At some point, you’ve probably showed up at home expecting to find a package on your doorstep, only to discover it’s not there. Was it delayed? Stolen? Taken inside by an overly helpful neighbor?
With nearly two-thirds of global shoppers anticipating items within 24 hours and more than 75% of consumers prioritizing secure delivery and tracking, ecommerce brands must decide how to optimize their delivery process—in part by sending customers proof their package was dropped off. Without proof of delivery, customers can experience confusion, which can lead to an unnecessary hassle for your customer service team.
Proof of delivery helps solve this problem—and there are a few other ways it can improve your delivery process and benefit your ecommerce business.
What is proof of delivery?
Proof of delivery (POD) is a physical or electronic record that confirms a shipment has been successfully delivered to the correct recipient without any problems. It might be a photograph of a package placed on a doorstep, or a signed document where the recipient confirms receipt.
These types of delivery receipts protect merchants, delivery companies, and delivery drivers by providing proof that a package was delivered. They also give customers peace of mind that their orders are being tracked and sent to the right place.
POD documents communicate important pieces of information, including:
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Recipient information. POD documents include customer information like name, address, phone number, and any other relevant information about the recipient of the item.
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Order details. Order details include order numbers and item information, cost, weight, size, and quantity.
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Billing information. Proof of delivery documents contain information about payment details like itemized costs and invoice numbers.
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Shipping and delivery details. Shipping and delivery information can include the name of the delivery company or delivery driver who dropped off the package and other delivery details, like a tracking number or estimated delivery date.
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Barcode and signature. POD documents include barcodes that let delivery companies easily track items as they make their way through distribution centers or carrier facilities to their final destination. Physical or electronic signatures act as confirmation that a delivery made it to the correct recipient.
Proof of delivery vs. bill of lading
A bill of lading is a legal document between a shipper and carrier outlining what is being shipped and who is legally responsible for the items being delivered.
Delivery companies and carriers sign bills of lading when goods are picked up by a merchant, distributor, retailer, or wholesaler. Both bills of lading and POD documents contain information about the shipment (e.g., item descriptions, recipient information, estimated delivery dates) and can help protect distributors and deliverers against liability issues.
While POD documents confirm when customers receive their orders, bills of lading are more comprehensive legal contracts that allow the transfer of goods from one company to another for delivery. Suppliers create bills of lading at the beginning of the delivery process, while delivery services companies create POD documents to confirm the completion of the delivery process to recipients.
Types of proof of delivery
There are two primary types of POD: physical and electronic. Here’s how they differ:
1. Physical
Delivery companies can use a physical document, like a paper receipt or a document that the customer signs, as proof of delivery. Typically, carriers return a copy of the physical POD document to the initial sender or supplier to confirm that a delivery reached its intended recipient.
Although a physical delivery document is an effective POD method, it can offer less reliability than electronic methods, as there is the risk of loss or damage to a physical document. Delivery companies using this type of proof of delivery can upload physical documents to digital logistics platforms for others to view, but there’s less speed and efficiency than electronic methods.
2. Electronic
Electronic proof of delivery involves capturing an electronic signature on a tablet or mobile device, or other forms of digital proof, like photographs. Delivery companies using electronic proof of delivery can upload digital signatures or photographs to delivery management software. Electronic proof of delivery uses delivery software to provide businesses and consumers with real-time tracking for items arriving to their intended destination.
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The Shopify guide to shipping and fulfillment
Boost customer satisfaction while driving sales growth for your ecommerce business with an effective shipping and fulfillment strategy. Use this guide to create a plan that covers all aspects of shipping and fulfillment, from how much to charge your customers to choosing the right fulfillment method.
Why ecommerce businesses use proof of delivery
- Improved customer experience
- Liability protections and lower fraud risk
- Better record keeping
- More data about order fulfilment
Ecommerce businesses and delivery companies use PODs to strengthen their order fulfillment processes and meet customer expectations:
Improved customer experience
Proof of delivery can increase customer satisfaction by giving customers clarity about when and where their orders are delivered. By using a POD system, companies help their customers rest assured that their purchases will arrive at the right place in a timely manner. Without POD documents, customers don’t know whether their orders went to the correct destination.
For example, a delivery service using a physical POD system can ensure that the correct recipient signs for a package. To further improve the customer experience, companies can use electronic POD systems to provide live tracking and real-time updates that manage customer expectations about delivery timelines.
Liability protections and lower fraud risk
POD documents are more like receipts than legal and financial documents such as bills of lading. However, in the case of a dispute over a missing package or a damage claim about the condition of a package, POD documents can provide liability protections for both sellers and buyers.
For example, if a customer makes a claim that they never received a delivery, companies can check signatures or photographs to confirm whether or not that claim is legitimate. Similarly, companies can check POD documents with photographs for signs of damage to confirm whether a refund is appropriate.
By providing evidence that a delivery arrived at the correct location in good condition, proof of delivery can protect businesses against fraudulent claims while also protecting customers against misdeliveries or damaged packages.
Better record keeping
An effective POD system can improve your business’ billing process, especially if your company waits to process payments until a delivery is confirmed. By using accurate and immediate proof of delivery to inform the billing process, companies can better manage their cash flow and collect their accounts receivable—an account that tracks the amount of money your business is owed from clients or customers.
More data about order fulfilment
Proof of delivery (particularly electronic types of POD) can help delivery companies and suppliers optimize their order fulfillment process. By using proof of delivery, companies can gain better insights about how to optimize their delivery process and inventory management system. For example, a good POD system can inform more efficient delivery routes and decisions about stock levels.
Proof of delivery FAQ
What is a valid proof of delivery?
A valid proof of delivery is a document provided by a carrier that confirms a delivery was made to the correct recipient or destination.
How do you verify a proof of delivery?
You can verify proof of delivery in the form of recipient signatures, barcode scans, or photographs of the completed deliveries.
How do you make a proof of delivery?
You can make a proof of delivery by creating either a physical or electronic document that includes key information about the delivery, including recipient information like name and address, order details, billing information, shipping and delivery details, and a confirmation of delivery in the form of a signature, barcode, or photograph.