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Why Expedited Deliveries Increase the Price of Your Product: An In-Depth Look

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A graph showing production costs increasing as delivery times reduce

So you want it fast …. but you ain’t prepared to pay …. or should ya ?

In today’s fast-paced world, customers often desire rapid delivery times for their purchases. However, many are perplexed when they see the price of a product increase significantly for expedited delivery services. This article aims to demystify the reasons behind this cost hike, offering a comprehensive understanding of the various factors involved.  Its rarely because a supplier saw you coming, despite how you might feel.

Understanding Expedited Delivery

Expedited delivery refers to a shipping service that prioritizes speed, aiming to deliver products faster than the standard delivery time. While standard delivery may take several days or even weeks, expedited services can reduce this time to 24 hours or less. This swift service, while highly convenient, comes at a premium cost. Here’s why:

1. Increased Operational Costs

a. Additional Labour

To meet the demands of expedited shipping, businesses often need to employ additional staff or pay overtime to existing employees. This includes more frequent shifts for warehouse workers, pickers, packers, and logistics coordinators who ensure the products are ready for dispatch quickly.

b. Specialised Handling