The Importance of Offering Same-day and Next-day Shipping

Category:Shipping

Consumers want their packages sooner than ever now that Amazon has set the bar very high for delivery expectations. In order to keep up, retailers, marketplaces, and DTC brands need to consider the benefits of offering their customers fast shipping.   

According to online experts, over 56% of consumers want and expect their packages to arrive the same day they order it. And 61% of consumers said they are willing to pay more for speedier delivery service 

This number has grown significantly in the past few years. There are many factors to consider before offering same-day or two-day shipping. If your brand fits these, it may mean higher sales volume, happier customers, and bigger company growth.  

Same-Day Shipping vs. Same-Day Delivery  

It’s important to note that there is a big difference between same-day shipping and same-day delivery.  

  • Same-day shipping means fast fulfillment. This is when an order leaves the warehouse within the same day the order is received by the warehouse. Usually this is the same day that the order is placed, except for after-hours ordering.  
  • Same-day delivery is a guarantee that an order will be delivered the same day it is purchased. This requires very fast fulfillment and shipping in order to execute. 

To note, next-day shipping denotes that orders will be shipped out of the warehouse before the following day. For example, if an order is received on a Monday, with next-day shipping it will leave the warehouse before or on Tuesday (the next day).  

Is Same-Day Shipping Right for My Brand?  

Offering same-day shipping doesn’t have to mean that it is the only shipping service you offer. And it doesn’t mean you offer it for every order, any time of year. Consider the following ways to offer expedited shipping: for VIP customers only (maybe they pay a membership), orders over a certain limit (make this limit worth your extra costs of same-day shipping), or for a limited time promotion.  

Same-day shipping isn’t for all brands, either. It’s easy to get swept up in the Amazon effect and feel like you must offer the fastest delivery possible. But consider your product first, then evaluate your overall shipping invoice for ways you can cut costs, and calculate what it would the increase would be if you added same-day shipping to some orders.  

What Products are Best for Same-Day and Next-Day Shipping? 

Not all products can be shipped quickly. And not all customers demand fast delivery. If you have a consumable product, it’s more likely that same-day or next-day shipping will be beneficial to your customers. For high-value equipment like a digital camera, breast pump, or security camera, safety and accuracy are probably higher on your list of delivery expectations than speed.  

The products that are best suited for quick shipping include:  

  • Perishable items like flowers  
  • Food and beverages  
  • Supplements 
  • Medicine 
  • Consumer packaged goods  
  • Cosmetics  
  • Small and lightweight items  
  • Products that aren’t traveling far  

Is Expedited Shipping Different Than Same-Day Shipping?  

Getting a product to its destination faster than standard delivery method, is considered expedited shipping. It’s a general term that encapsulates express shiping, two-day, next-day and same-day shipping.  

Different shipping carriers have various tiers of expediting shipping that can range in cost and speed. Just like standard shipping methods, they all consider shipping zone, size and weight of the package, plus a few specialty services like additional handling. 

Benefits of Offering Same-Day or Next-Day Shipping 

You’ve decided that it makes sense to offer same-day or next-day shipping. Great! Here are a few of the benefits it might bring to your brand.  

Customer Satisfaction  

It’s one of the biggest reasons to do anything in ecommerce: if you can satisfy your customer, you’re in business. Same-day and next-day shipping is one of the best ways to keep your customers happy and coming back for more.  

Compete with Big Retailers 

Both Amazon and Target.com offer same-day shipping. There are other retailers that do as well, but those are the biggest.  

If you sell a product that could easily be sold by either Amazon or Target.com (no matter if you sell through those marketplaces or not) you might consider offering same-day shipping from your own website to keep up with the competition.  

Many consumers will buy from the site where they feel they can get the best deal. And to many the best deal means speed, not necessarily low cost. If you can get a direct sale, through your site, you’ll be more likely to retain that customer as loyal to your brand. Even better if you can then hold on to their email or contact information to send them updates, promotions, and net more sales from them in the future.  

Maximize Sales  

The idea is that by offering faster shipping you’re actually getting more products out the door. If you can keep up with a higher churn rate and order throughput, you’ll end up with an overall higher sales volume.  

Same-day shipping gives your inventory a high turnover ratio which can equal growth overtime.  

Get a Younger Demographic 

As a sweeping generalization, younger shoppers are more likely to pay for faster shipping. They are the instant gratification generation that is more accustomed to getting what they want quickly. Plus, if you integrate any social selling or omnichannel strategies into your marketing and promotions, that will be well-received by younger shoppers as well.  

If you market to a younger demographic, you’ll be more apt to net more customers if you offer speedy shipping options.  

Bottom Line 

Same-day and next-day shipping isn’t something you have to offer to all customers, all the time. But it can be a differentiator to keep your brand competitive.  

Find the ways that expedited shipping strategies might help give your customers an experience that will make them want to come back to your brand again.  

 

If you are seeking a fulfillment provider who can help you navigate what shipping and transportation options are best for your brand,  reach out to DCL Logistics for a quote. We have a number of transportation management services that can help your brand grow and scale. 

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