If you’re a business that sells physical products, you are no stranger to the challenges of eCommerce shipping and warehousing. But all that customers really care about when it comes down to it is speed and reliability. That’s where expedited shipping comes into play: it provides both, with speedier delivery without skimping on reliability.
Expedited shipping is any service that gets your package delivered faster than usual. But how do you action it in your business? What are the main things you need to focus on to satisfy the customers? Read on for all you need to know.
What is Expedited Shipping?
Expedited shipping is a delivery of a customer’s order that is faster than standard shipping. Most expedited shipping for domestic deliveries takes from overnight to a two-day shipping window, depending on the carrier. The absolute best way possible to get the package to its destination, will be found and utilized under accelerated delivery.
What is Standard Shipping?
Standard shipping, or economy, normal or ground shipment, is one of the most common and cheapest delivery options offered by shipping carriers. Using a domestic US courier service for standard shipping, your packages travel by ground and reach the recipient in three to five business days. Standard delivery allows overseas products to be delivered to their destination in seven to thirty days.
Expedited vs. Standard Shipping: The Main Differences
Here are the main differences between standard and expedited shipping:
Speed of delivery:
Neither offers a set time frame for shipping — orders may take different lengths of time depending on a number of factors — but expedited shipping generally takes three to four days and standard shipping up to 10 business days.
Costs:
As for the price standard shipping is cheaper. The expedited option could potentially add around +$10-20 compared to flat-rate shipping fees.
Cutoff times:
They typically have business day cutoff times for expedited shipping. This means that a package must be picked up or dropped off prior to the logistics company’s cutoff time, or else the package will not be processed until the next shipping window, thus delaying the shipping process. This allows logistics companies ample time to sort and load the goods so they can ship as soon as possible
Expedited vs. Standard Shipping: Situations Where They Are Recommended
When You Should Choose Expedited Shipping:
Now let’s see what types of companies should introduce expedited shipping. Consider this option if these business scenarios apply to you:
- You sell time-sensitive products like perishables, event-related items, and seasonal goods. To ensure the items’ high quality and that they are still relevant, you need to deliver them as fast as possible with expedited shipping.
- You want to cover urgent or emergency orders. Unexpected situations may arise regardless of the type of products you provide. Shoppers may turn to you due to an unplanned event or a sudden change of weather. Think of whether you want to be the trusting partner for your clients and be the one they can count on in times of need.
- Your target market is premium customers. A clever strategy to draw in VIPs is to offer expedited shipment. Customers who place a high value on time are ready to pay more. You can position your company to serve this consumer category by providing a quick shipping alternative. It can increase revenue and strengthen your brand’s reputation for delivering exceptional customer service.
When You Should Choose Standard Shipping:
If the situations above aren’t relevant to your business strategy, standard shipping may be a more sensible choice. Let’s see when this type of shipping is preferable.
- You sell non-urgent products like home decor, books, or non-perishable goods. Such items aren’t time-sensitive and won’t give up on their quality if delivered more slowly but at a more affordable price.
- You target cost-conscious customers. To attract a wider audience, having more adaptable options is a must.
- Most of your orders are predictable. Examples include subscription boxes and routine stock replenishments, where customers expect the delivery at a particular time and specify this information in advance.
Factors Influencing Expedited Shipping Costs
Expedited shipping costs depend on several key factors, including:
Package Weight and Size
The weight and size of your package play a significant role in determining shipping costs. Heavier and bulkier items require more transportation resources, naturally increasing prices.
Shipping companies typically categorize packages based on their dimensions and weight. Ensure you accurately measure and weigh your shipment to get an appropriate quote.
Distance Travelled
The distance your package needs to travel is another key factor. The longer the journey, the higher the cost, as it involves more fuel, labour, and time.
Urgency
Expedited shipping services come at various speeds, and the urgency of your delivery can significantly impact the cost. Express or overnight shipping options will naturally be more expensive than standard or economy alternatives.
Assess your needs and budget carefully to determine the right level of urgency for your shipment.
Origin and Destination
It’s also far more critical when it comes to from where you’re shipping and to where. Some regions can be more remote and difficult to reach than others; therefore, they are more expensive. These geographical factors must also be accounted for when estimating the cost of expedited shipping options.
Additional Services
Special requests like signature confirmation, insurance, or packaging services can increase costs. While these add-ons offer peace of mind and security, you should consider when budgeting for your shipment.
Seasonal Demand
The time of year can impact shipping costs. During peak holiday seasons, demand for expedited shipping rises, potentially leading to higher prices due to limited capacity. Planning can help you avoid unnecessary expenses during busy times.
Fuel Prices and Market Conditions
External economic factors, like the rate of fuel prices and market circumstances, can have an impact on shipping expenses. Keep in mind that these factors may result in slight price changes from time to time.
Key Benefits of Offering Expedited Shipping
If the uncertainty around these terms has you considering a single, standard shipping option, you may want to reconsider. Providing your customers with faster shipping services comes with several valuable advantages:
Essential for Perishable or Fragile Items
If your products need to stay cool or frozen—or if they are prone to damage during extended transit—expedited shipping isn’t just a convenience; it’s a necessity.
