How Estimated Delivery Date (EDD) Works in eCommerce

Introduction

The ecommerce ecosystem is constantly changing and pushing boundaries for retailers and consumers. Businesses are improving with innovative technologies and strategies to perform deliveries on time. Did you know that most buyers abandon their cart when they see an inaccurate estimated delivery date (EDD)?

After purchasing the product, they await its delivery according to the expected date of delivery. Accurate EDDs bridge the gap between their purchase decision and order fulfillment. Enterprises can establish trust and commitment among audiences and increase profitability. Let us dive into EDD and its potential for business success.

Calculate Estimated Delivery Date in E-commerce

The Estimated delivery date is displayed to audiences at checkout and on product pages so they can confidently complete their purchase. Factors like processing time, carrier selection, and distance, determine the EDD. These factors help brands increase transparency and conversion rates. 

Accurate EDDs can help overcome logistical challenges and minimize customer dissatisfaction. They can optimize the order fulfillment process by calculating estimated delivery dates. Let’s dive deep into the purpose and function of estimated delivery dates.

Ways to determine the estimated delivery date for e-commerce orders

One can determine the estimated delivery date of a product by considering the availability of SKUs (Stock Keeping Units), holidays, and non-delivery days. Here are a few more 

1. Shipment Data

Shipment tracking data is valuable in estimated delivery dates procurement. Enterprises analyze this data regularly to fetch accurate EDDs. Google Analytics and Shopify are popular tools to identify trends and patterns and monitor shipping performance. You can get the approximate time from order processing, picking, packing, and delivery operations.

Plus, you know instantly how frequently the orders are not delivered or damaged. You can get a realistic idea about delivery windows to adjust EDDs according to the tracking data.

2. Fulfillment Options

Your fulfillment options can affect the expected delivery date of the order. Sellers can pick and pack their orders depending on 3PLs or dropshipping services to fulfill orders. They can also do it themselves. However, every option has its time window that may influence the EDD. 

By relying on a drop shipper or third-party logistics provider, you can save money and time and trust their efficiency in order fulfillment. In contrast, you can control all the logistics operations by preparing the orders yourself. It may take some more time in that case.

3. Transparent Communication

Communication is an integral aspect of a successful business. By communicating clearly with audiences, it is easy to gain their trust. Businesses can communicate EDDs through tracking pages, confirmation emails, checkout, and product pages.

Customers like to know how to calculate EDDs, the influencing factors, and the different delivery options they can select. One should always keep the buyers updated about any changes or unusual occurrences that can change estimated delivery dates.

4. Order Processing Times

The order processing time is the overall time to prepare the order for shipment. It comprises picking, packing, and waybill generation activities for your order. For estimated delivery date accuracy, the processing and transit times must coincide. 

For example, if you have 3-5 days processing time for a made-to-order item and the delivery method offers 2-4 days transit time, then the EDD will be 5-9 days. Businesses must calculate order processing time correctly to provide an accurate promised delivery date.

5. Other factors

External factors can influence EDDs as well. For example, bad weather, customs regulations, demand fluctuations, and holidays can cause delays and alter EDDs. Some of these can be predictable and avoided, but others can cause unwanted disruptions in your logistics cycle.

For example, businesses get peak demand and experience longer shipping times during holidays, season sales, and festivals. You have to keep your customers informed accordingly to cater to their expectations.

Strategies to offer accurate EDDs

Estimated delivery dates are essential to achieve customer satisfaction and gain long-term loyalty. You can plan your order more tactfully. Here are some strategies you do not want to overlook.

1. Address Verification & Geolocation

The location and address verification of customers enables businesses to provide accurate and realistic transit time possibilities. Fetching the geolocation is getting proximity to the customer location from the warehouse. They do it with RFID and GPS devices. 

Companies are required to verify customer addresses to validate their genuine existence. They can optimize the logistics operations by using this data. Moreover, the information allows them to reduce potential delays and be accurate about customer locations.

2. Carrier Integration

Integrating with carrier partners or 3PL providers will minimize half of your work. Get hassle-free updates about transit times from your delivery partner. Carriers can simplify the delivery process with APIs (Application Programming Interfaces) that help track orders in real-time. The carrier speed and efficiency are essential components in EDD. 

Businesses can integrate with multiple carriers and offer different promised delivery dates based on location, distance, weight, or type of the product or its urgency.

3. Data Analytics

Businesses rely on accurate data and industry insights to maintain smoother operations. Data Analytics is practiced ardently by sellers to predict sales demand and study current trends. They encompass historical data and real-time information by utilizing software and tools.

They display realistic dates for shoppers and inform them about their order information. Customer feedback and shopping habits are relevant metrics that fall under data analytics. These contribute to EDDs and improve logistics operations overall.

4. Customer Feedback

Businesses can massively improve by taking feedback from customers regarding estimated dates of delivery. Such information can include shipment delivery accuracy and issues or delays on the way. Sellers can question customers regarding the exact delivery time and request them to fill out feedback forms. 

It enables enterprises to make significant improvements and adjustments and serve customers better with effective EDDs. Feedback can be taken from customers when the order is in transit to optimize the delivery process more accurately. 

Protip💡

The ShipEak EDD API integration enables you to display accurate estimated delivery dates to customers at checkout. It is a plug-and-play feature for Shopify stores to include EDD on product pages. It supports multiple pickup pin codes and has low latency.

The EDD feature integrates blended dates and latest data to offer high-level accuracy on product pages. It offers the same even when the carrier is unknown. ShipEak offers multiple EDD configurations to counter customer problem statements as they maintain 90% adherence to EDDs.

Takeaway

As long as businesses prioritize customer satisfaction and brand reputation, they will continue to utilize estimated time windows. EDDs are more than a feature because they commit to customers and offer realistic delivery expectations. EDDs are integral practices that allow businesses to perform timely deliveries. 

In the article, we highlight how the estimated delivery date feature works for eCommerce ventures. The information above can help you get started if you are unfamiliar with EDDs. Stay committed to your logistics workflows and cater to customers with accurate EDDs.

FAQs

1. Is inventory management a crucial component of EDD?

Inventory data influences the accuracy of estimated delivery dates in logistics workflows. It can help you calculate stock availability and order processing time to ensure realistic EDDs. Without the correct inventory management and adherence to these factors, businesses cannot offer achievable EDD.

2. Is AI important in offering accurate promised delivery dates?

AI has elevated the ecommerce landscape. It makes logistics processes smooth and ensures accurate EDD displays for buyers. With real-time route optimization, workflow streamlining, and predictive analytics, it is easy to determine achievable estimated delivery dates.