Thanks to planes, trains, and sophisticated distribution networks, overnight shipping today is one of the marvels of the modern business world. Nowadays, your e-commerce business in San Diego, CA can send out a package mid-day and rest easy knowing it will reach an eager customer in Brooklyn, NY by morning.
But such conveniences (as always) come at a cost, and your business can expect to pay a pretty penny to get your shipment delivered on a dime. But how much is overnight shipping exactly? Let’s compare carrier rates, the factors that impact them, and take a look at how to provide overnight shipping for your customers.
What Is the Cost To Overnight Ship?
In most cases, overnight shipping will run you between $27 to $200 for a private carrier. It should be noted that these are estimates but generally, most packages will fall within this range but not all.
However, the cost of overnight shipping always comes down to the company providing expedited delivery services. Each carrier has its own formula for calculating next-day delivery costs, with its own set of factors to account for when determining your final price point. Some carriers also use shipping zones to determine overnight delivery and shipping cost.
That said, we can get a ballpark sense of what carriers charge for next-day deliveries based on the precedents they’ve already set. In the US, this means taking a closer look at our three major carriers: UPS, FedEx, and the United States Postal Service (USPS).
UPS
UPS offers three tiers of next-day delivery shipping services:1
- UPS Next Day Early Air – Guarantees delivery by approximately 8 am for most locations within the US. Costs are determined by the following shipment weights:
- $150 for packages 5 pounds or less
- $180 for packages 10 pounds or less
- $215 for packages heavier than 10 pounds
- UPS Next Day Air – Guarantees delivery by 10:30 am for most locations within the US. The costs are:
- $115 for packages 5 pounds or less
- $150 for packages 10 pounds or less
- $160+ for packages heavier than 10 pounds
- UPS Next Day Air Saver – Guarantees delivery by 4:30 pm to commercial addresses and by end-of-day for residential addresses. You can expect to pay:
- $105 for packages 5 pounds or less
- $145 for packages 10 pounds or less
- $150+ for packages heavier than 10 pounds
FedEx
As one of UPS’s competitors, FedEx also offers three tiers of next-day delivery options. FedEx overnight shipping catalog includes:2
- FedEx First Overnight – Guarantees early morning delivery by approximately 9:30 am for most locations within the U.S. By weight, this costs:
- $150 for packages 5 pounds or less
- $175 for packages 10 pounds or less
- $200+ for packages heavier than 10 pounds
- FedEx Priority Overnight – Guarantees mid-morning delivery around 10:30 am for commercial locations within the US and 4:30 pm for residential locations. Priority overnight price list includes:
- $115 for packages 5 pounds or less
- $140 for packages 10 pounds or less
- $170+ for packages heavier than 10 pounds
- FedEx Standard Overnight – Guarantees afternoon delivery by approximately 4:30 pm for commercial locations and 8 pm for residential locations. For standard overnight, You’ll pay:
- $90 for packages 5 pounds or less
- $120 for packages 10 pounds or less
- $140+ for packages heavier than 10 pounds
USPS
USPS offers a single overnight domestic package delivery service. Because USPS is a governmental entity, it can offer businesses a much lower overnight shipping rate than private carriers. Here’s what you can expect to pay for USPS overnight shipping:
- Priority Mail Express – Guarantees delivery by the next business day around 10:30 am. Businesses will pay:3
- $27.00 for packages .5 pounds or less
- $29.00 for packages 5 pounds or less
- $43 for packages 10 pounds or less
- $45+ for packages heavier than 10 pounds
Bear in mind that USPS priority mail express’s estimated rates will double if you opt for expedited shipping to international addresses.
Factors That Impact The Cost of Overnight Shipping
The shipping options and costs listed above are just the average amounts an e-commerce business can expect to pay on next-day shipments. Typically, average rates are subject to change when the following factors come into play:
- Package dimensions – Dimensional weight, which refers to a package’s volume in cubic inches per pound, is the primary pricing factor for overnight deliveries. It’s calculated by multiplying the length, width, and height of the package and then dividing that figure by the carrier’s DIM divisor. If your package dimensions run steep, you can expect to pay higher overnight shipping costs.
- Package weight – The heavier a package, the more it will cost a company to transport. If a package weighs more than its DIM weight, your carrier will factor it into your overnight shipping rate.
- Shipping zones – Shipping zones measure the distance between a parcel’s point of origin and its point of destination. In the US, shipping zones can range from 1 to 8. The higher the shipping zone, the more it will cost. If you’re not sure how to determine your shipping zone, most carrier websites have a shipping tool where you can find yours. This is especially helpful for determining the USPS shipping zone since it differs from other carriers.
- Existing shipping contracts – If your e-commerce business regularly ships with a carrier, you may be able to establish a contract that provides discount overnight rates for high shipping volumes. Working with a shipping partner can also help to streamline costs and save both you (and your customer) shipping expenses in the long run.
Get The Best Overnight Shipping Prices
For most e-commerce businesses, providing overnight shipping is essential for keeping their edge and staying competitive within the marketplace.
If you’re operating independently, negotiating overnight shipping contracts with carriers can be a hassle. But if you know what costs to expect ahead of time—and work with a shipping service like Shipware that can help you locate the best prices—you can ace your fulfillment model and cement a cross-country network of happy customers.
Sources:
- UPS. Calculate Time and Cost. https://wwwapps.ups.com/ctc/request?loc=en_US
- FedEx. FedEx Overnight Shipping. https://www.fedex.com/en-us/shipping/overnight.html
- USPS. Priority Mail Express. https://www.usps.com/ship/priority-mail-express.htm