62% of US shoppers say that delivery speed is the most important factor in a positive shopping experience, while 16% of customers have actually abandoned a purchase because shipping was too slow.
That’s why some companies decide to offer overnight delivery, but like any premium service, it doesn’t come cheap. This guide will show you how to reduce shipping costs and choose the best yet cheapest overnight shipping carrier—and how Brightpearl can help.
What is Overnight Shipping?
Overnight shipping is usually the fastest delivery option offered by a shipping courier. Sometimes referred to as next-day delivery, this method guarantees that customers will receive orders the next business day.
Overnight shipping services are more expensive, but it makes sense to offer this option for urgent deliveries. Some customers are so keen to receive their items that they don’t mind paying extra. And if you’re replacing a late or damaged parcel, overnight shipping is a useful goodwill gesture.
When Does Overnight Shipping Arrive?
Exact delivery dates and times are dependent on when the order was placed. Shipping carriers have daily cutoff times for guaranteed delivery the next day. And if you place an order over the weekend, it may take an extra business day to reach its destination.
Source: emarketer.com
Couriers That Offer Overnight Shipping
We’ve made a list of well-known couriers, with rough guidance on delivery times—but to get an exact quote, you can use the shipping calculators on their own websites.
USPS
The US Postal Service has an overnight delivery option called USPS Priority Mail Express. It has an estimated arrival time of 10.30am, as long as you get your packages to the Post Office before it closes.
Since it’s already running local routes daily, USPS is the cheapest overnight shipping option compared to other major carriers. Further benefits include free pickup, tracking, proof of delivery, and insurance—and a money-back guarantee on delivery speed.
USPS also offers Priority Mail Express flat rate envelopes for daily overnight delivery.
UPS
UPS offers three overnight shipping options, all with online tracking and a money-back guarantee. The fastest and most expensive option is Next Day Air Early, which delivers as early as 8am. The next level is Next Day Air, with packages arriving by 10.30am.
With the less-expensive UPS Next Day Air Saver, it’s 3pm (although delivery may be later in some regions or locations, such as Alaska and Hawaii). There’s an additional cost for Saturday delivery. UPS also offers flat rate shipping for next-day delivery.
FedEx
FedEx, often the most expensive of the main carriers, also gives you three overnight shipping levels to choose from. All FedEx express options allow shippers to customize delivery and pickup options.
If you need super-early delivery, FedEx First Overnight is your best option—it’ll arrive as early as 8am (9.30am latest) for most US destinations. FedEx Priority Overnight delivers by 10.30am (noon for residential addresses), and FedEx Standard Overnight by 3pm (8pm for residences).
These times may be later for remote locations, and Standard Overnight isn’t available in all ZIP codes. Saturday delivery incurs an additional charge.
Parcelforce
With Parcelforce Worldwide, you can ship packages to most nations and use a track and trace tool to monitor them. The globalexpress option gives you delivery to the USA, Canada, and Europe from the next working day.
For sending within the UK, the next morning delivery service includes express9 (by 9am), express10 (yup, 10am), and expressAM (by noon). Parcelforce will collect your parcel from you, or you can drop off at a Post Office branch or depot.
DPD
DPD Air Express serves more than 230 countries. The website says this covers overnight shipping, but you’ll have to fill out a form to get full details and a quote. DPD also offers a returns service, and express customs clearance for international shipping.
Within the UK, DPD 10:30 is the fastest overnight delivery service, followed by DPD 12:00.
If you pick DPD NEXT DAY, your parcel will arrive before close of business on the following working day. Saturday delivery times are the same (at an extra cost), but the 10:30 option doesn’t include Sundays.
What is the Cost of Overnight Shipping?
Overnight shipping costs vary between carriers. But, as with all types of shipping, there are other criteria that determine the price. These include package weight and dimensions, delivery time, and the distance between your premises and the recipient’s address.
Package Dimensions
Most shipping companies use a pricing model called dimensional weight (or DIM weight) to calculate costs. This factors in the parcel’s shape and size, as well as its weight.
To determine the DIM weight in pounds, the carrier multiplies the length, width, and height of the parcel to get a number that equals cubic inches, and then divides it by a DIM divisor. Shipping rates are then based on either the actual weight of the package or its DIM weight, whichever is greater.
