Over the last decade, online shopping has become a favorite option for most shoppers. It is fast, efficient, and reliable. And ever since the rise of the 2-day shipping option, online shopping is becoming the norm.
Study shows that 85% of shoppers are more likely to purchase when 2-day shipping is offered. Basically, 2 days shipping is a process of delivering packages to customers two days after the order is placed.
In this article, I will discuss how 2-day shipping works, the benefits, and some tips to keep costs low.
How does the 2-day shipping work?
For all customers, the 2-day shipping is as simple as a click, but it entails a lot of work for the seller. All deliveries are coordinated between two main shipping options, and the seller has to choose which is more profitable.
The two main shipping options are;
1. Ground shipping
Ground shipping includes using cars, vans, trucks, and other types of transportation by land to deliver packages to the customer’s doorstep. It is one of the easiest and cheapest 2-day shipping options.
The only drawback to this shipping option is that it costs more when the customer’s location is far from all available fulfillment centers.
2. Air shipping
Air shipping includes airplanes and jets to transport packages from the fulfillment center to the customer. This shipping option is mostly used for international shipping or particularly for customers whose address is far from the fulfillment center.
Is 2-day shipping good for your business?
Yes, it is. Below are some of the benefits of rendering this service to your customers.
1. You meet customer’s expectation
With a majority of customers expecting 2-day shipping, it is quite obvious how beneficial offering this service will be to your eCommerce business. Not only will it satisfy your customers, but you can also get good recommendations and reviews.
2. Improved sale rate
Study shows that one of the reasons shoppers abandon their cart before proceeding to check out is due to slow delivery. Being able to automatically render your customers 2-day shipping means more customers are likely to finish their orders after carting them.
3. You keep your customers coming back
Fast and affordable shipping is key to retaining customers. When customers receive their package on time or even faster, they are more likely to purchase from you again.
4. You stop losing sales to other top eCommerce industries
As I mentioned, many customers now take 2-day shipping as the norm when shopping. According to Meta Pack, 27% of shoppers will likely choose sellers with faster delivery options.
If you can offer this service to your customers, you will likely lose fewer sales to other eCommerce industries.
How can you keep 2-day shipping costs low and profitable for your business?
Since you’ve decided to offer this service to your customers, there are steps you should take. These steps will ensure delivery is attractive to customers and sustainable for your business.
1. Set a minimum for order value
Set a minimum order amount for customers who wish to be eligible for 2-day shipping. This way, you increase basket sizes and make enough profit to cover the delivery costs.
This is not uncommon, even non-prime members must spend at least $25 on Amazon to be eligible for this shipping service.
2. Only offer this service for special zip codes
As I mentioned, it costs more when the customer’s location is far from the fulfillment center. For this reason, a smart move would be to offer 2-day shipping to customers whose addresses are close to the warehouse.
This way, you can fulfill orders quickly and offer next-day delivery at no extra cost, depending on the customer’s location.
3. Work with a logistics provider that offers discount rates
Most third-party logistics (3PL) providers offer discounted shipping rates, lowering the delivery cost for sellers. However, it is very important choosing one whose services integrate with all of your sales channels with no unexpected fees.
FAQs
What are the best third-party logistics providers for small businesses?
Some of the best 3PL for small businesses include DHL, USP, and FedEx.
Does 2-day shipping include weekends?
Generally, it doesn’t include weekends as Saturday and Sunday aren’t working days. However, some logistics providers deliver on weekends, e.g., USPS.
What is the best shipping option for 2-day shipping?
The best option tends to be ground shipping. It is more cost-efficient but only when the customer’s address is not too far from the fulfillment center.
How much does 2-day shipping cost?
There happens to be no straight answer to this question. This is because the price of shipping will vary due to several factors. For example, the shipping address, logistics provider used, type and size of product shipped, etc.
Is next-day shipping different from 2-day shipping?
Yes, it is. Next-day shipping is done within 24 hours, while 2-day shipping is done within 48 hours. However, some 2-day shipping could arrive the next day, especially if the customer’s address is close to the fulfillment center.
Conclusion: Is 2-day shipping worth it?
Yes, it is worth it. It is smart to offer the 2-day delivery service to as many customers as possible. Not only does it reduce cart abandonment and order cancellation rates, but it also increases customer satisfaction and recommendation rates.
Not using the right strategy or execution could be detrimental to any business. Therefore, you must follow the steps mentioned in this article to keep shipping costs low and profitable for your business.
I hope you enjoyed this article, in the process of shipping packages, you may encounter issues or messages from couriers like “held in custom“, see what it means and what you should do.
Thank you for reading.
