What Is Parcel Tracking Software and How It Benefits Your Customer Experience

Customers expect to track their orders with ease, and businesses that provide clear, real-time updates gain a competitive edge. Delivery tracking software makes this possible by connecting retailers, carriers, and customers through automated updates and centralized shipment visibility. Beyond reducing WISMO (“Where is my order?”) inquiries, it helps brands optimize logistics, improve customer satisfaction, and even drive sales. Let’s explore how it works and why it’s essential for ecommerce success.   

What is Delivery Tracking? 

Delivery tracking is an essential part of the ecommerce experience, giving both businesses and their customers insights into the status of shipments. 60% of shoppers say a good delivery experience has encouraged them to purchase again, according to a new report by IMRG, making effective delivery tracking a business imperative.

But what powers this level of visibility? How does delivery tracking software work behind the scenes to keep customers informed?

Delivery tracking software is a digital solution that enables businesses to monitor the status of shipments from warehouse to delivery, providing customers with automated updates on order status, estimated delivery times, and proof of delivery. Typically, this software integrates with carrier networks, warehouse systems (WMS), order management systems (OMS), and ecommerce platforms to ensure seamless tracking and communication.

Let’s break down how it works—and why it’s a paradigm shift for online retailers.

Core Features of Delivery Tracking Software

A great delivery tracking system does more than just show where a package is—it keeps customers informed, minimizes delivery issues, and helps businesses manage logistics more efficiently.

The latest tracking solutions offer:

• Real-time visibility into shipment status across multiple carriers.
• Automated notifications via email, SMS, or branded tracking pages.
• Proof of Delivery (POD), including digital signatures and photo confirmations.
• Seamless integration with ecommerce platforms, warehouse systems (WMS), and order management systems (OMS).

With these capabilities, delivery tracking software provides a centralized view of shipments, reduces WISMO (“Where is my order?”) inquiries, and enhances the overall post-purchase experience.

Let’s take a closer look at how it works behind the scenes.

How Delivery Tracking Software Works

At its core, delivery tracking software connects ecommerce businesses with carrier networks, logistics platforms, and customer communication tools to provide real-time shipment visibility. Instead of manually tracking individual orders or relying on carrier websites, businesses can consolidate all delivery data into one seamless system.

Here’s how it works:

1. Connecting to Carrier Networks for Real-Time Tracking

To provide accurate updates, delivery tracking software integrates with global and regional carriers, such as DHL, UPS, FedEx, and national postal services. These integrations ensure that tracking information is continuously updated as shipments move through the supply chain.

• Customers and businesses can instantly check a package’s location and estimated arrival time.
• Instead of juggling multiple tracking pages, all shipments—regardless of carrier—are monitored from a single dashboard.
• If a delay or issue arises, businesses can take immediate action before it impacts the customer experience.

2. Syncing with Ecommerce & Warehouse Systems

Tracking software doesn’t work in isolation—it integrates with Order Management Systems (OMS) and Warehouse Management Systems (WMS) to maintain order visibility from checkout to delivery.

• Each shipment is automatically linked to the correct order, eliminating tracking errors.
• As soon as an order is packed and dispatched, the system triggers a status update.
• Warehouse teams gain full visibility into fulfillment progress, helping them optimize shipping workflows.

3. Sending Automated Customer Notifications

Customers don’t want to wonder where their order is. They expect clear, proactive updates at every stage of the delivery journey.

• A branded tracking page lets customers follow their order’s journey without leaving the retailer’s website.
• Automated email and SMS notifications keep customers informed, reducing the need for support inquiries.
• If a package is delayed or requires a delivery adjustment, customers receive alerts with rescheduling options.

4. Managing Multi-Carrier Flexibility & Smart Routing

Ecommerce businesses often work with multiple shipping providers to balance cost, speed, and reliability. Delivery tracking software makes this process seamless.

• Smart routing assigns orders to the best carrier based on location, shipping cost, and delivery time.
• Cross-border tracking ensures international shipments remain visible, even when transitioning between different carriers.
• Last-mile tracking helps businesses monitor local couriers, reducing the risk of failed deliveries.

5. Leveraging Data & Analytics for Performance Optimization

Tracking software doesn’t just monitor deliveries—it collects valuable shipping data that can be used to optimize logistics performance.

• Businesses can monitor carrier reliability, identifying patterns in on-time deliveries and delays.
• With better visibility, WISMO (“Where is my order?”) inquiries are significantly reduced, cutting customer support costs.
• Every tracking interaction provides data that, helps businesses improve delivery strategies and boost post-purchase engagement.

Why Ecommerce Brands Need Delivery Tracking Software

In retail the customer experience extends beyond the checkout page. The post-purchase phase is now a critical touchpoint and opportunity for building trust and driving loyalty. Here’s how parcel tracking solutions make a real difference:

Enhancing Customer Experience
Personalized tracking options and branded delivery tracking pages improve engagement. Leading retailers like Laithwaites provide real-time tracking through nShift Track, ensuring customers know exactly where their orders are. By streamlining multi-carrier integrations, Laithwaites has optimized logistics and provided its customers with greater control and visibility over their deliveries.

Reducing WISMO Calls
Customer inquiries like “Where is my order?” (WISMO) can overwhelm support teams. By adopting nShift-powered order tracking systems, ICANIWILL reduced delivery-related queries by 50% in just one year, saving the company €12,000 annually. This has enabled their customer service team to focus on proactive care, elevating the overall customer experience.

Improving Efficiency and Saving Costs
Efficient processes save both time and money. Fashion brand QUIZ, for instance, integrated nShift Track and Returns into their systems to help manage delivery and returns at scale. They achieved 25-30% staff time savings, thanks to automated updates and streamlined query handling.

Driving Sales Growth
Post-purchase tracking doesn’t just keep customers informed - it creates opportunities for growth. For instance, ICANIWILL uses customer engagement during tracking updates as a marketing channel, achieving a 25% click-through rate (CTR), compared to the industry average of 18%.

 Delivery tracking software is more than just a convenience—it’s a competitive advantage. With the right tracking solution, businesses can not only improve operational efficiency but also turn shipping updates into valuable customer engagement opportunities. Investing in a robust delivery tracking system isn’t just about keeping customers informed—it’s about setting your brand apart in a crowded market.