What Is Order Accuracy?
Order accuracy is a percentage of all orders that have been fulfilled accurately and have reached their destination without any error. An error here means that there is an incorrect item or incorrect quantity.
Order accuracy is an important metric to track as it significantly impacts customer satisfaction. Delivery of the wrong order not only adversely affects the unboxing experience of the order but is also very costly and time-consuming because you have to take extra effort and time to recreate it properly.
What is Order Accuracy Rate?
The order accuracy rate measures how often your business fulfills customer orders correctly. It is an important metric to monitor as it directly impacts customer satisfaction and repeat purchases. To calculate your order accuracy rate, divide the number of accurate orders by total orders and multiply by 100.
Order Accuracy Rate = (Accurate Orders / Total Orders) x 100
For example, if you fulfilled 50 total orders and 5 contained errors, your accuracy rate would be:
Order Accuracy Rate = (45 / 50) x 100 = 90%
Why Order Accuracy Matters
A high order accuracy rate builds trust with customers. When orders are consistently filled correctly, customers are more likely to make repeat purchases and recommend your business. An accuracy rate below 95-98% can indicate issues in your fulfillment process that need improvement.
Incorrect or damaged orders lead to returns and exchanges which are costly for businesses. Taking steps to prevent errors ensures smoother operations and improves profitability over time. Poor accuracy that drops under 90% almost always results in losing customers.
How to Improve Order Accuracy
While reaching 100% accuracy is difficult, there are ways to get as close as possible:
- Implement detailed processes and checklists for fulfillment staff
- Conduct regular audits to identify areas for improvement
- Provide ongoing employee training on accuracy best practices
- Add automated checks such as barcode scanning to reduce human error
- Work with an experienced 3PL provider to handle fulfillment
Prioritizing order accuracy takes commitment but pays off through better customer experiences. Contact our team to learn more about our accuracy-focused fulfillment services.
Recommended: 3 Ways to Improve Order Accuracy
FAQs
What is considered a good order accuracy rate?
An accuracy rate between 95-99% is considered reliable in eCommerce. Top companies aim for at least 99% accuracy to ensure great customer experiences.
How do you calculate order accuracy rate?
Divide the number of orders shipped correctly by the total orders, then multiply by 100. For example, if 45 out of 50 orders were accurate, the order accuracy rate would be 90%.
Why is a high accuracy rate important?
High order accuracy builds trust and customer loyalty. Incorrect orders lead to returns, added costs, and reputation damage. An accuracy rate under 90% often causes customers to shop elsewhere.
What causes low order accuracy?
Common reasons for errors include lack of detailed processes, inadequate employee training, overloaded staff, and lack of quality checks before shipment.
How can you improve order accuracy?
Strategies to boost accuracy include implementing standard protocols, barcode scanning, automation tools, audits, staff training, and working with an experienced fulfillment provider.
What is the cost of poor order accuracy?
Incorrect shipments lead to expensive returns and exchanges along with customer service time. The total cost can equal 20% or more of the original order value.
Is 100% order accuracy possible?
While extremely high, 100% accuracy is difficult to sustain long-term due to potential technology issues and human error. Top companies aim for 99-99.5% accuracy rates.
