Shipping Exception? Here’s What It Actually Means

If you’ve run an ecommerce brand long enough, you’ve seen it: the dreaded “delivery exception” update in a carrier’s tracking status. It sounds harmless, but it can spark a chain reaction, delays, customer complaints, refund requests, and even lost lifetime value.

A shipment exception is just a fancy way of saying your package didn’t follow the normal delivery process. Something, an incorrect address, severe weather, or a customs delay, got in the way. What does a shipment exception mean? It means there has been an unexpected event or issue in the shipping process, and this status update alerts you to a disruption that may cause a delay, but does not necessarily indicate a lost package. Sometimes it’s resolved in a day. Sometimes it spirals into a full-blown customer service crisis. However, a shipment exception does not always mean the package will arrive late; it simply disrupts the planned delivery timeline and may temporarily delay the package’s delivery.

I’ve spent the last eight years managing a nationwide warehouse network and watching ecommerce operators wrestle with exceptions, especially during peak shipping seasons. This article breaks down why they happen, what they cost you, and how to prevent them.

Understanding Delivery Status

In today’s fast-paced logistics world, understanding your package’s delivery status is more important than ever. Every update in the shipping process, whether it’s “in transit,” “out for delivery,” or a “shipment exception,” tells a story about where your package is and what might be affecting its journey. Major carriers like FedEx provide tracking numbers so you can follow your package every step of the way. When you see a status like “temporarily delayed” or “exception,” it means an unexpected event, such as bad weather, an incorrect address, or a customs snag, has interrupted the normal flow of delivery. Recognizing these delivery statuses helps both businesses and consumers set realistic expectations and respond quickly. For example, if a shipment is delayed due to weather-related delays, you’ll know to anticipate a later delivery and can plan accordingly (e.g., notify the customer proactively). Staying informed about your package’s status is the first step in navigating shipment exceptions and ensuring a smoother shipping process.

The Most Common Types of Shipment Exceptions

1. Address Issues

More than half the exceptions I’ve seen start with a bad shipping address: wrong zip code, missing apartment number, incorrect formatting, or missing information. Carriers like FedEx flag these as a delivery exception and either hold the shipment or send it back. It’s fixable, but it costs you: re-shipping, delays, and sometimes a lost customer.

2. Weather and Natural Disasters

Weather-related delays are the most “forgivable” exceptions in the eyes of customers, but only if you communicate early. Snowstorms, wildfires, hurricanes, natural disasters, and adverse weather conditions stop trucks, delay planes, and jam up distribution hubs. Expect “shipment delayed due to weather” tracking updates across all major carriers during seasonal surges.

3. Customs Delays on International Shipments

Customs can hold packages over missing documentation, regulatory issues, or unpaid import duties. Even if you ship using Delivered Duty Paid (DDP), if the commercial invoice or product description is off, the package might be flagged, triggering a shipment exception that can delay delivery for days or weeks. Having a UPS tracking number allows customers to monitor their international shipments and stay informed about customs-related shipment exceptions.

4. Missed Delivery Attempts

If the recipient’s address requires a signature and nobody’s home, it’s marked as a delivery attempt. Carriers usually try again, but after a few failed attempts, they’ll mark it as a delivery exception, return it to the sender, or drop it at a pickup location.

5. Carrier or Hub Issues

Packages sometimes get stuck because of vehicle breakdowns, labor shortages, or a simple logistics world reality: too many boxes and not enough people or truck space. Especially during the holiday rush, even reliable carriers miss scans or reroute packages inefficiently.

6. Damaged or Lost Packages

If a barcode gets smeared or a label falls off in the rain, the package may end up in a lost pile. When you see a tracking status that hasn’t updated in days and says “exception,” this might be the issue. Even stellar customer service can’t fix it if you can’t locate the box.

*A table with a more complete list of exceptions and how to address each of them is available at the bottom of this page.

Why Shipment Exceptions Matter More Than You Think

You might think exceptions are just shipping hiccups. But here’s what I’ve seen time and again: they ripple into core business metrics:

• Shipping costs rise as you refund customers, reship orders, or expedite replacements.
• A well-trained customer service team is essential for handling shipment exceptions and maintaining customer trust, especially when they get flooded with WISMO (Where Is My Order?) tickets.
• Customer satisfaction plummets, especially if you don’t notify customers proactively.
• Reviews suffer because most buyers blame the seller, not the shipping carriers.
• Lost packages hurt inventory accuracy and cash flow.

