Introduction

1. What is an Inventory Control System?
2. How Inventory Control Can Improve Your Business
   1. Boosting Cost Efficiency and Cutting Holding Costs
   2. Optimizing Working Capital with Automated Inventory Control
   3. Better Fulfillment with Increasing Customer Satisfaction 
   4. Preventing Inventory Spoilage and Obsolescence
3. Types of Inventory Control Systems
   1. Periodic Inventory Systems
   2. Perpetual Inventory Systems
4. Choosing the Right Inventory Control System for Your Business

As an online seller, your success depends on your ability to promptly deliver orders to customers while managing costs and maximizing profits. Imagine one of your products is performing exceptionally well on a popular marketplace, but the highest-selling SKU suddenly goes out of stock. This can lead to customer dissatisfaction and lost revenue for you, ultimately driving customers to your competitors. 

The primary challenge in this situation is the unexpected stock-out of a high-demand product. This shows why having a good inventory control system is important. With an effective system in place, you can easily anticipate demand, maintain optimal stock levels, and ensure that popular products are always available on all the sales channels.

Now what exactly is inventory control and why it is crucial for online sellers? Let’s explore and understand these systems and their benefits!

What is an Inventory Control System?

An inventory control system is a framework employed by businesses to effectively manage their inventory levels, track the movement of goods, and streamline operations related to stock management. At its core, this system ensures that companies maintain optimal levels of inventory without encountering issues like stockouts or excess stock. 

It involves tracking the quantity, location, and status of inventory items in real-time, facilitating efficient order fulfillment and reducing operational costs associated with storage and handling. The concept of inventory control has evolved significantly over the years. 

Initially, businesses relied on manual methods to track inventory, which were often prone to errors and inefficiencies. With technological advancements, automated systems have become the norm, offering greater accuracy and reliability. Today, inventory control systems are an important component of modern e-commerce business operations, enabling seamless management of stock.

How Inventory Control Can Improve Your Business?

Inventory control plays a major role in enhancing your e-commerce operations and the overall profitability of your business. Here are some benefits that your businesses will experience after implementing a successful inventory control system!

1. Boosting Cost Efficiency and Cutting Holding Costs

When you have the real-time status of your inventory levels, you can easily minimize holding costs associated with excess stock. By closely monitoring demand patterns and adjusting stock levels accordingly, businesses can optimize capital allocation and warehouse space. 

Gini & Jony, a leading apparel brand implemented an advanced inventory management system that provided real-time insights into their inventory levels. With this system, Gini & Jony could accurately forecast demand and adjust their stock levels to meet customer needs without overstocking. The SKU management was further simplified with an import feature that allowed them to upload bulk inventory through Excel. 

This feature also offered additional capabilities such as adding, removing, transferring, and replacing inventory, eliminating the need for manual efforts throughout the process. With the help of this inventory import functionality, the brand can effectively manage its inventory at the SKU level, ensuring accurate and efficient inventory control. 

2. Optimizing Working Capital with Automated Inventory Control

Working capital refers to the funds a company uses for its day-to-day operations. Managing working capital is very important for sellers to keep their business in good health. If the inventory is tying up your working capital it can lead to increased holding costs. 

With the help of automated inventory control systems, you can easily ensure inventory levels are aligned with anticipated demand and production schedules, preventing overstocking or stockouts. Moreover, these systems provide you with the ability to set automated thresholds. When inventory levels reach predefined thresholds, the system automatically initiates purchase orders, ensuring timely replenishment and minimizing the risk of excess inventory.

3. Better Fulfillment with Increasing Customer Satisfaction

Customer satisfaction is one of the most crucial aspects of any seller and it is highly impacted by the seamless experience provided by sellers from order placement to product delivery. By maintaining optimal inventory levels and using real-time tracking systems, businesses can ensure products are readily available for prompt order fulfillment. 

Accurate inventory control further minimizes the risk of stockouts, ensuring popular items remain in stock and preventing customer dissatisfaction due to unfulfilled orders. Let’s take an example of an online retailer using an advanced inventory control system. The brand is easily able to track stock levels in real time across multiple warehouses. 

When popular items start running low, the system automatically places an order when the thresholds are crossed. This proactive approach ensures consistent availability of the product and increases customer satisfaction. 

