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On-Time Delivery: Metrics that Define Your eCommerce Business



Specialist - Marketing @ Shiprocket

June 5, 2023

6 min read

As more consumers turn to online shopping, the importance of on-time delivery in eCommerce has become crucial. In fact, timely delivery is one of the main factors that sets successful eCommerce businesses apart from their competitors. 

In this article, we will take a closer look at the elements or factors which make an eCommerce business successful and how on-time delivery has become the differentiating factor to achieving a competitive edge. We will also explore third-party logistics options in the industry, like Shiprocket, that help ensure reliable and on-time delivery on behalf of eCommerce businesses.

On time delivery

What Are the Metrics for a Successful eCommerce Business?

The success of a business in the eCommerce space will depend on several factors that can be measured to determine the quality of service. Tracking such metrics allows businesses to remain on top of their niche. The factors measured to define a successful eCommerce Business are: 

1. Customer Acquisition Cost (CAC) – Commonly called CAC, it identifies the sum total of all expenses incurred in the process of adding new customers to the business. This predictor or measure helps businesses to analyse if they are spending more in acquiring customers in comparison to what they are earning from their customers.

2. Conversion Rate – This factor measures the conversion of visitors to their website into customers. For a successful business, the conversion rate is high.

3. Average Order Value (AOV) – Commonly called AOV, it is the average spending of a customer per order at the eCommerce site. By tracking this metric, businesses can identify the maximum revenue earned from each customer.

4. Cart Abandonment Rate – This rate is a measure of the number of times a customer adds items to his cart but fails to place the order or abandons the cart. By measuring this factor, businesses can take quick corrective steps at the checkout and payment phases to decrease the rate of abandonment.

5. Return Rate – This is a metric that identifies the number of returns to the number of orders placed by customers. If this metric runs high, then the business looks into the quality of the products to bring the value of this metric down.

6. Customer Lifetime Value (CLV) – This metric indicates the total revenue a business can expect from a single customer account throughout the business relationship with the customer. The value of this metric shows if the business has repeat customers and allows you to maximise the value of every customer relationship.

7. On-Time Delivery Rate – This factor measures the total number of orders that were delivered to customers on or before the expected date of delivery: This metric is used to measure the supply chain efficiency of any eCommerce business. An excellent on-time delivery rate also helps build customer trust and loyalty, leading to increased sales and repeat business. Let us learn a little more about how on-time delivery can benefit your business.

How Does On-time Delivery Benefit Your Business? 

On-time delivery ensures higher success rates for a business in the following ways: 

1. Increased Customer Satisfaction

When a customer places an order with a specific delivery date in mind, they expect it to arrive within that timeframe. If the order is delivered on time, it results in a happy and satisfied customer. However, if there are any delays, the product becomes essentially useless to them, leading to frustration with the brand. 

Conversely, when customers receive prompt deliveries and reliable service, they are more likely to become repeat customers. 

2. Improved Reputation

A key benefit of ensuring on-time delivery in eCommerce is the improved reputation that comes with it. Consistently delivering orders on time helps build trust with customers, leading to a positive reputation for the business. This positive reputation can translate into better customer conversion rates and increased revenue generation. 

As a result, ensuring on-time deliveries is essential in boosting customer satisfaction and driving long-term growth.

3. Lower Costs

By ensuring on-time delivery, businesses can avoid negative consequences such as penalties, lost sales opportunities, and higher customer service expenses. Hence, they can reduce the negative impact of these issues, resulting in fewer outages and more efficient operations. These improved operational expenses can have a positive impact on the business’s profit-making.

4. Competitive Edge

Since the eCommerce industry is driven by prompt delivery standards and low-operational costs, every business competes to minimise errors that lead to penalties and returns. Companies can gain a competitive edge by accurate, on-time delivery and dominate the market in which they operate. 

Shiprocket’s Solutions for On-Time Delivery

Shiprocket is a partner logistics platform for eCommerce businesses that invests in the management of deliveries and related tasks. Its award-winning, all-in-one solutions integrate industry solutions to ensure on-time delivery every time. These are: 

1. Real-Time Tracking

Shiprocket’s tracking options help businesses to identify likely challenges or delays and address them to solve bigger issues. 

2. Multiple Courier Partners

Shiprocket has partnerships with multiple courier companies, allowing businesses to choose the best courier for their specific needs. This flexibility ensures that businesses can deliver their products on time, even during peak seasons or unexpected events. 

3. Automated Shipping

Shiprocket’s automated shipping feature helps businesses streamline their shipping process, reducing the risk of errors and delays. This feature also allows businesses to generate shipping labels and track shipments automatically, saving time and improving efficiency. 

4. Warehouse Management

Shiprocket’s warehouse management feature allows businesses to manage their inventory and shipping from a single platform, making it easier to ensure that orders are processed and shipped on time.

5. Order Fulfillment

One of the major services that Shiprocket offers is order fulfillment services. As a third-party provider, it implements technology-backed processes that ensure orders are delivered accurately and on time. Thus, they offer small businesses the advantage of professional courier and delivery services that will differentiate them from the competition and succeed in adding more customers to their platform.  


On-time delivery is the most critical measure of the success of an eCommerce business or its failure. While it is important that a business delivers on all the measure points, on-time delivery brings satisfaction to customers and is a unique factor for the success of online eCommerce platforms. Shiprocket’s spectrum of logistic services ensures integrated order fulfilment and on-time delivery without businesses having to be directly involved in the transportation of their eStore products. To know more about our services and how Shiprocket can customise your delivery services, speak to our team today!

Frequently Asked Questions(FAQs)

How to find the on-time delivery rate percentage?

The rate is found by dividing the total orders delivered on time by the total orders delivered to customers and multiplying by 100.

What if your on-time delivery rate is low?

The first step is to review the processes, such as order fulfilment to delivery. Alternatively, you can also partner with external service providers like Shiprocket to improve your on-time delivery rate.

How does on-time delivery impact customer satisfaction?

Consistent on-time delivery creates a sense of reliability and trustworthiness in the seller’s brand, which can lead to repeat business and a positive reputation.

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