Introduction

What’s your RTO rate? How fast do you respond to an NDR? Do you know if your courier is meeting their SLA?

If these questions seem like a foreign language, you’re not alone. For eCommerce sellers in India, the world of shipping is filled with confusing acronyms and terms. But understanding them isn’t just helpful, it’s essential.

Whether you’re processing 10 orders a day or 10,000, decoding shipping jargon can help you avoid costly mistakes, resolve delivery issues faster, and deliver a smoother experience to your customers.

This guide explains the most common shipping terms and what each order status means — in simple, seller-friendly language.

Shipping Terms You Need to Know

These terms relate to how parcels are handled, moved, and processed by logistics partners. Knowing them helps you manage operations efficiently and speak confidently with courier companies.

AWB (Air Waybill)

A unique tracking number assigned to every shipment, used to identify and track its journey. It acts like a passport for your parcel and is essential for status updates and issue resolution.

NDR (Non-Delivery Report)

Generated when a delivery attempt fails due to reasons like customer not available, incorrect address, or refusal to accept. Couriers use NDRs to document failed deliveries and trigger next steps like reattempt or RTO.

First-mile Delivery

The very first step in the shipping process—moving the parcel from your warehouse or location to the courier’s hub. Smooth first-mile handling ensures your parcel enters the network without delay.

Last-mile Delivery

This is the final step where the parcel is handed over from the courier to the end customer. It’s crucial for customer satisfaction as any delay here directly affects delivery experience.

SLA (Service Level Agreement)

An agreed time frame between you and the logistics partner that defines how quickly services like pickup or delivery must be completed. Breaching SLA may impact customer experience and refund eligibility.

Hub

A regional facility or center where parcels are sorted and rerouted for further transit. Hubs play a key role in ensuring accurate delivery routing and network efficiency.

Consignor

The person or business that sends the shipment, typically the seller or shipper. They are the legal origin point of the parcel and responsible for proper packaging and documentation.

Consignee

The person or business receiving the shipment. They become the parcel’s final destination and are typically the buyer or customer in an eCommerce transaction.

Carrier

The logistics company responsible for transporting your shipment from origin to destination. Carriers may include national courier networks, regional delivery partners, or international shippers.

Shipper

The entity that prepares and hands over the parcel to the courier—often the seller or their warehouse. The shipper ensures the package is labeled correctly and meets the carrier’s shipping requirements.

Estimated Delivery Date (EDD)

The expected delivery date calculated based on shipping method, distance, and courier performance. It gives buyers an idea of when their package will arrive but may change due to delays.

Promised Delivery Date (PDD)

The specific delivery date shown to the customer at checkout. Failing to meet the PDD can affect brand trust and may lead to cancellations or returns.

Forward and Reverse Shipments

Forward shipment: Refers to the dispatch of an order to the customer.

Reverse shipment: involves collecting an item from the customer and sending it back, often due to returns, exchanges, or order cancellations.

Common Order Status Updates & What Each Order Status Means

These status updates reflect the live journey of an order—from placement to final delivery or return. They help you and your customer understand exactly where the parcel is.

Order Placed

The order has been successfully recorded in your system or store and is now queued for processing. This is the first stage that triggers packaging and shipping actions.

Ready to Ship

The order is packed, labeled, and ready for pickup by your courier partner. It’s typically marked once internal processing is complete.

Picked Up

The courier partner has collected the package from your location or warehouse. It will now enter the courier network for sorting and transport.

In Transit

The shipment is moving through various courier hubs and transport channels. This means it is progressing toward the destination, but not yet out for delivery.

OFD (Out for Delivery)

Indicates the parcel is with the delivery agent and is en route to the customer. It usually means the delivery will happen the same day unless interrupted by issues like address errors or unavailability.

Delivered

The order has been successfully delivered to the customer’s provided address. This marks the completion of the shipping lifecycle.

Delivery Attempted

A delivery was attempted but could not be completed—perhaps due to customer unavailability or address issues. A second attempt or RTO may follow.

Returned to Origin (RTO)

This is when a parcel is sent back to the seller after multiple failed delivery attempts or rejection by the customer. It adds extra cost and time to the shipping process, making it important to reduce RTO rates.

Conclusion

Knowing these terms and updates helps streamline your shipping process, understand order movement clearly, and ensure better operational control.

Shift makes it easy to track, manage, and follow every step of the shipping journey — all in one place.

📦 Start shipping smarter with Shift.