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Warehousing & Fulfillment

How to Achieve Affordable Nationwide 2-Day UPS Ground Shipping

Warehousing & Fulfillment
April 27, 2021
8 min read
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Today’s consumers expect 2-day delivery from merchants of all sizes. Learn how to reach all of your customers with ground shipping in 1 to 2 days to keep shipping costs down while still meeting customer expectations.

1 to 2-Day Delivery Is the Expectation

It’s no secret that offering 1-2-day order delivery speeds is for merchants of all sizes. 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.

LS2 Helmets, the United States’ fastest-growing motorcycle helmet brand, discovered that they were losing opportunities for sales at brick-and-mortar locations because their fulfillment network couldn’t compete with ecommerce shipping promises. They realized that they needed a solution that would help them keep up with growing customer expectations for delivery without hurting their margins.

See LS2’s full story at https://ware2go.co/ls2/

2-Day Shipping Can Be Expensive

According a recent merchant survey, 75% of merchants know that offering 2-day shipping will make them more competitive, but only 60% actually offer it. Most merchants indicated that cost was their main obstacle to offering 2-day shipping to their customers, with 33% citing the prohibitive cost of next-day air shipments.

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 many businesses, paying the cost of next-day air 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.

In place of air delivery, ground shipping options are typically much more affordable. However, a cross-country ground delivery (i.e. from Philadelphia to Sacramento) qualifies as a  “long-zone” shipments, and although ground delivery is much cheaper than air, 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?

‍How Ware2Go Helps Businesses Create Affordable 2-Day Ground Shipping Footprints

Today, there are a number of 3PL providers that exist to help merchants manage their logistics and distribution workflows. However, 3PL’s are typically regional providers, and in order to establish a nationwide footprint, many small to mid-sized merchants end up cobbling together multiple 3PL’s, complicating their supply chain and fulfillment operations. O2 Recovery found that in order to simplify their supply chain, they needed to streamline their fulfillment with Ware2Go.

Watch O2’s full story here. https://ware2go.co/o2/

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.

  • Building a Custom Network. Ware2Go’s free network analysis tool, NetworkVu, enables merchants to sync their ecommerce shopping cart or upload their own sales and shipping data to see recommendations of where to place their warehouses to best achieve nationwide 2-day ground shipping.
  • Strategically Allocating Warehouse Space. Based on their NetworkVu analysis, Ware2Go will position our merchants’ inventory in the warehouses that can provide the most effective coverage. Typically, merchants that require 1-2-day delivery across the entire U.S. will need to position inventory in three warehouses. But because Ware2Go offers pay-as-you-go storage space with monthly fees, the costs of leveraging these facilities are very low.
  • Managing the Entire Fulfillment Process. Once merchants’ inventory is positioned in our warehouses, Ware2Go can then manage fulfillment across any e-commerce, wholesale, or distributor channel. This includes e-commerce marketplaces like Amazon, Wayfair, or eBay, as well as platforms like Shopify, WooCommerce, or BigCommerce. As new orders are captured by merchants, our technology solution integrates with their e-commerce and order management platforms and assigns the fulfillment responsibility to the appropriate warehouse for a seamless operational workflow.‍
  • Providing Guaranteed 1-2-Day Ground Delivery. As new orders are captured in our system and fulfilled by our professional warehouse teams, we rely on UPS to deliver the packages to the end customer–whether that’s a consumer, business, or anyone in between. Through UPS, Ware2Go is capable of delivering orders across the entire continental U.S. in 1-2 days. We can also handle LTL and FTL shipments for merchants that deliver bulk shipments to wholesalers, distributors, or retailers.
  • Enabling Affordable & Efficient Distribution for All Businesses. As a result of the above capabilities, every merchant that uses Ware2Go receives a tailored distribution network with fully managed warehousing and fulfillment services that guarantee 1-2-day delivery for their customers. Each merchant also receives full visibility into their warehouse operations and order fulfillment data via our online user interface and warehouse management system. And because the entire model is “on-demand”, merchants can adjust their usage of our services at any time in-line with their seasonality or the shifting needs of their business.

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.‍

How Aloha Leveraged Nationwide Ground Shipping

When plant-based protein brand, Aloha, decided to scale their direct to consumer sales, they used Ware2Go’s network analysis tool, NetworkVu, to build an ecommerce fulfillment network. NetworkVu recommended a three-warehouse network, which enabled Aloha to reach 98% of their customers with 2-day ground shipping. They found that offering 2-day shipping on their ecommerce site not only improved customer satisfaction but actually grew their top-line revenue.

Today’s ecommerce consumers are highly influenced by what Google Shopping calls “The Power of Now” when making purchasing decisions online. In fact, a recent survey revealed that 65% of merchants saw increased cart conversions of up to 25% when they offered 2-day shipping at checkout. Additionally, 22% of merchants reported that offering 2-day shipping helped them beat out their competitors. Ultimately, between re-vamping their ecommerce website and offering affordable 2-day shipping to their customers via their ground network, Aloha has seen a 250% increase in D2C revenue.

Build Your Own Nationwide 2-Day Ground Network

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.  

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