The Power of Order Fulfillment: Reducing Late Shipments for Repeat Business and Increased Profitability

In the fast-paced world of eCommerce, order fulfillment performance plays a critical role in shaping customer satisfaction, repeat business, and overall profitability. One key aspect that significantly impacts these factors is the timely delivery of orders.

Let’s take a moment and look at some statistics that can give us some direction on the interplay between reducing late shipments, increasing repeat business, and how it directly contributes to lowering customer acquisition costs and driving profit growth.

Late Shipments and Customer Satisfaction: Late shipments can have a detrimental effect on customer satisfaction. Studies show that 79% of customers expect their deliveries to arrive on time, and when expectations are not met, it can lead to frustration, reduced trust, and potential loss of future business. (Source: Convey)

Repeat Business and Profitability: Repeat business is a key driver of profitability in ecommerce. According to research by Adobe, repeat customers spend 67% more than new customers and are more likely to recommend the seller to others. By cultivating a loyal customer base, businesses can reduce customer acquisition costs and achieve higher profit margins.

The Impact of Reducing Late Shipments: By focusing on reducing late shipments, sellers can directly improve customer satisfaction, leading to a higher likelihood of repeat business. Consider this: a study by Convey found that 83% of consumers are likely to repurchase from a seller if their delivery experience is positive. This emphasizes the significance of timely order fulfillment in fostering customer loyalty and driving revenue growth.

The Connection between Repeat Business and Lower Customer Acquisition Costs: Increasing repeat business not only drives revenue but also reduces customer acquisition costs. It is estimated that acquiring a new customer can cost five times more than retaining an existing one. By nurturing customer loyalty through efficient order fulfillment and on-time deliveries, businesses can save on marketing and acquisition expenses while increasing overall profitability. (Source: Harvard Business Review)

Furthermore, according to the National Retail Federation (NRF), reducing customer acquisition costs by just 5% can increase profitability by 25% to 95%. By focusing on improving order fulfillment performance and minimizing late shipments, sellers can enhance customer satisfaction, leading to higher repeat business rates and ultimately driving profitability.

The Profitability Impact: With that in mind, let's put these statistics into perspective. Imagine that by focusing on improving order fulfillment performance and reducing late shipments, a business successfully increases its repeat customer rate by 10%. Based on the earlier mentioned study, this would lead to a revenue boost of 67% from those customers alone. By simultaneously reducing customer acquisition costs, the business can achieve a double impact on profitability. (Source: Adobe)

A couple questions to consider for your business:

Do you know what percentage of your orders are:

  • Shipped on-time?
  • Shipped in-full?
  • Delivered on-time?

What can you be doing in your ecommerce business to increase your percentage of on-time deliveries?

Optimizing order fulfillment performance and minimizing late shipments are pivotal in fostering customer satisfaction, driving repeat business, and increasing profitability. The statistics sourced from reputable industry research clearly demonstrate the strong connection between reducing late shipments, enhancing customer loyalty, and achieving higher profit margins.

By prioritizing efficient operations and timely deliveries, businesses can create a positive feedback loop of customer satisfaction, repeat business, and reduced customer acquisition costs, resulting in sustainable growth and increased profitability.

Michael Anderson is the CEO and Co-founder of Etail Solutions. Etail Solutions is an Enterprise SaaS company providing software solutions to help brands and 3PLs grow, scale and optimize their D2C order fulfillment and eCommerce operations. Ideal Order™ is a new solution offered by Etail Solutions which helps companies identify gaps causing lost net income in current eCommerce operations and sets the new standard for maximizing efficiency, amplifying profits and achieving customer-centric excellence.

Visit to learn more.

Additional resources


The Power of Measurable Standards in Driving eCommerce Excellence

How Order Simulation Plugs Net Income Leaks

The Ultimate Ecommerce Fulfillment Metric? Finally, one KPI to rule them all

Five Steps Proven to Boost Ecommerce Net Income: How to stop net income “leaks” from your fulfillment operations

Perfect Order vs Ideal Order: Why "Perfect Order" falls short as a fulfillment KPI

Introducing Ideal Order Insights: New eCommerce tool manages inventory to maximize profit on current and future orders


Ideal Order Insights


Ecommerce Order Optimization [Infographic]

Ideal Order [Infographic]: The new standard for order and inventory management

See if our D2C Operations Control Tower is right for you.

Get a Demo