Parcel Tracking Provider & Software Comparison

Shipment Tracking Software Definition: What is Shipment Tracking Software?

Shipment tracking software - or in German Sendungsverfolgung-Software - does exactly what its name suggests: it allows you to track deliveries of sold or purchased products. The focus of such programs is primarily on larger e-commerce companies. But smaller enterprises, which offer goods on the internet and then send them to their customers through one or more shipping service providers, can also benefit. The tracking data from all the relevant shippers are collected on a central platform and then forwarded to the respective recipients. The main goal is to keep the latter as up-to-date as possible.

Excursus: The difference between shipment tracking software and track-and-trace software solutions

The functionality and basic intention of shipment tracking software and track-and-trace software are virtually identical. Both offer businesses the opportunity to inform their customers (in the best case scenario) in detail about the shipping status of individual goods.

However, shipment tracking software is primarily aimed at B2C companies, whereas track-and-trace programs focus on B2B commerce. The latter provide B2B customers with transparency along the entire supply chain - potentially worldwide: from production and picking to loading and handling at warehouses, ports, airfields, etc., all the way to delivery. Here, not only the shipping process is tracked, but the entire delivery process (including in-house) is monitored.

Because the processes are similar, the terms "shipment tracking software" and "track-and-trace software" are often used synonymously. However, if those responsible for searching for a B2C shipment tracking solution enter "track-and-trace software" online, they will quickly notice that many of the results do not quite match their needs.

Why should companies use shipment tracking software?

Offering quality products is essential for (e-) commerce success. In recent years, however, the priorities of typical customers have shifted somewhat. High-quality goods still occupy a special position for revenue. However, the overall shopping experience is now just as important for many people as the product itself. Approximately 86 percent of consumers, according to international studies, are willing to pay more for an item from a company that offers an excellent shopping experience.

The buying decision, or rather the customer journey, extends from the first contact with a brand to online content and customer service consulting, all the way to shipping and delivery. The latter two factors are still often treated somewhat negligently by many companies. However, this is a mistake, as they can significantly influence the shopping experience. At this point, shipment tracking provides transparency, trust, and planning security.

Almost 25 percent of all online shoppers state that they are highly likely to shop again with a brand that offers good shipment tracking. For many buyers, it is therefore essential not to be left in the dark about what happens to their goods during shipping. The ability to plan their day accordingly, without having to postpone appointments and tasks, because they have to wait for their package, and no longer having to accept non-transparent shipment losses, are things that many customers appreciate so much that they are more likely to become repeat customers.

Shipment tracking is thus a central means for you to remain competitive. However, ensuring the appropriate conditions is easier said than done. The mere fact that many companies have various shippers for (cross-border) logistics as partners greatly complicates matters. Although today's shipping service providers usually offer tracking opportunities, communicating these effectively to customers is a challenge. Last but not least, the shipment tracking solutions of parcel services and freight forwarders are often not very appealing or user-friendly.

This is where shipment tracking software comes into play. It allows you to manage and pass on all tracking information from individual shippers in one central location. For transmission, individually designed and branded emails, SMS, and/or websites can be used. The process of shipment tracking becomes more efficient for all parties and increases the chances for you to benefit from the above-mentioned advantages.

How does shipment tracking software work?

Shipment tracking software starts its work as soon as a shipment is dispatched. The product or the corresponding package is provided with a reference number in the form of a barcode by the responsible shipping company. This usually appears on a label, which is not necessarily applied by the shipper itself, but by the company selling the particular goods.

The barcode and its number make it possible to track the shipment along its entire route. At certain logistics points, the codes are scanned during their journey. The information thus captured about location, time, and date is entered into a database, which can then be queried by future recipients of the deliveries using tracking numbers directly via the shipper, usually on their website. This way, they know where the individual shipments are at any given time. It is also possible for customers to automatically receive notifications about important events during the delivery.

One disadvantage here is that each supplier has its own system with its own wording, its own usability, and its own design. Information about the status and whereabouts of the shipments is also communicated in different ways.

A shipment tracking solution is now connected to the systems of various shipping service providers. It can retrieve all shipping information and allows its users to individually process this information. For example, there is the opportunity to display updates on a special, branded website or generate personal information emails and automatically distribute them. The measures are always in the same style and brand-related - regardless of which shipper takes over the delivery.

What are the advantages and disadvantages of shipment tracking software?

Shipment tracking software standardizes tracking processes across multiple shippers, ensures a consistent brand presence, and allows you to improve the usability of tracking for their customers. These are undoubtedly substantial advantages. What else speaks for the use of a shipment tracking tool in view of these advantages is summarized below.

• Meeting customer expectations: Good shipment tracking software can significantly improve the customer experience. Buyers get a real-time overview of where their packages are in the distribution chain. For example, if products are ordered internationally, the tracking system can provide information about customs clearance, the departure from the country of origin, the estimated arrival date, and the status of the package at any given time.

• Promote long-term customer relationships: When customers can rely on a shipment tracking platform to reliably provide correct shipping information, they feel well cared for. This, in turn, increases the likelihood that buyers will become repeat customers.

• Ensure transparency: Today, all e-commerce businesses advertise fast, secure deliveries. Keeping these promises is extremely important. But nowadays, a high degree of transparency must also be given. Especially with expensive or otherwise critical goods, this is an important trust factor. Shipment tracking software establishes appropriate conditions.

