Enhancing Efficiency: A Guide to Merchant Courier Tracking Systems

Merchant Courier Tracking Systems

Ever wonder how order packages seamlessly pass through logistics? Merchant courier tracking systems (MCTS) facilitate efficiency and transparency in delivery systems. But what exactly are they, and how do they work?

Imagine a harmony of data, where every parcel’s movement is carefully tracked. Merchant tracking systems harness cutting-edge technologies to provide real-time visibility into your shipments’ journey. From the moment an order is placed until it reaches its destination, they work on multiple details of data. However, ensuring the highest efficiency is still a challenge for organisations. 

Awareness of their benefits and how to make the best choice for merchant courier tracking is a complex journey, though. In this post, we’ll look at the details of merchant tracking systems and their revolutionary impact on the world of e-commerce and beyond.

What is a Merchant Courier Tracking System

A Merchant courier management system (MCMS) is software that automates and streamlines your shipping process. It handles tasks like order management, real-time tracking, rate negotiation, and reporting, all from one dashboard.

By managing orders, tracking shipments, and analysing data in one place, MCMS boosts efficiency and saves costs. It reduces manual errors and facilitates better decision-making.

In the fast-paced logistics environment, an MCMS helps businesses stay competitive by ensuring smooth shipping operations from start to finish.

Main Challenges of Manual Shipping

  • Manual tasks like order entry, label generation, and tracking consume valuable time, leading to errors and frustrated customers due to missed deliveries.
  • Manual courier management results in overspending on shipping costs, inefficient routing, and difficulty in tracking carrier fees and shipments.
  • Manual processes become overwhelming as the business grows, hindering scaling potential and requiring costly integration efforts.
  • Lack of visibility into courier movements and slow response times impact customer experience, leading to trust issues and dissatisfaction.

Benefits of Merchant Courier Tracking Systems

Save Time and Effort: Merchant courier tracking systems automate tasks like order management, label generation, and tracking shipments to focus on growth.

Provides Instant Updates: Customers can receive instant updates on shipment status and manage exceptions with the help of merchant tracking systems.

Reduces Shipping Costs: Most merchant courier tracking systems are equipped with AI-powered route optimization, which creates cost-effective shipping routes and uses data and volume discounts to save.

Allows Scaling: An MCMS can handle increased order volumes seamlessly and integrate with existing platforms for streamlined workflow.

Ensures Customer Satisfaction: Businesses can improve delivery times and accuracy with real-time tracking and proactive notifications provided by an MCMS.

Speeds Up Growth: Merchant tracking systems address challenges to streamline operations, cut costs, enable scalability, and foster customer satisfaction.

How to Choose the Right Merchant Courier Tracking

Look for tools offering features like order splitting, batch processing, and customizable order statuses to streamline workflows.

  • Ensure that the merchant courier tracking system syncs with your inventory management for accurate fulfilment and inventory optimization.
  • The MCMS should also provide real-time tracking across all carriers with granular updates and customizable alerts.

Check whether you can track shipments from various carriers using the same merchant courier tracking system. 

  • Look for systems with partnerships with a wide range of reputable carriers, offering negotiated rates and dynamic carrier selection.
  • The most suitable merchant courier tracking system optimises routes based on factors like distance, weight, and delivery time for cost-effectiveness and timely deliveries. Also, see if the routes can be adjusted in real time based on unexpected events.
  • Ensure that the merchant courier tracking system can provide comprehensive reports on shipping performance and allow the creation of personalised dashboards to monitor key metrics in real time.
  • Modern courier tracking systems also offer predictive analytics for forecasting future shipping trends and costs.

Business Considerations 

When considering a merchant courier tracking system, it is important to examine that it meets your business needs effectively. Evaluate the following factors to determine suitability.

Scalability: Assess whether the merchant courier tracking software can accommodate your projected growth in order volume and geographical expansion. Also, look for integration capabilities. They should allow seamless adaptation to new platforms and marketplaces as your business grows. Customising the solution to fit your business’s processes and workflows would help.

Security and Compliance: Prioritise merchant tracking software that prioritises data security. It should have features like encryption, access control, and industry-standard certifications. Make sure the system follows your industry’s rules. Also, make sure it follows your region’s rules.

User-Friendliness: The interface should be easy to use and help your team navigate and manage shipments well. Mobile accessibility is also essential for on-the-go tracking and management. Also, consider the availability of thorough training and support. They ensure smooth implementation and user adoption.

Cost and Value: Check the pricing of the merchant’s courier tracking software. It should fit your budget and business size. It should also offer clear and scalable options. Consider the potential return on investment. Do this by assessing the system’s cost savings. Also, look at its efficiency gains and improved customer satisfaction.

Merchant Reference Number

A merchant identification number (MID) or Merchant reference number is a unique code provided to merchants by payment processors. It is used to identify merchants during transactions and ensure that funds are directed to the correct account. Without a MID, funds would lack a destination, leading to routing errors.


Merchant courier tracking systems (MCTS) streamline delivery processes, ensuring efficiency and transparency. From order placement to delivery, these systems utilise cutting-edge tech for real-time visibility. Yet, optimising efficiency remains a challenge. Awareness of their benefits and choosing the right system is important for success in e-commerce and beyond.

related read: eCommerce Order Tracking


What is the process of a merchant courier tracking system?

Merchant courier tracking includes several detailed steps: Generating barcodes, Scanning them at different points, Storing data, and Providing live updates on delivery status.
Barcodes act as unique IDs, holding important parcel information for effective tracking.

What are the three types of merchant courier tracking?

GPS-based Tracking: GPS technology is used to track the real-time location of vehicles and packages.
Barcode scanning: Involves scanning barcodes at various checkpoints to update package status.
RFID tracking: Utilises RFID tags and readers to monitor package movements wirelessly.

What is a merchant reference number?

The merchant reference number is a unique tracking code merchants generate to monitor orders as they move through a carrier’s processing stages. It generally consists of a combination of letters and numbers. However, it can vary between different carriers.

What is FDM in courier systems?

FDM stands for “Franchise Delivery Manifest,” which indicates that the product is on its way for delivery within the next few hours. When the FDM is prepared, your courier will be documented for delivery shortly.