{"id":2481,"date":"2024-07-23T15:20:59","date_gmt":"2024-07-23T15:20:59","guid":{"rendered":"https:\/\/shippingchimp.com\/blog\/?p=2481"},"modified":"2024-07-23T15:21:01","modified_gmt":"2024-07-23T15:21:01","slug":"why-is-express-shipping-expensive-experts-weigh-in","status":"publish","type":"post","link":"https:\/\/shippingchimp.com\/blog\/why-is-express-shipping-expensive-experts-weigh-in\/","title":{"rendered":"Why is Express Shipping expensive? Experts weigh in"},"content":{"rendered":"\n

As an eCommerce business, you want your customers to have the fastest shipping possible. Yesterday, if you could. Express Shipping is the term used for the fastest deliveries<\/a>. This kind of shipping is heavy on the pocket. Have you ever wondered, why Express Shipping is so expensive? <\/p>\n\n\n\n

In this blog, we’ll unravel the mystery behind the hefty price of express shipping. From the need for speed to specialized handling, we’ll explore the factors that drive up costs and why, despite the expense, it might still be worth every penny. We asked logistics experts to weigh in and they did. Experts from DB Schenker, Walmart, FedEx, DHL, and Wayfair<\/em> have voted. Buckle up as we dive into the world of express shipping! <\/p>\n\n\n\n

Factors affecting Express Shipping costs:<\/h2>\n\n\n\n
  1. Speed and Efficiency<\/strong> – The main reason why this shipping costs so much is because of speed. For time-sensitive deliveries, using air transportation will increase costs. For eg – Canada Post’s Xpresspost guarantees next-day or two-day delivery within Canada, utilizing air transport to meet tight deadlines, which significantly increases costs.<\/li><\/ol>\n\n\n\n
    1. Specialised handling<\/strong> – Express deliveries receive priority treatment. For eg – FedEx Express Shipping Canada options are the Priority Overnight services, where packages are monitored and managed with additional resources to ensure timely delivery, justifying the premium price.<\/li><\/ol>\n\n\n\n
      1. Higher Transportation Costs<\/strong> – The cost of rapid transit is significant. UPS Canada\u2019s Express Early services often require booking premium cargo space on flights to ensure early morning delivery, leading to higher transportation costs.<\/li><\/ol>\n\n\n\n
        1. Fuel and Energy costs<\/strong> – Express shipping means higher fuel consumption. The cost of jet fuel directly impacts services like Canada Post\u2019s Priority Worldwide, where packages are flown across continents within days.<\/li><\/ol>\n\n\n\n
          1. Technology<\/strong> – Maintaining a solid tech stack packed with capabilities like Tracking<\/a> costs a lot. FedEx Canada and ShippingChimp invest heavily in advanced sorting facilities and tracking systems to ensure the reliability and speed of their express services. UPS Canada may run dedicated routes for urgent deliveries, which means fewer packages per trip and higher costs per package.<\/li><\/ol>\n\n\n\n
            1. Insurance<\/strong> – Guaranteed deliveries and insurance<\/a> also contribute to the costs that make up Express Shipping. <\/li><\/ol>\n\n\n\n

              Not every category can justify Express Shipping. So, we asked which categories would people happily pay extra for –<\/p>\n\n\n\n

              \"Poll<\/figure>\n\n\n\n

              This poll is proof that if you are shipping high-value eCommerce items like jewelry, your customers wouldn\u2019t mind paying more for express shipping. <\/p>\n\n\n\n

              \"Poll<\/figure>\n\n\n\n

              When the number of votes was higher, 26% of them also chose gifts.<\/p>\n\n\n\n

              While these categories were clearly defined, some experts told us what\u2019s the number 1 thing that they don\u2019t mind paying extra for. <\/p>\n\n\n\n

              \"Logistics<\/figure>\n\n\n\n
              \"Logistics<\/figure>\n\n\n\n

              Looks like Monthly Essentials are not winning this race. But hey, what if it\u2019s a limited-edition shampoo?<\/p>\n\n\n\n

