Ecommerce Delivery Management Guide - All You Need to Know

Updated on May 27, 2024 by Alina Kostukova

Deliveries are critical to any e-commerce business and essential for maintaining customer satisfaction and operational efficiency. 

Whether you're grappling with a backlog of orders or setting up a new brand, mastering delivery management is key. 

This guide covers the essentials of ecommerce delivery, from current trends to the importance of integrating advanced technologies. 

We'll explore various delivery options, including local and international solutions, and the role of delivery management software in optimizing these processes to enhance efficiency, reduce costs, and improve customer satisfaction. 

Table of contents:

1. Global ecommerce market

2. Introduction to Ecommerce delivery management

3. What is an Ecommerce delivery?

4. Ecommerce delivery trends

5. Ecommerce delivery types

6. Ecommerce local and international delivery

7. Ecommerce delivery management solutions

8. Factors to consider when finding your ecommerce delivery management solution

9. Ecommerce delivery management software

10. Benefits of using Ecommerce delivery management software

11. Innovations shaping ecommerce delivery

Global ecommerce market

In the last few years, mobile use and access to internet services have increased. With increased access to the internet, the e-commerce industry is growing quickly. Now, why is this happening? It’s because customers now prefer to shop online. 

If this keeps up, e-commerce sales globally will reach $8 trillion or even more by 2027 based on forecasts.

Introduction to Ecommerce delivery management

Ecommerce delivery management is important for streamlining your operations. As we’re almost halfway through 2024, it’s vital to understand the trends and practices you need to stay competitive and meet increasing customers’ expectations. 

What is an Ecommerce delivery?

When a customer clicks "buy," a digital signal initiates a complex logistics process in a remote warehouse. Employees promptly select and securely package the item for shipment. The package then embarks on a journey, possibly via truck or airplane, navigating various landscapes. 

Ultimately, a courier delivers the product directly to the customer’s doorstep. This efficient process highlights the advanced operations that make e-commerce delivery possible and ensures products arrive safely and on time. That last step of the delivery is named "last-mile delivery." Check this article on optimizing last-mile delivery to ensure this step is smooth and customers are satisfied.

How to manage? Ecommerce deliverery can be managed through self-shipping or via third-party providers, to find the right shipping option for you, check this blog article!

Ecommerce delivery trends

The world is changing, and so is the way businesses make deliveries. Here are the few trends currently being used in the ecommerce industry.

• Same-day delivery. 

This option allows customers to receive the product on the same day. However, a premium fee must be paid for this special convenience. 

• Eco-friendly options.

Customers have become more conscious than ever about eco-friendly options. Businesses understand this need, so they now use recyclable materials for packing and optimize delivery routes to lower carbon emissions.

• Technology integration.

Advanced technologies like AI, machine learning, or delivery management software are now being integrated into delivery systems. They help to predict shipping delays, optimize routes, and manage inventory better than humans. Delivery management software, such as Track-POD, can integrate with your online shop, help you manage orders, plan the routes based on available vehicles and delivery schedules, analyze all the deliveries, and provide a driver app that can scan the barcodes and collect electronic proof of delivery! This is especially convenient if you are organizing self-shipment!

• Personalized customer experiences.

Nowadays, customers want the freedom to choose their delivery slots so they can easily receive the package on time. This also includes in-store pickups and secure locker deliveries.

• Utilizing local delivery networks.

 Businesses are now using local delivery networks. It is important for each business to consider all the pros and cons of self-shipment versus reliance on delivery networks. Many factors should be considered: costs, tracking possibilities, visibility, amount of daily orders, available vehicles, etc.

Why Ecommerce delivery management matters?

Why is e-commerce delivery management so important? It's a big deal because it’s the only way to keep your customers happy and loyal. Imagine this: today’s shoppers don’t just want their stuff fast. All they want is to know exactly when it’s arriving.

Almost every online store now sends packages far and wide; many even ship them across oceans to different countries. Being good at sending packages quickly and without costing a fortune helps you win over customers worldwide.