4. Preventing Inventory Spoilage and Obsolescence

One of the critical challenges in inventory management is preventing losses from spoilage or obsolescence. Sellers must carefully manage perishable items or products that are prone to becoming outdated. With the help of robust inventory control systems, businesses can overcome these challenges.

With real-time inventory monitoring, brands can track expiration dates accurately and implement FIFO (first-in, first-out) or FEFO (first-expire, first-out) methods to ensure older stock is sold or used before newer arrivals. These automated systems enable sellers to receive alerts when products are nearing their expiration, enabling timely actions such as discounts or promotions to move inventory before it spoils.

Types of Inventory Control Systems

If you want your inventory to be optimal, you need to employ the right system tailored to your e-commerce business needs. Here’s a detailed look at various types of inventory control systems and how they can streamline operations!

1. Periodic Inventory Systems

Periodic inventory control systems are traditional methods where physical counts of inventory are conducted at regular intervals, such as weekly, monthly, or quarterly. Here’s how they work:

• Inventory Updates: In periodic systems, inventory levels are updated periodically based on physical counts. Between these updates, the system assumes inventory levels remain constant.
• Cost Considerations: They are simpler and less costly to implement compared to perpetual systems because they do not require real-time tracking technology.
• Suitability: Periodic systems are often used for businesses with lower transaction volumes or where real-time inventory tracking is less critical. This includes small retailers, seasonal businesses, and startups aiming to minimize operational costs.

2. Perpetual Inventory Systems

On the other hand, perpetual inventory control systems involve real-time tracking of inventory levels with the help of technology such as barcode scanners and inventory management software. Here are the key aspects:

• Continuous Tracking: Inventory levels are updated automatically as transactions occur, providing a current and accurate view of stock at any given time.
• Efficiency and Accuracy: These systems reduce the likelihood of stockouts and overstocks by providing real-time visibility into inventory levels.
• Suitability: They are well-suited for businesses that require precise inventory management, such as retail and e-commerce, where quick and accurate order processing is crucial.

Choosing the Right Inventory Control System for Your Business!

Choosing and implementing the right inventory control system is very essential for improving your e-commerce operations. You need to carefully consider several key factors to ensure that the system aligns with your operational needs and goals. First, you need to assess your business’s transaction volume and product variety. 

Businesses with high transaction volumes and a diverse product range may require a more robust, real-time tracking system to manage inventory effectively. Also, consider the scale of your operations, including the number of locations and warehouses, as this will influence the complexity of the system needed. 

Cost is another crucial factor; while automated systems with real-time tracking may involve higher initial investments, they often lead to significant long-term savings and efficiency gains. Finally, ensure that the system you choose can integrate seamlessly with your existing technology stack, such as your e-commerce platform, accounting software, and supply chain management tools. 

By thoroughly evaluating these aspects, you can select an inventory control system that enhances operational efficiency, reduces costs, and improves customer satisfaction!

Related Read – 

• Top Challenges of Multichannel Inventory Management
• Inventory Management for E-commerce Businesses: A Complete Guide
• What is Inventory Cycle Counting?
• Top 9 Inventory Management Techniques for Business Scaling

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Now what? 

This is where the return process comes into play, and it’s a critical moment for both the customer and the e-commerce business. How you handle these return moments can really make or break the whole shopping experience. 

So, let’s uncover why nailing return processes is important for e-commerce success and how you can optimize return touchpoints for maximum impact.

What are Return Touchpoints?

Let’s say a customer purchases a pair of shoes online. However, upon delivery, they find the shoes don’t quite meet their expectations. Whether it’s due to sizing issues, a color mismatch, quality concerns, or discrepancies with the product description, the customer decides to initiate a return. 

This is where the return process begins. From initiating the return request to receiving the refund or exchange, each interaction along the way is a return touchpoint. These stages include both online and offline interactions such as the return request submission, communication with customer service representatives, shipping the item back, and receiving the refund or exchange.

Each stage presents an opportunity for businesses to delight or disappoint customers. For example, a smooth and hassle-free return request submission process can leave a positive impression, while a lengthy and confusing process can frustrate customers.

Why you should Optimize Return Touchpoints?

Optimizing return touchpoints means examining each step closely. It involves simplifying procedures, providing clear instructions, and minimizing delays. In this competitive e-commerce landscape, streamlining return touchpoints can be the difference between a one-time buyer and a loyal, repeat customer.