If you’re not actively managing delivery exceptions, you’re bleeding trust, revenue, and operational efficiency.

Consequences of Shipment Delays

Shipment delays can have a ripple effect on both e-commerce businesses and their customers. When a shipment exception occurs, it often leads to increased shipping costs: think reshipping packages, issuing refunds, or handling returns. For commerce businesses, especially during peak shipping seasons, these delays can damage customer satisfaction and erode trust, making it harder to retain loyal buyers. In the world of ecommerce, where fast and reliable delivery is a key differentiator, repeated shipment delays can quickly tarnish a brand’s reputation. Customers may become frustrated or choose competitors if their packages don’t arrive on time, especially during critical periods like holidays. To minimize the impact of potential delays, proactive communication is essential. Notifying customers early and providing regular tracking updates can help manage expectations and turn a potentially negative experience into a positive one. Ultimately, staying ahead of shipment exceptions and delays is crucial for protecting your bottom line and keeping customers happy.

“I really like the [Cahoot] Shipment Insights feature that lets me see any problems before the customer knows. We’ve saved thousands of dollars over the last 6 months, and my customers are delighted I can offer the same nationwide shipping as Amazon. Cahoot definitely under-promises and over-delivers. Call these guys!”

~ Sam Krausz, Fastest Handling Time

Speak to a fulfillment expert

How to Prevent Shipment Exceptions

Here’s what high-performing ecommerce teams (and fulfillment networks like Cahoot) build into their operations to keep exceptions rare. Proactive planning for deliveries, including choosing reliable carriers and accounting for holiday closures, is essential to minimize shipment exceptions and avoid delays.

1. Validate Every Shipping Address

Use software to standardize, verify, and autocomplete addresses. Don’t ship until the recipient’s address passes validation. Especially critical during international shipping.

2. Pack Smarter, Label Better

A damaged or illegible label causes more exceptions than you’d think. Use weather-resistant thermal labels, or secure them with clear pouches. Avoid incomplete addresses and double-print if needed.

3. Use Multi-Carrier Strategies

Each carrier has strengths. UPS might outperform FedEx in one zone; only USPS can deliver to PO Boxes. Use reliable carriers across lanes, not just one-size-fits-all. Bonus: if FedEx advises a regional delay, you can reroute to another carrier or warehouse to ship the order.

4. Track Exceptions in Real Time

Use shipping software or tools that monitor tracking updates across all orders. When a status update shows “exception,” alert your team, or better yet, your customer, automatically.

5. Avoid Risky Weather

Modern fulfillment software can intelligently route orders to ship from warehouse locations based on inclement weather. If a snowstorm is expected to cause carrier processing delays along one shipping and delivery route, optimize it to ship from a different location less likely to be impacted by the weather.

6. Prepare for Peak Seasons

Add buffer days to your promised delivery windows during the holiday rush to account for unavoidable circumstances that can cause shipment exceptions, and coordinate capacity with your warehouse or fulfillment center. Build in overflow plans for volume spikes and inclement weather.

7. Simplify Customs with DDP

For international ecommerce, DDP shipping helps eliminate many customs-related shipment delays. Ensure duties, taxes, and documentation are handled upfront. If not, you risk regulatory issues and angry customers.

Communicating with Clients

When shipment exceptions or delivery delays arise, clear and proactive communication with clients is essential. Keeping customers in the loop with timely tracking updates, email notifications, or even a quick phone call can make all the difference in how they perceive your service. If a package is delayed due to inclement weather or another unexpected event, reaching out to provide further information and an updated delivery estimate shows that you’re on top of the situation. Offering solutions, like reshipping the order or issuing a refund, demonstrates a commitment to stellar customer service. If you need more details about a delayed package, don’t hesitate to contact FedEx/UPS/USPS customer service (or the relevant carrier) for assistance. By maintaining open lines of communication and addressing shipment delays head-on, you build trust and reassure clients that their satisfaction is your top priority, even when the shipping process hits a bump in the road.

What to Do When an Exception Happens

When a delivery exception hits, your goal is to respond faster than the customer can panic.

