Overnight Shipping

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Overnight shipping is by far the fastest delivery option provided by the majority of countries. Some nations offer various overnight services based on the specific day the customers want their order. The following article covers the basics of overnight shipping, how it works, and the reason to offer overnight shipping in e-commerce stores. The article also walks you through the cheapest overnight shipping options, how to offer overnight shipping to customers, and more.

What is Overnight Shipping?

At first glimpse, this process may appear magical, and you may wonder, what does overnight shipping mean?

Overnight shipping is helpful when you want to ship orders the next business day. It is the swift delivery alternative provided by couriers. Various shipping firms that provide overnight shipping have set deadlines, post which, next-day shipping can’t be assured. Based on the chosen shipping service and the carrier,  orders placed during the week might demand at least two days for shipping.

Overnight shipping is typically identical to delivering orders the following day or within a day. But the precise delivery schedules are based on the time the order was placed.

Generally, shipping firms that provide overnight shipping usually have organized transportation systems that let them complete the delivery in the shortest possible time. The transport network typically spans throughout the country. It prepares for delivery the following morning to make sure the customers get their packages as soon as possible. Many people refer to shipping overnight services as express services. They are occasionally limited to some specific location. For example, certain overnight shipping companies don’t ship to rural areas.

Overnight shipping is an appealing option for companies willing to provide the greatest and latest in shipping. It fulfills customer expectations regarding delivery time and encourages last-minute shoppers to place an order. 

Let’s now understand how it works.

Overnight Shipping: Behind the Scenes

To make overnight deliveries successful, a lot of processes come into play behind the scenes. Let’s get started with how overnight shipping works.

1. A customer places an order before the cut-off time

The next day’s shipment deadline offers enough time to pick up and manage orders. Usually, the cut-off time is set to meet the courier’s deadline.

For overnight shipping, the cut off time is most likely the end of business hours of the day the order is placed, around 6-7 pm. This shipment deadline provides sufficient time for the logistics provider to pick and organize orders to fulfill the deadline of your courier.

2. The carrier firm receives and processes the package

After you have delivered the order to the particular destination or courier office, it will be acknowledged and organized to accomplish overnight shipping. Subsequently, it will be delivered appropriately.

3. The package is delivered to the nearest hub overnight

Your order reaches the delivery point closest to the consumer overnight. It goes through air shipping or ground shipping based on the separation.

4. The package is delivered to the customer

The package gets delivered from the particular point to that consumer the next day. Consequently, it fulfills the same-day shipping assurance.

Overnight Shipping

Why Offer Overnight Delivery on Your E-commerce Store?

Global e-commerce sales are expected to grow tremendously in the coming years.  With the transition from on-site to online stores, online sales growth hugely depends on online store growth. Let’s find out the reasons behind offering overnight delivery on your e-commerce store.

  1. Making you stand out

Offering overnight shipment lets you compete with bigger e-commerce industry players who offer similar services, for example, Walmart. It also gives you an edge over the service levels provided by others in this industry, i.e. your competitors.

Offering faster and better shipping services than competitors makes the following day delivery to be a unique feature. It also ensures lower cart abandonment as it is observed that nearly 25% of shoppers will leave a cart online when there is no same-day shipping option. 

  1. Increasing customer conversions

A recent study states that nearly 32% of shoppers leave their shopping carts if the shipping and delivery time was too long. But the next-day delivery fulfills one of the basic expectations of all shoppers- quick shipping. As a result, it boosts conversions, leading to a situation wherein sellers gain an excellent boost in earning after providing overnight shipping service to customers who stay within a closer range. 

  1. Boosting customer lifetime value

Overnight shipment is considered a superior quality shipping facility. With this premium service, the customers keep returning to your services for more sales. Moreover, when you fulfill a same-day delivery promise, your shipping service is reliable; thus, customers can remain confident about buying from your business in the future.

  1. Increasing average basket size

Overnight shipping generates a mental reaction that inspires customers to spend considerable money than normal.  Usually, customers know that overnight shipping is slightly priced higher than the default shipping option. Hence, they feel obligated to achieve a pre-determined cart value to get the benefit. This is especially true if it’s associated with any minimum spend requisite cut-off applicable on the e-commerce store. Consequently, it enhances the size of the basket, thus boosting the profits of the company providing the shipping service.

How Much Does It Cost to Overnight a Package?

The overnight shipping cost depends on several variables, including:

1. Package dimensions

All reputable carriers employ a price structure known as dimensional weight (also called DIM weight) that helps to compute shipping expenses. In DIM weight, the packages’ dimensions are considered to estimate the shipping expenses.  Usually, packages featuring a low weight would levy the most inexpensive overnight shipping cost, whereas those featuring a sizable dimensional weight would incur costly shipping expenses.

To compute the package’s dimensional weight, you must multiply the package’s length, breadth, and height and then divide this sum using a DIM divisor. Consequently, the shipping carriers will consider shipping prices on the larger of the two –the package’s actual weight or corresponding DIM weight. Finally, this package weight dictates the overnight shipping cost.

