People enjoy shopping online because it is convenient and easy. Whether you are at the home, office, or on the street, you can just pop out your phone and start searching for essentials as you remember. Apart from convenience, one more essential factor in influencing the purchasing decision of buyers is delivery speed.
36% of consumers abandoned their cart because it wasn’t delivering fast enough. Again, a report from Convey states that speed is the second most important factor influencing a buyer’s decision, as revealed by 18.7% of respondents, the first being cost.
Fast delivery of shipments can positively affect your brand image. Your products have a better chance of getting chosen if they are delivered at a faster speed. 27% of consumers prefer retailers who deliver faster than others.
You must be on the fence wondering about delivery options to choose from because shipping costs are a crucial factor affecting your profit margin. But how do you choose reliable shipping options that are not only efficient but also cost-efficient?
Don’t worry, that’s why we have this guide ready for you. We will discuss in detail about 2-day delivery system and the cost-effective ways to operate them in this article.
Let’s dive in!
What is 2-day Delivery?
2-day delivery is a system where the shipment is delivered within two days from the order placement. It is an essential step taken by many business merchants as a part of e-commerce business strategy. The delivery countdown of 2 days will start as soon as you take 2 full days or 2 business days, depending on the seller.
Amazon prime’s 2day delivery policy has seen a massive success rate and has become the standard in e-commerce shipping policies. Consumers prefer speedy shipment, especially during emergencies or festive seasons. Speedy delivery can help you build your brand image and be on top of your e-commerce game.
A study by eMarketer reveals that e-commerce sales are expected to grow over $6.5 trillion worldwide by 2023. The competition was there since day one and it is only going to get harder. So the wisest option for you as a merchant is to follow successful e-commerce strategies and standards to build a strong brand presence.
How does 2-day Delivery Work?
2 days shipping is not as easy and convenient as it sounds to the consumers. It requires a lot of work and coordination, especially if it is an overseas delivery. Let us learn more about the types of speedy shipping and how it works.
Ground shipping is easily the most inexpensive way of shipping. It means when you ship items using road transportation services like trucks, vans, and cars. You can either use your own transport system or opt for shipping services depending on your logistics.
Ground shipping is favorable when the destination is located nearby. Whereas for areas far and across country borders, it is not possible to use ground shipping to meet the delivery expectation of 2-day shipping.
When you transport goods via an airplane, it is known as air shipping. The cost of air shipping is significantly high and can create a deep hole in your pocket if you don’t ship in bulk. This type of shipping is favorable for shipments that are far or across borders from your warehouse. Providing free air shipping is not favorable for merchants because it can adversely affect your profit margins.
Combine ground and air shipping
As the name suggests, both services are combined to cover the 2-day shipping distance. If your shipment distance is too far for using ground services and too expensive for airways, you can use a combination of both methods. It can be a little easy on the pocket while making sure you meet the deadline on time.
What are the Benefits of 2-day Delivery?
As already discussed with the support of statistics, customers prefer fast deliveries. After Amazon’s successful 2-day delivery policy, it is a standard practice by e-commerce merchants to win customers’ loyalty and expand their buyer base. Let us learn about the benefits below-
Keep your customers happy and satisfied
Consumers want fast service. If not you, then someone else will take the opportunity to serve the consumers in the way they want. Delivery time is a crucial aspect determining your growth and success on e-commerce sites.
With so much competition around, providing only quality products is not sufficient to retain consumers. There are other factors too that you have to invest in, especially in 2-day shipping policies to keep the customers happy and satisfied.
Minimize cart abandonment rate
Cart abandonment is a serious issue e-commerce merchants have to deal with. Consumers don’t want to wait long for goods and items that they order in an emergency. 2-day shipping is a life savior in this case that keeps customers satisfied and loyal to your brand. A brand name Huggaroo increased 300% of its sales by implementing the 2-day delivery system.
Retain customers and boost brand image
Quick service creates a good impression of your brand on the consumers. Fast delivery is related to efficient services. When consumers experience this, they are more likely to purchase from your brand and also refer it to others.
More than 1/3rd of customers abandon retailers following a bad delivery experience. Therefore, you must take special care in ensuring you fulfill customers’ expectations to retain their loyalty and boost your brand image.
How to Keep 2-day Delivery Costs Low?
High shipping costs can be a matter of concern for many retailers. In an effort to provide speedy service to the consumers, you may incur a little extra cost. But don’t worry because we understand your woe,s and have a perfect solution to manage your delivery costs in a workable way. Here is how you can keep your delivery costs low:
Urban fulfillment centers and Ground shipping to the rescue
Ground shipping is the cheapest way of transportation. It is wise to distribute your inventory in urban fulfillment centers across regions so that you can ship easily to nearby locations using ground services.
The lesser the distance, the lesser will be the cost and fast delivery speed. Having fulfillment centers across the country will make it convenient for you to reach areas that would otherwise have been difficult to service from one center.
Keep a minimum order value to avail of 2-day shipping services
Offer a minimum purchase value for the consumers to qualify for 2-day or next-day delivery services. This step will ensure that you meet your profit criteria, which otherwise may not be feasible. It is a common method used by many retailers to keep them away from losses.
Limit 2-day shipping to certain zip codes
Offer 2-day shipping but only to areas that are feasible for you to deliver in a short time. Don’t accept zip codes across the country when you can’t promise a fast delivery. Therefore, it is only wise to list out the zones near your fulfillment centers that can be easily accessed. Limit the eligibility criteria of 2-day shipping after you can list the areas you can deliver easily.
Ship from multiple shipping centers
Spreading your inventory in fulfillment centers across regions can give you access to more regions. One fulfillment center is not enough to target all the regions in the country and abroad for speedy shipments. More fulfillment centers will ensure you can deliver to more locations easily.
Figuring out the right ways of shipping can be a stressful job. Most consumers want fast and free delivery. To remain ahead in the competition you have to figure out ways and strategies to meet customers’ expectations while keeping your profit margins high.
In this guide, we tried to present the cost-effective ways of 2-day shipping and the different factors involved in it. Hope it helped!