Today, it’s no secret that offering 1-2-day order delivery speeds is a vitally important capability for merchants. This is true across virtually all industries and market segments and regardless of whether a company sells directly to consumers via e-commerce or relies on a network of wholesalers and distributors. Over the past few years, data has consistently shown that not only are buyers coming to expect 1-2-day delivery speeds, but they’re also expecting these deliveries to be cheap. In fact, 39% of consumers in a 2019 NRF survey indicated that they EXPECT to have free 2-day delivery available for their online purchases. Another 29% revealed they’d recently canceled a purchase or abandoned a checkout cart because free 2-day shipping wasn’t provided. On the business side, a study conducted as far back as 2017 found that 67% of corporates expected to have 2-day delivery available from their suppliers.
Ultimately, the end result of these heightened customer demands is that merchants of all sizes and industries are being driven to find faster and more affordable ways of delivering their products.
As merchants seek to create shipping and fulfillment models that can meet the rising expectations of their customers, many are quick to discover that creating an efficient 2-day delivery network is a very challenging project to undertake. More often than not, these challenges are directly related to cost.
For merchants that are shipping orders from a single location (such as an office or local warehouse), air shipping methods might be the fastest way to reach customers on the other side of the country. However, this might not be a cost-effective option to leverage long-term. For instance, shipping a 5-pound package via air delivery through most major carriers air can cost up to $100. With a 10-pound package, it’s closer to $150. For many businesses, paying this amount to ship an order could entirely eliminate their margins and might even result in a loss. And because few customers today are willing to cover these costs themselves, using air delivery methods to achieve 1-2-day delivery is usually only cost-effective if the products you are selling are very expensive themselves (i.e. paying $100 to ship a $2,000 jewelry package is more logical than paying $100 to ship a $100 pair of running shoes).
In place of air delivery, ground shipping options are typically much more affordable. In fact, shipping a 5-pound package via the major carriers will usually cost between $10-20. Moving up to a 10-pound package, the charges can range from $20-40. However, if you’re attempting to complete a cross-country ground delivery (i.e. from Philadelphia to Sacramento), the total shipping costs will likely be higher due to how carriers address “long-zone” shipments. Also, it’s important to understand that while ground delivery is much cheaper than air transport, it usually takes longer for packages to arrive. Looking at the U.S. specifically, standard ground delivery will typically take anywhere from 1-6 days depending on the locations of your customers and where orders are being shipped from. As a result, relying on ground delivery may not address buyers’ demands for faster shipping speeds.
So then, given that air delivery is probably too expensive and standard ground delivery is often too slow, how can merchants create a distribution network that guarantees 1-2-day delivery speeds for the entire U.S. without having to pay expensive shipping fees?
One answer may lie in Ware2Go’s on-demand warehousing and fulfillment network.
Today, there are a number of “3PL” providers that exist to help merchants manage their logistics and distribution workflows. However, few of these providers can offer cost-effective service to smaller and mid-size merchants in a manner that enables them to create comprehensive 2-day delivery networks. This is not the case with Ware2Go – instead, we were created by UPS for the primary purpose of providing 1-2-day ground delivery coverage across the U.S. for merchants of any size or industry.
Ware2Go can best be thought of as an “on-demand” warehousing and fulfillment service that manages everything from the storage of a merchant’s products, all the way through to delivery to the end customer. And with UPS as our parent company, we can guarantee 1-2-day ground delivery speeds across the entire U.S. at very affordable rates. The way it works is simple and is outlined in the following steps and graphic:
In practice, the above model has enabled startup businesses with just a single employee, all the way up to large enterprises with hundreds of employees, to create low-cost distribution networks that provide guaranteed 1-2-day ground delivery coverage for their customers.
But don’t just take our word for it; below, we provide three examples of how existing customers of different sizes and industries are currently leveraging our network to achieve optimal levels of distribution efficiency.
Today, Ware2Go is actively enabling hundreds of merchants to affordably outsource their warehousing and fulfillment and achieve 1-2-day ground delivery footprints. These merchants consist of all different sizes, are spread across a broad range of industries, and are selling via a diverse array of products and channels. But regardless of their industry or composition, Ware2Go has been able to effectively service them and provide guaranteed 1-2-day ground delivery coverage for all of their customers at a very affordable price.
So, for any merchant that finds themselves needing a more efficient and cost-effective distribution model, we encourage you to contact Ware2Go’s supply chain experts for a personalized consultation. It might end up saving you significantly on shipping expenses and enabling you to reach all your U.S. customers in 1-2 days without exhausting your budget or overwhelming your employees.