How to Improve Return Touchpoints for E-commerce Success

Now that we know the importance of optimizing return touchpoints, let’s understand how we can achieve this effectively.

1. Clear Return Policy

A clear return policy serves as the foundation for a smooth return process. It should be easily accessible on your website, preferably visible on product pages and the checkout process. When crafting your return policy, consider the following elements:

• Return Window: Clearly define the timeframe within which customers can initiate returns. Whether it’s 30 days, 60 days, or longer, be transparent about the deadline to avoid confusion.
• Acceptable Reasons: Specify the valid reasons for returns, such as receiving a damaged or defective item, receiving the wrong product, or simply changing one’s mind. 
• Return Instructions: Provide step-by-step instructions on how customers can initiate returns.
• Condition of Returned Items: Outline the condition in which returned items must be in order to qualify for a refund or exchange. 
• Refund Method: Explain how refunds will be issued, whether it’s back to the original payment method, store credit, or exchange for another item. 

2. User-Friendly Return Process

Ensuring a smooth return process isn’t just about ticking boxes—it’s about making things easy and stress-free for buyers who might be feeling a bit disappointed or frustrated. That’s why having a user-friendly returns page is so crucial. Letting customers select from a list of reasons why they’re sending products back not only makes it easier for them but also helps you understand their needs better. 

Also, keeping them in the loop with emails or notifications about their returns can really help ease any anxieties they might have. Offering multiple return options, like BORIS (Buy Online, Return In-Store), adds another layer of convenience and flexibility. 

These steps collectively streamline the return process, fostering greater customer satisfaction and loyalty. If you’re running a direct-to-consumer (D2C) brand, consider leveraging an advanced returns management system. Such a system provides clear instructions and comprehensive tracking options, ensuring a hassle-free return process from start to finish.

3. Improving Returns in Transit

When your customers send items back, the process should run like a well-oiled machine from start to finish. When a customer returns a product, you want that item to make its way back to you smoothly and securely, right? 

That’s where optimizing returns in transit comes in. It’s about making sure your return shipments are packed securely in sturdy boxes with clear labels that make them easy to track. You might use technology to keep an eye on where each return is in transit, just like you’d track a package you’re sending out. 

And if there are any delays or issues, good communication with your shipping partners and your customers helps keep everyone in the loop. Ultimately, by fine-tuning this part of the process, you’re not just making life easier for yourself—you’re also ensuring that your customers have a positive experience.

4. Efficient Refund/Exchange Processing

Speaking of refunds and exchanges, the quicker, the better, right? Nobody likes waiting around for their money or their new item. When customers return items, they’re not just sending back products; they’re also sending back trust. The faster you can process their refunds or exchanges, the more you show them that you value their time and their business.

Also, why not ask for feedback while your customers are going through the return process? It’s like turning a potentially negative experience into a chance to learn and improve. 

So, by keeping things simple, transparent, and friendly, businesses can turn returns from a headache into an opportunity to build trust and keep customers smiling.

Let’s Streamline Returns Management!

To wrap it up, optimizing return touchpoints is a cornerstone of e-commerce success. By ensuring transparent communication, user-friendly procedures, efficient management, and swift resolutions, businesses can turn returns from headaches into opportunities. Prioritizing these elements not only fosters trust and loyalty but also elevates the entire shopping journey for customers.

In this competitive landscape, it’s crucial for businesses to go beyond traditional approaches. Investing in cutting-edge logistics and return management systems, such as UniShip, can revolutionize the returns experience, particularly for direct-to-consumer brands. 

UniShip offers a comprehensive platform that provides a marketplace-like returns management experience. By embracing such innovative solutions, businesses can distinguish themselves in the market, cultivating stronger customer relationships and solidifying their position as leaders in the market.

Related read:

• How to Sell on Meesho?
• How E-commerce Marketplace Payment Reconciliation helps E-commerce Businesses?
• How Shipping Notifications can benefit your E-commerce Business?
• Streamlined E-commerce Payment Reconciliation with UniReco
• What is NDR Management?

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What is Order Fulfillment?

