What is an Active Shipment?
An active shipment indicates that the order has been placed and is yet to reach its final destination. During a customer’s e-commerce purchase journey, that order remains an active shipment until it is delivered to the customer. Active shipments are assigned a tracking number, which will offer information about the shipment’s status.
Significance of Active Shipment in E-commerce Logistics
Active shipments are useful for e-commerce businesses in tracking pending shipments to be delivered. Based on active shipment records, further delivery speeds can be increased to deliver products on time. Here are some more advantages of active shipment to consider:
- Timely delivery: Active shipment allows companies to know the number of pending deliveries and complete those on time.
- Better management: Having information on the active shipments allows companies to optimize the order fulfillment process.
Pre-requisites of an Active Shipment and How it Works
Customers place an order on an e-commerce platform and relax; the rest of the work is completed with an active shipment. The following are some prerequisites for active shipping:
- Order placement: There should be at least one order placed in the cart.
- Destination: The destination pin code is required for this active shipment to be delivered to the customer.
Use Case With Active Shipment
Consider a customer who has five products in the cart and orders one of those products. The products will now convert into active shipments. It will remain at this stage until the product reaches its final destination, which is the customer’s address. If that shipment is delivered on time and with accurate tracking information, the customer will tend to generate more active shipments increasing the company’s revenue.