Should Your Small Business Offer Expedited Shipping?
Retailers today must accommodate an ever-shifting marketplace and customers with changing and customized needs. But they must do so in a way that also fulfills the business's ultimate need: making a profit and continuing in operation. This means that every service provided or upgrade offered must meet both goals.
Consider the decision to offer expedited shipping services. Should you provide this option? And if so, what measures can you take to ensure this is a success for the company as well as the customer? Discover what you need to know about expedited shipping.
What Makes Expedited Shipping Special?
At its most basic, expedited shipping reduces the length of time between when a customer orders an item and when it arrives on their doorstep. Technically, any product could be considered expedited if it's delivered in less time than standard shipping. But in reality, customers will only pay for this upgrade if it provides significant benefit - up to half the transit time or less than three days, in most cases.
How Can Expedited Shipping Help Your Business?
Expedited shipping takes extra work and costs the retailer more money. So, why should you offer it? First, it can expand your pool of customers. A customer who desperately needs a replacement part because their manufacturing process has broken down may not be able to wait up to a week for standard shipping. But if you don't offer faster alternatives, they must go to a competitor.
Second, the retailer may be able to expand their own product lines due to the shortened transit time of expedited shipping. Perishable items, for instance, need to be made and delivered within a set window of time. Only with the inclusion of faster order processing and delivery can you offer these types of goods. The same can also apply to packages with a deadline, live products, and seasonal offerings.
Finally, expedited shipping may help your company improve its processes. Budget-based shipping often transfers products between many modes of transportation. Expedited items have fewer such changes, resulting in less risk of damage or loss. They also often include the best tracking systems, since the effects outweigh the costs of these. And your business may be able to improve order processing.
What Can Help You Control Costs?
Clearly, when expedited shipping is an option, this benefits both the retailer and the customers. But before you add that expedited button on orders, the company must make sure it's ready to meet this need. This involves two facets.
The first facet is finding means of reducing the travel time for goods. This involves different sets of transportation methods than standard shipping, different routes, and even sourcing from different vendors with faster turnaround times. But not just the speed of vehicles matters. You may also need to reduce customs delays and idle time during intermodal transfers or use more direct shipping methods.
The second facet of expediting is getting orders out your door faster. Small businesses may not be set up to efficiently prioritize specific orders or goods. You may need to use outsourced services such as warehousing, which stages material closer to customers or provides a secondary processing station. Or you might work with logistics professionals to improve your order creation, processing, and tracking.
Where Can You Start?
Could expedited shipping options provide benefits for you? If so, start by meeting with the logistical pros at JBS Logistics to learn more about your choices and the prices and services we provide to support this method. We'll work with you to make priority delivery a reality for your business within your budget. Call today to get started.