Ecommerce delivery types

Ecommerce businesses cater to a wide range of customer needs by offering various types of delivery options. Getting to know these choices helps shoppers pick just the right service for their needs.

Understanding what’s popular and what’s not helps businesses set up their operations to deliver the goods just right.

1. Standard delivery:

It is the go-to method where orders are sent using regular postal services or couriers. It takes 3-7 days on average for the packages to arrive.

2. Expedited delivery:

This speeds things up for those who need their items fast. This quicker option delivers your purchases within 1-3 days.

3. Same-day delivery:

It ensures that orders placed are delivered on that very day. This fast service is mostly available in big cities and depends on when you place your order.

4. Scheduled delivery:

With scheduled delivery, customers can pick a specific date and time for their package to arrive. It makes the whole process super convenient for customers.

5. Click and Collect (In-store pickup):

It lets shoppers order online and then pick up their items at a store or specific spot. The availability of the items can mean they’re ready in just a few hours.

Ecommerce local and international delivery

• Ecommerce local delivery zips packages around within the same country or area. Local delivery is best for businesses that want their deliveries as quickly as possible. However, the speed of delivery will depend on the option the customers select. They can receive your package on the same day or wait for the average of 3-7 days.
• International E-Commerce delivery takes your packages on a longer journey across national borders. It's crucial for shops that have customers all over the world. However, this type of delivery can be a bit trickier, dealing with customs and the challenge of long-distance logistics, which can stretch out delivery times. Despite potential customs delays, international parcels typically take about 5 to 14 days to land at their new homes.

Ecommerce delivery management solutions

Creating an efficient delivery process is crucial for ecommerce success. Below are the general steps involved in the ecommerce delivery process and the factors to consider when organizing delivery solutions, including international and local deliveries. 

General steps in the Ecommerce delivery management process

Here's a breakdown of what happens after your customers hits "buy".

1. Ordering Up: Customer picks items and checks them out on the website.
2. Order Confirmed: Ding! They'll receive an email or SMS saying, "We got your order!" This will tell your customer what they just purchased and when they should receive it.
3. Order Cooking: The e-commerce kitchen checks if the ordered product is in stock and starts preparing the customer's order for shipment.
4. Label Whipping: A shipping label is created with the customer's address, a return address, and a barcode for tracking.
5. Order on the Move: The customer's order gets packed up and passed to the delivery team.
6. Shipping and Peeking: It’s on its way! Customers can check its location using the tracking number.
7. Almost There: Order hits the local delivery spot and prepares for the final stretch.
8. Order’s Here: Customer will get the order very soon!
9. Arrived: The customer received the order, most probably signed the electronic proof of delivery to the courier, and maybe even submitted the feedback.

You can also refer to our blog, Fulfillment logistics in E-commerce, for a more detailed explanation.

Factors to consider when finding your Ecommerce delivery solution

When picking ecommerce delivery solutions, here are some key things to keep in mind:

• Delivery Speed: Give customers choices like same-day or next-day delivery to match their speed needs.
• Cost Efficiency: Balance fast delivery and affordable prices to please both your customers and your budget.
• Packaging: To avoid damages, ensure items, especially fragile ones, are snug and secure in their packages.
• Carrier Selection: Choose reliable delivery partners who align well with your company’s values and goals.
• Scalability: Make sure your delivery system can manage increases in orders, like during the holiday rush, without any trouble.

International and local ecommerce delivery solutions

International deliveries require understanding customs regulations, choosing international shipping partners, and potentially dealing with longer transit times. Providing transparent pricing that includes customs duties and taxes can improve customer satisfaction.

Conversely, local deliveries can offer shorter transit times and lower costs. Businesses can tap into local courier services or establish their own in-house delivery fleets, giving them greater control over delivery times and enhancing service quality. This approach helps streamline operations and can lead to more satisfied customers.

Check this blog article to understand more which shipping method is right for your ecommerce business. 

Importance of last-mile delivery

Last-mile delivery is the final and most crucial step in the delivery process. It directly affects customer satisfaction. If there are any errors or inefficiencies here, it can lead to delays and higher costs. By optimizing this stage, businesses can ensure packages arrive on time, greatly improving the customer experience. Getting this right is essential for making a lasting positive impression on customers.