Let’s say you are hungry and plan to bake a cookie for yourself. Having the final cookie is like receiving the final product. But preheating the oven, making a dough, adding the right amount of ingredients, one by one, without missing any of it, and finally baking it is the whole process. Just like that, what goes on behind delivering the product is called the order fulfillment process.  The order fulfillment process is a method a business follows to process its orders from the point of sale to delivery.  It starts with ‘add to cart’ and ends with a ‘happy customer.’ However, the umbrella of order fulfillment also includes all the backend processes and management of returns. It’s an obscure process that includes several stages. For example, having a cookie would make you happy, and efficient order fulfillment makes a customer happy. It holds the brand reputation and is directly related to the sales, aka, in our language, the profits!

Understanding 3 Different Parts of the Order Fulfillment Process

Let’s step behind the curtains and understand the importance of an efficient process via each stage and how it functions to make an order successfully delivered to your customers. Let’s understand three different parts of the order fulfillment process. 

1. Inbound

Shall we continue with our cookie example? So, the first concern when you decide to bake a cookie that would come to your mind would be: do you have all the ingredients available at your place? This is precisely what purchase management does regarding order fulfillment. The inventory sourcing process has to be maintained to process the orders from your warehouse; you must ensure everything is in place to start the process! 

Optimizing your Inbound Process: Imagine a technology solution that will help you know right when the first stock is ending and the second has to be there so that your flow of orders will not face any discrepancies. It can even help you project what-when-how much to buy. The buying process becomes automated, and its allocation in the warehouse is accurate.  The cherry on top is that you can even share controlled access to your vendor through the vendor panel. And….. Welcome!  You have reached the solution called Purchase Management. The gap between inventory sourcing and the GRN process is inventory replenishment, which purchase management takes care of. You no longer need to worry about the inventory and their respective timelines. 

2. Storage

As expected, we are going back to the cookies.  As simple as filling up your groceries, storing them right is another task! You have to make sure nothing stales away. Something that you bought earlier should be used before the fresh one. In the warehouse, it’s the same: where to put your inventory, how much to put, keeping a check on what to sell first, and taking care that nothing should go to waste. 

Optimizing Your Storage Process: Some inventory control strategies include batch picking, zone or picking, like FIFO or LIFO, or using data analytics tools to keep track of the inventory in advance, which is crucial. All this is capable of controlling the level of each SKU. Solutions that manage warehouse and inventory, as well as the orders seamlessly, play a very significant role in the storage stage. 

3. Outbound

This is where the main part comes into the picture, where you would start baking. The outbound includes the processing of the orders. Let’s explore the stages of the outbound process. 

Order Fulfillment – Stages of the Outbound Process

• Order Receipt
• Order Processing
• Picking
• Packing
• Shipping
• Returns Management

1. Order Receipt: Orders will be coming from various channels, and capturing their accuracy has to be precise. Processing orders and shipping them requires both money and time. Starting them wrong will be a blunt mistake in the whole process. Hence, seamlessness in receiving correctly is crucial to the fulfillment process. 

2. Order Processing: The smooth functioning of the outbound process relies on the tasks completed during the inbound and storage stages. Now that we have the order details, we can set order allocation rules.  For instance proximity based allocation, that allows to allocate the orders according to the nearest availability. Hence, the feature of order allocation comes into the limelight along with checking the inventory, accuracy of the orders received, fraud, and processing ahead. 

3. Picking: Once you know where to send, you pick up what to send. Solutions like order management take the limelight here; a central picklist is created so you don’t have to travel multiple times to pick up the same product, saving time and making order fulfillment efficient. 

4. Packing: The automation of what item has to be packed in what packaging, along with the automated invoicing, is the nucleus of the whole order fulfillment process. If it’s all blueprinted through technology, then there’s no room for human eros, making the order fulfillment smooth. 

5. Shipping: It’s been a while since we talked about cookies. Let’s consider them again. Shipping is like the final baking, just like how we decide what goes into the oven and at what temperature. We also have to decide what product goes through which logistics partner.  By setting shipping allocation rules and using order management software along with the replenished flow of inventory, the best logistics provider is allotted by the system that caters to the customer’s needs at the best possible.

6. Returns Management: For any reason, if the product is returned, managing its return to the warehouse is also a part of order fulfillment. Just like doing the dishes after you ate! It comes with it! Platforms where return shipping is not synced with their channels. The investment in the right technology will automatically integrate your shipping to the platform and make returns easier, even if it’s a brand’s website. 