1. Check tracking details: Is it address, weather, customs?

2. Contact FedEx/UPS/USPS customer service (or the relevant carrier) immediately if it’s fixable.

3. Communicate clearly: Tell the customer what’s going on and what you’re doing about it.

4. Reship or refund as needed: Don’t wait for them to ask.

5. Track repeat offenders: Are certain addresses or products triggering exceptions more often?

Many shipment exceptions can be resolved quickly by taking prompt action, and in such cases, proactive communication can turn a negative into a positive experience.

This is how you turn a potentially negative experience into an opportunity for great service.

Connect the Dots: Why It All Matters

Here’s the real cost of ignoring shipping exceptions: it makes your brand feel unreliable. Even if you ship fast and fulfill flawlessly, the final destination (the customer’s doorstep) is where brand perception is cemented. Successful package delivery is the ultimate goal, and even when exceptions occur, the focus should remain on finding ways to deliver the package to the customer.

I’ve seen merchants blow through acquisition costs, only to lose customers over a weather delay they didn’t explain. Or spend a fortune on packaging, only to print the wrong ZIP code.

The best brands treat delivery as an extension of their product. They obsess over how exceptions are avoided, managed, and communicated. That’s the difference between one-time buyers and loyal customers.

At Cahoot, we built proactive exception handling directly into our fulfillment software, including our Amazon Buy Shipping integration. Not because it’s flashy, but because it works. And because ecommerce businesses shouldn’t lose money, sleep, or reputation over something as preventable as a delivery status glitch.

Frequently Asked Questions

What is a shipment exception?

A shipment exception occurs when a package encounters an unexpected issue during transit, like bad weather, an incorrect address, or customs delays, that interrupts the normal delivery process and may delay arrival.

How long do FedEx delivery exceptions last?

It depends on the cause. Weather-related exceptions might resolve in 1–2 days. Address errors can take 24–72 hours to correct. Customs delays could stretch over a week, especially if documentation is missing.

Are delivery exceptions preventable?

Many are. You can reduce exceptions by verifying shipping addresses, using multiple carriers, labeling properly, and communicating delays. While you can’t prevent natural disasters or severe weather, you can plan around them.

What should I do when a delivery exception happens?

Check the tracking number, contact the carrier if it’s address-related, and notify the customer quickly. Offer alternatives like reshipping or refunds if the delay is significant. Always communicate early to avoid frustration.

Do exceptions mean my package is lost?

Not necessarily. Most shipment exceptions are temporary and resolve within a few days. But if your tracking status hasn’t updated for more than a week, it’s worth contacting the carrier to escalate.

20 Delivery Exceptions and How to Address Them

“Expedited shipping meaning” refers to delivery faster than standard shipping, usually within one to three business days. The expedited shipping option is essential for online shoppers needing quick delivery, often provided by services like USPS’s Priority Mail Express with guaranteed delivery times. It’s used for urgent or time-sensitive deliveries. In this article, we’ll explain how expedited shipping works, its benefits, and how it compares to other shipping options.

Key Takeaways

• Expedited shipping ensures faster delivery, typically within 1-3 business days, enhancing customer satisfaction for urgent needs.
• Differentiated from standard shipping, expedited services come at a higher cost but offer advantages like reduced risk of damage and prioritization in handling.
• Ground shipping is a slower yet cost-effective alternative to expedited shipping, benefiting from distributed inventory across multiple fulfillment centers to reduce delivery times and lower shipping costs.
• Businesses can manage expedited shipping costs through strategies like inventory distribution, minimum spend thresholds, and partnerships with third-party logistics providers.
• Eco-friendly, hyperlocal expedited shipping options are more abundant than ever, and technology solutions such as drone delivery and “anticipatory shipping” will be here before you know it.

What is Expedited Shipping?

Expedited shipping is a method of delivery that guarantees faster transit than standard options. It includes any shipping option that exceeds the typical delivery timeframe offered by a retailer. What qualifies as expedited can differ between carriers, leading to variable expectations regarding arrival times based on which one is providing the service. Cahoot offers many expedited shipping options.

Expedited shipping commonly promises that items will arrive within one to three business days, with services ranging from overnight to two-day delivery for most shipments within the continental US. For online retailers, this swift processing time and delivery plays a pivotal role in boosting consumer satisfaction and lifetime value.

