In E-commerce, shipping speed plays a critical role in customer satisfaction and business success. With online shoppers expecting faster delivery times, offering expedited shipping has become a must for many businesses. Expedited shipping ensures that orders reach customers more quickly than standard shipping methods, giving retailers a competitive edge.
In this guide, we’ll explore what expedited shipping is, how it compares to other shipping methods, and why it’s essential for E-commerce businesses.
What is Expedited Shipping?
Expedited shipping refers to a shipping option that promises faster delivery compared to standard shipping methods. While the exact speed of expedited shipping can vary depending on the carrier, it typically involves faster transit times, fewer stops, and priority handling. For most domestic deliveries, expedited shipping often falls between next-day and two-day shipping.
Unlike standard shipping, where packages may pass through several distribution centres or experience delays, expedited shipping ensures a more direct route to the delivery destination. This makes it a preferred option for E-commerce stores that need to meet tight delivery windows.
How Fast is Expedited Shipping Compared to Other Shipping Options?
Expedited shipping falls between standard and express shipping in terms of speed. However, the exact delivery times can vary based on several factors, including the carrier, the distance the package needs to travel, and whether it’s a domestic or international shipment. Here’s a closer look at how expedited shipping compares to other shipping methods:
Expedited Shipping vs. Standard Shipping
Standard shipping is usually the most cost-effective option but also the slowest. It can take anywhere from three to seven business days for a package to arrive with standard shipping, depending on the location. Expedited shipping, on the other hand, is significantly faster, typically taking one to three business days.
For example, an E-commerce business offering standard shipping may take five business days to deliver a product, while expedited shipping could cut this time down to two days. This faster delivery option is often available for an additional fee, but it’s appealing to customers who want their purchases sooner.
Expedited Shipping vs. Express Shipping
Express shipping is often faster than expedited shipping, with options like next-day or even same-day delivery in some cases. Expedited shipping is usually a step below express in terms of speed but is still faster than standard delivery.
For example, express shipping guarantees delivery within one or two days, while expedited shipping usually falls within a two- to three-day window. The exact definitions of these terms may vary by carrier, but express shipping is often the premium option, while expedited provides a faster-than-standard alternative at a lower cost than express.
Two-Day and Next-Day Shipping
While two-day and next-day shipping are commonly associated with express shipping, they can also fall under expedited shipping depending on the retailer and carrier. For many businesses, offering two-day shipping has become standard due to the influence of major retailers like Amazon. Expedited shipping can be a cost-effective way to provide customers with faster delivery times without the premium price tag of express services.
Tips to Offer Expedited Shipping Without Increasing Costs
Offering expedited shipping can be expensive, but there are ways to minimize costs while still providing this valuable service to your customers. Here are a few strategies to help E-commerce businesses offer expedited shipping without breaking the bank:
1. Set a Minimum Spend Threshold
One effective way to offer expedited shipping while maintaining profitability is by requiring a minimum purchase amount to qualify for free or discounted expedited shipping. For example, you can offer free expedited shipping for orders over $100, which encourages customers to spend more while offsetting the shipping cost. This can also help boost your average order value (AOV) and drive higher revenue.
2. Distribute Inventory Across Multiple Fulfillment Centers
Shipping costs and delivery times are significantly affected by the distance a package needs to travel. By distributing your inventory across multiple fulfilment centres in strategic locations, you can reduce shipping distances, making it possible to offer faster delivery at lower costs.
For example, when your inventory is located closer to the customer, you can use ground shipping services to provide expedited delivery at a fraction of the cost of air shipping. This strategy not only speeds up delivery but also reduces the cost of offering expedited shipping.
3. Partner with a 3PL Provider
Outsourcing fulfillment to a third-party logistics (3PL) provider can help E-commerce businesses leverage discounted shipping rates and more advanced shipping technology. 3PLs often have established relationships with carriers and can negotiate better rates for expedited shipping.
Additionally, a 3PL can manage the entire order fulfillment process, ensuring that orders assigned for expedited shipping are prioritized and shipped quickly. This allows ecommerce businesses to meet customer expectations for fast delivery without the headache of managing fulfillment in-house.
Conclusion
In today’s fast-paced ecommerce environment, offering expedited shipping is crucial for meeting customer expectations and staying competitive. By providing faster delivery options, businesses can reduce cart abandonment, boost customer satisfaction, and build long-term loyalty. However, expedited shipping often comes with higher costs, so it’s essential for ecommerce stores to carefully plan their shipping strategies.
By implementing strategies like setting a minimum spend threshold, distributing inventory across multiple fulfillment centers, and partnering with a third-party logistics (3PL) provider, businesses can offer expedited shipping without significantly increasing costs. These approaches help balance the need for fast delivery with the importance of maintaining profitability.
Expedited shipping doesn’t have to strain your business. With the right tools and partners, you can provide customers with the fast shipping options they expect while keeping your logistics operations streamlined and cost-effective.