Why is Order Fulfillment Important?

Every business is dynamic and has its way of catering to its order fulfillment process and keeping the customers happy. A technology that fits your process and makes it seamless benefits any business.

Let’s look at an example: a reputed brand had two warehouses. One is just for storing the inventory, and the second is for processing orders. Hence, there’s no role of a vendor. However, integrating both warehouses is necessary to keep the inventory and all the inbound processes in sync.  So there you have it – the cookie recipe for seamless order fulfillment! Just like baking a perfect cookie requires precise ingredients and timing, optimizing your order fulfillment process ensures happy customers and increased profits. From managing purchases to storing inventory and shipping orders with finesse, every step matters. Ready to bake your e-commerce success?

Let’s get it cracking!

Related read:

• What is Order Management?
• Why is Order Management System Important for E-commerce Business?
• Why do e-commerce businesses need a robust order management system?
• What is Omnichannel Order Management?

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This scenario not only results in a lost sale but also potentially damages the reputation of your online store. So, what’s the solution? The answer lies in implementing effective inventory tracking systems. 

But before we dive into inventory management software, let’s take a close look at inventory tracking and how it can help your e-commerce business scale.

What is Inventory Tracking?

At its core, inventory tracking is a process of monitoring and managing the stock of goods within a business. It involves keeping tabs on the quantities, locations, and statuses of various SKUs in a company’s inventory.

Let’s consider the scenario of an online bookstore. The seller procures books from various publishers and distributors to offer on their website and in-store. To efficiently manage their inventory, they employ inventory tracking. They begin by recording all available books, including crucial details like title, author, ISBN, quantity, and warehouse location. 

As customers make purchases on the website, inventory levels fluctuate accordingly. Whenever a book is sold, the seller promptly updates their inventory records to reflect the reduced quantity. If certain books start running low in stock, the inventory tracking system triggers alerts, prompting the seller to reorder more copies to prevent stockouts. 

Furthermore, the seller uses the data gathered through inventory tracking to analyze sales trends over time. This analysis helps identify the highest-selling SKUs, enabling informed decisions regarding restocking or promoting specific books. 

Ultimately, implementing inventory tracking ensures that the bookstore consistently offers the right products at the right time, thereby enhancing customer satisfaction and optimizing inventory management processes.

What is Being Tracked?

Now that we understand the essence of inventory tracking let’s delve deeper into what exactly is being tracked in inventory management. Here are several components that are monitored and managed:

• Products: The items or goods that are stocked in inventory, each with its own unique identifier (SKU, barcode, etc.).
• Quantities: The number of units or items of each product available in inventory, ensuring accurate stock levels.
• Locations: The physical storage locations within a warehouse or facility where each product is stored, facilitating efficient retrieval and organization.
• Statuses: The current status of each product, such as whether it is in stock, out of stock, on order, in transit, or reserved for specific purposes.
• SKU Details: Essential information associated with each product, including its title, description, unit price, supplier details, and any other relevant data.
• Transactions: Any movements or changes in inventory, such as sales, returns, transfers between locations, or adjustments, are tracked to maintain accurate inventory records.

What are the Benefits of Inventory Tracking

Whether you’re a small business or a large enterprise, the ability to track and manage your inventory effectively can make all the difference in your bottom line. From optimizing resource allocation to enhancing customer satisfaction, the benefits of inventory tracking are manifold and far-reaching.

• Optimized Resource Allocation
• Improved Forecasting and Planning
• Enhanced Operational Efficiency
• Reduced Holding Costs
• Enhanced Customer Satisfaction

1. Optimized Resource Allocation

Inventory tracking allows businesses to have real-time visibility into their stock levels, enabling them to optimize resource allocation. By understanding which products are in high demand and which are moving slowly, businesses can adjust their purchasing and production schedules accordingly. This prevents overstocking of slow-moving items while ensuring that popular products remain readily available. Consequently, businesses can allocate their resources more efficiently, reducing carrying costs and maximizing profitability.

2. Improved Forecasting and Planning

Accurate inventory tracking facilitates better forecasting and planning. By analyzing historical data on sales trends and inventory turnover rates, businesses can make informed predictions about future demand. This enables them to stock up on popular items ahead of peak seasons or promotional periods, thereby avoiding stockouts and lost sales opportunities. 