An increased desire exists nowadays for faster dispatch solutions. Customers opt for expedited delivery when they need their purchases quickly fulfilled—whether it’s crucial for their business operations or due to personal last-minute demands. Depending on merchant and customer locations, situation specifics such as the time of day and the day of the week the order is placed, carrier and service selected, the actual delivery timeframe may vary somewhat across different regions and conditions.

How Expedited Shipping Works

As soon as an order with expedited shipping is received, it gets flagged for immediate attention and takes precedence over regular orders in the warehouse processing queue. This prioritization is essential to adhere to stringent delivery timeframes.

The success of expedited delivery hinges on precise timing. To be eligible for this speedy service, orders have to be placed before designated cutoff times. Companies choose their carriers judiciously, focusing on those that guarantee the most rapid transport solutions and favor those that commit to later pickup times and same-day sortation.

Expedited shipments are then given special treatment by the carrier, including optimal transportation routes to facilitate fast arrival at their destinations. The process is augmented by continuous tracking updates which offer customers visibility into the progress of their shipment throughout its transit.

Expedited vs. Standard Shipping

Standard and expedited shipping vary greatly in terms of delivery speeds and associated costs. The expedited shipping option is essential for customers who need faster delivery compared to standard shipping. Expedited shipping typically promises a swift delivery within one to three business days, whereas standard shipping often requires approximately three to seven business days for packages to arrive. The quicker turnaround with expedited service is particularly appealing when orders are time-sensitive or when fast receipt of high-value items is essential.

Despite its advantages, the faster delivery that comes with expedited shipping incurs higher fees compared to the more cost-effective standard option, which usually represents the slowest yet most economical method for delivering goods. Opting for expedited services can mitigate transit damage risk due to reduced touchpoints along the journey.

For those customers who prioritize promptness in receiving their purchases, offering an option for expedited shipment markedly improves their contentment and experience with a company’s service. It’s important that businesses comprehend these distinctions as they tailor offerings geared toward meeting various customer preferences and hopes regarding order fulfillment timescales.

Types of Expedited Shipping Services

Different carriers offer different expedited shipping services to meet diverse customer needs. Here are the main types of expedited shipping services by USPS, UPS, and FedEx, focusing on their features and benefits.

USPS Priority Mail Express

USPS offers Priority Mail Express, their fastest domestic shipping service. This service guarantees next-day delivery by 10:30 am, ensuring prompt package receipt. Priority Mail Express starts at $27.20 for commercial pricing and $31.40 at the post office. The cost depends on the package’s weight, destination, and size, and can cost as much as $67.50 for a large flat rate box.

Priority Mail Express includes several additional features such as free package pickup, USPS Tracking, $100 insurance, and optional Sunday delivery for an additional fee. These features make it reliable and cost-effective for urgent deliveries.

UPS Expedited Shipping Options

UPS provides a range of expedited shipping options tailored to meet different urgency needs, including same-day, next-day, two-day and three-day delivery services. These shipping services include the cost of UPS-branded packaging at no additional charge, and they also include free pickup service and insure your package up to a declared value of $100.

With UPS’s expedited shipping options, you can send packages weighing as much as 150 lbs., which is more than twice the weight allowed by USPS, and is ideal for heavier shipments. The UPS 2nd Day Air option ensures that your shipment will arrive by the end of the second business day. If you require Saturday delivery, this service is available for an extra fee (expedited services only).

FedEx Express Saver and Same-Day Delivery

FedEx provides a range of expedited shipping options, among which are FedEx Express Saver and services for same-day delivery. Opting for FedEx Express Saver ensures cost-effective two-day shipping across the contiguous U.S., offering an efficient compromise between speed and affordability.

For those requiring immediate dispatch, same-day delivery is an available option. With FedEx 2Day shipping, there is the option of Saturday deliveries in certain locations at an extra charge, and there is also a service that guarantees parcels will reach businesses by 10:30 AM and residential addresses by noon.

FedEx One Rate is a flat rate program that offers next-day through 3rd day delivery services. Packaging is complementary and can be ordered for free residential delivery or picked up for free at a FedEx Office Retail location. Weight and dimensions are ignored; if it fits, it ships. Services include insurance up to $100 declared value; additional insurance is not available.

Hyperlocal Delivery

Expedited delivery is becoming faster, smarter, and greener, with tech-driven solutions making same-day and even sub-hour deliveries the new norm. Companies that adapt to automation, sustainability, and consumer convenience will dominate the future of ecommerce logistics.

