Accuracy

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What is Accuracy in E-commerce? 

In e-commerce logistics, accuracy or order accuracy refers to the percentage of orders fulfilled and delivered to the customer without any problems. Any error in the fulfillment process can lead to the order being canceled, misplaced, or returned. Businesses need to retain good order accuracy to avoid financial loss.

What is the Significance of Accuracy? 

Order accuracy is a key performance indicator (KPI) that tells businesses how successful their fulfillment structure is and how satisfied customers are. Most D2C businesses’ order accuracy rate is 96-98%. To be ahead of the competition, a business’s order accuracy rate should be as close to 100% as possible. 

  • Businesses can receive negative feedback from customers if the fulfillment process is not perfect. Any damage to products during shipment or a missing product in the package can cause customers to lose faith in the business. 
  • Order accuracy rate can help companies see what percentage of their orders are fulfilled correctly without errors. This way, they can identify problem areas in orders that faced issues during fulfillment. 
  • An insight into the business’s order accuracy rate will cause management officials to devise new tactics to improve the process. 

Prerequisites of Accuracy and How It Works

Order accuracy is vital for a business’s reputation amongst clients. Here are ways to improve order accuracy: 

  • Improving the inventory management process with a real-time tracking system can help boost the order accuracy rate. A business can track incoming orders and tally it with inventory. This will help the brand process orders faster and maintain its stock. 
  • Using an automated order management system can also help reduce errors in order processing. 
  • Optimizing the picking and packing process is crucial. A packing station where products can be tallied against SKU before packing and shipping will reduce error rates. 
  • For small and medium companies, the best way to handle fulfillment is to outsource the process to a 3PL partner. A 3rd party logistics can take care order processing, picking and packing, shipment, and delivery without the business owner having to worry. 

Use Case with Accuracy 

If order accuracy rate is too low, customers might forget the business altogether. For example, suppose a customer orders a product from a business, and the delivery is too late or products get damaged in transit. In that case, they will be apprehensive about ordering from that business in the future. Businesses need to maintain a high order accuracy rate for the sake of their customers and to uphold their reputation.

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