Source: oberlo.com
Weight
Unsurprisingly, heavy packages cost more to ship than lighter ones. When you have heavy items to send, it’s a good idea to go for flat rate shipping. This means you’ll pay a set price for any domestic shipment under 70lbs, regardless of its actual weight.
Location
Shipping costs are also calculated using shipping zones. These are based on the order’s point of origin, rather than its destination, and measure the distance between the two. In the US, these range from Zone 1 to Zone 8. The higher the number, the more it costs to send a package—especially for overnight delivery.
Agreement With the Courier Company
Although some carriers are more expensive than others, it’s well worth finding out if they offer any discounted shipping rates. There may be special rates for small businesses, and discounts for high volumes. This is something to look out for when you’re choosing a partner for overnight shipping.
Ways to Save on Overnight Shipping
Even if you keep your packages small and light and minimize the number of shipping zones, there’s no getting around the fact that overnight shipping is pricey. Here are a few more tips to help you reduce costs.
Negotiate
As we mentioned, some carriers are able to offer discounts—and you can use your negotiating skills to get better rates. If your company sends multiple overnight orders on a regular basis, you can make a commitment to the carrier and be rewarded for your steady custom.
It’s possible to negotiate with more than one carrier (for example, you might prefer one firm for domestic shipments and another for overseas orders), but it’s important to build strong relationships and keep the lines of communication open.
Multiple Warehouses
Source: nosto.com
Another way to save on overnight shipping costs is to operate multiple warehouses in different locations. This is what Amazon does: It has so many warehouses that the distance to any destination is relatively short, so it costs much less to offer next-day delivery.
Even small businesses can split their stock between warehouses. It might cost more to have your suppliers deliver to more than one location, but you’ll save on shipping fees. And by using smart software such as Brightpearl, you can manage multiple warehouses with ease.
Centrally-Located Warehouses
Planning to run multiple warehouses? Great. Now you need to make sure they’re in the optimum places. You might think it makes sense to have a base near the port where your products arrive in the US, but orders will have to travel through multiple shipping zones to reach most customers.
It’s better to have warehouses strategically placed in central locations so that you can reach a large swathe of the country. Remember that fast, affordable delivery is a major incentive for customers.
Same-Day Process
If you’re going to offer overnight shipping, it’s essential that you’re able to handle same-day order processing. You need to get orders completed on the day they’re placed, otherwise you’ve got no hope of delivering the following morning.
Make sure you choose a fulfillment company with a same-day order processing guarantee. Or, if you’re keeping things in-house, invest in a retail operating system with automated order management and fulfillment that can save you hours a day compared to manual processes (like Brightpearl).
Dropshipping
Dropshipping helps you save money and speed up overnight shipping because you’re cutting out the middleman. You never handle the goods at your premises—when an order is placed with your e-commerce store, you direct your dropshipper to send it direct to the customer.
It’s important to choose a reliable partner and maintain great communication. Dropshipping can go wrong because you’re not in complete control (but you’ll still be the one that has to deal with customer complaints).
Source: websitebuilderexpert.com
Qualities of a Reliable Courier
Excellent Routing
It’s vital that your chosen courier can map out the optimum route to ensure all packages arrive on time—and that goes double for overnight shipping. Customers who have paid extra for this service will be furious if there’s any delay.
You need a courier with knowledge of the destination area and the quickest, cheapest way to get there. Couriers typically use GPS and have access to the latest transport information, but drivers also need familiarity with the routes so they can make last-minute diversions if necessary.
Efficiency and Flexibility
Couriers also need great efficiency to handle the last-minute nature of overnight shipping, with only a short window in which to collect and deliver the goods. Look for a firm that can deliver 24/7, and demonstrates the flexibility to adapt to changes.
They need to keep accurate records and share real-time tracking information with both you and your customers. Efficient communication works both ways, so let them know if you’re expecting a sudden flurry of next-day orders.
Excellent Service Skills
Sometimes things can go wrong in the shipping process, due to an error or to factors beyond the courier’s control. What matters is how they handle the situation—which is why the best firms offer first-class customer service.
Whether it’s a delivery delay or a problem with payments, your courier should always have someone available to answer your questions and get things back on track as quickly as possible. They may also need to deal with direct inquiries from customers.
Insured and Certified
Source: clutch.co
It’s essential that your shipping courier is fully insured against delays or losses, otherwise you could be left footing the bill. This could be as simple as one damaged parcel, or as serious as a transport accident involving a bulk shipment.
