Nothing kills a potential sale quite like unexpected shipping costs. If a customer makes it to the checkout page of your online business only to see shockingly high shipping options, you may end up losing the sale. This stands to reason in a marketplace dominated by sellers like Amazon, whose Prime standard shipping services include free two-day delivery.
Your business may not be able to match those deals, but you can still strive to keep your customers happy by providing affordable shipping. The best way to do this usually involves an economy delivery service offering slower yet cost-effective deliveries.
Here’s an overview of cost-effective shipping that can help when you’re establishing your own shipping system.
What is economy shipping?
Many businesses and carriers offer customers the option of economy shipping, which prioritizes affordability over speed. In most cases, economy shipping takes longer than expedited shipping, but provides reliable delivery for non-urgent orders. This makes economy services appealing to thrifty customers who want to save money.
Economy shipping vs. standard shipping
Economy shipping and standard shipping are two common shipping methods carriers like the United States Postal Service, UPS, and FedEx offer. Although you can use both standard and economy shipping to send packages, each shipping method comes with different delivery timelines, costs, and tracking options. Here’s what you can expect from each option:
Economy shipping
Economy shipping is a cost-effective way to send packages both domestically and internationally. The trade-off for lower costs is longer delivery times. Although most major couriers will guarantee a maximum delivery time for items sent via expedited or standard shipping, this rarely applies to economy service. Economy shipping tracking isn’t always available, depending on the carrier you select. If door-to-door tracking is a must, consider standard or expedited shipping services.
When it comes to international economy shipping, delivery times can be longer because packages may have to clear customs. For that reason, it often makes sense to avoid the economy option for time-sensitive packages when shipping internationally. Not every shipping courier has an economy tier for international deliveries, but options do exist, such as FedEx International Economy.
Standard shipping
Standard shipping costs more than economy shipping, but it’s still cheaper than higher tiers like express shipping. Most carriers offer tracking services for standard shipments, which lets you monitor each package in transit. Nearly every international shipper has its own tracking system, which can complicate tracking for international shipments that are transferred between carriers.
As a general rule, standard shipping gives you faster delivery times than economy shipping, but you can expect to pay more. Both can be a cost-effective shipping solution compared to premium services from FedEx, UPS, and DHL.
Top economy shipping services
As an ecommerce seller, you have many economic shipping solutions to choose from to help you avoid squeezing your profit margins. Here’s a breakdown of some of the leading services offering an economy shipping option:
United States Postal Service (USPS)
For domestic package delivery service, the economy option is ground shipping. Note, the post office steers customers toward its flagship product, USPS Priority Mail, so you may need to inquire about economy options. Since its rates are updated periodically, you’ll also want to check the most up-to-date price list before making a final decision.
- Delivery time: Two to eight business days.
- Cost: Starts at $4.09, based on weight and distance.
- Tracking:USPS tracking services are included and feature tracking updates.
- Size/weight restrictions: Maximum 70 pounds; length and width must be less than 130 inches. Anything larger is billed at higher rates.
When mailing packages internationally, use USPS’s First-Class Package International service. USPS may partner with other national postal services for final delivery.
- Delivery time: Varies by destination; the average delivery period is one to four weeks.
- Cost: Starts at $14.85 for small packages up to four pounds.
- Tracking:USPS tracking services are included, and feature tracking updates.
- Size/weight restrictions: Maximum four pounds; length and width must be less than 36 inches. Anything larger is billed at higher rates.
FedEx
Many people associate FedEx with expedited shipping, but there is also a FedEx economy shipping tier for both domestic and international. With FedEx, economy services refer to FedEx Ground.
- Delivery time: Two to seven business days.
- Cost: Rates vary based on weight, size, and distance; typically cheaper than FedEx Ground.
- Tracking: Full FedEx tracking included.
- Size/weight restrictions: Maximum 70 pounds; length 130 inches. Higher rates apply to larger packages.
FedEx International Economy rates vary based on the recipient’s country. For example, packages shipped to Canada and Mexico have a lower starting cost than those shipped to Europe, Africa, or Asia.
- Delivery time: Two to five business days for Canada, Mexico, and the Caribbean; four to seven business days for other destinations.
- Cost: Rates vary based on package weight, size, and distance.
