AI-driven EDDs: Making the delivery experience even more seamless and reliable

If you are an online shopper, you probably know how frustrating it can be to wait for your order to arrive without knowing exactly when it will be delivered. You may have paid extra for express shipping, only to receive your parcel later than expected due to a miscalculation of the delivery days. Or you may have missed the delivery attempt because you were not home and the carrier or merchant did not notify you in advance.

These scenarios are common and can harm your customer satisfaction and loyalty. According to a survey conducted by Parcel Monitor, 59% of respondents claimed they would be home to receive the parcel if they could access the estimated delivery date (EDD) for their online orders. Additionally, 10% of them acknowledged that EDD would be useful for rescheduling if they could not stay home due to prior plans.

Carrier EDDs are useful but not always reliable

EDD is a calculated guess on when your customers can expect to receive their orders. It is based on various factors, such as the origin and destination of the shipment, the shipping method, the carrier's service level, and the transit time. An EDD is usually determined once an order reaches the last-mile provider's warehouse, but it may also change if there are unforeseen shipping delays en route.

However, carrier EDDs are not always accurate or reliable, especially from carrier updates. 

While carrier updates are useful for tracking parcels, they cannot provide ultra-precise EDDs. This is because carrier updates are often delayed, incomplete, or inconsistent. For example, a carrier may not scan a parcel at every checkpoint or use different terms to describe the same status. Moreover, carrier updates do not account for external factors affecting the delivery time, such as weather conditions, traffic congestion, customs clearance, or peak season demand.

Relying solely on carrier EDDs can lead to customer dissatisfaction and frustration. According to Parcel Monitor's data analysis, customers rated their delivery experience below three stars if there was more than a 4-day gap between the estimated delivery date and the actual delivery date. Every 1-day decrease in this gap increased customer rating by 1 star.

EDDs that use your data are much more accurate

So how can your internal teams and customers get more accurate and reliable EDDs? The solution is AI technology that combines carrier update information with your in-house data from orders, customers, warehouse systems, shipments, and last-mile, to generate a hyper-accurate EDD that customers can rely on.

AI technology can leverage machine learning algorithms and historical data to analyze patterns and trends in shipping performance and delivery time. It can also use real-time data and predictive analytics to anticipate and adjust for potential delays or disruptions along the way. In doing so, AI can provide your customers with more realistic and precise EDDs that reflect the actual situation of their parcels and preserve their trust in your business.

When your e-commerce uses AI-driven EDDs, it can enhance the customer experience and reduce WISMO (where is my order) queries by providing proactive and personalized communication throughout the delivery journey. For example, you can send customers timely notifications via email or SMS about their EDDs and any possible changes. It can also offer customers options to modify their delivery preferences or contact customer support if they have any questions or issues.

Relieve pressure on your internal teams with AI

By using AI and machine learning technology to generate hyper-accurate EDDs, your logistics teams and customers can benefit from improved visibility, transparency, and trust in the delivery process. Customers can plan ahead and avoid missing their deliveries or receiving them late. Logistics teams and customer service can reduce customer complaints and inquiries while increasing customer satisfaction and retention.

Granted, AI-driven EDDs can be a high cost for e-commerce businesses. However, some off-the-shelf solutions can integrate with your systems and enable this capability with just a few clicks. To discover how Perform.AI’s EDD prediction solution works for your business, simply book a demo with our e-commerce logistics experts. We’ll walk you through how our proprietary EDD prediction solution uses updates from 1,100+ carriers and your own data to generate accurate EDDs that drive conversion and customer satisfaction.