Guide to Expedited Shipping
Contents
Expedited shipping offers faster delivery speeds than regular shipping.
In the online shopping world, faster is almost always better in the eyes of the customer. As a result, it is important to find a way to get products to your customers as efficiently and cost-effectively as possible.
Expedited shipping is an option that can provide fast shipping speeds and therefore higher levels of customer satisfaction. It can also be more expensive, so it is important to use methods that can offset this potential cost to keep profit margins where they need to be.
Defining Expedited Shipping
With expedited shipping, shipping speed is promised to be faster than with standard shipping. The actual timeline of expedited shipping can vary from carrier to carrier; however, it usually ranges from overnight to 2-day shipping.
With expedited shipping, the trucks will typically go straight from the pickup point to the delivery point without stopping in between. Expedited shipping is a feature that can offer some of the fastest options for delivering goods.
Expedited Shipping Compared to Other Shipping Options
Different e-commerce retailers may have different definitions of expedited shipping. For example, one company may offer 2-day shipping as their standard and overnight as expedited shipping, while another may use standard shipping with an option for 2-day shipping as their expedited option. Expedited can just mean faster than standard — whatever the standard happens to be for that company.
Different shipping speeds are as follows:
- Standard shipping: This can vary based on the carrier, but standard shipping in the U.S. is typically between 3 and 7 business days.
- 2-day or next-day shipping: This option offers a 2-day or next-day turnaround. It is often considered a premium shipping option.
- Express shipping: This term is often used interchangeably with expedited shipping, but when both options are present, express shipping is usually faster.
It is important to note that shipping times do not generally count order processing time. For example, 2-day shipping generally means from the time the order is shipped, not the time the order is placed. Processing times can be further delayed on weekends and holidays.
Benefits of Offering Expedited Shipping
Customers expect quick deliveries on products they order. With expedited shipping, online retailers can provide this quick delivery service.
Benefits of offering expedited shipping include the following:
- Keeps your business competitive: Many of the big-box e-commerce retailers offer 2-day shipping as standard. Expedited shipping options can help businesses keep up with this type of demand and meet customer expectations.
- Enhances customer satisfaction and loyalty: This is important and will impact a business’s bottom line. If customers are happy with their order and the speed with which they received it, they are more apt to leave good reviews and be return customers. Existing customers make up 65% of a company’s business. Customer loyalty is essential for turning profits in retail.
- Reduces cart abandonment: The cost of shipping and the inability of customers to receive a product in a timely fashion are some of the top reasons that customers will abandon their online shopping cart and not complete their purchase. Offering expedited shipping can help businesses increase conversion rates.
Happy customers are more likely to spread the word about a business. Being able to keep up with industry demand and meet customer expectations can help businesses to drive future sales, both from repeat customers directly and beyond.
Carriers Offering Expedited Shipping
There are several carriers within the United States that offer expedited shipping options. These options vary by cost and the actual shipping speed.
United States Postal Service (USPS)
The USPS offers Priority Mail Express, which can provide next-day and 2-day delivery by 6 PM. With the Priority Mail Express Flat Rate, packages up to 70 pounds can be shipped to any state with the same set price, starting as low as $26.95. Sunday and holiday delivery are also available for an additional fee.
Package pickup service is free. Packages can be picked up from a home or office. USPS tracking is included as is insurance up to $100. A proof of signature at delivery can be provided for no extra cost when requested.
FedEx
FedEx has several options when it comes to expedited shipping within the United States:
- FedEx SameDay for same-day delivery
- FedEx First Overnight for morning delivery the next day
- FedEx Priority Overnight for afternoon delivery the next day
- FedEx Standard Overnight for nighttime delivery the next day
- FedEx 2Day A.M. for delivery by 10:30 AM for businesses and noon for homes in two business days
- FedEx 2Day for delivery in two business days
- FedEx Express Saver for delivery in three business days in the afternoon for businesses and evening for homes
UPS
UPS boasts fast standard shipping of one to five business days within the United States. For faster delivery, they also offer UPS 2nd Day Air and UPS 3 Day Select.
The next fastest option for domestic shipping is Next-Day shipping, which is time-definite, meaning that you can choose morning, noon, or end-of-day delivery. UPS Express Critical is UPS’s same-day delivery service.
Costs of Expedited Shipping
The actual cost for expedited shipping is going to vary based on the carrier, where the package is being sent to and from, the size and weight of the package, and the speed of delivery. Typically, the faster it needs to be shipped and the earlier in the day it needs to be delivered, the higher the cost. Heavier items will generally cost more as well.
Some examples of 2-day and next-day delivery by carrier are as follows:
| Carrier | Shipping Option | Sample Price* |
| USPS | Priority Mail | $14.10 |
| FedEx | FedEx 2Day | $25.71 |
| UPS | UPS 2nd Day Air | $26.96 |
| USPS | Priority Mail Express | $44.10 |
| FedEx | FedEx Standard Overnight | $42.41 |
| UPS | UPS Next Day Air | $46.11 |
*Price is estimated based on a 10-pound package shipped in Zones 1 or 2 between 0–150 miles in the contiguous United States.
Keeping Profit Margins While Offering Expedited Shipping
Using expedited shipping can increase business costs, but there are methods to help offset these costs. For example, if you are planning to offer expedited shipping as the standard or for free, you can impose a minimum spending threshold. Ask that the customer meet a certain amount on their order before shipping will be free.
It can also help to use multiple fulfillment centers located in urban areas close to as many of your customers as possible. Usually, the farther you need to ship things, the longer it can take and the more expensive it can become to offer expedited shipping.
Another tip for maintaining your profit margins while offering expedited shipping is to outsource order fulfillment to a third-party logistics (3PL). A 3PL often already has a relationship with shipping carriers. They are able to then leverage discounts and other options to provide more affordable expedited shipping options.
Offering expedited shipping is important for building your customer base and meeting high customer expectations. A 3PL can work with you to determine your business needs and ensure that your supply chain moves efficiently and in the most cost-effective way possible.
References
Customer Retention Statistics – The Ultimate Collection for Small Business. (October 2016). Small Business Trends.
Priority Mail Express. (2022). USPS.
FedEx Shipping Options. (2022). FedEx.
Shipping Inside the United States? (2022). United Parcel Service of America, Inc.
