eCommerce has exploded in popularity in recent years. Some estimates claim that by the end of 2023, one in every five retail sales will be made online.
Though consumers first turned to eCommerce out of necessity during the pandemic, the convenience and ease of online shopping have made this the preferred way for many.
Today, eCommerce businesses face a new problem. Instead of trying to draw customers away from retail stores, eCommerce merchants must find ways to stand out among other online competitors.
Merchants that provide seamless, speedy delivery experiences can retain more customers and gain market share.
More than 70% of customers say they are unlikely to return after a bad delivery experience. With that many customers willing to switch brands after a delayed delivery or lost package, offering a five-star delivery experience can set you ahead of the competition.
If you’re seeking to improve the efficiency of your delivery service, consider these steps to achieve eCommerce delivery optimization and improve customer loyalty.
Streamlining the Order Fulfillment Process
The order fulfillment process is a crucial first step in improving eCommerce delivery.
Order fulfillment starts when the customer purchases their product and ends when it’s successfully delivered to their address. It includes receiving, packing, and shipping the order.
The faster and more efficient your order fulfillment process, the sooner a customer receives their product. And, if the dozens of memes and gifs about waiting by the mailbox are any indication, the sooner, the better. Customers are often impatient to get their orders as soon as possible.
Fast, accurate delivery is the final piece to delivering a great customer experience. An efficient order fulfillment process is good for your business, too.
A streamlined order delivery system ensures that your eCommerce business doesn’t waste time or money correcting errors. Implementing strategies to improve delivery efficiency helps your team improve accuracy and prevent costly mistakes from weighing down your bottom line.
On-time deliveries are good for your customers, dispatchers, and logistics partners, as well as for your business outcomes. Getting this piece of your operations right can have a big impact on the long-term success of your online store.
Utilizing Technology to Improve Delivery Efficiency
If more efficient delivery is the goal, how do you achieve it?
Fortunately, technology makes it easy to automate elements of the order fulfillment process, freeing up your warehouse management team to take on more high-value tasks. With the right tools, you can eliminate inefficiencies in your delivery system virtually overnight.
Today’s technology can help improve delivery accuracy, reduce manual errors, and increase delivery efficiency. There are many different solutions that you might add to your order fulfillment process, including:
- Automated Order Management: These tools automatically process orders, organize them by order priority, send confirmations and invoices, and update inventory levels, thereby reducing manual errors in the order processing phase.
- Barcode Scanning and RFID Technology: This tech can track inventory, automate order processing, and improve delivery accuracy.
- Real-Time Delivery Tracking: Offer customers real-time, automatic updates about their product status so they can track their delivery schedule. Some allow customers to sign up for notifications with an ETA every step of the way.
- Route Optimization: This software creates the most efficient, optimized routes for delivery drivers by considering traffic, weather conditions, and delivery windows. Route optimization software can optimize delivery routes, reduce delivery time, and improve overall delivery efficiency.
- Automated Warehouse Management: Technologies like robots and automation software can help pick, pack, and streamline inventory management.
To make your delivery process more efficient, there are solutions that can handle specific tasks within the order fulfillment process.
An Address Validator tool ensures the customer has filled in the right delivery address. This ensures that the recipient’s name, street name and number, city, state/province, zip/postal code, and country are all correct.
If this step isn’t done correctly, no amount of additional software will save the customer’s delivery experience.
Likewise, shipping, order, and delivery management software can automate shipping label creation, order tracking, and delivery tracking. There are also specialized delivery optimization tools that help drivers find the best, most efficient routes between stops.
By leveraging these technology solutions, eCommerce businesses can improve delivery accuracy, get better customer satisfaction, increase sales, and build a stronger reputation in the market.
Leveraging Third-Party Logistics Services to Enhance Delivery Efficiency
Not all eCommerce merchants have the budget to invest in the technology solutions listed above. For this reason, partnering with third-party logistics services can be more effective.
These outsourced logistics services provide a range of services to manage your supply chain operations. These services can include transportation, warehousing, inventory management, order fulfillment, and other logistics-related activities.
By outsourcing your logistics to an external partner, your eCommerce company can free up its time and resources to focus on core competencies. 3PL providers can often offer economies of scale and expertise in logistics operations.
This gives smaller merchants access to cost savings and more efficient delivery. Plus, as your customer demand grows, your partner will be equipped to handle your business as it scales.
3PL providers often provide a range of logistics services. They offer order fulfillment and transport products from one location to another, including freight forwarding, customs brokerage, and last-mile delivery (e.g., to the customer).
You can also partner with a 3PL provider for warehousing and inventory management if needed. Some provide value-added services like quality control and product customization.
As you explore building out your order fulfillment process, consider tapping into the expertise, technologies, and carrier relationships of a 3PL provider. This can be a simple way to create a more efficient and effective delivery network.
Monitoring and Analyzing Delivery Metrics to Identify Areas for Improvement
As you seek to optimize your delivery performance, keep track of key metrics. These indicators can help retailers understand if their third-party logistics partner is improving delivery performance. Or, it can help you understand if a new route planning tool is helping boost driver performance, for instance.
Use these metrics to determine if your technology, software, and partnerships are working and where else you can improve your delivery service.
- Order Lead Time: The time it takes from when an order is placed to when it is delivered to the customer. Lower lead times are a good sign that your orders are being delivered quickly.
- Order Accuracy: The number of orders that are shipped correctly, without errors or discrepancies.
- On-Time Delivery: The percentage of orders that are delivered on or before the promised delivery date.
- Shipping Costs: The total cost of shipping products to customers.
- Return Rates: The percentage of orders that are returned by customers. Of course, customers return products for many different reasons, so take this metric with a grain of salt.
- Customer Satisfaction: How satisfied customers are with the delivery process. You can use surveys to ask about the delivery process specifically.
You may need to monitor and analyze these data points over time to accurately understand where you can improve. While some tools can help you quickly improve delivery performance, others may take time to show their ROI.
Final thoughts
Improving delivery efficiency should be a priority for all eCommerce businesses. Customers shop online for the convenience and ease that online retail offers.
When your business fails to deliver, literally, it can leave a customer frustrated and angry — and unwilling to shop with your brand again.
Delivery efficiency is an ongoing goal. There are dozens of tools on the market designed to help by automating steps in the order fulfillment process.
eCommerce merchants should be prepared to try different solutions, work with third-party logistics partners, and troubleshoot iteratively until they find the right fit.
And, since consumer needs and market conditions are constantly changing, a data-driven approach can help you ensure your delivery process is always working smoothly. Track key performance metrics like order accuracy, shipping costs, and customer satisfaction to make adjustments as needed over time.
