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GLOSSARY

Delivery lead time

The average time from the receipt of a customer order to the delivery of the product ordered


Generally speaking, lead time is a latency between the initiation and execution of a process. When dealing with ecommerce, delivery lead time is the delay between the time customers place an order and receive the ordered items.

To define a delivery lead time within Commerce Layer, you have to specify:

In a few words, a Commerce Layer’s delivery lead time is a range of hours, from a best to a worst-case scenario. You guarantee that items in an order are handed over to the delivery address within that range. It can also be helpful to provide an indicative delivery date to the customer.

Examples

As mentioned above, the time taken to deliver your product depends on two parameters:

  • how you ship, the shipping method
  • where (actually from where) you ship, the stock location.

Some particular goods could require extra care. For example:

  • a special packaging that needs more time to complete,
  • they could be available only in a warehouse distant from the delivery address.

Let’s dive into a couple of simple examples.

Single shipping method and multiple stock locations

Let’s assume your selling to the US from two different warehouses. One located in North America and the other one in Europe. In the simplest scenario, only one shipping method is available. It is a safe bet that items shipped from the former stock location will be delivered faster. Hence, the European stock location will be associated with a longer delivery time.

Single stock location and multiple shipping methods

Vice versa, let’s assume you’re shipping all your products from the same stock location. You provide different shipping options for your customers. For example a more expensive 24-hours delivery vs. a cheaper 2-3 days one. In this case, the selection of a shipping method determines the time taken to deliver the goods.