You’re putting your reputation in the hands of your courier, so you have to be confident that they can deliver as promised. As well as insurance, check out their certifications and accreditations, and ask for more information if you need it.
Fair Value
Overnight shipping doesn’t come cheap, but you need to find a courier that provides value for money. Compare several firms before making your choice, so that you have a good understanding of how the shipping rates work and what you’re getting for your money.
Beware of deals that seem too good to be true, as this could indicate substandard service. But you should also be wary of sky-high fees—check your quote or bills carefully and look out for unexpected surcharges.
Safe and Compatible With Your Needs
It’s important that your chosen courier’s services are compatible with your needs. For overnight shipping, you’ll need a firm with experience in delivering by air or rail. If your items require specialized handling, take the time to look for a courier with the relevant skills.
As well as basic protocols for handling parcels, you may need your courier to provide special precautions for things like confidential documents, medical supplies, or hazardous material. Then you can be reassured that your packages are in safe hands.
Technology
In the fast-paced world of overnight shipping, your courier must use advanced technology to plan the best routes and track deliveries. They’ll need the ability to inform drivers about traffic conditions or route changes, and an efficient software system to keep tabs on orders and payments.
Ideally, this technology will integrate with your own business systems, so that you can sync data and receive real-time updates—as well as generating regular reports to show the success rate of deliveries.
How Can Brightpearl Help With Overnight Shipping?
If you want to offer next-day delivery, make sure you’re equipped to handle it. That means not only choosing the right courier, but also implementing a smart system for the rest of your processes. As a comprehensive retail operations platform, Brightpearl provides all the tools you need in one cloud-based package.
That includes the ability to manage your shipping carriers in one system, so you can choose different ones for different orders without logging into separate platforms. With Brightpearl’s Automation Engine, you can create flexible shipping rules such as always using the most cost-effective method, or choosing a carrier based on product weight or quantity.
Brightpearl seamlessly integrates with leading shipment partners such as ShipStation and Shiptheory, and fulfillment services like FedEx and UPS, with native connectors to Amazon FBA and 3PL providers. Order status is updated in both Brightpearl and your chosen application whenever an order is shipped, while goods-out notes are synced automatically.
Automation also enables same-day order fulfillment—you can set unique rules to pick the best inventory location for each order, choose dropshipping for certain customers, channels, or products, and automate order splitting and backorders.
Other Benefits of Using Brightpearl
Streamlined Systems
Brightpearl boosts productivity by replacing manual data entry with barcode scanners and automated workflows. You’ll send out more products in less time with fewer errors, which saves you money as there are no mistakes to fix!
You can create templates for packing notes, customize shipping labels, and automatically generate purchase orders and invoices. Brightpearl makes managing returns a breeze by automatically initiating the credit process as soon as items are received.
Visibility and Planning
Brightpearl gives you one central information hub for your sales channels, warehouses, suppliers, and customers. Data is synced in real-time whenever something changes, giving you an accurate overview of your business.
Demand Planner helps you plan for future demand, ensuring you have the right amount of stock in at all times by taking into account your historic sales data (including promotions and seasonality). Business intelligence, product performance analysis, and replenishment reports all show you exactly what’s going on.
Customer Satisfaction
As well as ensuring that customer orders are processed quickly and tracked accurately, Brightpearl helps you to add a personal touch by gathering data through the built-in CRM. You can learn about preferences and behaviors, and reward VIPs with expedited shipping or free gifts.
Customers don’t want to be disappointed by out-of-stocks, and Brightpearl’s integrated POS lets you check availability in seconds before choosing to fulfill from a fully-stocked location or automatically marking unavailable items as backorders.
Scales as you Grow
Brightpearl is hyper-scalable and flexible, aiming to help your business “Grow Fearlessly” no matter how many warehouses or sales channels you add. The SaaS model means you pay monthly, with pricing based on your rate of growth. You can easily add integrations to the many built-for-retail features, and you get robust implementation, training, and support.
Final Thoughts
Overnight shipping can be expensive, but you need to offer it as an option if you want to stay competitive. You can reduce costs by choosing the right courier and following our tips on package weight and warehouse locations.
48% of customers are unlikely to buy again from companies whose packages arrive late—so you better deliver on what you promise. With automated fulfillment, centralized data, and tight integrations with shipping partners, Brightpearl is the best way to make that happen.