Introduction
You can’t deny the fact that accurately calculated expected delivery dates (EDD) are one of the major factors that directly win shoppers’ impulse buy-ins and improve their post-purchase experience.
But let’s face it: calculating the expected delivery date is a tough nut to crack! You’ll have to take care of thousands of criteria for that. If you miss any of them, it’ll directly affect your customer satisfaction rate.
Thus, in this article, we’ll tell you exactly how you can calculate the expected date of delivery in the easiest way.
Let’s roll in!
What Is an Expected Date of Delivery (EDD) in eCommerce, And Why Do You Need to Give It Importance?
Expected delivery dates (also known as estimated delivery dates or promised delivery dates) are the date or date ranges that predict when the customer will get the order.
You can show these estimated delivery dates on the product page, on the checkout page, on the branding tracking page, and within the shipment notifications.
Estimated delivery dates shown on the product page have the power to win customers’ impulse buy-ins.
When the scrollers find that they’re going to receive the items within their preferred time frame, they’re more likely to hit the buy button.
Thus, EDD is one of the main components to boost your sales and customer satisfaction rates.
Here, note that the expected delivery date is an estimation/projection and might be different from the actual delivery date.
The more the EDD would be lesser than and equal to the actual delivery date, the higher the adherence rate.
How Does Estimated Delivery Dates Differ From Estimated Shipping Dates?
Estimated Delivery Dates and Estimated shipping dates — they surely sound similar. In reality, they are two individual terms with different meanings.
Estimated delivery dates, as we already discussed, are when an order is expected to reach the end customer.
You need to take into account factors such as shipment type, carrier performance, external forces, and delivery destination to calculate the estimated delivery date.
The estimated shipping date, conversely, is the expected time when the order leaves the facility centers to get delivered to the customer.
Factors such as inventory level and order processing time affect the estimated shipping date. It’s better to mention that the estimated shipping date directly affects the estimated delivery date.
Let’s take a quick example:
Say you have placed an order on 9th April. You saw the widget of two-day shipping. This means the order will be ready for out-of-delivery on 11th April. And 11th April is the estimated shipping date.
Now, if it shows the estimated delivery date is 14th April, this means on that day, you will finally get the item in your hands.
How to Effectively Calculate Expected Delivery Dates in eCommerce?
You should consider the order processing time and maximum transit days to calculate the estimated date of delivery.
So, the formula for calculating EDD is:
EDD = Order processing time + maximum transit time
But here’s the catch! Both the order handling period and the transit days depend on multiple factors that you also need to take into account to estimate the most accurate delivery date. For example:
1) Determine the shipment type
First and foremost, check the shipping type your customers have
opted for. Is it the standard shipping method? Then, obviously, the shipping duration would be longer, which, eventually, will affect the promised delivery date.
Now, if your customers want expedited shipping service, then it’ll result in a faster EDD, and consequently, you’ll have to quicken the whole shipping process to meet the EDD.
Likewise, if it’s international shipping, the EDD would be longer than domestic shipping because of factors like distance, customs clearance, regulatory requirements, etc.
2) Know your inventory level
If the ordered items are already in stock, then the expected date of delivery would be proximate to the date when the order was placed.
This means the shoppers can expect a quicker arrival time for their orders.
On the other hand, if the items are running out of stock, you need additional time to restock your inventory, which further will delay the estimated delivery date.
Hence, inventory level is one of the topmost factors you must consider while estimating delivery dates.
It’s always a good practice to monitor your inventory level time-to-time to offer faster EDDs, which eventually will improve customer satisfaction rate.
3) Track carrier performance
Delegated orders to a 3PL carrier? If yes, it can significantly impact the transit duration and you should consider that as well to calculate the promised delivery dates.
Why? Every carrier has varying service level agreements (SLAs) and operational efficiency. For instance, if the carrier has a slower order processing time and less effective means of transportation, it’ll result in longer delivery days.
Conversely, if a carrier has broader geographical coverage, more efficient transportation methods, and order handling capacity, it’ll minimize the delivery timeframe. This means the EDD would be closer to the date when the order was placed.
Thus, know your carrier inside out, analyze their past performance and then estimate the delivery date.
4) Determine the delivery destination
Where you’re going to deliver the order directly influences the expected date of delivery. Suppose the delivery destination is near to the facility or warehouse; then it’ll take just one day or two, or a few hours for the order to reach its destination. Likewise, if the delivery destination is a hard-to-reach rural area, it’ll delay the promised delivery date.
In fact, local regulations and restrictions such as traffic restrictions, security restrictions, and delivery time windows might hamper and delay the expected delivery date.
5) Consider order processing time
While calculating the estimated date of delivery, determine how much time it’ll take to prepare the item for shipment. Order processing mostly includes tasks like picking, packing, labeling, etc.
Now, if you use automation systems like robots, RFID technology, and automated packaging systems, it’ll eventually shorten the order processing time and result in faster EDD.
But, if you manually handle these processes, it’ll require extra time that’ll delay the estimated delivery date.
In fact, if your customers demand custom packaging, it’ll also take extra time to prepare the order for shipment.
6) Evaluate seasonal and external factors
Unpredictable seasonal factors such as cyclones, heavy rainfall, and snowfall can cause transport disruptions and road closures, which further impact the estimated delivery dates.
So, if you operate in areas prone to these weather conditions, consider counting that when calculating estimated delivery dates.
Like weather conditions, external phenomena such as political instability and trade regulations affect the expected date of delivery.
The Easiest and Fastest Way to Calculate the Expected Delivery Date
Sure, if you manually calculate the expected date of delivery, you’ll face lots of challenges.
That’s why opt for technology solutions that offer an EDD API. As these systems are already integrated with carriers, they automate the calculations based on real-time data such as shipping type, carrier performance and inventory levels, destination pin codes, and more.
As a result, it promptly shows the EDD on the product page, which wins customers’ buy-ins. This means you don’t need to manually invest your time to calculate EDD since these systems perform it within seconds with ultimate accuracy.
Take ClickPost’s EDD API as an example. It performs multiple EDD configuration methodologies to provide a near-accurate expected delivery date.
For example, it uses its own data science model and checks the uploaded SLA and carrier SLA to fetch the most accurate EDD, which has a >90% adherence rate.
Plus, as it’s connected with more than 350+ carriers worldwide, it analyzes recent carrier data to provide near-accurate estimates within minutes (as it has lower latency).
In fact, you can also provide it with customized EDDs to show on the product, checkout, and tracking portals. It also offers a dedicated EDD solution for Shopify merchants.
Hopscotch, a kids' fashion brand, boosted its conversion rate by 5% with ClickPost’s EDD feature.
Final Take!
As you saw, calculating an almost accurate EDD doesn’t require huge formulas and tough scientific assessments.
Though you can do it both manually and automatically, the manual process costs you time and might be inaccurate.
So, we suggest you go for an effective EDD API like ClickPost EDD API to pull off this process within the blink of an eye.
Hope this guide was helpful!
FAQs
1) What are the key factors that influence estimated delivery dates in eCommerce?
There are several factors that influence the estimated delivery date. These include shipment type, inventory level, order processing time, delivery destination, weather conditions, etc.
Except for external factors like weather conditions and regulatory restrictions, you can control internal factors such as shipment type, stock level, and order handling to provide accurate EDD information.
2) Where should the estimated delivery dates be displayed?
You must show the estimated delivery date on the product page (must!), on the checkout page, on the branded tracking pages, and within the order notifications that you frequently send to shoppers.