              \"Logistics<\/figure>\n\n\n\n

              Now that we know the categories, how much extra is too much extra?<\/p>\n\n\n\n

              Our polls tell us that 10% is the ideal premium for express shipping. Around 54% and 43% of voters feel so. This is followed by a 20% premium and beyond that, costs don\u2019t seem to matter.<\/p>\n\n\n\n

              \"\"\/<\/figure>\n\n\n\n
              \"\"\/<\/figure>\n\n\n\n

              eCom businesses, take notes. 10 per cent is the best we can do. <\/p>\n\n\n\n

              We asked experts if they thought eCom businesses should offer a choice between Standard and Express Shipping or offer Express Shipping for a flat fee.<\/p>\n\n\n\n

              \"Logistics<\/figure>\n\n\n\n

               Next were the sales reps, the people directly negotiating deals and this is what they said –<\/p>\n\n\n\n

              \"Logistics<\/figure>\n\n\n\n

              The Project Engineers were involved too.<\/p>\n\n\n\n

              \"Logistics<\/figure>\n\n\n\n

              A different perspective –<\/p>\n\n\n\n

              \"Logistics<\/figure>\n\n\n\n

              While the costs are higher, the benefits of express shipping\u2014speed, reliability, and peace of mind\u2014often outweigh the price tag. However, it should never be too expensive. <\/p>\n\n\n\n

              \"Logistics<\/figure>\n\n\n\n

              Express Shipping with ShippingChimp<\/h2>\n\n\n\n

              ShippingChimp offers low-cost shipping options within Canada and internationally. We also provide affordable express shipping for eCommerce businesses and are a great alternative to Canada Post<\/a>. Our rates start at $5 within Canada, we offer FREE pickups and an efficient tracking system for all order sizes. Check our prices here<\/a>. <\/p>\n\n\n\n

              Express Shipping can be expensive and not a solution many eCom businesses can offer right away<\/a>. However, as evidenced by the expert comments, eCom businesses NEED to offer both for the convenience of the customers. Talk to our experts<\/a> to know more. <\/p>\n\n\n\n

              FAQs<\/h2>\n\n\n\n
              1. How can I determine if express shipping is worth the extra cost for my shipment?<\/li><\/ol>\n\n\n\n

                Check for these three factors – Speed, urgency and size of your shipment. For time-sensitive and high-value deliveries, go for express shipping. For the rest, standard shipping works well. <\/p>\n\n\n\n

                1. Are there ways to reduce the cost of express shipping without compromising on speed?<\/li><\/ol>\n\n\n\n

                  Compare carriers<\/strong> – Legacy carriers cost more. Compare the costs with regional carriers and see those costs go down. <\/p>\n\n\n\n

                  Negotiate rates<\/strong> – Negotiation is essentially a skill. As an eCom business, you have leverage irrespective of your volume. <\/p>\n\n\n\n

                  Consolidate shipments<\/strong> – Consolidate all your orders into a single shipment and save money. <\/p>\n\n\n\n

                  Package better <\/strong>– Don\u2019t pay for the air in your packages. Proper packaging helps bring the costs down. <\/p>\n\n\n\n

                  1. What additional services or benefits do express shipping options typically include?<\/li><\/ol>\n\n\n\n

                    Guaranteed delivery times:<\/strong> Most carriers offering Express Shipping offer guaranteed delivery by a specific time.<\/p>\n\n\n\n

                    Real-time tracking:<\/strong> Enhanced tracking capabilities provide detailed updates on the shipment’s progress.<\/p>\n\n\n\n

                    Insurance coverage:<\/strong> Higher levels of insurance are often included.<\/p>\n\n\n\n

                    Signature confirmation:<\/strong> To ensure secure delivery, express shipments may require a signature upon receipt. This makes the deliveries safer. <\/p>\n\n\n\n

                    Customer support:<\/strong> Being an express shipping customer also gets you priority customer service. <\/p>\n","protected":false},"excerpt":{"rendered":"As an eCommerce business, you want your customers to have the fastest shipping possible. Yesterday, if you could.…\n","protected":false},"author":4,"featured_media":2487,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[23,15],"tags":[],"yoast_head":"\nWhy is Express Shipping expensive? Experts weigh in - ShippingChimp | Blog<\/title>\n<meta name=\"description\" content=\"Discover why is express shipping expensive. 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