What is Queue Time in E-commerce?
A queue time in e-commerce is the time a job/product is made to wait before processing. It also refers to the method by which online stores manage their customer demands by allowing shoppers to join an online waiting list for a specific product.
A queue time allows companies to manage their inventory and customer demand better while providing customers with a more efficient shopping experience.
Significance of Queue Time in E-commerce
A company should aim to maintain a shorter queue time as it indicates manufacturing efficiency and effectiveness. It also helps e-commerce companies in the following ways:
- This metric can be used to evaluate the efficiency of the platform’s checkout process and identify improvement areas.
- It can also provide insight into the effectiveness of customer service and support, as well as the effectiveness of payment processing.
- Additionally, queue time can be used to evaluate the overall customer experience and to determine if customers are satisfied with their purchase.
Prerequisites to Calculate Queue Time and How It Works
The following are the prerequisites to calculating online queue time –
1. Knowledge of data structures and algorithms
2. Understanding of the problem with relevant input/output data.
3. Ability to identify bottlenecks causing delays in the system.
4. Ability to optimize the manufacturing system
Use Case With Queue Time
A common example of online queue time is ordering a product during a sale. Due to high demand, companies usually face stock shortages which increases queue time for customers as well back in the back-end. This increases manufacturing lead time and work-in-process inventory as well. With an efficient manufacturing process and optimal inventory, companies can shorten the queue time.