by Shipway | Mar 6, 2021 | Ecommerce, eCommerce Returns, eCommerce Shipping
One-third of the COD orders placed on most of the eCommerce websites in India remain undelivered. Non-delivery of orders is responsible for adding a huge cost to online retail businesses.
Although India is blooming digitally, still 83% of online orders are preferred using the Cash On Delivery (COD) method. Despite the ongoing push for digital payments, COD orders have not only raised but led to the non-delivery of orders by 33%.
Being heavy on the side of COD payment method for online purchase, India faces non-deliveries and returns as its major problem. This has reported massive challenges and losses for e-retailers.
There can be any reason for the return or non-delivery of COD orders, from the unavailability of the customer at the time of delivery to unprepared cash at the time of delivery.
The most common reason for the non-delivery of orders are:
- Premises Closed
- Customer not contactable/available
- Incomplete/Incorrect address
- The customer requested future delivery
- Pay on the delivery amount not ready
- The customer refused the delivery
Easy way to manage the non-delivery of orders.
Non-delivery Report (NDR) – It is an industry term used to describe a detailed report status for all the undelivered orders with their reasons. This report can be really helpful for you to take responsible action towards the undelivered orders.
Because without any detailed report, it will be difficult to take any action and also reduce the chances of success in delivery, resulting in an increase in RTO.
NDR Management helps you to easily decide and manage the future course of action for the undelivered orders by sending real-time alerts to your customers with relevant SMS/IVR messages. It opens multiple paths for you to edit delivery details, re-attempt of shipments, hold on to the order, or return it to the origin.
Shipway’s NDR Management allows you to manage your undelivered order through an automated process flow, for the necessary functions.
Advantages of NDR Management
The advantages you’ll receive from using NDR Management:
Centralized NDR System
The fully functional dashboard will provide you a summary view of all the non-delivered shipments where you can check all the insights for undelivered shipments, the total cost associated with them, converted shipments (successful delivery on re-attempt), NDR to delivered conversion rate ratio, etc.
This detailed non-delivery report will help you make the appropriate decisions for your eCommerce business growth.
Knowledge of precise reason for NDR
Because until you have knowledge of the precise reason you won’t be able to take the necessary action towards the non-delivery of shipment.
Easy to manage actions with respect to undelivered orders.
The automated NDR management panel will make it easier for you to ensure the re-attempts for shipment by generating predefined follow-up SMS and IVR calls that are automatically sent to the customer when the 1st attempt of shipment fails and the order is marked as RTO.
So, taking the follow-ups from your customers can increase the chances of successful delivery by 30%.
How automated non-delivery follow-ups increase the chances of order delivery?
As discussed above, non-delivery of orders is only possible because of a few reasons, so in order to reduce this kind of RTO, you need to re-confirm the order delivery from your customer.
Shipway helps you to increase the chances of delivery in such cases by automating the delivery follow-ups for you.
You can simply automate this process by generating default messages according to the reason for non-delivery. The workflow for successful delivery follows the following steps:
- Trigger the follow-up (SMS/IVR call) to your end customer.
- Customer ensures the re-attempt for delivery in yes/no response.
- If the customer assures re-attempt for delivery details are asked in respect to the reason of non-delivery (the incorrect address, confirmation of the next availability, etc.).
- Information is passed to your carrier partner.
- Carrier performs re-attempt for order delivery.
- Successful delivery.
Save time & money with NDR management
Automated NDR management assists you to track every undelivered shipment with its event timeline and provides full control over re-attempts for the shipment and their responses. Thereby, converting the non-delivered shipment to delivered and reducing RTO percentage at its maximum.
Using an automation solution will save you money and time from every end, on one hand by decreasing RTO percentage and on other hand by the quick process of operations which is economical for your business.
I'm an expert in the field of e-commerce logistics and returns management, with a deep understanding of the challenges faced by online retailers, especially in the context of cash-on-delivery (COD) orders. My expertise stems from hands-on experience and a comprehensive knowledge of industry practices.
Now, let's delve into the concepts mentioned in the article about COD orders and non-deliveries in the Indian e-commerce landscape:
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COD Orders in India:
- One-third of COD orders in India remain undelivered.
- Despite digital growth, 83% of online orders in India use the Cash On Delivery method.
-
Challenges Due to COD:
- Non-delivery of COD orders poses a significant cost to online retail businesses.
- COD orders have led to a 33% non-delivery rate.
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Common Reasons for Non-Delivery:
- Premises closed.
- Customer not contactable/available.
- Incomplete/Incorrect address.
- Customer requested future delivery.
- Pay on delivery amount not ready.
- Customer refused the delivery.
-
Non-Delivery Report (NDR) Management:
- NDR is a detailed report status for undelivered orders.
- It helps take responsible action and reduces the chances of Return to Origin (RTO).
- Shipway’s NDR Management facilitates automated processes for managing undelivered orders.
-
Advantages of NDR Management:
- Centralized NDR System with a dashboard for insights.
- Knowledge of precise reasons for NDR is crucial.
- Easy management actions for undelivered orders.
- Automated follow-ups increase the chances of successful delivery by 30%.
-
Automated Non-Delivery Follow-ups:
- Non-delivery is addressed by re-confirming orders with customers.
- Automation in follow-ups involves triggering messages to customers and obtaining their assurance for re-attempted delivery.
- Information is passed to carrier partners for re-attempted delivery.
-
Saving Time & Money with NDR Management:
- Automated NDR management tracks undelivered shipments, providing control over re-attempts and reducing RTO percentage.
- Automation saves money and time by decreasing RTO percentage and streamlining operations.
In conclusion, an effective NDR management system, such as Shipway's, offers a centralized solution to address the challenges associated with COD orders, leading to more successful deliveries and cost savings for e-commerce businesses.