Economy Shipping vs Standard Shipping: Understanding What it is and Options You Should Offer
By Abhishek Sebin on
Shipping is an essential part of any e-commerce business. With customers increasingly aware of shipping costs and delivery speeds, it’s essential to choose the right mix of services to suit their needs. What is economy shipping, and how does it differ from standard shipping? Knowing the difference could save you money while keeping customers happy.
Economy shipping is often the choice for budget-conscious customers who prioritize cost over speed, while standard shipping strikes a balance between affordability and delivery time. As a business, understanding what is economy shipping and the alternatives can help you create a flexible shipping strategy that caters to various customer needs.
In this blog, we’ll break down the differences, benefits, and considerations of economy and standard shipping to help you make the best choices for your business.
An Overview of Economy Shipping and Standard Shipping
What is Economy Shipping?
Economy shipping is a low-cost delivery option designed for items that don’t require fast delivery. It’s a go-to choice for businesses that want to offer affordable shipping rates, especially for non-urgent orders. It is a budget-friendly option offered by major carriers like USPS, UPS, FedEx, and DHL.
The primary purpose of economy shipping is to reduce shipping costs for businesses and consumers who can afford to wait longer for their deliveries. This service utilizes slower transportation methods, such as ground or water transport, to keep prices low while offering basic tracking facilities.
Benefits of Economic Shipping
- Cost-Effectiveness
One of the advantages of economy shipping is its affordability. For businesses looking to cut down on shipping expenses, economy shipping can be a game-changer. Rates for economy shipping are often lower than those for standard or expedited shipping, making it an attractive option for less urgent items.
For example, USPS First Class offers delivery within five business days, starting at around $4.50 for lightweight packages, compared to much higher rates for expedited options.
- Ideal for Non-Urgent Items
Economy shipping is beneficial for bulk shipments or items that do not require immediate delivery. Businesses that frequently ship large orders or bulky items can save more by using economy shipping.
This method allows companies to consolidate shipments and take advantage of lower rates during peak shipping seasons.
- Flexibility in Shipping Options
Economy shipping gives customers the flexibility to choose a more affordable delivery method. This can enhance customer satisfaction by providing them with choices that fit their budget and delivery timelines.
For instance, if a customer is purchasing furniture or large appliances, they may prefer the lower cost of economy shipping over the faster but pricier options.
Economy shipping is an excellent choice for reducing costs on non-urgent orders.
How long does economic shipping take?
Economy shipping times vary based on the carrier, distance, and location. Generally, delivery takes between 5 and 8 business days for domestic routes. International shipping can take 2 to 4 weeks, depending on customs and destination.
If your customers don’t need items immediately, economy shipping can be an economical solution.
Standard Shipping
Standard shipping, often referred to as ground shipping, is the default shipping method offered by many carriers. Standard shipping is a widely used option for sending packages, balancing cost and delivery speed. It is designed to provide a reliable, cost-effective way to send packages without the urgency of expedited services.
Key Features:
- Cost-Effectiveness: Standard shipping is generally less expensive than express or expedited shipping, making it accessible for both businesses and consumers.
- Versatile Transportation Methods: This service can utilize various modes of transport, including ground and air, depending on the destination and carrier.
- Tracking Options: Most standard shipping services offer tracking capabilities, allowing customers to monitor their shipments in real-time.
Delivery Timeframes
Delivery timeframes for standard shipping vary based on whether the shipment is domestic or international.
- Domestic Services: Standard shipping within the country typically ranges from 3 to 7 business days.
For example, a package sent from Chicago to Los Angeles might arrive in about five business days.
- International Services: For international shipments, standard shipping can take significantly longer—typically between 7 and 30 days. The exact timeframe depends on factors such as the destination country and customs processing times.
For instance, a package sent from the U.S. to Canada may arrive within a week under ideal conditions but could take longer if customs delays occur.
Economy vs. Standard Shipping Comparison
When it comes to shipping options, businesses and consumers often face the choice between economy shipping and standard shipping. Understanding the differences between these two can help you make informed decisions based on cost, delivery speed, and other important factors.
