Peak season looms, your carriers are stretched thin and customer expectations continue to soar. The figures reveal a sobering story: A Descartes-Sapio study discovered that 67% of consumers experienced delivery problems (during a three-month survey period in 2024). More worryingly, 63% of these customers took action against the retailer or delivery company, ranging from losing trust to completely abandoning future purchases.

Modern retailers face a significant challenge. While ecommerce growth generates numerous opportunities, it also amplifies delivery complexity. When 60% of customers say they will not order again after a poor delivery experience, the stakes are clear. The true cost isn’t just lost sales – it’s also reduced customer lifetime value and damaged brand reputation.

Setting realistic expectations

The path to delivery excellence begins before the first click. Leading retailers strive to meet the benchmark of 95% or higher on-time delivery rates by making clear, attainable promises from the start. This necessitates a sophisticated approach to delivery management that incorporates real-time carrier capacity data and intelligent service allocation. Successful retailers build adaptable delivery networks that respond to demand spikes while remaining transparent throughout the customer journey.

However, it is a balancing act. Peak seasons are particularly challenging, as we discussed in our three-part series at the end of 2024. Adding resources to manage increased demand quickly erodes margins during quieter periods. Yet with many businesses facing workforce shortages, scaling up temporarily isn’t always feasible. The solution lies in intelligent capacity management and carrier diversification.

The most resilient retailers make delivery promises based on actual carrier performance rather than ideal scenarios. They implement systems that adjust delivery options based on real-time capacity and form alliances with multiple carriers to spread peak season risk. This approach results in a delivery network that can quickly adapt to changing conditions without sacrificing customer experience.

Making promises you can keep

Understanding and controlling the entire fulfilment process is essential for making reliable delivery promises. Some retailers focus solely on pick-and-pack efficiency, ignoring critical carrier performance data. This oversight has a significant impact on customer satisfaction and operational efficiency.

Smart delivery management necessitates a comprehensive assessment of carrier performance across all service levels. Successful retailers examine regional variations in delivery success rates and monitor seasonal fluctuations in capacity. They understand the true cost of delivery failures and, by leveraging technology, incorporate this into their promise-making decisions.

Modern delivery management platforms convert raw carrier data into actionable insights. These systems automate the complex task of calculating accurate delivery dates using real-time carrier capacity. During peak periods, they can automatically adjust delivery promises to maintain service levels while selecting carriers based on performance and cost.

Key features to look for in a delivery management platform:

  • Real-time carrier performance monitoring
  • Dynamic delivery date calculations
  • Automated carrier selection rules
  • Integrated tracking and communications.

Measuring success

Clear metrics demonstrate successful delivery promise management. As previously stated, the industry benchmark for on-time delivery is 95% or higher, but this only tells part of the story. Retailers should monitor cart abandonment rates during the delivery option stage and keep track of customer enquiries about delivery timing. Post-delivery satisfaction scores round out the picture, providing insights into the overall delivery experience.

As ecommerce evolves, retailers must develop scalable delivery promise systems. This entails implementing adaptable carrier management solutions that scale with your company. Strong carrier relationships are essential, aided by clear communication channels and escalation paths for exceptions. Yes, the goal is to manage current deliveries, but it also aims to lay the groundwork for future growth.

Next steps

Start your journey to better delivery promises by reviewing your current delivery success rates. Analyse carrier performance data to identify trends and areas for improvement. Most importantly, evaluate your peak season capacity needs now, before the next rush begins.

This is the first of three articles on how to master modern delivery management. In our next article, we’ll look at how to maintain control while orders are in transit, ensuring that you keep your promises. We’ll go over real-time tracking, exception management, and proactive customer communications, which are all critical components of a successful delivery experience.

PART TWO: Keeping track when parcels are in flight