Besides the national carriers, there are many hyperlocal fulfillment options available in many regions. Retail giants and startups are expanding same-day and 1-hour delivery services, especially in urban areas. Walmart is in its fourth year of expanding Walmart GoLocal, which will deliver your orders from a local pickup facility.

Additionally, the rise of dark stores and micro-fulfillment centers in residential areas is enabling faster, more localized, and eco-friendly deliveries. Examples are Walmart’s local fulfillment centers, Amazon’s Prime hubs, and Gopuff, among others.

Companies like Instacart, Uber Eats, and DoorDash are extending beyond food delivery into retail and pharmacy pickup and deliveries. More companies are relying on gig workers (e.g., Uber, Lyft, Roadie) for flexible, on-demand deliveries. Walmart Ship-from-Store can deliver within hours to 90% of the US population. Crowd-shipping models, where local commuters deliver packages, are also being explored.

Benefits of Offering Expedited Shipping

Offering expedited shipping can yield several advantages for companies. Most importantly, it demonstrates a dedication to meeting customer needs, which in turn fosters customer relationships and loyalty. Quick and punctual shipments are crucial elements that contribute to the enhancement of consumer satisfaction that drives customer lifetime value.

The implementation of an expedited shipping program has been shown to considerably diminish the rate of abandoned shopping carts. Research indicates that unsatisfactory delivery choices lead 45% of consumers to ditch their purchases midway through checkout. Introducing two-day shipping can lower cart abandonment by 18%!

When faced with time-sensitive situations such as needing last-minute presents or essential supplies, customers frequently choose expedited shipping services. This includes scenarios like eleventh-hour event preparations or obtaining vital medical items on short notice. By offering this swift dispatch alternative, enterprises meet critical demands effectively and thereby elevate their brand’s image.

How Much Does Expedited Shipping Cost?

Several factors influence the cost of expedited shipping, including travel distance, size and weight, and transit days (how quickly the shipment needs to be delivered). Longer transportation routes incur more fuel and labor costs, escalating the overall price. Expedited shipping rates often include extra fees for residential delivery or specialized handling.

Cargo size and weight affect shipping fees significantly. Larger and heavier shipments typically lead to higher costs as bulkier items occupy space that several smaller items could fit into. Premium pricing for expedited services varies by carrier, as well as whether a flat rate service was used, which businesses must consider when choosing the most cost-effective option.

Strategies to Manage Expedited Shipping Costs

It’s essential to control the costs associated with expedited shipping in order to preserve profit margins while still satisfying customer demands for quicker delivery. To achieve a balance between delivery speed expectations and managing expenses, consider strategically positioning your inventory, enforcing a minimum expenditure threshold for customers, and collaborating with a third-party logistics provider (3PL).

Distribute Inventory Strategically

Spreading inventory across multiple fulfillment centers shortens shipping distances and diminishes expenses. By placing inventory in closer proximity to customers, the result is cost-effective shipping owing to decreased travel. Employing this strategy reduces expenditures and improves the effectiveness of the overall shipping process.

Implement a Minimum Spend Requirement

A minimum spend requirement can also help manage expedited shipping costs. Setting a minimum order value allows businesses to offer free expedited shipping, encouraging larger purchases for cheaper, faster delivery. This strategy drives higher sales volumes while offsetting shipping costs.

Partner with a 3PL

Collaborating with a third-party logistics provider (3PL) enhances the efficiency of shipping and reduces expenses. 3PLs manage multiple aspects of ecommerce order fulfillment, enabling companies to concentrate on their primary merchandising and selling activities. Leveraging the services offered by 3PL providers improves the effectiveness of dispatching goods while preserving competitive rates in the market. Leveraging their volume to achieve economies of scale is a strong recommendation.

International Expedited Shipping

International shipments requiring expedited shipping come with their own unique challenges, such as navigating customs protocols and dealing with inconsistent delivery schedules. UPS enhances the effectiveness and cost-efficiency of global shipping through its Worldwide Express and Worldwide Expedited services. The latter is slower but also cheaper. FedEx’s International offerings typically guarantee international delivery within a one to three-day timeframe.

Renowned for its dependable international express shipping services, particularly across Europe and Asia, DHL Global offers a range of swift international transportation solutions. Nevertheless, the speed and overall costs associated with these shipments can be heavily influenced by customs processes which fluctuate based on both the type of product being shipped and its destination country’s regulations regarding duties.

