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Delivery experience root cause analysis

Reviews decide marketplace ranking and whether customers come back. I measured how much late delivery drives 1–2 star reviews, then traced each order through approval, seller handling and carrier transit to find which step to fix first.

Data
Real: Olist public dataset, 94,819 delivered orders, Jan 2017 – Aug 2018
Tools
Python, pandas, statsmodels
Methods
Process-stage decomposition, logistic regression, segmentation
Question
Which part of fulfilment should operations fix first?
8.2%of delivered orders arrived after the promised date
4.29→2.56★average review, on time vs late
13.9×odds of a 1–2 star review when late, controlling for other factors
~3,400bad reviews caused by lateness, 28% of all 1–2 star reviews

A few days late changes everything

On-time orders get a 1–2 star review 9% of the time. One to three days late doubles that. At 4+ days late, the majority of reviews are 1–2 stars.

Lateness alone doesn't prove cause: late orders might also be bigger, pricier or longer-haul. So I fitted a logistic regression controlling for those factors.

Share of 1–2 star reviews by days late

Hover for average rating and order count

What raises the odds of a 1–2 star review

Odds ratios from logistic regression (log scale; 1 = no effect). Hover for 95% confidence intervals.

Lateness is the strongest driver

Holding everything else equal, a late order has 13.9× the odds of a bad review (95% CI 13.2–14.7).

The second-strongest factor is an order split across multiple sellers (5.0×). That usually means several parcels arriving on different days.

Shipping across state lines has no significant effect of its own (p = 0.18) once lateness is included. Distance matters only when it makes the order late.

Where the delay happens

Median days spent in each stage

Late vs on-time orders

On timeLate

Late orders spend 23.9 days with the carrier vs 6.9 for on-time orders. Seller handling slips too (3.0 vs 1.8 days), but carrier transit is where most of the time goes.

When the seller misses the handover deadline

Late rate by whether the seller reached the carrier before shipping_limit_date

    Missing the handover deadline makes lateness 3.8× more likely. Still, 73% of late orders were handed over on time, so sellers aren't the main cause.

    Late rate by month

    % of orders delivered after the estimate, by purchase month

    It's systemic and seasonal: 14% around Black Friday and 16–21% in Feb–Mar 2018, vs 3–5% in normal months. The sellers with the most late orders are just the biggest sellers (9.6% late vs 8.2% on average).

    States with the highest late rate

    Customer state, minimum 300 orders. Overall average is 8.2%.

    The north-east (AL, MA, PI, CE, SE, BA) and Rio de Janeiro are late up to 3× as often as the average.

    Estimates are very conservative: the median on-time order arrives 12.3 days early. When something goes wrong, the delay still overruns that buffer.

    Recommendations

    • Plan carrier capacity for peaks

      Pre-book capacity and add backup carriers before Black Friday and Q1, when late rates triple. Carrier transit is where late orders lose most of their time.

    • Alert on missed seller handover

      Flag orders not handed over by shipping_limit_date and nudge the seller the same day. Late risk is 3.8× higher once the deadline passes.

    • Contact customers before they complain

      When an order crosses its estimated date, send an apology and a voucher. Target the 4+ days-late group, where most reviews turn negative.

    • Fix split shipments and estimates

      Consolidate multi-seller orders or set expectations clearly. Recalibrate delivery estimates per route: 12 days of padding may cost conversions without protecting customers.

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