Choosing between economy and standard shipping depends on your specific needs. If cost is your primary concern and time is flexible, economy shipping is an excellent option. However, if you require faster delivery and better tracking capabilities, standard shipping is the way to go.
What are the different economy shipping options available for e-commerce?
Types of Economy Shipping
Domestic Economy Shipping Options
When it comes to domestic economy shipping, three major carriers dominate the market: USPS, FedEx, and UPS. Each offers distinct services tailored to different shipping needs.
USPS (United States Postal Service)
- USPS provides several economy options, such as Priority Mail, Priority Mail Express, and Retail Ground. It is known for its extensive reach, delivering to every address in the U.S., including PO boxes.
- Priority Mail typically delivers within 1-3 business days, while Retail Ground takes 2-8 days, depending on distance.
- Priority Mail pricing starts at $8.70.
FedEx
- FedEx offers FedEx Ground and FedEx Ground Economy. The latter is particularly cost-effective for lightweight packages and utilizes USPS for final delivery.
- FedEx Ground generally delivers within 1-5 business days, while FedEx Ground Economy may take 2-7 days.
- FedEx Ground pricing starts at $8.25, while FedEx Ground Economy pricing starts at $7.50.
UPS (United Parcel Service)
- UPS provides services like UPS Ground and UPS SurePost, which partners with USPS for last-mile delivery.
- UPS Ground typically delivers in 1–5 business days, depending on the distance from the origin to the destination. UPS SurePost takes 2–7 business days.
- UPS Ground pricing starts at $10.25, while UPS SurePost starts at $9.00.
Advantages and Disadvantages
Choosing the right carrier depends on package weight, destination, and customer expectations. Now, let’s look at international economy shipping options.
International Economy Shipping Options
Economy shipping is a popular choice for those looking to save on costs while still ensuring their packages reach international destinations. Several major carriers provide international economy shipping options catering to different shipping needs:
FedEx Worldwide Economy
- This service offers a cost-effective solution for sending packages internationally, with delivery times typically ranging from 2 to 5 business days. It includes tracking and customs clearance support.
UPS Worldwide Economy
- Similar to FedEx, UPS provides a reliable economy shipping option with delivery times of about 2 to 5 business days. This service also features door-to-door delivery and tracking capabilities.
DHL Economy Select
- DHL's economy option is designed for affordable international shipping, with transit times generally between 4 and 6 business days. It includes end-to-end tracking and customs assistance.
USPS Priority Mail International
- While not strictly an economy service, USPS offers competitive rates for international shipping. The delivery times range between 6 and 10 business days, making it a viable option for budget-conscious shippers.
Advantages and Disadvantages
Key Points to Consider for International Economy Shipping
When selecting an international economy shipping option, consider the following factors:
- Cost vs. Speed: Evaluate whether the lower cost of economy shipping aligns with your delivery time requirements. If your shipments are not time-sensitive, economy options can be very cost-effective.
- Tracking and Reliability: Economy services often provide basic tracking capabilities. If tracking is crucial for your customers, ensure the service you choose offers sufficient tracking features.
- Package Size and Weight: Different carriers have varying pricing structures based on weight and dimensions. Consider how these factors will affect your overall shipping costs.
- Destination Specifics: Some countries may have specific regulations or delays that could impact delivery times. Researching these can help you set realistic expectations for your customers.
- Customer Expectations: Understand your customer base. If they prioritize low costs over fast delivery, then economy shipping may be the best fit. However, if they expect quick turnaround times, consider offering both economy and standard options.
Carefully consider these factors when shipping internationally, as they impact cost, time, and customer satisfaction.
How to Choose Between Economy and Standard Shipping
Choosing between Economy Shipping and Standard Shipping can significantly impact your business operations, customer satisfaction, and overall shipping costs.
Impact of product size and weight on shipping choice
The size and weight of your products play a crucial role in determining the most cost-effective shipping option.
- For Smaller, Lighter Packages: Economy shipping is often a suitable choice. For instance, shipping a small item like a book or clothing may only cost a few dollars through economy services, making it an attractive option for businesses looking to minimize costs.