When preparing packages for overseas transport that require expeditious handling, it is critical to use sturdy packaging materials designed to withstand lengthy journeys and multiple instances of loading, unloading, and sortation (processing). For businesses providing international expedited shipping options, factoring in these elements is essential to ensure deliveries are not only punctual but also arrive undamaged at their destinations.

Expedited Shipping and Customer Expectations

Expedited shipping has become a crucial aspect of customer expectations in the e-commerce industry. With the rise of online shopping, customers now expect fast and reliable shipping options that cater to their needs. Meeting these expectations is essential for businesses to stay competitive and build customer loyalty. Offering expedited shipping services not only enhances the shopping experience but also demonstrates a commitment to customer satisfaction.

Meeting Increased Customer Expectations

Customers increasingly expect expedited shipping options to be available, especially for time-sensitive or urgent orders. Businesses can meet these expectations by offering a range of expedited shipping services, including overnight delivery, 2-day shipping, and same-day delivery. By providing these options, businesses can significantly increase customer satisfaction and loyalty. When customers know they can rely on a company to deliver their purchases quickly, they are more likely to choose that company over competitors. This not only helps in retaining existing customers but also attracts new ones who prioritize fast delivery.

Enhancing Tracking Performance and Customer Service

Expedited shipping services often come with enhanced tracking performance, allowing customers to monitor the status of their orders in real-time. This feature can significantly improve customer service, as customers can stay informed about their orders and plan accordingly. Businesses can also use this feature to provide proactive updates and notifications, further enhancing the customer experience. By keeping customers informed at every step of the delivery process, businesses can build trust and reduce the anxiety associated with waiting for a package. Enhanced tracking performance is a key component of modern expedited shipping services, making it a valuable tool for improving overall customer satisfaction.

Expedited Shipping in Ecommerce

Expedited shipping plays a vital role in ecommerce, enabling businesses to provide fast and reliable shipping options to their customers. By offering expedited shipping services, businesses can drive revenue, improve customer satisfaction, and stay competitive in the market. In the fast-paced world of online shopping, the ability to deliver products quickly can be a significant differentiator. Customers are more likely to shop with businesses that offer expedited shipping options, knowing they can receive their orders promptly.

Driving Revenue and Improving Customer Satisfaction

Expedited shipping options can drive revenue by increasing customer satisfaction and loyalty. When customers receive their orders quickly and efficiently, they are more likely to return to the business and make repeat purchases. Additionally, expedited shipping options can also increase average order value, as customers are more likely to add items to their cart when they know they can receive them quickly. Offering expedited shipping can also reduce cart abandonment rates, as customers are less likely to abandon their purchases if they know they can receive their items in a timely manner. By providing a range of expedited shipping options, businesses can cater to different customer needs and preferences, ultimately driving growth and success in the competitive e-commerce landscape.

Is Expedited Shipping Worth It?

Determining the value of expedited shipping depends on several considerations. Without the option for faster delivery, businesses might experience a decrease in conversion rates because consumers could look elsewhere for quicker options (or an increase in conversion rates upon adding faster delivery). Expedited services are warranted when there’s an absolute necessity for a package to reach its destination promptly when there is an unusually short timing requirement.

Expedited delivery can also elevate a company’s perceived worth. Businesses should consider both the advantages and cost implications, along with the solutions for mitigating the additional expenses,, to assess whether providing expedited shipping is congruent with their objectives and what their clientele needs.

Making Expedited Shipping Sustainable

UPS and FedEx are committed to reducing their carbon footprint and making shipping operations more sustainable. This includes using alternative fuels, optimizing delivery routes, and investing in renewable electricity. 

UPS has invested in alternative fuels for more than 20 years. Its fleet includes all-electric, hybrid electric, hydraulic hybrid, ethanol, compressed natural gas, liquefied natural gas, and propane vehicles. And UPS has added winglets to many of its jets to reduce drag and improve takeoff performance. 

UPS is on a mission to achieve carbon-neutrality, having invested heavily in delivery route optimization, neighborhood drop-off locations to reduce door-to-door drop-off emissions, and efforts to deliver more packages in fewer stops. 

Similarly, FedEx has announced an ambitious goal to achieve carbon-neutral operations. It is designating more than $2 billion of initial investment in three key areas: vehicle electrification, sustainable energy, and carbon sequestration, through an initiative called Priority Earth.

