For online vendors and physical store operators alike, overnight shipping can make all the difference in customer satisfaction and repeat sales. A recent survey indicates that at least 65% of online shoppers in the US are willing to pay more for faster delivery. With so many competitors angling for market position and using rapid shipping as a sales tool, you have probably found that you need to offer the same level of service to keep pace. There are, of course, cost questions and other considerations for retailers looking to offer their customers next-day delivery.
Use the information in this handy overnight shipping guide to help you determine what is best in next-day delivery options for your customers and your business.
What is Overnight Shipping?
Overnight shipping is the courier industry’s fastest delivery method for packages. This shipping option enables you, as a shipper, to offer your customers next-day delivery as an ordering option. Providing this expedited delivery alternative offers a profitable business opportunity for online sellers and other businesses that benefit from accommodating customers who need a fast delivery option. Overnight services vary between carriers and the time of day specified for delivery.
Read More: E-commerce Shipping Strategy
Overnight Shipping vs. Next-day Delivery
Overnight shipping and next-day delivery are just two names for the same service type. You can feel free to use either of these two terms to reference the time frame you need for delivery by your courier service. Asking for this kind of service using either term means you want the package shipped by the carrier on the same day the driver picks up the package and you want it delivered by the next day.
How Overnight Shipping Works
In overnight shipping, a package is picked up by the courier on the day you want to ship it. It is then transported that night to the vicinity of the delivery destination and the next day the package is delivered to the addressee.
If you use guaranteed next-day delivery, most carriers will make a strong effort to meet the deadline, but in some situations, they may be unable to do so. In such cases, the guarantee entitles you to a refund of your shipping fees.
Most carriers have a daily pickup cutoff time for committing to next-day delivery. Some provide weekend service for an additional fee. Fuel charges and fees for residential delivery are common charges that may also be applied.
Be aware of unexpected charges that may be added to your bill for shipping, such as peak season fees, high-risk delivery zone fees, and others. Be sure you are aware of all charges you will incur and have a written list of those with the cost total before you ship with any carrier.
Benefits of Overnight Shipping for Your Business
Fast shipping offers many advantages for customers and retailers. The vast majority of consumers want fast delivery, but many online retailers do not yet provide overnight shipping. So, market competitors gain a significant advantage by offering this important option to their customers. Here are just a few benefits of providing shoppers with the next-day delivery option:
- Fast shipping boosts customer satisfaction rates for an online retailer. Today’s shoppers have abundant choices and quickly move on to vendors that best meet their needs.
- Reliable next-day delivery builds trust and brand loyalty. That makes integrating overnight shipping well worth the effort to serve people who need or want this option.
- Meeting customers’ needs and preferences with faster shipping increases competitiveness and generates growth through repeat sales and referrals.
- Shipping orders quickly minimizes inventory warehouse storage and other overhead costs, which are fundamental budget concerns for all business operators.
Overnight Shipping Costs Calculation and Factors
A number of factors are involved in determining shipping rates for any time frame, including overnight service pricing. Rates and shipment specifications vary between courier companies for any trucking schedule, including for the overnight option.
- Shipping Distance: The total number of miles from the origination point to the destination is a major factor in the calculation of the shipping price.
- Time frame for Delivery: Standard shipping enables carriers to manage your packages as part of large volume loads. Expedited delivery requires more individual handling.
- Package Size: The package’s dimensions determine how much space it will consume, either allowing or preventing larger loads on trucks through the entire transport process.
- Load Weight: Carriers factor either the total weight or the proportional weight based on the package dimensions in pricing calculations. Heavier UoM loads cost more to ship.
- Carrier Agreements: Shop around for carrier discount rates that may be available to you as a small business if you are routinely shipping large volumes of packages.
A carrier may offer the cheapest overnight shipping rate in one instance, but another provider may cost less in other circumstances. So, it’s recommended that you compare rates to confirm the cost of each shipment before choosing a carrier for it, especially when shipping a larger, heavier package to a different area.
Cheapest Overnight Shipping Carriers
You may rely on a trusted regional or local courier for your shipping. For longer-distance shipping, these are the most widely networked and most used national package transport services.
USPS
Unlike USPS Ground Advantage, the US Postal Service Priority Mail Express service for next-day delivery is often the best choice for small packages. It typically offers among the lowest-cost options, depending on the package weight and required delivery time.
UPS Overnight Shipping
UPS Next Day Air Early service guarantees early morning delivery on the next business day. UPS Next Day Air guarantees later-morning delivery, and UPS Next Day Air Saver, UPS’s lowest-cost option, guarantees delivery by mid-afternoon on the next business day.
FedEx
The FedEx First Overnight service is the carrier’s fastest shipping option, and its most costly. FedEx Priority Overnight offers later morning and afternoon next-day deliveries. FedEx Standard Overnight is the lowest-cost option and offers mid-afternoon delivery on the next business day.
DHL Overnight Shipping
For overnight international shipping, DHL is usually the best overall choice in terms of cost. Be aware of cutoff times and package restrictions for next-day delivery, and understand the costs before you choose this alternative. Expect packages picked up on weekends to foreign destinations to take an additional day.
Overnight Shipping Best Practices
To help ensure that your customers will consistently receive their packages on time and in good condition, apply these shipping industry best practices:
1. Leverage shipping apps and software. Take advantage of various shipping apps and software solutions. These tools can help you automate shipping rates analysis, application of shipping rules, dimensional weight calculation, and other common elements of the overnight shipping process.
2. Work only with dependable carriers. Screen potential regional couriers and choose only those with a strong track record of consistency in meeting all terms of their service level agreements.
3. Designate one warehouse or another location for managing shipping.
Conducting overnight shipping operations from multiple places lends to inefficiency, errors, and higher operating costs. It is generally more manageable to consolidate all shipping activities into a single, well-organized work area.
4. Maintain multiple inventory storages across your service range.
For high-volume shippers, you may benefit more from multiple distribution points than from a single central warehouse. Storing some inventory closer to the customers’ locations may make it faster and more efficient to fulfill next-day delivery requests.
5. Have a daily package pickup cutoff time for overnight shipments.
To ensure your reliability, establish and enforce a policy that ensures that all overnight packages are ready for pickup by their designated couriers before your company’s own specified daily cutoff time. Make sure that all shipping employees clearly understand this requirement.
Overnight Shipping for the Best Customer Experience
Whether your customers really need to obtain the goods they order quickly or just prefer fast delivery, businesses can appeal to more shoppers by offering faster shipping. For both e-commerce and physical retail stores, offering overnight shipping gives your customers the benefit of knowing they have this top-level of delivery service available.
Fortunately, wherever your B2C or B2B customers are located in the lower 48 United States, the nation’s most popular network carriers offer efficient overnight shipping service. For many businesses, online, offline, and hybrid, growth and long-term success depend on reliable next-day delivery for customers.
Yes, overnight shipping naturally costs more than standard delivery. On the other hand, offering next-day delivery can make the difference between consistently merely meeting or truly exceeding your customers’ expectations. The solution is to be efficient, be aware of costs, and work only with the most reliable carriers with the lowest-cost options for your business’s specific needs.
Overnight Shipping FAQ
The guarantees from the USPS and the national carriers listed above are dependable on providing a refund of the shipping cost in case of failure to fulfill next-day delivery commitments.
Overnight shipping is often necessary for perishable goods (like foods or medications), glass or other fragile items, or documents with deadline signature requirements, among many other items.
