Your customers hate waiting to receive their products. According to a study by Oracle retail, 13% of them won’t buy from you again if you don’t deliver on time.
Offering expedited shipping can help you meet your customers’ expectations and increase your profitability.
What is expedited shipping?
Expedited shipping is performed to deliver orders faster than the regular shipping time. For instance, if your standard shipping time is a week, then using expedited shipping would ensure that consumers receive the product in two days.
Expedited shipping allows you to serve time-sensitive customers, many of whom don’t mind paying a premium to receive their shipments as fast as possible.
How fast is expedited shipping?
The exact turnaround time for shipments varies based on factors such as the size and weight of the products and the location of the customer. It’s possible that your standard shipping time could be equivalent to another seller’s expedited shipping.
Let’s look at different shipping options and compare them with expedited shipping.
Standard shipping vs expedited shipping
Cost-wise, standard shipping is cheaper than expedited shipping. That’s why standard shipping is often incentivized with free shipping.
Standard shipping is best for orders that aren’t urgent, whereas expedited shipping is ideal for situations where you need goods faster. Pharmaceutical supplies, seasonal products, and perishable items such as frozen food are suitable for expedited shipping.
Express shipping vs expedited shipping
Express shipping can be used to deliver items on the same day of ordering or the next day. Expedited shipping is simply quicker than the standard shipping delivery time. That can be within three days or the same day as well. If a seller offers both express and expedited shipping, the express shipping option is generally faster.
Benefits of offering expedited shipping
#1 Meets customers’ expectations
There is a rising trend of customers preferring faster shipping. Infact, a survey by MetaPack found that speed of delivery is a top priority for 26.6% of respondents. Another survey found that 77% of consumers are more likely to make the purchase if the delivery time is two days or less.
Your potential customers will likely opt for your competitors if they have faster shipping options. Therefore, offering a faster delivery option can provide you with a competitive advantage and help you build brand loyalty. Partnering with a third-party logistics (3PL) company can help with strategic warehousing so that there’s less distance between the warehouse and the customer. In addition to choosing a fast shipping provider, a lesser distance to travel can be another crucial component in executing expedited delivery.
#2 Minimizes cart abandonment
In the 2016 State of Ecommerce Delivery Report by MetaPack, 39% of the respondents admitted to abandoning their cart if the delivery option they wanted was not available. By offering expedited delivery, you can prevent cart abandonment issues and boost your sales.
#3 Retains customers
Consumer satisfaction is essential for repeat purchases. By meeting their expectations about faster delivery, customers will not just buy more from you but also generate positive word of mouth, increasing your profitability.
#4 Ensures delivery of fresh items
Perishable items like fruits, frozen food, and dairy products face the risk of getting spoilt over time. Shipping them using expedited delivery can ensure that your customers receive fresh items.
#5 Reduces loss or theft
During standard shipping, products often need to stop at various points, which increases the risk of transit damage as well as theft. Through expedited shipping, the packages stop at fewer locations, reducing the odds of cargo loss.
Challenges associated with expedited shipping
There are some drawbacks to expedited shipping.
#1 Higher cost
Around 80% of people preferred to buy from Amazon in 2020 because of their free and fast shipping. Amazon also offers free same-day or two-day delivery with its prime membership.
To remain competitive, you may want to offer expedited shipping. However, expedited shipping costs more than standard shipping, and most retailers don’t have deep enough pockets to offer expedited shipping services for free.
To deal with this, you can often pass on the higher shipping costs to your customers. This way, customers who want fast shipping pay a premium for the benefits. You can also add a minimum cart value to make the order eligible for expedited shipping.
#2 Limited availability
Expedited shipping isn’t offered by all delivery companies. You may need to change your existing delivery partners if they don’t offer expedited shipping.
How does your inventory management speed up your shipping?
There’s no magic spell that can miraculously help in teleporting your products. Instead, optimizing your fulfillment process and using effective inventory management can smooth operations and make expedited shipping easier.
Cin7 can help you in this. With Cin7, you can optimize your warehouse’s picking and packing processes, and the software integrates with shipping software, such as Shipstation, so you can expedite delivery.
If getting your products to your customers quickly is a priority for your business, book a call with our experts, to learn more about how Cin7 can help with shipping.