Importance of API integration in delivery management

Many ecommerce businesses today utilize various content management systems and platforms to host their online stores, making API integrations crucial for streamlining processes and automating order management. By integrating APIs, ecommerce businesses can seamlessly connect their platforms with delivery management software, allowing for the direct and automated handling of orders. If you are having your internet shop on the Shopify, then check this blog article about Shopify shipping apps, that help to manage delvieries. 

This automation enhances efficiency and ensures that all aspects of order processing and delivery scheduling are managed effectively through real-time data exchange. For businesses looking to incorporate such functionalities, resources like Track-POD's API provide detailed guidance on executing these integrations successfully.

Ecommerce delivery management software

For businesses keen on refining their delivery operations, ecommerce delivery management software is an indispensable asset. This software has extensive functionalities that boost operational efficiency and drive significant cost reductions. Employing such tools can transform how businesses handle their delivery processes, ensuring they operate more fluidly and cost-effectively.

Benefits of using ecommerce delivery management software

1. Cost Savings: Businesses can cut fuel costs to save money. This can be done by optimizing delivery routes and schedules.
2. Time Efficiency: Automating the scheduling and dispatching saves you time during delivery.
3. Improved Accuracy: Automation reduces human errors in address input, delivery schedules, and order tracking.
4. Enhanced Customer Service: Real-time tracking and notifications enhance customer communication and satisfaction.
5. Scalability: Software solutions can easily adapt to increased volumes and complex delivery needs without additional costs.

Track-POD delivery management software

Track-POD stands out as an effective ecommerce delivery management solution, carrying a variety of features, such as:

• Courier Software: Helps plan routes, delivery dates, and times based on available resources.
• Real-Time Tracking: Continuously updates delivery status, enhancing transparency for businesses and customers.
• Order Management: Streamlines the processes of entering, processing, and dispatching orders. 
• Customer Service: Improves communication with customers by offering timely and informative updates. This enhances customer satisfaction.
• Route Optimization: Identifies the most efficient delivery routes, helping to cut down on delivery times and costs.
• Analytics Tools: These tools enable businesses to analyze delivery success rates and identify common services using historical data. See obstacles and examples here.

We recommend registering for a demo to see how Track-POD can help you grow your business. This will let you explore the software's features in a real-world setting and see how it fits with your existing systems. Register for a demo at Track-POD Now.

Additionally, to get a broader understanding of what Track-POD offers, you can watch an informative video below:

Innovations shaping ecommerce delivery

E-commerce delivery is rapidly evolving. These changes are revolutionizing how the products are sent and monitored and transforming how products are delivered, impacting every facet of the e-commerce industry.

1. Automation and robotics

Big warehouses use more robots and automation to help with jobs like picking and packing. This tech cuts down on mistakes and speeds up order processing. Faster processing means quicker deliveries, keeping up with the fast pace customers expect today.

2. Advanced data analytics

E-commerce businesses use big data to make better delivery plans and understand what customers might buy next. Predictive analytics lets them adjust their stock levels to prepare for busy times. Plus, software that optimizes delivery routes ensures products are delivered quickly and cheaply. This makes operations smoother and keeps customers happy by ensuring products are always available.

3. Drones and autonomous vehicles

Drones and autonomous vehicles are changing the game for delivering packages, especially to hard-to-reach places or through busy city traffic. These cool new tools can make deliveries much faster and cheaper, giving businesses that start using them early a leg up.

4. AI-Powered customer service

AI and chatbots on ecommerce sites are transforming customer service. They provide updates about orders in real time and quickly handle any questions or issues customers might have. This tech improves how businesses communicate with customers, cutting down on wait times and solving problems fast, which makes for a much better customer experience.

Conclusion

As ecommerce grows, staying updated with tech like drones and AI customer service is key. These tools boost efficiency and help meet customer expectations, keeping businesses competitive. They make operations smoother and open new ways to grow and connect with customers online.