Overnight shipping?

Effective shipping builds customer loyalty. Convey can prove it. 98.1% of 1,500 consumers believe delivery boosts brand loyalty, according to a 2018 study.

Delivery speed affects online shop conversion alongside cost. Amazon's two-day shipping set the standard for eCommerce shipping, increasing demand for fast deliveries.

To meet changing customer expectations, online retailers are offering same-day and overnight shipping.

This article discusses everything online retailers must know before offering overnight shipping. What is overnight shipping?

What's overnight shipping?
Overnight shipping guarantees next-day delivery. Order placement time and the carrier's daily cutoff determine overnight shipping eligibility.

Courier companies or fulfillment centers transport overnight orders if the seller books the shipment during the day. It guarantees next-day delivery, but depending on the volume of orders, a package may not arrive on time. When they have too many packages, couriers may refund shipping fees to sellers.

Many third-party logistics providers offer weekend pickups for a fee. Most couriers cut off next-day deliveries between 6 and 7 p.m.

Overnight-shipping categories
Before expedited shipping became standard in eCommerce, some product categories required next-day deliveries.

Perishables and frozen
Food and drink have long used overnight shipping. Cafes and restaurants rely on next-day deliveries for fresh and frozen goods.

Reports
Banks, law firms, and courthouses must quickly ship business documents. Most of these confidential papers require fast, safe, secure, and trackable delivery.

Flowers need immediate shipment. Overnight shipping ensures fresh, in-bloom flower deliveries.

Mechanics
Auto and computer repair shops benefit from overnight shipping, which ensures a timely delivery.

While these four product categories pioneered overnight shipping, customer demand has made expedited delivery a standard shipping method across industries.

Overnight shipping factors
Overnight shipping prices vary based on what couriers include. Four factors affect next-day delivery costs. It's:

Dwt
Volumetric weight is the main factor in eCommerce shipping costs.

Couriers use dimensional weight to price packages based on their length, width, and height. Low-density goods take up more shipping space, so DIM weight is prioritized. A one-kilogram bag of cotton will take up more space than a heavier laptop.

Zones
Couriers and shipping companies calculate overnight shipping rates by measuring a product's origin and destination. US shipping zones 1-8. Higher shipping zone measurements increase shipping costs.

Contracts
Most carriers offer discounted overnight shipping rates, especially for online merchants with high shipping volume needs.

Overnight shipping benefits
For consumers, overnight shipping's advantage is speed. Given the additional costs, sellers may not immediately see the benefit of next-day delivery.

Here's how online merchants can make more money by offering overnight shipping:

Conversion rate improvement
Online shoppers value fast delivery. Overnight shipping can reduce cart abandonment and boost website conversion.

Order cancellations decline
When transit time is too long, COD sellers may lose orders. Overnight shipping reduces order cancellations because customers don't have time to change their minds.

Positivity from customers
Online shoppers read merchant and product reviews before buying. Overnight shipping can help sellers beat competitors with limited delivery options.

Cheap Overnight Shipping
Sellers benefit from overnight shipping. It's not free. Most online merchants with limited budgets avoid next-day delivery. Here are five ways sellers can save on overnight shipping:

Courier rate negotiations
Courier companies offer discounts and custom rates based on annual shipping volume. Shipping companies will lower rates for merchants who ship more often.

Multi-warehouse shipping
Many merchants use Amazon FBA's multiple warehouses. Warehouse proximity to shipment destination affects cost. Sellers pay less for shorter distances. Transporting inventory to different warehouses costs less than delivering from a single warehouse.

Strategically-located warehouses
Multiple warehouses are only cost-effective if located strategically. A strategically-located warehouse helps sellers avoid multiple shipping zones. This ensures faster, cheaper shipping. Central warehouses reduce overnight shipping delays.

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