- For Larger or Heavier Items: Standard shipping may be more appropriate. If you are sending larger items, such as furniture or bulk supplies, standard shipping can provide better handling and faster delivery times.
For example, a 3-pound package shipped via UPS Ground Saver might cost $6.80 with a 3-day delivery time compared to $7.06 for standard UPS Ground service with a 2-day delivery time.
Customer expectations and service levels
Customer expectations can greatly influence your shipping choice.
- Delivery Speed: If your customers expect quick delivery, standard shipping is often the better choice. For instance, during peak shopping seasons like holidays, customers may prefer faster options even at an increased cost to ensure timely receipt of their purchases.
- Tracking and Reliability: Standard shipping typically offers enhanced tracking capabilities and guarantees on delivery dates that economy shipping might lack. This aspect can be crucial for businesses that need to assure customers about the status of their shipments.
- Customer Segments: Different customer segments may have varying expectations.
Budget constraints and volume of shipments
Your budget and the volume of shipments are critical factors in deciding between economy and standard shipping:
- Cost Considerations: Economy shipping is generally cheaper—often half the price of standard shipping. It can be significant for businesses with tight margins or those looking to offer free shipping options without incurring substantial costs.
- Volume Discounts: If your business ships in large volumes, consider negotiating rates with carriers. Many carriers offer discounts for bulk shipments, making either option more affordable depending on your needs.
- Long-Term Strategy: Evaluate how each option fits into your long-term business strategy. If you anticipate growth in shipment volume, investing in relationships with carriers that offer competitive rates for both economy and standard services may yield better financial outcomes.
By considering these factors, you can better decide when to offer economy or standard shipping.
Benefits of Offering Economy and Standard Shipping
When it comes to shipping options, businesses must consider how to meet the diverse needs of their customers. Offering both economy and standard shipping can provide significant advantages. Here’s a closer look at the key benefits of these shipping options.
Attracting a wider customer base with diverse shipping options
By providing both economy and standard shipping, businesses can attract a broader range of customers. Economy shipping is typically less expensive, making it appealing to budget-conscious shoppers who may not require fast delivery.
For instance, a customer looking to send a birthday gift may opt for economy shipping to save on costs, especially if the gift is not time-sensitive. On the other hand, standard shipping appeals to those who need their items sooner but still want an affordable option. This dual offering can help businesses cater to various customer preferences and increase overall sales.
Balancing cost savings with customer satisfaction
Economy shipping allows businesses to offer lower rates, which can lead to higher customer satisfaction. 47% of consumers abandon their shopping carts due to additional costs, including high shipping costs. Thus, providing an economical option can reduce cart abandonment rates.
For example, if a business offers economy shipping at a starting rate of $7.70 compared to standard shipping at $9.25, customers are more likely to complete their purchases when they see the lower price.
Enhancing the flexibility of shipping strategies
Offering both economy and standard shipping enhances a business's flexibility in its shipping strategy. Companies can tailor their offerings based on seasonal demand or specific promotions.
For example, during holiday seasons or sales events, companies might emphasize economy shipping for bulk orders while still promoting standard shipping for urgent needs.
Additionally, this flexibility allows businesses to adjust their logistics based on customer feedback and market trends. If data shows that customers prefer faster delivery times, businesses can increase the availability of standard shipping options without completely eliminating economic choices. This adaptability can lead to improved operational efficiency and customer loyalty.
With both options, your business can balance cost-effectiveness and customer satisfaction.
Conclusion
Choosing between economy and standard shipping is about balancing cost and speed. Understanding what economy shipping is and the value of standard shipping helps you craft an approach that suits your business and customer expectations. We recommend offering both economy and standard options to keep customers satisfied, regardless of their budget or delivery urgency.
By understanding these options, you’ll be well-equipped to make smart shipping choices that support growth and customer loyalty.
Postship can help save costs on order tracking and return shipments. Get a comprehensive view of your shipping performance, driving better business decisions with Postship’s real-time shipping analytics!
Schedule a demo with us!
