Ultimate Guide to Offering 2-Day Shipping For Your eCommerce Site

Did you know that 85% of online shoppers are likely to make a purchase if the company offers 2-day shipping/delivery? Such is the state of affairs in modern eCommerce retail. In this article, we shall take a look at 2-day shipping and what young eCommerce sites can get the best out of it.

An Overview of 2-Day Shipping 

One of the highlights of online shopping is convenience. eCommerce definitely brings down the odds of shopping from a brand in Paris and getting the product delivered in Sydney.

Earlier, customers used to be content if the product reached them within ten days after crossing international waters. This is no longer the case.

Thanks to Amazon, the pioneer of the 2-day shipping method, customers today expect brands to ship and fulfill deliveries within two days. Essentially, two-day shipping is the time period encapsulating order placement and final delivery. 

The 2-day shipping begins with preparing the order for dispatch, shipping it with a carrier to reach the customer's destination, and handing it over to them. Most retailers decide on the timeframe for their 2-day shipping. 

For example, Walmart has decided 2 p.m. as the cut-off time for fulfilling 2-day shipping orders. This means any orders placed before 2 p.m. will be delivered within 48 hours, others will have slight delays. 

2-Day Shipping: Bracing Online Customer's Expectations

While this system does look hectic and intimidating, the reason why most brands offer 2-day shipping is to meet heightened customer expectations. 

It has become synonymous with effective delivery that refrains customers from abandoning their carts. In fact, 42% of consumers believe that 2-day shipping is ubiquitous and should be a mandatory option at checkout. 

The 2-day shipping trend instilled by Amazon’s Prime comes against the backdrop of a membership program. Similar is the case with Walmart Plus and Target Redcard. The pull of this fast delivery method is so strong that 54% of customers switch brands, and 64% of them abandon shopping with a brand. 

Moreover, during the course of the pandemic, customer expectations for expedited shipping have risen further. Overriding the two-day shipping trend, customers now demand same-day, even on-demand, delivery services. Thus, 2-day shipping is no longer a novelty but has taken a firm hold over consumer behavior patterns.

3 Ways 2-Day Shipping Works

In this section, we discuss the three ways two-day shipping operates with carriers. We normally consider 2-day shipping as the start of the shipment journey after its being handed over to a carrier. There are two main channels for in-transit shipping- ground shipping and air shipping.

1) Air Shipping

This is the most used form of shipping method for expedited deliveries like same-day, 2-day, and overnight deliveries. Brands enlist the services of airplanes and jets for faster package transport from warehouses to the customer’s destination. 

Usually, it is best used in cases where the origin location and destination are too far away to be covered within the 48-hour delivery window. Or in cases where customers demand overnight delivery or early morning delivery and pay an extra shipping fee. 

In any circumstances, air shipping is the best option that can guarantee a 2-day shipping turnaround, irrespective of parcel origin or destination. Many global carriers such as FedEx, UPS, and DHL have 2-day shipping methods, which they introduce as ‘priority delivery services’.

For example, FedEx offers two options in 2-day shipping service across the U.S. First, with the FedEx 2Day A.M. service, brands can deliver products by 10:30 a.m. Second, the FedEx 2Day fulfills on-time deliveries by 8 p.m. of the second business day. The latter option is best suited for standard eCommerce shipments and luxury goods delivery. 

2) Ground Shipping

Ground shipping is an economical alternative to air shipping. It engages different types of trucks and vans like box trucks, dry vans, and reefers to reach the destination on the road. 

Ground shipping for 24-hour delivery is typically used in cases where the origin and destination location are in the same shipping zone. It also comes in handy when shipments are distributed to retail outlets or warehouses enroute to the customer's destination. 

Ground shipping is a better option for handling the expenses in two-day shipping for a shorter in-transit duration. Most well-known carriers like FedEx and DHL usually take 1-5 days for ground shipping and operate every day of the week. However, employing local carrier partners can also be an affordable and fast option. 

3) Intermodal Shipping 

Intermodal shipping refers to combining air and ground shipping to make way for leveraging cost-effectiveness and on-time delivery efficiency. Here, the work of 3PLs becomes pronounced. 

For example, a brand partnering with a 3PL with a wide fulfillment network can plan to ship the bulk of parcels to a fulfillment center nearest to the customer location. From there, the parcel can be dispatched to a carrier company specializing in on-ground shipping. 

This way, distances between long-distance shipping zones and accompanying shipping costs are broken down into manageable proportions.

5 Reasons Why eCommerce Sites Should Offer 2-Day Shipping

Planning and executing two-day shipping can seem like a hassle, but there are good reasons why eCommerce sites should offer it to customers:-

1) Increase Customer Conversions

Market research shows that at least 5 out of 10 customers don’t return to a brand after having one bad delivery experience. This shows us how paramount a good delivery experience is for converting customers. More so for retaining them. 

When retailers offer 2-day shipping, they can at least attract 60% of customers who expect at least some form of expedited delivery. It can be deduced that 2-day shipping fosters a positive brand image for customers.

2) Lower Cart Abandonment Rates

Did you know that 83% of U.S. customers consider free shipping the first determinant in shopping with a brand? While free shipping is a tricky thing to accomplish, brands can focus on the next best factor- fast shipping. 

Two of the main reasons why customers abandon their carts are slow delivery times and high shipping charges. Thus if brands can strike a balance between fast shipping and low shipping costs, they can lower abandonment rates.

