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How should e-Commerce companies manage their reverse logistics to make it a low cost transaction?

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Question added by Deleted user
Date Posted: 2015/09/02
Biju Sreeni
by Biju Sreeni , Chief Operating Officer , Velor Operations LLC

Aya! Sorry for the late reply.... really busy these days.

Ecommerce Reverse Logistics / Returns can be managed effectively if you scale your operations in a peculiar way:

Firstly, 90% returns happen in Cash on Delivery Orders [CODS] apart from Product / Size / Color / Performance Issues. Getting rid of CODS option will hamper your GMV / margin. 

Prevention is better than cure….

For domestic orders, I’ve instituted a program for the prevention of CODS returns by collaborating with our Customer Service Dept in validating the CODS prior to dispatching from our fulfilment center. ie, once we have a CODS order in the queue, our Customer Service Executive contacts the customer and checks whether he genuinely requires the ordered products. If yes, we go ahead with picking/packing & shipping activities and follows up with the customer until the order is delivered.

If customer changes his mind, we do not fulfill that order saving time & money.

For International Orders – We removed the CODS option. Only Card payments are accepted.

We really saved around 60 - 70% of the reverse logistics overheads by implementing this technique

 

Tips for returns management…

1.         Visible Process:

      Make your returns process and policy clear before the cust exit the shopping basket

      A clear link on each page not right at the end after purchase!

2.        Have clear returns options in place:

      Show them upfront

      Drop-off close to home

      Collect from home

      Drop-off at work

      Drop-off in store

3.        Next day or same day pickup

      Don’t apply Delivery rules to Returns.

      Unless item is high value you just need the data quickly

4.       Place the return Label in the Box

5.       Help the customer to print off the return label from your website

6.       A quick refund

Please don’t let them talk to someone to get “return” information

 

The business should understand “Why is my customer returning the product? Let your team know the right reason. No return is a bad return. If you make the return “experience” a good one, customers buy again controlling your reverse logistics overheads. 

 

Sean OReilly
by Sean OReilly , Editor-at-Large , Travelers' Tales

Make sure that you understand the dynamics of the logistics to begin with from point of origination to arrival destination. Importing duties, time of transfer and other assessments need to be taken into consideration.

mohamed badawy
by mohamed badawy , Head Of Operations , Almajdoui Logistics Company

Through the organization of time, effort and way to facilitate distribution operationsThrough to get the best price and selection of the easiest ways to connect the lost timeAnd choosing the best of times favored by the customer received the goods with a constant concern for staff training in order to avoid any damage may occur leading to damage and therefore the payment of compensation to the customerPermanent Ali careful follow-up of those responsible for the stores and staff cars and packaging

Samiullah Dalvi
by Samiullah Dalvi , Supervisor , Dubai Dry Docks

Depend of materials to communicate with supplier if bearing cost very low than,ask for replacement.

Lizakazi  Mngambi
by Lizakazi Mngambi , Expatriate Project Procurment Supervisor , marampa mines

The best way is never a financial reversal but rather insist on replacement of the good at supplier cost.

akhtar hussain
by akhtar hussain , Logistics And Supply Chain Management , FLYWING CARGO PVT. LT

REVERSE LOGISTICS ARE PART OF E COMMERCE WHICH IS INFACT OPPORTUNITY LOST. THE PERSON WHO CARRY FRESH WILL GET HALF IN RETURN

Elias Ayalew
by Elias Ayalew , Accounting And Finance Head , Abay industries SC

before the shipment fulfilled we will take the needful protection and do all check lists  for our goods to minimize the reverse , besides to this may be the reverse is happing by customer reason,  we will ask our custmer to cover the reverse cost.

Rangarajan Balagangadharan
by Rangarajan Balagangadharan , Business Partner - Sales & Distribution / Customer Development / IT , Leading MNC

Mostly  based on folowing parameters,  Time, Distance, Freight and  stock Volume. These costs overides the basic product cost the stocks will not be revrsed back from e-Commerce companies but alternate options will be worked out between them.

Bachir Al Dayeh
by Bachir Al Dayeh , Head of Procurement and Logistics Department , InnovativeProcure Offshore

1 - Purchase the Shipping Containers Instead of Renting.

2 - Purchase the Trucks instead of Renting.

3 - Charter a Vessel if you make a full Vessel Load per month.

Oliveira Joao Koka
by Oliveira Joao Koka , Logistics Assistant , STAPEM OFFSHORE

Lead to the establishment of activity by grouping companies sharing common interests in order to share the costs

Ghareeb Al Subiani
by Ghareeb Al Subiani , Material Management Manager , Middle East Specialized Cables Company

By bulid distrubtion route to avoid send more driver to same area.

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