As the eCommerce sector grows so, too, do unwanted externalities. Specifically, instances of theft are increasing with the number of parcels being shipped. In 2021, for instance, parcel thieves stole an estimated 260 million packages from doorsteps.
No one wants to be on the receiving end of theft, not retailers or their customers. Fortunately, there are steps you can take to reduce the risk of theft. Unbranded boxes and strong communication with customers help. But one of the best things brands can do to reduce instances of theft is to add proof of delivery (POD) to their shipping service.
This article will explain everything you need to know about proof of delivery, including what it is and the various different types of proof of delivery you can use. So if you’re ready to improve security and increase customer loyalty then keep reading.
Proof of Delivery (POD) Explained
Proof of Delivery is evidence in the form of a physical or digital receipt that the customer received their package. This document helps to confirm that the package was delivered in good condition with no damage.
Typically, standard PODs contain information such as the date and time of delivery, the name of the recipient and courier, and the delivery address.
Ultimately, the main purpose of POD is to document that the delivery was successful and that the recipient received the parcel as per the agreed terms.
Different Types of POD
If you’re considering utilising proof of delivery, you’ll need to know the different types of POD. This section will review three popular proof of delivery methods and will explain them in detail. By the end of this section, you’ll hopefully have a better idea of what option you want to offer customers.
Photo and Signature
This is the most common POD method in the eCommerce space. When using photo and signature PODs, the delivery worker uses a mobile device to take a picture of the delivered parcel and record an electronic signature. The purpose of the recipient’s signature is to act as an acknowledgement of the delivery and to confirm that the parcel is in good condition.
Many businesses prefer this method as it is versatile and easy to use. You only need one mobile device that can take photos and receive signatures. Furthermore, having photo and signature proof is helpful in cases involving damage or disputes.
GEO-Code Confirmation
A relatively new proof of delivery, GEO-code confirmation is an advanced way to ensure that parcels reach the correct delivery location.
This type of POD involves a shipment confirmation process that uses GEO codes (a set of geographic coordinates) to confirm the customer’s precise location and provide evidence of successful parcel delivery to that location.
PIN and QR Codes
Another type of proof of delivery utilises PIN and QR codes. These are two separate methods but are similar in nature. Let’s start with QR codes.
The process of this method is simple: each package will have a QR code on the label. Delivery drivers will then scan the code using a QR code scanner or mobile device when the parcel is delivered to confirm shipment.
QR codes are either used alone or with a signature. While this method confirms delivery, it also allows real-time updates on the delivery status, allowing customers to be notified immediately when the status changes from “out for delivery” to “delivered.”
Proof of deliveries involving PIN codes work slightly differently. A unique pin code for each package is generated and linked with that shipment. The customer will then receive the code via text or email and must relay it to the delivery worker to obtain their package.
Benefits of Electronic Proof of Delivery
All the above POD methods use electronic means. While some companies still use physical proof of delivery methods, electronic PODs are rapidly gaining popularity. Let’s take a look at some benefits of electronic proof of delivery.
- Real-time tracking. Due to the nature of electronic methods, businesses and customers alike can gain access to real-time tracking and be more informed about the status and location of packages, ultimately reducing uncertainty.
- Reduced cost. Companies can easily reduce costs through electronic methods as most PODs only require one mobile device. Furthermore, there won’t be any costs associated with printing and storing physical POD documents.
- Sustainable. Using electronic PODs erases the need for physical paper documents and, thus, will greatly increase your brand’s sustainability and reduce your carbon footprint.
- Convenient. Most electronic PODs are convenient for the customer as they are quick and easy to use. Furthermore, half the time, the customer doesn’t even need to be at home to obtain proof of delivery, making it easy on their part.
- Data analytics. A main benefit is that your business can obtain data and help you analyse delivery performance, optimise routes and recognise trends.
Why POD Is Important for Your Business
While setting up proof of delivery may be time-consuming, require additional investment or mean you need to change your preferred carrier, it can be well worth the effort. Below, we discuss three major reasons why having proof of delivery is important for your business.
Protects Against False Allegations
First and arguably most importantly, POD will help protect your brand when customers claim their items haven’t been delivered. A POD document will protect against false allegations claiming the package was damaged or not delivered, as you’ll have a verifiable record of successful delivery.
Improves Customer Experience
A survey from 2019 found that 84% of online shoppers stated that they were less likely to shop from the same company if they had a negative last-mile delivery experience.
Utilising POD will improve last-mile operations and reduce the risk of complications. Furthermore, having a reliable POD system in place shows your customers that your brand is willing to be transparent, which will ultimately help improve the overall customer experience.
Streamlines Operations
Implementing an electronic POD system is reliable and will help to streamline operations by increasing delivery accuracy and efficiency. The faster processing times and reduced errors, such as missing or lost information and documents, will save your company time and money. Furthermore, you’ll have a record of all deliveries and can manage orders and inventories easily.
Why POD Is Important for Your Customers
Not only is proof of delivery vital for business operations, but customers will also greatly benefit from this system. Offering POD to your customers gives them an added layer of security by ensuring they receive their parcels rather than having them left on their doorstep.
Prevents Theft and Fraud
First, most POD methods ensure that only the intended recipient receives the package, as tools like electronic signatures and pin codes will verify the consignee. Furthermore, if theft occurs during the delivery process, the POD record can help uncover where and how the theft occurred.
Proof of delivery may also decrease fraud cases as they help provide clear delivery records, making it easy for customers to identify fraudulent charges.
Keeps Customers Informed
When your company utilises electronic POD methods, customers receive more accurate delivery estimates and updates on their shipment status, ensuring they are well-informed throughout the process. Your customers will know exactly when their parcel is delivered, helping to increase transparency.
Furthermore, with access to comprehensive delivery data, companies can provide more detailed responses to customers seeking information about their shipments, helping to reduce uncertainties.
Helps to Build Trust and Reliability
Since it is easier to streamline operations with electronic POD methods, reduce errors, and increase accuracy, customers will quickly trust your company to provide reliable delivery. Things like pre-delivery and post-delivery notifications as well as real-time tracking, are all things that will maintain trust and keep customers coming back.
Find the Perfect Carrier for Your Retail Brand
Pro Carrier is here to help you create a seamless delivery experience. Thanks to our carrier-agnostic approach, we can match you with the best carrier for each of your international markets. We integrate with every major eCommerce solution, meaning you can provide your customers with the most accurate delivery times and costs in real-time.
Speak to an expert today to find out more about proof of delivery.