3) Prepare the Groundwork for Other Expedited Shipping Services 

2-day shipping sets the mechanism for offering even faster shipping methods like overnight or same-day, or next-day deliveries. From arranging order fulfillment to selecting the carrier, 2-day shipping sets the pace. 

Both 2-day shipping and same-day shipping benefit from similar processes. Like order consolidation, picking multiple items at the same time, and training warehouse staff to fulfill orders faster.

4) Enhance Brand Loyalty 

A market study showed that 98% of shoppers think that delivery experience affects their brand loyalty. When brands focus on elevating the delivery experience, they create opportunities for repeat purchases. 

Retailers can focus on providing accurate estimated delivery dates, post-purchase order notifications, and branded tracking. By investing in an uplifting delivery experience, brands get to retain customers longer.

5) Add to a Premium Membership and Loyalty Programs

2-day shipping is a lucrative addition to premium membership and loyalty programs. Take, for example, Amazon Prime. This popular eCommerce membership program garnered universal attention by floating 2-day shipping to its subscribed members. 

Seeing the global adoption of Prime, companies such as Apple, Best Buy, and Home Depot have come up with 2-day shipping plans. Most of these loyalty programs and memberships come as a subscription model. This helps businesses generate a recurring revenue stream and convert customers into loyal followers. 

Overview of the Cost Of 2-Day Shipping 

As shown above, 2-day shipping presents tangible benefits to businesses. However, it cannot be denied that brands often have to pay for an arm and a leg to operate it. In this section, we look at the different components that make up for 2-day shipping costs:

• Dimensional weight: Most carriers take into account the DIM weight of a parcel to estimate the shipping charge. A parcel with greater DIM weight will cost more and vice versa.
• Shipping destinations: Most countries are demarcated into shipping zones to facilitate carriers in estimating shipping distances. The greater the distance between the shipment origin and destination, the higher the cost will be.
• Shipping Carriers: Most carriers have their own set of surcharges and service charges. Therefore the cost of shipping with UPS’ 2nd Day Air may vary from USPS’ Priority Mail Express. The factors here will include fuel surcharges, peak season surcharges, and shipment volumes.
• Additional Services: This component includes additional handling charges like shipping freight, fragile items, or luxury goods. Or custom packaging requirements, proof-of-delivery requirements, curbside deliveries, etc. 

Carriers quote their shipping rate taking into account the cumulation of all the above-mentioned factors.

5 Ways eCommerce Sites Can Optimize 2-Day Shipping 

Given the fact that customers have a solid demand for 2-day shipping, not offering it can be detrimental to a business’s revenue prospects. Therefore, we have found ways eCommerce sites can reduce the burden 2-day shipping has on their bottom line:

1) Keep a Minimum Order Value Threshold 

Having an average order value to qualify for 2-day shipping is the best way to strike a balance between customer satisfaction and shipping costs. When customers are given the option to spend a little extra to get expedited, possibly ‘free’ shipping, they are likely to take that deal. 

Moreover, brands can introduce a loyalty reward program to get more customers to participate. There is evidence that customers who subscribe to a program spend more on average than transactional buyers. 

Therefore, if brands keep a minimum order threshold, they can effectively cover the costs of 2-day shipping without cutting margins in other areas.

2) Adopt Flat Rate Shipping

Young eCommerce businesses with self-fulfilling orders can use flat-rate shipping to cut down costs on packaging and carrier charges. This economical option has a uniform shipping rate based on the packaging box or envelope provided by the carriers. 

In other words, as long as the product is within the weight limit of the package, the cost remains the same all year round. Many of the flat rate services exclude typical surcharges for residential delivery, peak season delivery, etc. 

3) Devise an Area Plan 

Offering 2-day shipping to areas near the fulfillment center or distribution hub is another way to lower shipping costs. The idea here is that with faster order fulfillment times, brands can use ground shipping to deliver orders. 

Moreover, short distances take away another layer of shipping costs. For an effective area plan, brands can use demand forecasting to anticipate customer demand in advance and distribute inventory nearby. 

4) Cover the Cost Partially in Product Price

Product prices are usually a sum of fixed costs, profit margins, and variables. Thus, incorporating a small sum of delivery fees into the product price can become a way to offset the price effectively. 

Doing so has two benefits. One, customers aren’t flustered to see a delivery fee at checkout. Two, increase profit margins on average orders.

5) Rope in Logistics Partners for More Discounts 

Logistics partners like 3PLs are a powerhouse when it comes to order fulfillment and negotiating carrier charges. Since 3PLs ship in large volumes, they can help businesses afford fast and secure 2-day shipping. 

Starting with inventory distribution, picking and packing for faster order fulfillment, and accessing carrier discounts, 3PLs help on all fronts. They can further help with reducing packaging waste.

Conclusion

2-day shipping is a masterstroke in eCommerce when it comes to customer satisfaction with fast on-time deliveries. Young brands can leverage Amazon-like 2-day shipping with on-ground and air shipping. Moreover, by carefully implementing cost-cutting strategies, they can lower the 2-day shipping cost burden and effectively run the show.

FAQs

1) Is two-day shipping and two-day delivery the same thing?

Yes. Though the terms may differ in name, the meaning remains the same. That is, shipping orders and completing deliveries within a stipulated window of two days.

2) Should eCommerce Sites Offer Free 2-Day Shipping?

Ideally, yes. Offering free 2-day shipping is enticing to 90% of online shoppers. However, it can cost exorbitantly to brands. Therefore, brands can implement strategies like increasing product prices, keeping an average order threshold, etc.