Expedited shipping vs standard shipping, which to choose? Growing ecommerce popularity comes with more demands, and one of the most prominent demands is fast shipping.
Did you know one in five customers will abandon their shopping cart due to long shipping times? That’s why offering fast shipping is one of the most vital things your brand can do.
But what does expedited shipping mean, and how long does expedited shipping take? Is it simple to implement expedited shipping? Will you have to navigate Amazon shipping delays?
What Is Expedited Shipping?
In the ecommerce world, any shipping method that is quicker than average is called expedited shipping. In other words, i’is a service that ships products faster than usual, such as overnight and two-day shipping.
How much is expedited shipping? Customers must pay a higher fee on most ecommerce platforms and websites to receive their products faster. This is the same with Amazon, though Prime customers can access faster shipping times for free or cheap. These include:
- Two-day shipping
- One-day shipping
- Same-day shipping (for $2.99 or by spending at least $25)
Standard vs Expedited Shipping
Other than being faster, fast shipping differs from the standard option in many ways.
First, there’s more assurance. On average, customers who choose standard shipping can receive their items anywhere between four and 10 days. Compare that to expedited shipping, where customers are guaranteed a shipping time as fast as 2-3 days.
While fast shipping usually costs more, customers can access more affordable fast shipping options. As stated, Amazon Prime customers can often access expedited free shipping at a small charge or by purchasing a certain dollar amount.
Even if customers don’t buy a product on Amazon, most sellers offer free shipping on bulk or high-priced orders.
That said, expedited shipping can still be a burden for sellers. If you don’t sell your products on Amazon, you could be spending $10-$20 to ship one order. Always estimate accurate shipping costs and display them on your checkout page.
Why You Should Offer Expedited Shipping
Offering expedited shipping is a great advantage if you sell on Amazon. Here are some reasons why you should offer fast delivery.
Meeting Customer Expectations
When shopping online, many customers will research your shipping options before purchasing an item. This includes if you offer fast shipping, how much it costs, and how much a customer must spend before qualifying for free shipping.
Offering expedited delivery not only satisfies customer demands but will also make you a more competitive business. If you offer this information upfront, buyers will choose your business over your competitors.
Reduce Cart Abandonment
As stated, many customers will abandon their shopping cart if a business doesn’t offer expedited shipping. Not only that, but 56% of abandoned shopping carts are due to delivery issues.
Ecommerce stores should offer fast delivery to not only reduce cart abandonment but also increase conversion rates.
Improves Customer Loyalty
There are many reasons why brands should strive to achieve customer loyalty. For example, repeat customers spend 67% more than new buyers.
If you offer fast delivery, your customers will be more likely to buy from you again―especially since 29% of buyers abandoned an order because it didn’t arrive on time.
The Downsides
Sellers should first know about some issues with expedited shipping. These include:
- Not always an option. If you sell on FBA, you don’t have to worry about this (as we will discuss later). But if you sell through your own channels, your order fulfillment company may not offer fasr shipping. This is especially true if you work with a smaller fulfillment company. Some customers may not have expedited shipping options if they live in a rural area or outside your country.
- Expensive. Expedited shipping can be expensive. Offering expedited shipping for free or at a lower rate can impact your profit margins. But if you charge customers all the expedited shipping costs, you can turn them away.
How to Offer Expedited Shipping
There are many ways to offer fast shipping without eating into your profits or overcoming hurdles. Here are a few methods:
Sell Through FBA
If you already sell on Amazon but aren’t on FBA, you’re missing a major opportunity. 86% of sellers use FBA due to the ease of selling. With FBA, Amazon handles all warehousing and fulfillment, including expedited shipping.
In other words, you can do dropshipping on Amazon and offer fast shipping (which Prime customers get for free or at a low price). All you have to do is pay your FBA fees and ship your products to the appropriate warehouse.
Distribute Inventory to Different Fulfillment Centers
You can still offer affordable expedited shipping off Amazon. FBA shipping is so fast because Amazon uses multiple fulfillment centers nationwide. In simpler terms, the less distance a parcel travels, the faster your customers will receive it.
With all the different warehouses and 3PL options, any ecommerce brand can use this strategy to make shipping fast and affordable.
If you use multiple warehouses, your customers may not need to pay extra for fast shipping. They may still receive their parcel in two or three days with only ground shipping.
Even though you’ll need to seek a mass fulfillment partner (more on that later), it will be worth it. Since you’ll offer fast and cheap shipping, you’ll have fewer abandoned carts and more satisfied customers.
Require a Minimum Threshold
Spending a minimum amount for free shipping isn’t a new strategy. Because of the demand for expedited shipping, more brands are offering customers a minimum threshold for free expedited shipping.
What should that minimum threshold be? This will differ between businesses, but it’s best to look at your average order value (AOV) and set the minimum slightly higher than this rate. This way, you’ll have more customers satisfied with your fast shipping and more sales.
Partner With a Good 3PL Company
If you sell solely on Amazon, you can use FBA to handle all fulfillment. However, if you sell off the platform, such as on your website or through other marketplaces, working with a 3PL service has many benefits.
The best 3PL companies can access discounts, multiple shipping options, and fulfillment technology that you may not be able to access. Many 3PL companies offer multiple warehouses to increase shipping speed and reduce costs.
This way, you can meet customer expectations and offer expedited shipping while focusing on growing your business.
Amazon Expedited Shipping FAQs
How fast is expedited shipping?
It depends on the business or marketplace. Amazon offers different expedited shipping speeds: same-day, one-day, and two-day. Customers’ options depend on what they order, how much they spend, whether they have a Prime subscription, and where they live. This also depends on other factors, such as if the DSP Amazon program is available in their area.
For other businesses and marketplaces, expedited shipping is usually two or three days. This still depends on where the customer lives and if there are any transportation issues.
What’s the difference between expedited, priority, and express shipping?
When selecting shipping preferences for customers, you may encounter different shipping names, specifically express and priority.
They’re usually the same thing; for example, express and priority shipping delivers packages in 1-3 days. Amazon’s partnered carriers use various words to differentiate their expedited shipping services from competitors; USPS uses “priority,” and UPS uses “express.”
These shipping services can also be more versatile. While fast shipping only refers to the shipping time, express or priority shipping is often recommended for high-value products. Other carriers may offer additional shipping programs, such as USPS Sunday delivery.
Is Expedited Shipping Worth It?
With expedited shipping, your customers can receive their orders quicker than if they choose ground shipping. While fast shipping services usually deliver parcels in two or three days, expedited shipping on Amazon delivers in one day or even on the same day.
Are you on FBA, or are you already offering expedited shipping and struggling to grow your business? We offer all the tools and tactics to ensure your success as an online seller. Click here to learn more about our services.
Author
Stephanie Jensen has been writing ecommerce content for seven years, and her copy has helped numerous stores rank on Amazon. Follow her on LinkedIn for more insight into freelance writing and creating high-quality content.
