Shipping Error Rate Metric

Shipping Error Rate KPI

What is your Shipping Error Rate? This KPI measures the percentage of orders shipped with errors against the total number of orders shipped. Tracking this metric is essential for understanding the efficiency and accuracy of your fulfillment process.

Why is this important to track? Shipping errors hurt your business twice. First, they create a poor customer experience, leading to frustration and potential churn. Second, they increase operational costs as you spend more time, money, and resources to fix the mistake.

What's the formula for Shipping Error Rate?

(Number of Orders Shipped Incorrectly / Total Number of Orders Shipped) x 100

How often should you track Shipping Error Rate?

For most e-commerce businesses, tracking this KPI on a weekly or monthly basis is ideal. This frequency allows you to spot negative trends before they significantly impact your customer satisfaction and bottom line.

What's a good Shipping Error Rate?

While a 0% error rate is the ultimate goal, it may not be realistic for every business. A good starting target is to keep the rate below 1%. The key is to establish a benchmark and work towards continuous improvement. Small changes in your packing and shipping process can lead to big improvements here.

Who uses this KPI?

• Warehouse Managers use this to monitor fulfillment accuracy and identify process breakdowns.
• Operations Leaders track this to understand its impact on costs and customer satisfaction.
• Store Owners review this KPI to ensure the business is meeting its promises to customers.

Synonyms for Shipping Error Rate

This metric is also commonly referred to as Shipping Accuracy or Order Fulfillment Accuracy.

Ready to track your Shipping Error Rate? Explore our e-commerce dashboard examples to get started. Let's build a dashboard to monitor your fulfillment process and delight your customers.