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Growth calendar    May 15, 2023

The magic formula for overnight shipping

How important is fast shipping for eCommerce? Latest stats and tips on how to implement same or next-day delivery.

Delivery time plays a key role in the customer experience, even influencing the decision to abandon the shopping basket or become a returning customer. Logistics is having an ever-increasing impact on the satisfaction of online shoppers and is no longer just a process of getting packages from one place to another.

So is it even possible to exceed customer expectations - and meet the needs of last-minute shoppers? Yes, and this is what the so-called overnight delivery service does.

It's not (only) about the price: customers' expectations in terms of logistics

Of course, what usually most affects the decision to choose a given online store when it comes to issues related to logistics is the cost of delivery (or rather the lack of it - we have already written about the essence of offering free delivery). The second place on the podium, however, has been dominated by the delivery time for several years now, which can be seen in the following chart from Metapack's company Ecommerce Delivery Benchmark Report 2021:

Key delivery factors consideration by country, Metapack

As a curiosity, I would like to add that the German market is an exception to this rule, where the delivery time is described by the respondents as significantly more important than its cost:

The market itself is definitely meeting these needs. According to the predictions of Allied Market Research, same-day delivery, the global market will grow by 2027 to a value of $20.36 billion - growing at a CAGR of 21.1% in the perspective of 2021-2027.

What's more, let's emphasize that it's not even the next day anymore, but day delivery itself is slowly becoming not a premium shipping option, but a market standard in the e-commerce industry. Data collected in 2021 by Deloitte show that same-day delivery is expected by consumers even in .... the so-called high season. In turn, the consulting company McKinsey reports that such a fast delivery time is so important to consumers that more than half of them on average are ready to pay more for it.

Willingness to pay extra for quick dleivery by country, McKinsey and company.

Time: one of the most valuable assets in business delivery strategy

Now that we've established that money isn't everything when it comes to customer delivery needs, it's time to dispel what the mythical overnight shipping is. To put it simply, it is one of the fastest forms of delivery available on the market, guaranteeing next-business-day delivery for the customer.

Depending on the carrier, in order for such an order to be fulfilled, it must be placed by a predetermined time - the exception is weekends, when the delivery time may take longer.

Pro-tip: sometimes services associated with such a short delivery time are limited to a selected geographical area - especially if you try to implement them on your own. To be able to guarantee them in really large areas, it is worth betting on cooperation with a trusted business partner, i.e. with a company that provides fulfillment services. Such a logistics service provider has contracts with many suppliers and warehouses, thanks to which it has much greater territorial coverage (and better-negotiated rates due to economies of scale).

Sell more: growth as the most valuable profit, purchase finalization, and more

Experts alarm that despite noticing the industry trend and the real need of customers for fast delivery ... in fact, still slightly less than half of the e-commerce companies offer this type of logistics service. It is therefore worth betting on this competitive advantage - if only because of the following reasons:

  • focus on time-sensitive shipments - a friend in need is a friend indeed; this small statement concerns the relationship between the buyer and the company. Offering fast delivery to clients who are in real need, definitely increases the likelihood of their loyalty and giving a positive opinion about cooperation (after all, we all know how important social proof is on the internet);

  • win-win business strategy: greater customer satisfaction and thus greater profits - as the statistics quoted by me in the first part of the text have shown, the needs of customers in terms of fast delivery are clear and extremely important. The guarantee of such delivery, therefore, de facto affects the choice of your store and not the competition - the game is therefore undoubtedly worth the proverbial candle;

  • the magic formula for savings - I have already mentioned measurable financial gains; However, it is worth adding one more aspect related to finances, namely... lowering the cost of storage. The next-day shipment allows you to better manage your stocks and makes the stock stored in the warehouse last longer.

A clear overnight shipping policy that increases earnings: transparency as the best seller model

The theory is theory and practice, as in life, can be a bit more complicated. If you want to approach the topic of same/next day delivery the right way, implement the following strategies in your company:

1. set the deadline for placing orders - the deadline should be inviolable and there are no exceptions to this rule. You must guarantee yourself time to process and fulfill the order, and only a clear statement will avoid potential misunderstandings. It is worth highlighting this type of guidelines both directly on the shopping cart page and in the dedicated shipping policy or on the FAQ page;

2. the matter of warehouses - to guarantee outstanding performance, you must, first of all, focus on diversifying and distributing the inventory through many storage locations (thanks to this, you can be sure that at least part of the storage will be located near the delivery location, which will significantly shorten the delivery time);

3. working with the best partners in the industry - the promise of shipment overnight should be a guarantee of implementation. You don't want to break your word to your own customers; that is why it is so important to choose the right logistics partners and rely on a trustworthy fulfillment service provider that meets the most demanding SLA requirements.

Overnight shipping subject: best strategies delivered

The basis of any business, including of course (and perhaps above all) online sales, is a good understanding of the needs of buyers. Even if they are interested in your assortment, it does not mean that they will choose your store. n order to catch as many new buyers as possible, it is worth meeting their expectations - also in terms of shipment and delivery. This pro-consumer approach will allow you to become a winner in the market and increase the company's earnings - and this is what we all strive for in the industry.

And these are not empty words - as the following data example collected by the already mentioned McKinsey and company show, selling more is directly correlated with the time of delivery.

Delivery time versus cart abandonment, McKinsey and company.

Start investing in this delivery model - and thus invest in reliable logistics partners. Not everything has to be on your shoulders, and negotiating prices and warehouse space available, especially with many entities at once in many markets, can be a real challenge.

So go forward with this smart strategy: invest capital in important logistical decisions, beat the competition, capture new buyers and develop your enterprise. Talk to your clients, ask them for feedback and become the best seller in your category - all these thanks to the guarantee of a fast delivery date.

Head of Marketing at Linker Cloud who gained experience in the insurance and tech industry. She also has a marketing agency perspective.

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