What is Track and Trace really? And how does intelligent shipment tracking work? Find out in this article.
A seamless shopping experience is essential in E-Commerce: it contributes to high customer satisfaction and repeat purchases. However, what is often forgotten is personalized shipping communication. To manage this efficiently, modern track and trace solutions are ideal. But what does track and trace actually mean? And how does intelligent shipment tracking work? You'll find out in this article.
We'll show you what benefits track and trace offers and why you as an online retailer shouldn't miss out on it.
In E-Commerce, the term track and trace refers to shipment tracking of packages and freight. Thanks to modern technologies, the individual stages of the supply chain can be tracked and shipments located at any time. This information helps optimize processes, adjust capacities, and personalize the customer experience by proactively informing buyers.
Track and trace offers online retailers and buyers significant added value because every shipping step is traceable. To track shipments successfully, modern IT systems process important accompanying information for a package. This includes:
From the acceptance point through the distribution center to delivery — each package goes through various stations before reaching its final destination. So that shipments can be identified at any time, they're equipped with an individual barcode.
Based on this track and trace code, shipment information can be retrieved in real time and viewed by recipients at any time.
Relevant shipment information includes, for example:
Merchants and buyers always know where the corresponding shipment is. The result: higher planning security and improved process reliability.
Did you know? Up to 70 percent of online shoppers want to be informed about the current status of their order. Retailers benefit on several levels from modern track and trace systems: shipping processes can be analyzed and optimized precisely thanks to comprehensive documentation. On top of that, good online tracking increases buyer satisfaction and leads to long-term customer loyalty.
But track and trace can do much more and offers the opportunity for personalized post-purchase communication: tracking emails have an average click rate of 63 percent, making them among the most frequently opened messages. That's a lot of untapped potential. Track and trace communication creates new touchpoints for customer outreach, buyer support, strong brand building, and an outstanding customer experience — precisely when buyers are most receptive to it.
A unique shopping experience is the goal of every online retailer. But often it ends with the click of the purchase button. The problem: retailers still too often leave shipment tracking to external shipping service providers. Between the order placed and package delivery, a gap in shipping communication opens up. Online shops hand over an important communication channel to their shipping service providers and miss out on valuable potential for traffic and sales.
It's important to fill this gap and take shipping communication into your own hands. Experienced fulfillment service providers like Zenfulfillment support you in this and together create an unforgettable customer journey.
Buyers can track the status of their orders via your own tracking page — either hosted by Zenfulfillment or integrated directly into your online shop. By integrating it into your shop, you can enrich the page with extra information, marketing banners, or product recommendations — helping the buyer make a quick repeat purchase. You have full control and decide for yourself when you want to share which information with your buyers.
You can also easily create emails with shipping updates via Zenfulfillment. This way you keep buyers informed about every station of their package. You can enrich the emails with marketing campaigns and inspiration, securing another important communication channel for yourself. If you're already using Klaviyo for email marketing, you can take advantage of our integration with this powerful tool. Zenfulfillment sends shipping updates to Klaviyo, where you can use them in personalized email flows.
Learn more about a personalized customer experience with Zenfulfillment.
The potential of track and trace software in e-fulfillment shouldn't be underestimated. Through personalized shipping processes, you can fully utilize and self-manage contact points with buyers. This brings several advantages:
Your customers' shopping experience shouldn't end with the checkout button. It's important to include shipping communication and personalize previously untapped touchpoints. With track and trace, you can create an outstanding post-purchase experience, increase customer satisfaction, and boost sales. Take this opportunity and don't lose valuable traffic to external shipping service providers.
The header image is from weedezign on stock.adobe.com, the other images from insta_photos and fizkes (also stock.adobe.com).
Track and Trace describes the ability to track shipments throughout the entire transport route and transparently display every stage of the supply chain. In modern fulfillment, track and trace is an indispensable element because customers today expect to be able to access information about their order status at any time. The process usually begins in the warehouse, where an order is prepared after receipt in the shop and equipped with a unique identification code. From there, the shipment is scanned at each handover point — fulfillment center, distribution center, or delivery vehicle.
This comprehensive documentation creates a digital "fingerprint" of the package that's viewable by both merchants and end customers. Customers benefit from clear transparency, while merchants maintain an overview of all shipments and can proactively address potential issues. Track and trace also increases efficiency in customer service because inquiries about delivery times or status drop.
In short: track and trace means the digital real-time tracking of a shipment that creates transparency, security, and trust throughout the supply chain.
The principle of track and trace is based on the unique identification of each individual shipment. Once a package is packed in the fulfillment center, it receives a label with an individual barcode or QR code. This code contains all essential data such as sender information, recipient address, shipping method, and sometimes additional information such as product type or special handling instructions.
Every time the shipment reaches a station within the supply chain — the warehouse, a sorting center, or the delivery vehicle — the code is scanned. All captured information is automatically transmitted to a central IT system. There it's updated in real time and can be viewed by both merchants and end customers. Customers typically use a tracking number they receive from the merchant or shipping service provider.
Through comprehensive data capture, a kind of digital itinerary of the delivery is created. Merchants can identify bottlenecks early and respond to delays, while end customers always have transparency about their order.
The cost of track and trace depends on several factors and can't be stated as a flat rate. With most major shipping service providers, standard shipment tracking is already included in the normal package price. Customers can track online where their order is and when it's expected to arrive without incurring additional fees. For merchants, this service is often part of the agreed shipping tariff and is not billed separately.
In addition to standard shipment tracking, there are expanded services that may incur additional costs. These include detailed delivery confirmations with signatures, individual notifications via SMS or email, interface integrations into ERP or shop systems, or extended reporting with detailed analyses of delivery times and delivery quality. These extras are especially interesting for merchants with high shipping volumes, as they provide additional transparency and identify optimization potential.
International shipments can also be more expensive because tracking across borders is more complex and depends on partners abroad. Costs vary depending on the destination country and service provider.
A track and trace code is a unique identifier assigned to each shipment so it can be tracked throughout the shipping process. Usually this is a barcode or QR code on the package's shipping label. The code contains all important information: sender data, recipient address, shipping method, and other identifying characteristics.
Each time the package reaches a station within the supply chain, the code is scanned. This updates the current status of the shipment in the shipping service provider's IT system in real time. Merchants and customers can access this data via a tracking number or special link — for example, when a package left the warehouse, which distribution center it's in, and when delivery is scheduled.
The track and trace code is the central element of shipment tracking. Without it, transparent tracking wouldn't be possible because each shipment must be uniquely identified. Modern systems go even further and provide additional information such as delivery attempts, delays, or proof of successful handover.
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