Do you want to increase eCommerce conversions and improve your customer service? Then we need to talk about fast shipping and 2-day delivery. Marketplaces are offering them, customers want them, and experts are talking about them.
But you might be wondering: is fast shipping just another metric that only the largest eCommerce businesses can compete on? Or is 2-day delivery sustainable and essential for business growth, regardless of your size?
In this post, we’ll discuss how fast shipping affects businesses, why it’s so important to offer it, and how to achieve it even if you aren’t an eCommerce giant yet.
What is 2-Day Delivery and Why is it so Popular?
2-day delivery is a term used for orders that come with the promise of delivery in 2-days or fewer, depending on order placement time. (Not to be confused with 2-day shipping, which just promises the order will ship within 2 days.)
The fast delivery service has become a huge business talking point lately, largely thanks to Amazon Prime and growing customer expectations. Here’s why:
Amazon Prime Changed the Way We Think About Delivery and Reformed Customers Expectations
Amazon Prime changed the way we think about order delivery. Prime members don’t just get access to low prices and vast product collections. They also receive free 2-day, next-day or even same-day deliveries, depending on their zip code.
These quick, free shipping options changed customer expectations. Today, the average customer expects to wait no longer than 3.1 days for online deliveries. In 2018, that number was 3.9 days. Who knows where it will be in 2021…
That’s why anyone looking to compete on or off the platform must now meet or exceed Amazon’s delivery standards. And as more retailers move online for convenience and safety during the pandemic, it’s vital merchants can fulfill quickly, especially for essential goods.
A Convenient Buyer Experience That Won’t Break the Bank
Back in the day, it took 25 days to ship a letter across America and shipping large packages wasn’t cheap or easy. But today, 2-day and next-day deliveries are achievable and affordable for merchants of all sizes.
How? Micro warehouses allow operational managers to keep stock closer to key markets so your goods don’t have to travel as far. This decreases shipping distance and brings the cost down. ECommerce fulfillment companies like Deliverr can help with that, by quickly processing and fulfilling orders for you.
And on the customer side? Intuitive shipping technology gives customers up-to-date shipping options for their location, making it easy to pick the best choice. All of these factors create a seamless buyer experience that helps generate repeat business and loyal customers.
Why Every ECommerce Merchant Must Offer 2-Day Deliveries to Stay Competitive
Offering 2-day delivery is essential to online success. New, established, marketplace and D2C online sellers are all experiencing significant returns when offering 2-day delivery speeds. Let’s take a closer look at some of the benefits.
1. Use 2-Day Delivery to Increase Marketplace Visibility
Being seen in the highly saturated world of online marketplaces isn’t easy. It’s also integral for driving traffic to your listings so you can convert that traffic into sales. 2-day shipping increases marketplace visibility through:
- Fast shipping programs. Qualified listings appear higher in the search results, feature in fast shipping-filtered search queries, and receive site-wide promotion.
- Buy box eligibility. You have a higher chance of winning the buy box and appearing first and foremost on product listings if you have 2-day delivery. In fact, Walmart TwoDay listings are 36% more likely to steal the buy box.
- Avoiding price wars. Fast shipping speeds allow you to stand out from your competitors using something other than price to offer value and set you apart. Plus, scientific studies show consumers associate price with quality, so many shoppers will actively avoid low-priced items for fear of inferior products.
- Positive social proof. 2-day shipping improves the customer experience and generates more positive feedback alongside your products. Providing a buying experience that people want to talk about can then help shoppers on the fence make the decision to buy from you. (And happy customers tend to leave better reviews too.)
2. Boost D2C Conversions
Driving sales directly to your website is just as challenging as driving clicks to your marketplace listings. To boost D2C conversions, you need to create a superior customer experience. Luckily, 2-day delivery can help you do this.
Use fast shipping tags and banners
Adding fast shipping tags and banners to your website creates a trust signal for visitors. The banners show you care about the customer experience, and makes people feel that you’ll deliver on time.
These banners are also ideal for immediately capturing the attention and purchase intent of last-minute or cautious online shoppers who want their orders as quickly as possible.
Use fast shipping countdowns
Intelligent, fast shipping countdown timers can calculate the time left for 2-day delivery based on the customer’s location. This creates a sense of urgency that drives customers to conversion and gives them little time to shop around.
Google Shopping ads
Adding 2-day delivery tags to your Google Shopping ads can help them stand out from the competition. This is a useful tactic to employ while you’re establishing organic rankings or new product lines.
3. Enhance Ad ROI
Ad return on investment is crucial for your marketing team, and 2-day shipping has the power to enhance it. For example, when Hey Dude Shoes added 2-day delivery tags to their Facebook ads, they saw an 11% decrease in CPA and 13% decrease in CPC. Reducing their acquisition costs meant their return on spend went up, giving them more value for their investment.
Adding 2-day and next day delivery to your social and search ads helps attract attention. And it helps you stand out from your competition and drive qualified clicks that are ready to convert.
Overall, 2-day delivery will help you grow your business. By enhancing your fulfillment operation to offer fast shipping, you can improve traction, customer lifetime value, and the buyer experience.
How to Offer 2-Day Delivery for Your Store
We know what you’re thinking: 2-day and next day deliveries can be an operational nightmare, especially at this time of year. But they don’t have to be. Here’s how you can make it happen without overwhelming your ops team.
1. Distribute Your Stock
Your inventory should be distributed strategically in multiple warehouses across the country to get nationwide coverage. This reduces shipping distance (and cost), while increasing shipping speeds.
For example, Deliverr will look at items on a SKU level and distribute items across our network of warehouses to achieve nationwide 2-day delivery coverage. We utilize machine learning to ensure items sit as close to demand as possible, allowing us to offer transparent and affordable 2-day fulfillment pricing.
2. Ensure Seamless Order Management
Use multi-channel management software or fulfillment services with direct sales channel integrations to download orders in real time, and start picking, packing, and shipping immediately.
Tip: Connect Deliverr and Pipe17 to get access to a full suite of integrations to help you succeed everywhere you sell.
3. Optimize Picking and Packing
Optimize picking and packing throughout all retail seasons, either through warehouse design and seasonal staff. Or use a third-party fulfillment company optimized to meet fast shipping program speeds of 2-day and next-day.
4. Use an Outsourced Fulfillment Provider
If you’re trying to achieve 2-day delivery in-house, find a carrier that facilitates 2-day deliveries, with late pick-up times and affordable 2-day and overnight shipping options.
Alternatively, use an outsourced fulfillment partner that can offer nationwide 2-day delivery with transparent fulfillment fees and a seamless end-to-end experience. For example, Deliverr handles the entire order-to-door process with a hassle-free experience.
So What Now?
Next day and 2-day delivery is here to stay. That’s why it’s important to offer this experience as possible. Otherwise, your competitors may just beat you to it. And remember: while you can do it alone, you don’t have to. Look into fulfillment partners like Deliverr or speak to your team and find your own way to do it.