Best Buy is introducing an AI-powered delivery tracking system that promises to provide customers with minute-by-minute updates on their orders. This move aims to address growing customer frustration with vague delivery windows and limited order visibility, particularly for large or high-value purchases.
Experts suggest that the adoption of this technology comes as the eCommerce sector grapples with evolving consumer expectations for delivery transparency and efficiency. According to research by ShipStation, 80% of global consumers now desire at least four delivery updates per order, with almost 40% seeking daily updates including detailed location information.
"Over 30% of global consumers are open to AI-driven order and delivery updates, demonstrating the vast potential of this technology," said Krish Iyer, Vice President of Industry Relations and Partnerships at ShipStation. "Knowing exactly when their package will arrive reduces anxiety and builds trust, especially for larger purchases that require someone to be present for delivery."
Best Buy's new system, set to be rolled out nationwide, leverages real-time data and predictive analytics to provide customers with detailed delivery updates. "We're using data such as predicted demand and real-time traffic patterns to reduce delivery lead times, optimise our routes, and ultimately provide customers with live estimated times of arrival down to the minute," Best Buy stated in its announcement.
However, implementing AI-powered tracking systems presents technical challenges. One potential issue is customer perception of driver routes, which may appear to deviate from the customer's location initially. This can lead to unnecessary customer service calls, even though the AI has already determined that the delivery window will be met.
Data integration across multiple systems also poses a hurdle. Companies need to ensure the accuracy of their AI models and that data seamlessly integrates between various systems within the retailer's technology stack. This includes ensuring accurate information is captured at each stage of the order process, from generation to pick-up.
Hemanth Holla, Senior Director of Supply Chain at Tredence, highlighted the potential impact of AI tracking beyond customer satisfaction: "AI-powered live tracking has the potential to transform last-mile delivery in the retail sector. By leveraging real-time data on traffic, weather, and other external factors, companies like Best Buy can drastically reduce delivery lead time variability and provide near-instantaneous updates to customers."
He also suggested broader implications: "Beyond enhanced customer satisfaction, this can drive supply chain efficiency through AI-led dynamic resource allocations. The technology's impact extends beyond logistics, influencing customer behaviour and purchasing decisions in both eCommerce and physical retail environments."
The influence of this technology may extend beyond logistics, potentially affecting consumer behaviour and purchasing decisions in both online and physical retail environments. "It could even encourage larger purchases, especially online, as people feel more confident about planning delivery time slots," Iyer predicted.
As Best Buy implements this new system, it joins many retailers exploring AI applications in their operations. Amazon, for instance, has been using AI for years to optimise its vast logistics network, while Walmart has implemented AI-powered inventory management systems.
This move also comes as the retail industry navigates post-pandemic consumer behaviour shifts, ongoing supply chain disruptions, and increasing competition from eCommerce giants. Innovations in delivery tracking could provide a competitive edge.
"AI-powered live tracking isn't just a nice feature; it'll become an expectation," Iyer stated. "Brands that embrace this tech will have a significant advantage in building customer loyalty and driving sales."
Holla believes the technology will be a driving force for innovation in retail: "AI-driven live tracking represents a transformative leap forward in logistics, setting new standards for customer service and operational excellence in the retail sector."
