Shipping or delivery: what’s the difference?

Does the difference between delivery and shipping mean nothing to you? Know how e-commerce orders are transported to customers' doors. Struggling to meet delivery deadlines? Managing drivers and deliveries with Route4Me.

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If you work in the delivery industry, the words "shipping" and "delivery" are probably familiar to you. In both cases, this involves the transport of goods from the supplier to the customer. However, although most people use them interchangeably, these terms do not have the same meaning.

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The term "shipment" refers to a package that leaves your warehouse and travels to the customer. On the other hand, delivery is the date on which the package is left at the customer's address. To avoid confusion, it is a good idea to let your customers know the shipping date and delivery date.

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Indeed, it is important to inform customers about the differences between the two terms to allow your small business to grow. Your customers should not think that your brand is in the wrong because they have confused the two terms.

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Make sure your customers understand the difference between shipping and delivery. This way, you will be able to manage their expectations and may avoid misunderstandings or dealing with difficult customers. We'll look at how shipping differs from delivery, so you can clearly explain the difference to your customers.

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What is shipping?

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Shipping or transportation refers to the packaging and sending of products from a retailer's or supplier's warehouse. These are usually small products that are shipped by a local postal service or courier service. So shipping usually involves transporting small items and household goods.

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The shipping procedure is as follows:

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   Receiving an order: Once the order is received, you first check your inventory to make sure you can fulfill it. At this stage of the shipping process, you must work with your manufacturer or supplier to receive the item into your warehouse. Alternatively, if you work with a third-party delivery optimization company, you will send the item to a fulfillment center for them.

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   Processing an order: During this step, you need to confirm the order information, customer payment details, address and contact details. You will also need to update inventory data.

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   Order Fulfillment: Order fulfillment involves picking up the items needed for the order and packaging them for transportation. When the item is small, the package is then shipped by local postal or courier services.

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Accurately determining your average shipping costs can help you provide better customer service and increase your sales. In what way? When you know the typical shipping costs, include them in the price of the item.

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This will allow you to offer free shipping on more orders and retain more customers, as customers are more likely to abandon an online shopping cart when faced with unexpected shipping costs.

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What is delivery?

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Delivery refers to when a customer can expect their order to arrive at their doorstep. It generally concerns large items, such as furniture and large household appliances, for which the delivery person may be required to install the product at the customer's home.

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Depending on the delivery service the customer has paid for, the courier may offer white glove delivery or doorstep delivery. Typically, the delivery process goes as follows:

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   The supplier or manufacturer sends their packages to the delivery service's transportation center or warehouse.

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   Delivery drivers are assigned their daily schedules. If you're doing last-mile delivery yourself, you can make this process more efficient by using route optimization software like Route4Me.

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   Warehouse workers scan items for delivery and update inventory before loading packages onto delivery trucks.

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   Delivery drivers bring packages to customers' addresses and obtain proof of delivery.

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The different types of delivery services are as follows:

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  Standard Delivery: Standard delivery is the slowest method of delivering packages. It usually takes three to five business days, and delivery is usually done by surface couriers (courier services that only deliver over land).

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  Same Day Delivery: This service delivers the customer's order on the same day they place their order. Typically, the customer should place their order early in the day so that the delivery service has enough time to pick up and deliver the item. Many e-commerce sites, like Amazon, now offer same-day delivery options for certain products or for special customers who sign up for services like Amazon Prime.

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  Next Day Delivery: This form of delivery is useful for delivering goods that can be transported overnight. These goods do not perish instantly, but still need to be transported quickly or with special arrangements, such as cold storage. These include, for example, fresh meat and medicines. It is possible to transport large quantities of goods overnight because after midnight there is less traffic, making night delivery an attractive option for many businesses.

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Shipping and delivery: The big distinctions

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Shipping and delivery activities are two important elements of the supply chain. They both ensure that the package reaches the customer's correct address.

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Although shipping is the process of picking and packing an order at the warehouse and sending it to the customer or a distribution center near the customer, delivery involves the final transportation of the package to the customer's door.

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Arrival time

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The delivery date indicates when a customer will receive their order. The ship date tells you when a package leaves the supplier's warehouse, but it doesn't tell you anything about last-mile delivery.

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On the other hand, the delivery date is the one which specifies when the order is likely to arrive at the customer's address. Updating online shoppers on the expected arrival time is essential to maintaining a seamless and trouble-free delivery service.

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Ultimately, no one likes to wait forever for a package without knowing when it will arrive. Not giving estimated arrival time or tracking options can make your customers impatient and grumpy. To automate this process, you can use a route planner like Route4Me optimizes delivery routes and allows you to send updates to customers.

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Order size

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The shipping service mainly concerns small orders which can be sent by local postal or delivery services. Typically, these orders are packaged and shipped directly from the supplier's warehouse.

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Some of the items you can ship include electronic gadgets, cosmetics, clothing or other household items. The delivery service takes care of heavier and larger items like air conditioners, dining tables, televisions or washing machines.

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It is often necessary to have these products installed by a professional. The delivery person hands over the product and can help install it for the customer.

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Comparison between ship date and delivery date in a typical shipping process.

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The date an item leaves the warehouse is called the ship date. The next part of the package journey is delivery.

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When you say delivery time, you are indicating the time you will need to transport the item to the customer's address. The delivery date refers to when the order will be delivered to the customer.

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Typically, an online order follows these steps until delivery:

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   Order Processing: In this step, you need to create tracking IDs and purchase orders. You also need to update inventory and assign tasks to packing and shipping teams.

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   Packing Orders: Now is the time to pack the items for shipping. We advise you to invest in durable packaging materials to avoid damage during transport.

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   Shipping and Delivery: Packages are then shipped from the warehouse. Depending on your activity, you can inform your customers that their packages have been shipped. Delivery of a small item may be handled by a third party courier or the local postal service.

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   Returns: If an item you delivered is broken, damaged, or substandard, you will most likely need to collect it and return it to your supplier. As an e-commerce business, you are expected to replace or refund your customers in these cases.

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What can businesses do to explain to customers the difference between ship date and delivery date?

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Online customers take delivery times very seriously. Indeed, their purchasing decisions are often based on the delivery options offered. For example, 72% of consumers said free shipping was their main reason for shopping online.

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Many customers, however, do not know the difference between shipping and delivery dates, which can be confusing and cause problems in terms of customer expectations.

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Typically, customers receive emails or text messages notifying them when their order will ship. They can assume that the shipping date is the date they will receive their order.

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The best way to avoid any misunderstandings is to ensure the customer is fully informed of the difference between shipping and delivery. Do this by indicating both dates in the order confirmation email. This will make it clear that the two things are different.

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It's also a good idea to include a short paragraph explaining the differences between shipping and delivery dates on your Shipping & Returns page. The FAQ section of your website is another place you can address this confusion.

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Shipping and delivering products yourself? With Route4Me, the process is simplified

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Do you want to handle the last-mile delivery yourself instead of entrusting it to a shipping service? Route4Me can help you.

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With Route4Me, you can organize and schedule deliveries for your entire team by setting up routes and choosing the fastest one so your drivers don’t waste time.

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The system even automates the process of sending customers regular updates on their deliveries. Customers can check the status of their order before it reaches them and what the estimated delivery date is.

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This eliminates confusion about shipping or delivery dates. By being regularly informed about the status of their orders, customers are more confident about when their orders will arrive.

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