eCommerce has experienced tremendous growth, especially post-COVID. People prefer to get their hands on the products from the comfort of their couch. The interactions have altered, and buyers want delivery at steadfast speed.
For sellers, delivering those products can be the most expensive and time-consuming part of running a business successfully.
Adding fuel to the fire is the growing buyer’s demand for same-day delivery, next-day delivery, complete transparency in the last-mile process, delivery updates, and more. However, meeting these demands is very crucial for success, and meeting them is not as easy as it looks.
Reason?
eCommerce businesses hand over their last-mile and post-purchase to the shipping carriers. This takes the operational control from their hands.
Result?
Delivery delays. Stopped shipments. Fake attempts. Non-delivery of products. Return-to-origin. Poor customer experience.
How to avoid it?
Through management and strategic planning. Let’s take a deeper look at how this can be managed through the cause-and-effect cycle and its various attributes.
What Is NDR in eCommerce?
NDR, or Non-Delivery Reports, is a crucial term that represents undelivered orders or those where delivery attempts have failed. When an order reaches the final stage of delivery, it’s only considered successful once it’s handed over to the customer.
However, the last mile of delivery often presents significant challenges, making the actual handover more difficult than anticipated. These challenges, which we’ll explore in detail later, are common causes of failed deliveries.
Failed deliveries can lead to Return to Origin (RTO), increasing losses and damaging your brand’s reputation. Moreover, they can negatively impact the customer experience, leaving a lasting poor impression.
This is why effective NDR management is vital for eCommerce businesses. It plays a key role in ensuring smooth shipping operations and preventing the negative consequences of failed deliveries.
6 Reasons That Lead to RTO in eCommerce
Incorrect Addresses
When customers make purchases hastily, while distracted, or if they are unfamiliar with the platform’s language, they might inadvertently enter incorrect delivery details. This can hinder the delivery agent’s ability to locate the address and complete the order handover.
Incorrect Contact Number
Another common issue arises when a customer accidentally enters the wrong phone number. In such cases, when the delivery agent attempts to contact the customer for directions, they may be unable to reach them. This communication gap can lead to the order being marked as an NDR.
Customer Not Reachable
If the delivery agent encounters difficulties locating the delivery address, they will attempt to contact the customer to confirm the location. However, if the customer’s phone number is unreachable, the delivery cannot be completed.
Customer Refuses Delivery
Customers have the right to reject or refuse an order at the time of delivery if they are dissatisfied with the delivery experience or the product’s condition.
While this can be highly inconvenient for eCommerce businesses, it is a frequent occurrence, particularly with COD orders. Customers are more inclined to refuse an order when payment has not yet been made.
Consumer Unable To Make The Payment
A common issue with COD (Cash on Delivery) orders is when customers are unprepared to make the payment upon delivery. Since delivery agents typically cannot wait for the customer to arrange the funds, this often results in undelivered orders. In such cases, a new delivery time must be scheduled, or the customer may choose to cancel the order altogether.
False Delivery Attempt
One of the most challenging types of NDRs you’ll encounter is fake deliveries. This occurs when a delivery agent falsely reports an attempt to deliver the order, marking it as a failed delivery without actually visiting the customer’s address. These incidents can significantly harm the customer experience if not promptly and effectively addressed.
How to Reduce RTO Through NDR Management
Identify the Cause of the Failed Delivery
The first step in NDR management is to determine why the delivery attempt failed. Common reasons include incorrect or incomplete addresses, the customer being unavailable, or technical issues. By understanding the root cause, you can take appropriate action to resolve the issue and increase the chances of a successful delivery on the next attempt.
Communicate with the Customer
After identifying the cause of the NDR, it is crucial to reach out to the customer to gather additional information. For example, if the delivery agent could not find the address, the customer might provide more detailed directions. Engaging with the customer not only helps resolve the issue but also enhances their overall experience by making them feel involved in the process.
Inform the Carrier
Any new information obtained from the customer should be promptly communicated to the carrier. This ensures that the delivery agent is well-informed on the next attempt and can take the necessary steps to complete the delivery successfully.
Make a Second Delivery Attempt
With the updated information, the delivery agent should make another attempt to deliver the order. The chances of a successful delivery increase significantly when the agent is equipped with accurate and up-to-date information.
Follow Up if Necessary
If the second delivery attempt also fails, it is important to follow up with the customer and carrier to determine the next steps. In some cases, rescheduling the delivery or offering an alternative solution may be necessary to avoid an RTO.
Leveraging Tech-Enabled Platform
While having a well-structured NDR management process is essential, leveraging a tech-enabled platform can further enhance efficiency and reduce RTO rates. Platforms like RapidShyp automate several key processes, such as cause detection, communication, and real-time tracking, which can significantly reduce the time and effort required to manage NDRs.
RapidShyp can automatically categorize NDRs based on predefined causes. This automation enables businesses to quickly identify the issue and take appropriate action, reducing the likelihood of the delivery failing again.
Real-Time NDR Tracking
With real-time tracking capabilities, RapidShyp allows businesses to monitor NDRs as soon as they are reported. This enables quicker response times, reducing the window in which an order might be canceled by the customer.
Monitoring Fake Deliveries
The software can also help identify fake deliveries, where delivery agents falsely mark an order as undeliverable. By tracking and addressing these incidents, businesses can maintain customer trust and reduce unnecessary RTOs.
The Bottom Line
Reducing RTO through effective NDR management is essential for maintaining customer satisfaction and minimizing losses in eCommerce. By implementing a structured NDR management process and leveraging automation tools, businesses can address the causes of failed deliveries more efficiently and reduce the likelihood of orders being returned to the origin. Ultimately, this approach not only improves the delivery experience for customers but also enhances the profitability of the business.