• Support the entire shipping process: Logistic processes are complex. They consist of order processing, warehousing, packaging, inventory management, shipping, and other processes. The more these processes are purposefully supported by software, the more efficient, and ultimately economical, they become. In combination with automated shipping software, shipment tracking technology can greatly contribute to the optimization of typical shipping processes.

• Less (communication) effort with lost packages: Shipment tracking software can clearly determine the last documented location of a lost package. For customers, this is directly visible. This eliminates long question-and-answer processes (at least on the customer side). Recipients of undelivered items know what has happened, and those responsible can carefully investigate or resolve the problem.

Despite the undoubtedly numerous advantages that companies can derive from using shipment tracking software, specific disadvantages should not go unmentioned.

• Inaccurate shipment status: The shipment tracking of all providers is based on a third-party approach. This means that the data is usually cached and only updated at certain intervals. If part of the supply chain is faster than this automation assumes, customers may only receive an important update with a delay. Some tracking software (but not all providers yet) provides real-time information. Interested parties should always pay attention to corresponding features or at least regular data updates.

• Misinterpretation of status messages: Shipping service providers sometimes formulate status messages in a complicated way. Shipment tracking software can convert such messages into simpler language (if necessary). However, this can lead to misinterpretations and ultimately inaccurate or even incorrect information. Customers may be annoyed about late deliveries without knowing the reason.

• Hidden package delivery specifications: The current ability to specify delivery points or delivery days for shipments is particularly popular with working people. However, such settings usually only work directly on the individual parcel service's website. Users of shipment tracking software can, of course, equip their update pages, status SMS, etc. with appropriate links to the original tracking, but there is a hurdle here.

How to choose the right shipment tracking software?

Good shipment tracking software is a very important economic factor for many companies. But how do those responsible know which one is the right one among the multitude of available options? To make the selection process easier, you should consider the following criteria during your research.

Field of application Many shipping services have a certain range, which is based on their location and the location of their various shipping partners. A shipment tracking provider can definitely work with more than 300 partners, none of whom, however, operate in the part of the world where the responsible person's company is located.

Therefore, at the very beginning of the search, it should be determined which software supports the region's best shipping services or those perhaps already in use. In this context, it is also necessary to question whether the individual tools can handle the required order volume.

Prices or Rates It goes without saying that the prices for shipment tracking software have a certain impact on the company's profits. However, the lowest costs are not always the best.

It should be considered which features are used, what tracking volume needs to be processed, and how the ratio of effort to effort reduction from these two factors pays off for the company. So, you should consider what services or alleviations, within a particular rate, are offered and whether the costs for using these are worthwhile.

Multi-shipper support You are advised to choose a shipment tracking software that supports a variety of shipping service providers. With suitably diverse options, you can guarantee that your customers really stay up to date in every shipping case.

Nowadays, buyers increasingly expect multiple shipping options: from particularly inexpensive shipping methods, through delivery to pick-up points, to express shipments. Various shipping partners must be brought on board to enable these and other options. Only in this way can as many buyers as possible be made happy. If shipment tracking software does not support even one of these services, obvious disadvantages arise.

Real-time tracking This is undoubtedly one of the most important aspects of shipment tracking software: While many companies do offer powerful all-in-one shipment tracking solutions, not all of them provide live or real-time updates. So, current messages can reach the shipment recipients with a significant time delay. This way, the potential of shipment tracking can obviously not be fully exploited.

Therefore, you should make sure that the programs of the first choice offer live order tracking and real-time updates on the order status. This is the only way recipients are really optimally informed - and the only way the chances of repeat purchases and long-term profitable business relationships increase.

Quick setup and user-friendly features The ideal software for tracking shipments is not only feature-rich and offers immediate updates - it should also be able to be implemented in a short time. A complicated setup, which might only be possible through programming skills, is not an option for most companies - simply because they lack the necessary specialists for such tasks. Generally, a cloud solution is the fastest and easiest option.

The same applies to usability. Online hosted shipment tracking programs can usually be set up and used easily via any internet-capable device. They are usually designed for end-users who lack programming skills and other deeper technical knowledge.

Software that is quick to access and easy to use is generally used more intensively. The functions should ideally be provided in a simplified format to prevent any problems or delays. If a solution is too complex for the respective users, its potential is probably not being fully utilized.

Branded shipment tracking Many shipment tracking softwares allow you to design update sites and status messages in the design of your company. Corporate colors and the company logo or even links to the website and social media should be included.

Such options give you the chance to provide your customers with perfectly matched updates and at the same time present them with a marketing panel. It is even possible to display news, discounted products, and other interesting content. With the right marketing and branding strategy, such opportunities can undoubtedly pay off immensely.

Support During your search for suitable shipment tracking software, you should definitely also keep an eye on the support. The ability to get quick and uncomplicated support is important in any case. Because even the best program will at some point cause problems that can be hard or even impossible to solve on your own.

Support services can range from answering simple questions, through software implementation assistance or the integration of new freight forwarders, to strategic consulting. You should always include a support option, but carefully weigh up what is really needed. Because extended customer service can certainly be a significant cost factor.

How much does shipment tracking software cost?

The costs of shipment tracking software are primarily based on the respective tracking volume, the integrated shipping service providers, the number of users, and the general range of functions.

For example, a solution that needs to track no more than 50 deliveries from a single shipper per month and offers no additional features can be used completely free of charge.

On the other hand, shipment tracking software for larger e-commerce businesses with several shipping options, thousands of deliveries per month, differentiated update options, and the ability to create individual branding can quickly cost between 50 and 100 euros per month.