How to offer 2-day shipping as an e-commerce startup.

As an e-commerce startup, offering two-day shipping can be a great way to give customers the convenience that they desire and set yourself apart from the competition. That said, offering two-day shipping can take a lot of work. It is important to understand the value of offering 2-day shipping and what is necessary to provide it without sacrificing profitability. This post will discuss the ins and outs of 2-day shipping and how you can offer it even if you are an e-commerce startup.

Benefits of offering 2-day shipping

Improved customer satisfaction

It’s no secret that when people order a product, they want it as soon as possible. The sooner they receive their items, the more likely they will have a positive brand experience. With 60% of consumers expecting expedited shipping options, it is crucial to have favorable customer reviews and recommendations.

Increased sales conversions

Companies that offer expedited shipping, especially at an affordable rate, are far more likely to convert browsing consumers into paying ones. While shopping cart abandonment is a serious issue, it can be minimized by offering faster delivery options at a reasonable price.

Improved customer loyalty

When a consumer receives their package promptly, it builds trust and loyalty in the brand. Customers are far more likely to buy again if they have a positive delivery experience.

According to Lasership, slow delivery caused 64% of consumers to try a new retailer and 54% to switch retailers. Therefore, planning to offer 2-day, expedited shipping is vital. How can you provide 2-day shipping?

How to offer 2-day shipping tips

Distributed inventory

Utilizing multiple fulfillment centers or warehouses can provide faster and cheaper shipping to customers. Most 3PL partners can distribute inventory across their centers, which means it is a great way to distribute inventory without securing private warehousing spaces in multiple locations.

Improve processing speeds

One of the first things that must be considered is how long it takes for an order to be received, packed, labeled, and shipped. If you fulfill in-house, this task can consume significant time and resources. In order to meet 2-day shipping cutoffs, it is vital to process orders within hours of receiving them. This gives the carriers the most time possible to execute final-mile delivery within the 2-day window.

Investing in team training, automation, high-tech inventory software that improves picking accuracy, and ensuring a clean and well-designed warehouse can improve streamlining order processing. If this seems like a hefty investment of time and money, it is. However, partnering with a quality 3PL partner can give you access to a fully optimized order processing workflow with a smaller upfront investment.

Utilize multiple expedited shipping carriers

To secure expedited shipping without breaking the bank, it is imperative to partner with multiple shipping carriers offering faster delivery speeds. Of course, the faster a package arrives often means, the more expensive the shipping fees will be. As your business grows, you can leverage bulk discounts which help alleviate the higher costs. As an eCommerce startup, it might be challenging to meet those quantities. However, partnering with a 3PL fulfillment team can allow your business to ship less and benefit from the discounts afforded to the 3PL. Furthermore, 3PL companies have relationships with most major carriers and utilize automation software to select the most affordable fast shipping available.

Set minimum order value for 2-day shipping

Another way to offset expedited shipping costs is to set minimum spending thresholds. More than 50% of shoppers will add extra products to be eligible for fast and free shipping. Use this to your advantage to increase your AOV (average order value) to help cover the cost of fast or free delivery.

Incentivize membership or subscription models

Improve customer loyalty by incentivizing membership or subscription models where customers qualify for 2-day shipping. Whether the customers must subscribe to monthly purchases or pay a membership fee, this is another way to help offset the cost of your eCommerce startup.