3. Enhanced Operational Efficiency

Inventory tracking streamlines operational processes, leading to enhanced efficiency across the board. With automated systems in place, businesses can minimize manual errors associated with inventory management, such as double ordering or stock discrepancies. Also, real-time tracking allows for quicker identification of stock shortages or excess inventory, enabling prompt action to address these issues. 

4. Reduced Holding Costs

By maintaining optimal stock levels and preventing overstocking, businesses can reduce the need for additional warehouse space and avoid the risk of inventory obsolescence. This not only frees up valuable storage space but also minimizes the costs associated with storing, handling, and insuring excess inventory. 

5. Enhanced Customer Satisfaction

One of the most crucial benefits of inventory tracking is its positive impact on customer satisfaction. By ensuring that popular items are consistently in stock and ready for prompt delivery, businesses can meet customer demand more effectively. Also, accurate inventory tracking minimizes the risk of backorders, delays, or order cancellations, thereby fostering trust and loyalty among customers. 

Best Practices for Inventory Tracking

Implementing best practices in inventory tracking not only ensures accurate stock levels but also enables businesses to make informed decisions based on real-time data. Here are some tried-and-tested best practices for effective inventory tracking:

• Invest in Automated Systems
• Implement Barcode or RFID Technology
• Regularly Conduct Physical Counts

1. Invest in Automated Systems

Invest in inventory management software or an enterprise resource planning (ERP) system equipped with automated tracking capabilities. These systems can streamline data entry processes, minimize human error, and provide real-time visibility into stock levels, orders, and shipments. 

Choose a solution that integrates seamlessly with your existing systems and offers customizable features to suit your specific business needs.

2. Implement Barcode or RFID Technology

Handheld devices, such as barcode scanners, play a crucial role in streamlining inventory management tasks. They enable workers to scan product barcodes or RFID tags, instantly updating inventory records in real-time and eliminating the need for manual data entry. 

With handheld devices, inventory counts can be conducted quickly and accurately, enhancing efficiency and reducing errors.

3. Regularly Conduct Physical Counts

Perform regular physical counts of inventory to verify accuracy and identify discrepancies between recorded and actual stock levels. 

Schedule cycle counts for specific product categories or high-value items to ensure thorough coverage without disrupting daily operations. Compare physical count data with system records and investigate any discrepancies to address underlying issues promptly.

Let’s Simplify Inventory Tracking!

Efficient inventory tracking isn’t just a luxury for businesses; it’s a strategic necessity. By implementing the best practices outlined above, businesses can transform inventory management from a daunting task into a streamlined, agile process that drives efficiency, reduces costs, and maximizes profitability. Together, let’s make inventory management not just a task on your to-do list but a cornerstone of your business strategy!

Related read:

• Inventory Management for E-commerce Businesses: A Complete Guide
• Best Practices of Inventory Cycle Counting
• Why E-commerce businesses needs Inventory Management System?
• Benefits of Inventory Management Software
• Top Multichannel Inventory Management Challenges and Solutions

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One such challenge is the occurrence of failed delivery attempts. But what if there was a solution to turn these setbacks into opportunities for improvement? That’s when you can leverage Non-Delivery Report (NDR) management – a potential game-changer to streamline delivery operations.

But what exactly is NDR, and how does the management of Non-Delivery Reports enhance the efficiency of delivery services? Let’s dive deep into the mechanism of NDR Management and explore how it can significantly reduce failed deliveries!

Understanding NDR Management

A Non-Delivery Report (NDR) is a record of unsuccessful attempts to deliver a package due to various reasons such as customer unavailability, incomplete address, or any obstacle that prevents the successful handover of the parcel. Effective NDR management not only helps in reducing the rate of failed deliveries but also enhances customer satisfaction and trust in a brand’s delivery services.

How NDRs Are Generated

NDRs are typically generated through a logistics management system. The process is as follows:

• A delivery personnel attempts to deliver a package to the recipient’s address.
• If the delivery cannot be completed due to any reason, the delivery personnel records the issue in their handheld device or mobile application.
• The issue is categorized into predefined reasons for non-delivery (e.g., “Address Not Found,” “Customer Not Available,” etc.). This information, along with the delivery attempt details, is uploaded to the logistics system.
• The system automatically generates an NDR based on the information provided, which is then communicated to the seller and, in some cases, the recipient, outlining the reason for non-delivery and the next steps.

