you’re not sure which service to choose, you can consult with your 3PL to guide you through this.
Expedited shipping might not be the first choice for most of your customers, but having it as an option could be beneficial. However, deciding to offer express delivery to your customer might be a resource and time-consuming.
The most ideal way to incorporate expedited shipping is by consulting a US fulfillment company if you’re in the US or a local 3PL in your country. If you’re looking for an eCommerce fulfillment company that can help you speed up your delivery times, Lansil Global can help.
We have fulfillment centers in Nevada and Pennsylvania that can help distribute your inventory and be near your customers to offer cost-effective expedited shipping.
Want to know our shipping rates? Reach out to us today by requesting a free quote.
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