2. Package weight

When dealing with overnight shipping, remember that heavier packages are more expensive to ship compared to more lightweight ones. As discussed, if a package’s actual weight is more than the corresponding DIM weight, it would help you determine shipping costs.

If the weight of a package surpasses a limit, several shipping services use this benchmark to determine the shipping costs. This is in contrast to considering the dimensional weight, i.e. higher overnight delivery expense for the heavier package.

3. Shipping zone

Shipping zones calculate the separation between a package’s place of manufacture and its endpoint. Generally, carriers depend on the services of shipping zones because it assists them in determining shipping expenses. The shipping zone calculation depends on the shipment location of the order. So, two distinct places of manufacture with the same separation can ship to different zones.

If a particular shipping zone is higher, the package would be more expensive to ship. For shipment on the next day, overnight delivery, and remaining expedited shipping alternatives, the rate rise between zones becomes proportionally higher.

4. Shipping agreements with carriers

Carriers may provide economical shipping charges. Certain carriers provide exemptions for especially small firms, whereas others’ discount rates depend on huge shipping quantities. You need to consider available discounts when zeroing-in on carriers or 3PL  providers.

Overnight Shipping

How Do You Keep Overnight Shipping Costs Low?

After determining how much is overnight shipping, the next crucial aspect to focus on is how to keep overnight shipping expenditure low. Generally, online shoppers will not pay higher shipping costs. However, overnight shipment can prove to be costly. Hence, it is imperative to minimize overnight shipping expenses. The low overnight shipping cost will attract your customers and protect your investment.

1. Find the cheapest overnight shipping service

The first step in keeping the overnight shipping cost low is to find the cheapest overnight shipping service. Keep in mind that costs vary with distance. So, you should always evaluate shipping services and overnight shipping prices before selecting a suitable service.

2. Specify a minimum order value for overnight delivery

The lowest values of orders for an overnight delivery guarantee that customers expend adequate money to profit from the overnight delivery.  The money spent is directly proportional to the profit you earn. The bigger baskets imply heavier and bigger packages, so it increases the overnight shipping cost.

3. Disburse inventory to warehouses closer to your customers

Distributing products to warehouses nearer to consumers will decrease the far orders should travel. Following this approach helps you to use bargained ground shipping approaches.

4. Partner with an e-commerce fulfillment service

Overnight shipment services are equipped with proper warehouse locations, shipping expertise, and carrier dealings to complete overnight deliveries without extra costs.

Certain fulfillment partners offer overnight shipping without additional fees for customers located near their fulfillment centers. Hence, it turns out to be the most inexpensive overnight shipping facility. Adopting decent shipping label practices helps prevent excessive return fees.

How to Offer Overnight Shipping to Your Customers?

Partnering with third-party logistics (3PL) helps you provide overnight shipping on your e-commerce store. The overnight shipping process is not only about searching for the most cost-effective and swift overnight shipping service. It involves timely order processing, picking, and packing orders. Also, it involves storing stock in those locations that makes overnight delivery feasible.

Three options to achieve overnight shipping to your customers:

1. In-house fulfillment

Optimizing your offered fulfillment expertise to timely collect and organize shipping orders overnight proves beneficial. This approach allows you to partner with an overnight shipping firm to complete deliveries in one day. You must be careful when maintaining 1-day delivery paces during key retail phases.

2. Qualifying marketplace services

Certain e-commerce market platforms offer overnight shipping services on top of inventory storage and fulfillment. However, their fulfillment services typically only prove relevant to their marketplace orders. If you expand your e-commerce store to a multi-channel sales model, your not only distribute your inventory, but also can leverage the shipping opportunities across multiple sales channels and impact your bottom line.

3. Outsourced fulfillment services

Many redistributed fulfillment facilities use services from distribution centers to allocate stock throughout the country. This ensures you will provide shipping in two days to all consumers and same-day shipping to neighboring customers without extra cost.

Conclusion

Today, one of the crucial aspects that people look for is fast order delivery. Many shipping companies now focus on overnight shipping services to fulfill their customers’ expectations regarding quick shipment. The choice of a reliable and fast overnight shipping service ensures a flawless load following the day of placing the order.

FAQs

What is the transaction fee for a Shopee seller?

Shopee charges sellers a 2.24% transaction fee for every successful transaction using Shopee’s payment services.

Does the shipping fee go to the seller?

No, the shipping fee does not go to the seller. The shipping fee is paid to the logistics partner that delivers the product to the buyer.

Who pays for shipping on Shopee?

The buyer pays for shipping on Shopee. The seller sets the shipping fee for their products, and the buyer is charged this fee when they checkout.

What is the cheapest way to ship?

The cheapest way to ship on Shopee depends on the product’s weight and dimensions. Standard shipping is usually the cheapest option for small and lightweight products, while non-weight-based shipping may be more economical for bulky or lightweight products.

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