Common Reasons for Unsuccessful Deliveries

Unsuccessful deliveries can occur due to various reasons, often leading to the generation of an NDR. Some of the most common reasons include:

1. Incorrect Address Details: One of the primary reasons for unsuccessful deliveries is incorrect or incomplete address details provided by the customer. This can lead to confusion and delays in finding the delivery location.

2. Recipient Unavailability: Deliveries often fail if the recipient is not available to receive the package. This can occur if the delivery attempt does not align with the recipient’s schedule or if there is no safe place to leave the package.

3. Issues with Contact Information: Incorrect or unreachable contact information can prevent delivery personnel from communicating with the recipient to confirm details or arrange an alternative delivery time.

4. Refusal of Package: On occasion, customers may refuse to accept a package due to various reasons, such as unexpected COD (Cash on Delivery) charges or the recipient deciding they no longer want the item.

By identifying and understanding these common causes of delivery failures, businesses, and logistics providers can work towards implementing solutions that address these challenges. 

How NDR Helps in Efficient Handling of Unsuccessful Deliveries – Benefits of NDR Management

NDR management offers more than just damage control after an unsuccessful delivery; it’s a proactive means to streamline logistics, reduce costs, and enhance customer satisfaction.

1. Streamlining Delivery Processes

Effective NDR management plays a pivotal role in making delivery processes more efficient. By analyzing NDRs, sellers can pinpoint common issues leading to delivery failures, such as incorrect addresses or recipient unavailability. This insight allows businesses to address and rectify these issues, potentially improving overall delivery success rates.

It also enables brands to quickly respond to delivery issues by facilitating the immediate re-routing or re-scheduling of deliveries. This not only helps in ensuring that the parcels reach their final customer but also reduces the time spent in transit, enhancing the efficiency of the delivery process.

2. Reducing Return to Origin (RTO)

A significant advantage of effective NDR management is the reduction in Return to Origin (RTO) incidents, which are costly and time-consuming for both businesses and customers. Properly managing NDRs can help in identifying alternative solutions to returns, such as arranging for a pickup at a nearby location or scheduling a re-delivery at a more convenient time. 

This reduces the likelihood of goods being sent back to their origin, saving on shipping and handling costs. Each failed delivery attempt, and subsequent RTO involves additional costs, including shipping, handling, and storage. Effective NDR management helps minimize these occurrences, thereby reducing operational costs and protecting profit margins.

3. Enhancing Customer Satisfaction

In today’s competitive market, the delivery experience is an important part of customer service. Effective NDR management contributes to a positive delivery experience by keeping customers informed about the status of their delivery, including any issues encountered along the way. 

Also, by presenting customers with options for how they wish to proceed following an unsuccessful delivery attempt, businesses can empower customers and provide a sense of control over the situation. Whether it’s rescheduling the delivery, changing the delivery address, or opting for a pickup, having choices can significantly improve the customer experience.

Implementing Effective NDR Management!

The strategic management of Non-Delivery Reports (NDRs) is important for brands and sellers seeking to enhance their delivery success rates. By adopting an advanced logistics and returns management solution that incorporates effective NDR management capabilities, businesses can proactively address delivery challenges and mitigate the impact of unsuccessful deliveries on customer satisfaction. 

UniShip is one such solution that offers a unique feature for handling undelivered orders. With UniShip’s NDR management, orders are categorized based on issues like incorrect addresses or customer unavailability. With UniShip, sellers can also automate the return process, making it easier to manage and resolve delivery challenges efficiently.

Related read:

• How E-commerce Marketplace Payment Reconciliation helps E-commerce Businesses?
• How Shipping Notifications can benefit your E-commerce Business?
• Streamlined E-commerce Payment Reconciliation with UniReco

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Think about it; a customer excitedly places an order, and now they’re in suspense—where’s their package? This is where we, as sellers, can turn it into a win-win. But how? Enter automated shipping notifications, your go-to integrated solution for elevating the post-purchase customer experience.

What are Shipping Notifications?

Shipping notifications are real-time updates sent to customers to keep them informed about the status and location of their shipped orders. These real-time order tracking notifications typically include key details such as order confirmation, shipment dispatch statuses, in-transit updates, delivery day reminders, and confirmation of successful delivery. 