FedEx aims to achieve its sustainability goals by reducing emissions and waste, replacing older technologies and vehicles, and revolutionizing facilities and packaging. To help advance world-class research, FedEx pledged $100 million in 2021 to help establish the Yale Center for Natural Carbon Capture, where researchers are finding new and scalable solutions to remove and store Earth’s excess carbon and invest in helping start-ups scale solutions through RMI’s climate tech accelerator, Third Derivative, and the TPG Rise Climate fund.

The Future of Expedited Shipping

In addition to companies like Rivian (partnered with Amazon), Ford (partnered with DHL), and UPS rolling out electric fleets to reduce emissions, the following solutions are maturing and growing at at exceptional speed:

1. Faster Delivery with AI-driven Logistics & Automated Warehouses

• Companies are using artificial intelligence to optimize delivery routes, predict demand, and improve inventory management by distributing inventory and shipping orders before they are even placed (Amazon has a patent for “anticipatory shipping”).
  
• Robotics and automation in fulfillment centers are speeding up order processing.

2. Drones & Autonomous Vehicles

• Companies like Amazon, Walmart, and Zipline are piloting drone deliveries for ultra-fast shipping (within 30 minutes).
  
• Self-driving vehicles and sidewalk robots (e.g., Starship Technologies) are emerging for unmanned last-mile delivery.

3. Hyper-Personalized Delivery

• Consumers will get more control over time slots, preferred carriers, and delivery methods.
  
• Expansion of Amazon Lockers, FedEx Drop Boxes, and 24/7 pickup locations for secure, contactless delivery.
  
• Apartment & office buildings integrating smart package rooms to handle high delivery volumes.

Summary

In summary, expedited shipping is a valuable service that meets the growing demand for faster delivery times. By understanding the different types of expedited shipping services, including the more eco-friendly hyperlocal options, businesses can better cater to their customers’ needs and expectations. Strategies to manage costs effectively ensure that businesses can offer expedited shipping without sacrificing profit margins. By carefully weighing the benefits and costs, businesses can make informed decisions that enhance customer satisfaction and drive growth.

Frequently Asked Questions

What is expedited shipping?

Expedited shipping guarantees faster delivery than standard options, usually within one to three business days. This method is ideal for those who need items quickly.

How does expedited shipping work?

Expedited shipping prioritizes your order for faster processing and delivery, often including real-time tracking to keep you informed throughout the process. This service ensures that your items arrive more quickly than standard shipping options.

What are the benefits of offering expedited shipping?

By providing expedited shipping, businesses can improve customer satisfaction, reduce shopping cart abandonment, and gain an advantage over the competition.

How much does expedited shipping cost?

Expedited shipping costs can vary significantly depending on factors such as distance, size, weight, and carrier, so it’s best to check with specific shipping providers for accurate pricing.

Is expedited shipping worth it?

If meeting deadlines is essential and timely delivery is of the utmost importance, opting for expedited shipping can greatly improve customer satisfaction and add considerable revenue to a business.

Shipping costs are one of the largest cost centers for any e-commerce business and are second only to labor costs. With last-mile expenses increasing yearly, finding ways to reduce these costs is more important than ever. Leveraging technology to optimize shipping costs by right-sizing packaging can reduce shipping expenses significantly while improving operational efficiency and positively impacting the environment.

What is Cartonization Software and Parcel Packing Intelligence

One of the most effective ways to reduce shipping costs is to right-size the packaging. The reason is that shipping rates are based on weight. Still, shippers are charged the higher of the actual shipment weight (product in a box) OR the dimensional weight (the package volume in cubic inches turned into a weight value for rating purposes). 

Efficient Shippers have reported saving over six figures just by right-sizing their packaging. Additional savings come from lower packaging costs from using less packaging. Further savings are achieved by reducing or eliminating dunnage required to fill the void in the larger box so items ship safely, less tape is used, etc. 

The average return rate for ecommerce orders is in the 15 to 30% range (much higher for apparel); right-sizing the packaging would also reduce the cost of return shipping when the original packaging can be re-used for reverse logistics.