- Tracking: Full FedEx tracking included.
- Size/weight restrictions: Max 150 pounds per package; maximum length 108 inches. Higher rates apply to larger packages.
UPS
UPS economy shipping is called UPS Ground, and it’s a cost-effective shipping service for heavy, bulky domestic packages that are too big for USPS or FedEx.
- Delivery time: Five to eight days.
- Cost: Rates vary based on package weight, size, and distance.
- Tracking: Full UPS tracking included.
- Size/weight restrictions: Maximum 150 pounds; maximum length and width 165 inches. Oversize rates may apply to larger parcels.
For international shipping, UPS’s economy option is called UPS Worldwide Saver. In North America, this potentially involves point-to-point ground shipping. Here are the parameters:
- Delivery time: Five to 12 business days.
- Cost: Rates vary based on package weight, size, and distance.
- Tracking: Full UPS tracking included.
- Size/weight restrictions: Maximum 150 pounds; maximum length 108 inches. Oversize rates may apply to larger parcels.
DHL
DHL specializes in international shipping. DHL subcontracts its domestic shipping operations to other companies and courier services. For international commerce, many businesses turn to DHL economy shipping, which is called DHL Economy Select. Here are the parameters:
- Delivery time: Ranges from one to 20 days depending on the package’s origin and destination.
- Cost: Rates vary based on package weight, size, and distance.
- Tracking: Comprehensive DHL tracking available.
- Size/weight restrictions: Maximum 150 pounds; maximum dimensions vary by region. Higher rates may apply to larger and heavier packages.
5 things to consider when choosing a shipping service
- What are your customers’ delivery expectations?
- Can you maintain acceptable profit margins?
- Is the difference between economy and standard shipping worth it?
- How much volume will you ship?
- How much of your business is international?
Economy shipping for ecommerce businesses requires careful consideration of factors like shipping cost, customer expectations, and operational goals. Here are five things to consider as you decide whether to offer economy shipping:
1. What are your customers’ delivery expectations?
Economy shipping often involves a longer delivery lead time compared to expedited options. Evaluate whether your target audience prioritizes speed or is willing to wait for cost savings. For non-urgent items like home décor, customers may accept a delivery lead time of five to 10 days. However, for time-sensitive products like gifts or perishables, economy shipping might not meet customer expectations.
2. Can you maintain acceptable profit margins?
Economy shipping can help businesses save on operating costs, especially for bulk shipping orders. If it makes sense for your bottom line, you can leverage economy shipping rates to offer customers perks like flat-rate shipping. You can also offer free shipping for orders exceeding a certain dollar amount. This can encourage higher cart values.
3. Is the difference between economy and standard shipping worth it?
Economy shipping prioritizes affordability over speed, while expedited shipping focuses on faster delivery for a higher price. Many businesses choose to give their customers the choice between these methods. For example, you might offer economy shipping for standard delivery but also present a two-day expedited shipping option for a higher price at checkout.
4. How much volume will you ship?
Economy shipping is particularly effective for businesses shipping in bulk, such as subscription box services or wholesalers. Locking in bulk shipping rates with carriers like FedEx or UPS can reduce costs even further. Inquire with individual carriers about discounts for bulk volume shipping.
5. How much of your business is international?
The best economy shipping carriers for domestic delivery may not be your best choice for international orders. Even if you’re satisfied with your domestic shipper, it can’t hurt to compare international shipping rates and see if you should use a different service for sending packages abroad.
If your business is primarily domestic, you may feel better off sticking with a service you already know well. Your business could also evolve, and you may start shipping to new countries where economy delivery is less reliable. This may lead you back to offering standard shipping options.
Economy shipping FAQ
How long does it take for economy shipping?
Each carrier has its own estimated delivery times. These vary based on distance and the size and weight of the packages, but they typically range from five days to a week.
Is economy shipping faster than standard shipping?
Traditionally, economy shipping is slower than standard shipping, but it costs less.
Is economy shipping worth it?
Economy shipping can be worth it if you give your customers realistic delivery lead times and you apply your cost savings toward customer-friendly initiatives to help your business grow. For instance, you may choose to offer free shipping on all orders. If so, you undoubtedly will benefit from the savings economy shipping provides.
