Understanding the Importance of Tracking and Tracing in Shipping

Two words, two jobs

In everyday use, “tracking” and “tracing” are often used as if they meant the same thing, but they describe different activities. Tracking is looking forward and in real time: where is the parcel now and what is its latest status? Tracing is looking back: reconstructing the history of a parcel’s movements, often to find out where something went wrong. A person watching a delivery progress is tracking. A carrier investigating a parcel that stopped showing movement is tracing.

Both rely on the same underlying data: a series of recorded events, each linked to a unique identifier on the parcel.

How a parcel is followed

A parcel is identified by a tracking number, usually printed on its label as text and as a barcode. Each time a handler scans the barcode, the carrier’s system records an event with a time and, typically, a location. The details differ between carriers, but a typical journey includes:

1. Label created. The carrier knows a shipment is expected, but has not yet received it. Sellers sometimes confuse this with “dispatched”.
2. Collected or dropped off. The first physical scan, when the parcel enters the network.
3. Arrival at a sorting facility. Parcels are sorted by destination, often at a central point. How these networks work is described under hub and spoke.
4. Departure and onward transit. Scans as the parcel leaves a facility and moves by road, rail or air.
5. Arrival at the delivery depot. The local branch that serves the final address.
6. Out for delivery. Loaded on a vehicle for the final journey, the stage covered under last-mile delivery.
7. Delivered, or attempted. A final scan recording the outcome, sometimes with a signature or photo as proof of delivery. A failed attempt may lead to redelivery or a collection point.

International parcels add export and import steps, and customs events may appear. Delays at that stage are described under customs delays.

Why visibility matters

For customers. Knowing when a parcel is expected lets people plan to be home or arrange collection. Customers who can see progress are less likely to contact support, which is one reason many sellers send automatic delivery notifications.

For sellers and support teams. A tracking history is the basis for answering “where is my order?” accurately. It also provides evidence in disputes about whether and when something was delivered.

For claims. If a parcel is lost or damaged, the tracking record shows the last known scan and helps establish where the problem arose. This matters when raising parcel claims or requesting a trace for missing parcels.

For operations. Patterns in the data show where problems cluster, such as a specific route that frequently runs late. Collecting this data is part of the broader data analysis many shippers do, and it feeds the comparisons in carrier scorecards.

For planning. Knowing actual transit times, not the advertised ones, helps in setting realistic delivery expectations and cut-off decisions.

What tracking data does not tell you

Tracking is useful but imperfect, and over-reading it causes confusion.

• Scan gaps. A parcel can travel for a day or more between scans, particularly on long routes or over weekends. “No update” does not necessarily mean “lost”.
• Delayed uploads. Scans may be recorded late, so the status you see may lag behind reality.
• Estimated dates. Predicted delivery dates are estimates and can change as the parcel progresses.
• Vague statuses. Terms like “exception” or “in transit” can cover many situations. The carrier’s own definitions matter.
• Location precision. Event locations are typically the facility, not the exact position of the vehicle, unless the carrier offers live map tracking for the last stretch.
• False delivery scans. Occasionally a parcel is marked as delivered before or without reaching the address, which is one reason weather delays, package theft, and misdelivery sometimes show up in complaints.

Some operators supplement scan data with sensors. IoT sensors can report location or conditions such as temperature and shock between scans, but they are usually reserved for higher-value or sensitive shipments.

Using tracking well as a sender

• Always record the tracking number against the order, and make it visible to staff and the customer.
• Share the tracking link in confirmation messages, so customers use the carrier’s page rather than contacting you first.
• Set an internal rule for when to investigate, such as no movement for a number of business days, adjusted to the service level.
• Check the label scans. A label that cannot be read produces a gap at the very first step, and clean shipping labels reduce that risk.
• Keep the history. Retain tracking data for the length of your claims and dispute window, which varies by carrier.
• Review exceptions weekly. Looking at parcels that were late, stuck or failed delivery shows whether the cause is a carrier, an address issue or your own handover.

Software support

Shipping software commonly collects tracking events from carriers and shows them in one place, which is much easier than checking separate carrier sites. It can also flag parcels with no movement, trigger customer messages and store the events for later review. These functions are part of what the wider category of logistics software offers, and the quality of the data is only as good as the carrier’s own scanning.