Prevent Lost Sales
Customers prioritize speed and will choose competitors that offer faster shipping. Providing expedited shipping helps your business stay competitive and encourages repeat purchases.
Boost Customer Loyalty Program Participation
Offering free expedited shipping as an exclusive perk for VIP loyalty members can attract more participants and foster long-term customer relationships.
Access to Additional Services
Many expedited shipping options, such as USPS Priority Mail, include valuable extras like free packaging, tracking, and insurance (often up to $100). These perks enhance customer satisfaction while saving you from absorbing additional costs or increasing shipping fees.
Reduce Transit Time and Risks
Faster shipping not only ensures quicker delivery but also reduces handling fees, storage needs, and the likelihood of lost or damaged packages—benefiting both your business and your customers.
To save time
The primary purpose of expedited shipping is to save on shipping time. Carriers often do this by minimizing the supply chain to the final destination. If your customers are willing to pay more for faster shipping, expedited shipping is the suitable business method for your setup.
To win (or retain) customers
If so many of your customers choose faster shipping methods and are ready to pay the additional price for it, then you should consider making expedited shipping your default shipping method. Retailers may also risk losing customers willing to pay for expedited shipping if they do not offer expedited shipping.
Save on storage costs
Taking the products from the manufacturers and storing the inventory in warehouses often comes with detailed storage charges. When you offer expedited shipping, the products spend less time in storage, and you can save on inventory storage costs.
Reduce abandoned carts
Unsatisfactory delivery options directly link to cart abandonment among prospective customers. Having various shipping options such as expedited and standard shipping lets the customers choose the shipping option they like. Therefore, it’s wise to offer expedited services to your customers.
Meet customer expectations around ship time
Customers usually look at a couple of retail options before buying something, and they often go with the retailer that provides convenient delivery options. Today, faster shipping methods like Amazon’s next-day delivery options have increased customer expectations, and this is why not having expedited shipping could hurt your sales.
Expedited Shipping in E-commerce
Here are some key delivery statistics in e-commerce:
- Approximately one in five (22%) US consumers have abandoned their carts because of long delivery times.
- 50.7% of consumers shop online because of free delivery options.
- 28.4% do so because of next-day delivery.
- About 60% of shoppers have paid for speedier delivery, while more than two-thirds of them have paid extra for next-day delivery.
What these numbers show is that while there’s a clear demand from online shoppers for fast shipping, many of them are also tempted by delivery options with no cost.
Now that you know the answer to “what is expedited shipping,” you should think about whether it is worth it for your e-commerce business.
So, while expedited shipping should definitely be part of your shipping strategy, it shouldn’t be the only option. You can also consider softening the cost to your business when you do offer it by applying it to orders that meet a minimum spend (ideally this spend is more than your average order value). And since more consumers are willing to pay more for speedier delivery, you may pass along at least some of the increased cost of faster shipping to your customers as well.
Bottom Line
expedited shipping is a delivery method that ensures shipments arrive at their destination faster than standard shipping options. It is characterized by its faster-than-usual speeds and a clear intent.
While expedited shipping’s speed and guarantee are very attractive perks, they come at a pretty high cost and may not make monetary sense for all ecommerce businesses.
However, there are ways to lower the cost of expedited shipping. By only offering it to orders that hit a minimum spend and/or passing some or all of the added cost on to your buyers, you can ensure it doesn’t eat too much into your profit margin
FAQs
How are expedited shipping and standard shipping different?
In expedited shipping, time is prioritized; thereby, goods are transported in a fast-paced manner. This could be done by providing dedicated trucks and drivers, adding priority at sorting facilities or warehouses, and many more. Such premium services make expedited shipping an expensive form of transportation. However, in standard shipping, consignments are processed in the order they are received. While delivery timelines increase, it is an excellent way to cut costs as the shipping rates are now lower.
When should a shipper go for an expedited shipping service?
Expedited shipping options are very useful for time-sensitive deliveries. This could be for perishable items such as fruits, vegetables, dairy products, meat, flowers, or medicines. It is also useful during peak sales periods when the consignments to be transported increase.
When should a shipper go for standard shipping service?
Standard shipping services are useful when affordability becomes a priority over the speed of delivery. This could be useful for CPGs or non-urgent items such as books and clothes.
How much time does it take for expedited orders?
Rush orders typically take 1 to 3 business days. The exact timeline, however, varies by retailer, carrier and shipping distance.
How long does expedited shipping take from Canada?
In Canada, expedited shipping typically 2 and 7 business days while international orders 4 to 10 business days, depending on the carrier and destination.
How good is expedited shipping?
They’re a safe and quicker than usual shipping method, hence a better choice if the package is needed immediately. But it tends to be pricier than regular shipping.
Is expedited delivery fast?
Yes, expedited delivery is a faster option than standard shipping, usually taking 1 to 3 business days for domestic packages, or a few additional days for international orders.
Does expedited parcel provide tracking?
Yes, the majority (though not all) expedited shipping services come with the ability to track so customers can follow along with their package in real time.
Why do we expedite a shipment?
Expediting is the process of speeding up the procedure for the delivery of goods, documents or products to ensure they reach their destination in the shortest time available.
