How to reduce RTOs with NDR follow-ups in eCommerce?

How to reduce RTOs with NDR follow-ups in E-commerce?

One of the biggest challenges that online businesses and E-commerce in general face is the rising numbers of failed deliveries across the board. The Indian E-commerce scenario is a classic case in point given how rapidly E-commerce has grown over the last few years. It is true that hundreds of thousands of businesses have benefitted from selling their wares online. As courier partners reach out to untapped markets and regions, they are also witnessing record numbers of undelivered items. Most of these are ultimately shipped back to the retailer. Often, items are lost or damaged on the way back, adding to these woes.

This reverse shipment is referred to as RTOs or Return to Origin. Rising RTO percentages gnaw away at profit margins and may prove to be a stumbling block when attempting customer retention and loyalty.

Thankfully, there are some methods savvy online businesses may adopt and ensure their RTOs remain under control. One such method is NDR follow-ups.

Managing RTOs using NDR follow-ups

Following up on Non-Delivery Reports or NDRs is the primary tool online businesses have to minimize RTOs. The following are some ideas which can prove to be of great benefit.

1. Cutting down on TAT breaches: Managing TAT (Turnaround Time) is the job of the logistics partner. Based on the destination and nature of packages, courier partners provide retailers with an idea on when a delivery can be attempted. It is on this data that the business can then generate an EDD (Estimated Date of Delivery) and promise their customers a feasible delivery window. To reduce and ultimately get rid of RTOs, it is imperative that the EDD is met each and every time. Else, the customer can refuse to accept an order. And EDDs can only be met on time if the logistics partner delivers on its promised TAT. This is one reason why choosing a reliable courier delivery partner is extremely vital.

2. Automating the NDR management process: The days of making contact manually with the client and asking whether they are ready to receive an order before a physical delivery is attempted are gone. It was too expensive to begin with, in any case. Instead, online retailers must implement proper NDR management software which will automate the entire process and will even label an undelivered package for either ‘reattempt’ or for ‘Return to Origin’. eCommerce NDR management software like ClickPost, for example, add another dimension by fully automating the generation and dispatch of issue-specific queries to customers and resolve NDRs in the future.

3. Checking addresses: Incomplete or outright incorrect addresses propel non-deliveries of items. The idea of ‘address validation’ comes in at this point. Before a delivery attempt, the customers are contacted directly and asked to verify the address printed on the parcel. An NDR management system like ClickPost can automate this process. A validation process is required even before dispatching an order. It is a proven way to cut down on RTOs and eventually uplift profit margins.

These are just 3 effective ways how NDR follow-ups can cut down on RTOs. Maintaining contact with the customer in real-time at every step of the delivery process is of great import in E-commerce where time is really equal to money!



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Vikas Yadav

Vikas Yadav

Content Developer (United States)