What is Shipping Time

Shipping Time is a logistics and customer service metric that measures how long it takes for a product to reach a customer after an order is placed. It starts from the moment the order is confirmed and ends when the item is delivered. This KPI is essential for eCommerce businesses, retailers, and fulfillment teams because fast, reliable shipping directly impacts customer satisfaction, loyalty, and brand reputation.

When shipping takes too long, customers may abandon future purchases or leave negative reviews. On the other hand, quick delivery can build trust and encourage repeat business. That’s why tracking Shipping Time helps businesses improve operations and meet customer expectations.

The basic formula is:

Shipping Time = Delivery Date – Order Date

For example, if a product is ordered on June 1 and delivered on June 4, the shipping time is 3 days. Monitoring this KPI helps businesses identify delays, improve efficiency, and stay competitive in today’s fast-paced market.

How to Calculate Variants of Shipping Time

Shipping Time is calculated using this simple formula:
Shipping Time = Delivery Date – Order Date

But depending on your needs, you can calculate it in different ways:

1. Average Shipping Time (Monthly or Yearly)
This shows how long, on average, it takes to deliver orders in a given time period.
Example: If three orders take 2, 3, and 5 days to arrive in May:
Average Shipping Time = (2 + 3 + 5) ÷ 3 = 3.3 days

2. Shipping Time by Channel
Segmenting by sales channel—like website, marketplace, or mobile app—helps identify where delays happen.
Example: Website orders average 2.5 days, while marketplace orders take 4 days.

3. Shipping Time per Customer or Region
You can also track by location or customer type to find trends. If rural areas average 5 days and urban areas 2 days, you may need to optimize routing or carriers.

Why Shipping Time Matters

Shipping Time is a crucial metric because it directly affects customer satisfaction, brand trust, and repeat business. In a world where fast delivery is expected, especially in eCommerce, long or inconsistent shipping times can lead to negative reviews, canceled orders, and lost customers. On the flip side, quick and reliable shipping builds loyalty and increases the chances of customers coming back.

Tracking Shipping Time also helps improve operational efficiency. If average shipping times start to rise, it could signal issues in your warehouse, carrier performance, or order processing systems. These insights allow teams to fix delays before they impact customer experience.

Operations teams use this KPI to optimize logistics. Marketers and sales teams rely on it to shape messaging and set realistic delivery expectations. Executives track it to assess cost-effectiveness and fulfillment strategy. Shipping Time is more than a delivery number—it’s a reflection of your business’s reliability and service quality.

Related KPIs to Shipping Time

Shipping Time is directly tied to the overall delivery experience and connects closely with other fulfillment and customer satisfaction metrics.

Shipping Time vs. Order Fulfillment Time
Order Fulfillment Time measures how quickly an order is picked, packed, and shipped after purchase. If fulfillment is slow, overall Shipping Time increases—even if the carrier is fast. Monitoring both helps pinpoint delays within internal operations versus external shipping.

Shipping Time vs. On-Time Delivery Rate
On-Time Delivery Rate tracks whether orders arrive by the promised date. A long or inconsistent Shipping Time can reduce this rate, leading to missed expectations and customer dissatisfaction. Improving Shipping Time often boosts your On-Time Delivery Rate.

Shipping Time vs. Customer Satisfaction Score (CSAT)
Fast, predictable delivery positively impacts CSAT. A delay in Shipping Time can directly lower satisfaction, leading to negative reviews or lower retention.