How Technology Is Improving The eCommerce Courier Industry

The ecommerce industry has spent 2 decades evolving into the widespread online marketplaces that we now rely on. Over 125 million Indians have shopped online for the first time in just three years.

Moreover, a Forbes analysis predicts that the consumer base for eCommerce will reach 501.6 million in the next five years. 

Online shopping experience and shipping services have to be more efficient than ever before if India has to reach the growth target of 4.416 billion INR in 2024.

The fast-growing demand and evolving customer expectations has led to the development and immense growth of the ecommerce courier industry. 

Courier companies today must provide a wider range of services, many of which are dependent on technology. The top courier companies in India today utilize a variety of logistics technologies that are specifically catered to ecommerce enterprises.

5 Ways Technology Is Improving the eCommerce Courier Industry

There are an infinite number of ways technology has been used to make our lives easier. When it comes to courier services, these advancements make eCommerce shipping simple, seamless, and controllable. 

Ecommerce courier service providers use AI, machine learning, and API integrations to automate and optimize numerous functions in their delivery operations. In essence, this lets them provide courier related services specifically designed to improve ecommerce customer experience, in collaboration with logistics companies

Listed below are 5 major ways technology has influenced and improved the ecommerce courier industry. 

1. AI-Driven Courier Company Selection

After an order has been placed, the right courier partner has to be selected to deliver that order. When order volumes are high and multiple courier partners are involved, allocating the right courier with the right shipment can be a tough process. 

AI can therefore be used to simplify the process while ensuring the right configuration between a courier and an order. An AI algorithm can analyze previous courier partner performance data to determine which courier is best for this order based on a number of metrics. 

Most common ones include delivery destination, order size and weight, COD orders, etc. The benefit of using an AI is that it automates the process and sets up innovative solutions like automatic load distribution.

2. AI-Enabled Delivery Exception Analytics 

Another use of Artificial intelligence in optimizing courier services is to analyze data on courier operations and performance, more specifically, on delivery exceptions. 

Delivery exceptions refer to difficulties in delivery that could lead to potential cancellations and losses, like stuck shipments, delayed deliveries and failed deliveries. With data collected by AI-engines on these delivery exceptions, they can be addressed based on the various causes. 

The sure-proof way to reduce logistics cost and ensure the couriers adhere to the agreed SLA (Service Level Agreement) is to never slack on data analysis. 

An AI’s rigorous data analysis coupled with insightful business reports can give eCommerce businesses the much needed transparency about their shipping and courier partners performances.

They can choose to opt out of service with a carrier with high failed delivery (NDR) rates, thereby saving them time and money, and sparing their customers any delivery anxiety.

3. Automate Order Manifestation 

Order Manifestation is essentially how orders are processed after being placed and prior to their delivery. The general steps of order manifestation involves order creation on the courier partners platform, then the waybill generation. After this, the shipping label is printed and the order is packaged before being assigned for delivery. 

All of these processes can be automated using API integrations. APIs provide a seamless interface for merchants to connect with the courier’s database from the comfort of their shipping management system’s dashboard.

This way, they can manifest orders in large volumes without having to shift from one courier to another.

4. Automate Order Tracking System

Another technology tool that has effectively helped the courier industry is shipping API integrations for shipment tracking. On-time parcel tracking is vital to ensuring customers have a pleasant delivery experience. 

Pull API integrations pull tracking information from courier partner platforms after each milestone is crossed. Push API integrations push tracking updates to customers through different channels. 

Both of these technologies are the foundation of real-time order tracking. APIs enable couriers to keep businesses informed about the shipment status as and when it reaches a milestone.

5. Automate NDR Management

NDR (Non-Delivery Report) management is a system that enables failed deliveries to be dealt with speedily, thereby reducing the likelihood of them resulting in RTOs (return-to-origin). With the help of technology, customers can be sent issue-specific queries as soon as a failed delivery is reported to determine how to ensure the next delivery attempt is successful. 

NDR management technology has revolutionized the eCommerce courier industry given the high percentage of failed deliveries and exceptions that plague online businesses. 

The right tracking technology when paired with competent communication gateways can take the brunt away from customer service agents manually resolving issues with customers. Instead, an automated resolution can lead to a faster delivery re-attempt and happy customers.

Conclusion

With the help of technology, truly anything is possible. This can clearly be seen in the enhancements and improvements made to the ecommerce industry thanks to technology.

Numerous complex functions can be automated, like warehouse, inventory and returns management. 

Communication between courier companies, ecommerce partners and customers can be sped up and standardized to ensure a more efficient delivery mechanism.

Most importantly, technology enables eCommerce companies to monitor courier partner performances and delivery data. Improvement initiatives can be pushed forward on a regular basis.