The Role of Route Optimization in E-commerce Delivery

The Role of Route Optimization in E-commerce Delivery, Zeo Route Planner
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By 2026, 24% of retail purchases are expected to take place online. That’s nearly 1 out of every 4 purchases! As e-commerce continues to grow in popularity, the importance of efficient delivery becomes increasingly significant. This is where route optimization comes in.

Several e-commerce businesses have successfully implemented route optimization in their delivery processes. For example, Amazon uses route optimization algorithms to determine the most efficient routes for delivery vehicles. Walmart uses GPS and real-time tracking technologies to monitor delivery vehicles and adjust delivery routes as needed.

Route Optimization: What is it?

Route optimization involves the use of algorithms and technologies to determine the most efficient routes for delivery vehicles. It need not necessarily be the route with the shortest distance. But it will be the route that saves you the most time and money.

While optimizing a route various factors are considered:

  • Start and end locations
  • Delivery time window
  • Stop priority 
  • Stop duration
  • Vehicle capacity 

Hop on a 30-minute demo call to understand how Zeo can be the perfect route planner for your business!

How does route optimization help in e-commerce deliveries?

Saves last-mile delivery costs

E-commerce businesses need to make last-mile deliveries i.e. deliver the package right to the customer’s doorstep. The cost of making last-mile deliveries can quickly add up if not controlled and can seriously impact the P&L. Route optimization helps in saving costs by keeping the fuel costs in check as the drivers follow the most efficient route. It also reduces vehicle maintenance costs as the vehicles go through lesser wear and tear.

Optimum planning of the route ensures that delivery drivers and vehicles are utilized efficiently. Businesses need not have additional drivers on their payroll or purchase additional vehicles until really required.

Read more: How Route Optimization Software Helps You Save Money?

Saves planning & delivery time

Manual route planning is extremely complex. It keeps getting even more difficult and time-consuming as the scale of your e-commerce business grows. By choosing to automate route planning and optimization, you will save a lot of time for your planning team. As time is money, this time can be used towards generating more business. 

Route optimization also ensures that deliveries are made quickly in the least possible time. As the drivers are able to make deliveries efficiently, they can use the saved time to make more deliveries in a day.

Improves customer satisfaction

One of the biggest factors in the success of e-commerce businesses is the ratings and reviews they receive from their customers. Route optimization software helps in keeping your customers happy by ensuring fast deliveries. Also, the option of adding a delivery time slot while optimizing the route ensures that customers receive their packages at their preferred time, reducing the chances of failed deliveries. A positive customer experience leads to increased customer retention and loyalty.

Read more: Improve Customer Service Using Zeo’s Route Planner

Helps in managing jump in delivery volume during peak seasons

The holiday season is the most important time of the year for e-commerce businesses. Route optimization helps in scaling up operations during the holiday season when there is a significant increase in the volume of orders. Businesses can plan the routes smoothly with a route planner and ensure that the orders are delivered to the customers on time.

Real-time tracking

Track the real-time location of the drivers using GPS. It helps in keeping the customers in the loop as customers are demanding more visibility into the progress of their delivery. This transparency enables the fleet managers to take prompt action in case of any unexpected delays and inform the customer about any changes in the ETA.

Sign up for a free trial of Zeo route planner to start optimizing your routes right away!

Conclusion

To stay on top of their game, e-commerce delivery businesses need to make use of all the technologies available at their disposal, route optimization being one of them! It not only helps in saving time and money but also improves customer satisfaction. E-commerce businesses should consider investing in a route optimization software if not using one already!

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    How to Create Route?

    How do I add stop by typing and searching? Web

    Follow these steps to add a stop by typing and searching:

    • Go to Playground Page. You will find a search box in top left.
    • Type in your desired stop and it will show search results as you type.
    • Select one of the search results to add the stop to list of unassigned stops.

    How do I import stops in bulk from an excel file? Web

    Follow these steps to add stops in bulk using an excel file:

    • Go to Playground Page.
    • In top right corner you will see import icon. Press on that icon & a modal will open.
    • If you already have an excel file, press the “Upload stops via flat file” button & a new window will open up.
    • If you don’t have an existing file, you can download a sample file and input all your data accordingly, then upload it.
    • In the new window, upload your file and match the headers & confirm mappings.
    • Review your confirmed data and add the stop.

    How do I import stops from an image? Mobile

    Follow these steps to add stops in bulk by uploading an image:

    • Go to Zeo Route Planner App and open On Ride page.
    • Bottom bar has 3 icons in left. Press on image icon.
    • Select the image from gallery if you already have one or take a picture if you don’t have existing.
    • Adjust the crop for the selected image & press crop.
    • Zeo will automatically detect the addresses from the image. Press on done and then save & optimize to create route.

    How do I add a stop using Latitude and Longitude? Mobile

    Follow these steps to add stop if you have Latitude & Longitude of the address:

    • Go to Zeo Route Planner App and open On Ride page.
    • You will see a icon. Press on that icon & press on New Route.
    • If you already have an excel file, press the “Upload stops via flat file” button & a new window will open up.
    • Below search bar, select the “by lat long” option and then enter the latitude and longitude in the search bar.
    • You will see results in the search, select one of them.
    • Select additional options according to your need & click on “Done adding stops”.

    How do I add a using a QR Code? Mobile

    Follow these steps to add stop using QR Code:

    • Go to Zeo Route Planner App and open On Ride page.
    • You will see a icon. Press on that icon & press on New Route.
    • Bottom bar has 3 icons in left. Press on QR code icon.
    • It will open up a QR Code scanner. You can scan normal QR code as well as FedEx QR code and it will automatically detect address.
    • Add the stop to route with any additional options.

    How do I delete a stop? Mobile

    Follow these steps to delete a stop:

    • Go to Zeo Route Planner App and open On Ride page.
    • You will see a icon. Press on that icon & press on New Route.
    • Add some stops using any of the methods & click on save & optimize.
    • From the list of stops that you have, long press on any stop that you want to delete.
    • It will open window asking you to select the stops that you want to remove. Click on Remove button and it will delete the stop from your route.