The primary aim is to provide customers with a transparent and seamless experience, allowing them to track their packages, anticipate delivery times, and address any potential issues promptly. By offering a clear and proactive communication channel, shipping notifications contribute to customer satisfaction, trust-building, and the overall positive perception of a brand.

Types of Shipping Notifications

Here are different shipping notifications designed to keep customers informed at every stage, from order confirmation to successful delivery and returns processing.

1. Order Confirmation: Customers receive an initial confirmation when they place an order. This message includes details such as the order number, items purchased, and an estimated delivery date.
2. Shipment Dispatched: Once the package is on its way, customers receive a notification confirming the shipment dispatch. This update typically includes a tracking number for real-time monitoring.
3. In-Transit Updates: Customers are notified as their package progresses through different stages of transit. This may include information on arrival at local facilities, departure from sorting centers, and estimated delivery times.
4. Delivery Day Reminder: A notification on the expected delivery day serves as a helpful reminder. It may include a more precise delivery window and any special instructions for receiving the package.
5. Delivered Confirmation: The final notification confirms successful delivery. It may also include a delivery confirmation photo or additional details for added assurance.

A similar flow is implemented for returned products, encompassing notifications such as Return Initiation, Return Shipment, In-Transit Updates, Arrival and Quality Check, and ultimately, Refund Confirmation.

Impact of Shipment Notifications on E-commerce Business

Shipping notifications may seem like a small aspect of your e-commerce strategy, but their impact on your business can be monumental. Here is how these notifications can elevate your online business’s success.

1. Boosted Customer Satisfaction

Shipping notifications guide your customers through the journey of their purchase. As they receive timely updates on the status and location of their orders, it alleviates the anxiety associated with waiting for a package. This, in turn, leads to increased customer satisfaction. Happy customers are not only more likely to make repeat purchases but also to recommend your brand to others.

2. Building Brand Credibility

Trust is the foundation of any successful e-commerce business. When customers receive accurate and timely shipping notifications, it builds trust in your brand. They feel assured that their orders are being handled with care and precision. This trust can be a differentiator in a competitive market, encouraging customers to choose your e-commerce business over others.

3. Reduced Customer Inquiries

Remember those ‘Where is my order?’ messages mentioned earlier? Implementing shipping notifications significantly reduces these inquiries. When customers are well-informed about the status of their orders, they are less likely to flood your customer support channels with queries. This not only streamlines your operations but also allows your support team to focus on more critical issues.

4. Brand Loyalty and Repeat Business

Seamless post-purchase experiences contribute to brand loyalty. When customers have a positive experience with real-time delivery tracking, they are more likely to become repeat customers. Shipping notifications play an important role in shaping this positive experience by providing transparency and ensuring that customers feel valued throughout the entire shopping journey.

5. Operational Efficiency and Cost Savings

Implementing robust shipping notifications not only enhances the customer experience but also drives operational efficiency and cost savings for e-commerce businesses. In the absence of notifications, customers resort to seeking order updates via call and email. However, by automating various stages of the post-purchase process, from order confirmation to delivery, these notifications streamline internal workflows, reducing the need for manual intervention and minimizing the risk of errors. 

Choosing the Right E-commerce Logistics Tracking Solution!

Selecting an appropriate e-commerce logistics tracking solution is a critical step in maximizing the potential of shipping notifications. A seamless e-commerce integration between your e-commerce platform and the logistics tracking solution is essential. This not only centralizes all logistic needs for your brand but also seamlessly integrates and streamlines your shipping notifications, providing real-time updates to your customers. 

UniShip is one such solution that simplifies e-commerce tracking ensuring a seamless post-purchase journey for your customers. The end-to-end tracking covers everything from order processing to delivery, providing real-time visibility and transparency throughout the entire order lifecycle. With features like instant WhatsApp updates and delivery alerts, UniShip significantly reduces uncertainty in order progress, enhancing customer satisfaction and loyalty.

Related read – 

• Top Inventory Management Challenges
• What is a Warehouse Management System (WMS)?
• Logistics vs Supply Chain Management: Key Benefits
• Order Management Process Flow: Key Steps
• Top Order Management System Challenges
• Ecommerce Payment Reconciliation via Unireco

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