Cartonization software (or smart cartonization features built into Order Management Systems or Multi-Carrier Shipping and Fulfillment Software such as Cahoot) can help automate selecting the best packaging for each order, even for complex shipments containing multiple product and quantity configurations. For example, Cahoot software evaluates the dimensions of the items being shipped and auto-selects the smallest box the products can safely ship in from a list of available options in stock. By using cartonization capabilities prebuilt into software like Cahoot, ecommerce merchants can ensure they are shipping orders in the most cost-effective packaging rather than relying on warehouse staff members to guess the correct size. No human means no judgment is needed, and human errors are eliminated.

A crucial part of parcel packing intelligence, i.e., right-sizing shipments is to stock a wide variety of box, non-corrugate packaging and mailer sizes. Many shippers only stock a limited range of packaging sizes, which forces them to use larger boxes when smaller ones would suffice. Expanding the available box sizes can reduce the risk of paying to ship a lot of air. Some shipping and fulfillment solutions even support the tracking and management of packaging inventory, including cost, reorder points, etc.

It’s worth noting that cartonization and packing tools are useless without accurate dimensional data. Easy AI-based tools such as the Qboid M2 Perceptor Mobile Dimensioning handheld device have recently become available, making capturing these details a breeze.

Increase Sales and Profits through Cartonization Software

For Sellers that can pass shipping costs to their customers, right-sizing packaging increases profits and conversions through more competitive ‘all-in’ product pricing, leading to higher revenues.

Reduce Waste using Smart Cartonization

While used cardboard boxes can be recycled, much of it still ends up in a landfill with a negative environmental impact and a higher carbon footprint. So, right-sizing shipping supplies also helps the planet.

The best way to minimize cost and environmental impact is not to use overpacks at all – ship the items in their original manufacturer packaging. Amazon’s SIPP program (Ships in Product Packaging) was opened to Amazon FBA Sellers in early 2024 to reduce costs and improve sustainability. It’s generally been regarded as successful. 

It’s recommended to collaborate with suppliers to design product packaging to optimize for shipping costs, staying away from the surcharges carriers impose on “oversize” shipments.

Dimensional Weight

As mentioned above, DIM weight considers the package’s volume, meaning large boxes, even when filled with light products, can incur substantial shipping charges.

The DIM weight is calculated by multiplying the package’s length, width, and height, then dividing by a DIM factor set by the carrier. FedEx and UPS typically use a DIM factor 139 for domestic US shipments, while the USPS uses 166. The higher the DIM factor, the more “air” you can include in a package before triggering the DIM weight pricing.

For example, if you use a 12″x12″x12″ carton, it will be billed as a 13-pound package by UPS and FedEx based on its volume, even if the actual contents weigh much less (a box of cotton candy, as an extreme example). Over time, these minor discrepancies can add up to thousands of dollars in extra shipping fees. Switching to smaller cartons that more appropriately fit your products can help reduce these DIM weight charges. It also minimizes the need for excess void fill, such as bubble wrap or packing peanuts, which adds cost and waste to each shipment.

An example:

Shipping this 2.25 lb product 8 zones in a slightly larger box than the product (8 x 5 x 5) will cost $9.52 using USPS Ground Advantage. Shipping this 2.25 lb product 8 zones in an adequately fitted box (8 x 5 x 3) will only cost $8.35 using USPS Ground Advantage. This is only 2 inches longer on one side but represents 40% air (200 cubic inches vs. 120 cubic inches). That’s over 12% savings on just one shipment and not that egregious of an example. And not including all the waste saved as described above. 

Summary

Reducing operations expenses must be a forethought to achieve continued business success. By utilizing technology like cartonization software to optimize shipment packaging, not only are shipping cost savings guaranteed, but the cost of the supplies goes down, operational efficiency goes up, and more sustainable business practices not only result in lower carbon emissions and less waste but it can also enhance brand reputation.

Gone are the days when you could actually make money on shipping. Merchants are all too willing to move to a free shipping model without being aware of the entire cost of shipping a package. If you’re offering free shipping, it’s probably costing you 30 percent MORE than you think. If you talk to many companies that offer free shipping and ask, “How can you afford this?” Their answer: “I work the cost of shipping into the product.”

There are many other costs involved in shipping a product in addition to postage. Are you monitoring your delivery area surcharge (DAS) or extended delivery area surcharge (EDAS)? Most carriers have these charges.

A good exercise for companies doing ecommerce order fulfillment is to look at your average monthly packaging, warehouse labor and credit card fees, then divide that total by the number of packages you shipped

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