On-Time Delivery
On-time delivery (OTD) is the percentage of orders delivered by the date promised to the customer.
Why it matters for ecommerce brands
On-time delivery measures whether you kept the delivery promise the customer saw at checkout. Late orders drive support tickets, refunds, and fewer repeat purchases. Split late orders into warehouse delays and carrier delays to see who missed. For example, if 9,600 of 10,000 orders arrive by the promised date, OTD is 96%. If 300 of the 400 late orders shipped on time but ran long in transit, the fix is carrier choice or a longer promise, not more warehouse labor.
Formula and calculator
OTD = orders delivered on or before promised date ÷ orders delivered × 100
Common questions
- What is the difference between on-time delivery and on-time shipping?
- On-time shipping measures whether the warehouse handed the order to the carrier by the deadline. On-time delivery measures whether the customer received it by the promised date, so it includes carrier transit performance.
- How do you calculate on-time delivery?
- Divide orders delivered on or before the promised date by all orders delivered, then multiply by 100. 9,600 on-time orders out of 10,000 delivered is 96%.
- How can I improve on-time delivery?
- Promise dates you can meet, ship by the cutoff every day, and place inventory closer to customers in far zones. Review late orders by carrier and service, and drop the lanes that miss most often.
Cite this entry
"On-Time Delivery (OTD)." Fulfillment Lexicon, last reviewed October 16, 2026. https://fulfillment.wiki/glossary/on-time-delivery/