Returns Management Archives – unicommerce.com

E-commerce Returns Management: A Guide to Optimizing Return Touchpoints

Humra Sayeed — Wed, 15 May 2024 07:27:56 +0000

For people shopping online, the journey doesn’t end at the checkout; in many ways, it’s just beginning. Once the “Buy Now” button is clicked, a series of behind-the-scenes processes are set into motion. The excitement builds as the buyer eagerly awaits the package’s arrival. But let’s face it, sometimes things don’t quite match up to expectations. Maybe the product doesn’t fit right, or the color isn’t what the buyer imagined.

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.

What is Order Fulfillment – Meaning, Process, Importance and Strategies

Humra Sayeed — Thu, 09 May 2024 08:38:29 +0000

As a business owner, you would not want to miss any possible touchpoint to sell. We all know that the key motive of running a business is to earn profits, and new-age e-commerce demands the availability of your products and services everywhere possible. But what about the tons of behind-the-scenes that goes into the process? Selling on your website, multiple marketplaces, and stores means receiving orders simultaneously but processing them differently according to your buyer’s needs. Too many multiple stages of work! It’s easy to frame in one sentence but challenging to process in real life. What if you can have everything at your fingertips? Let’s start from the beginning.

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!

E-commerce Marketplace Payment Reconciliation: How It Helps E-commerce Businesses?

Anurag Mittal — Wed, 21 Feb 2024 10:50:20 +0000

Today, when people think of shopping, their first instinct is to search for products online. With this shift, it has become crucial for sellers to capitalize on every touchpoint and make their products available on every digital front. Hence many brands have adopted a strategy to sell on multiple e-commerce marketplaces. However, as the sales soar and the customer base grows, so does the complexity of managing transactions of multiple marketplaces.

Every click, swipe, and purchase generates a number of financial activities. Tracking these transactions can sometimes feel like solving a puzzle with missing pieces and questions arises like:

Did that payment from yesterday match the order from last week?
Are all your sales figures adding up correctly?

Without a clear view of your financial picture, it’s easy to get lost in the chaos. That’s where marketplace payment reconciliation steps in – like a trusted friend helping you piece together the puzzle. It gives a clear view of all the transactions and easily tracks payments on marketplaces.

Let’s decode what payment reconciliation is and how it can be a game-changer for your e-commerce business!

Understanding Marketplace Payment Reconciliation

When discussing marketplace payment reconciliation, it’s important to understand the inner workings of a marketplace.

Now what is a marketplace?

It is an online hub where sellers set up their virtual stalls, and buyers surf around, picking out their favorite items. It’s all pretty seamless on the surface, but behind the scenes, many financial transactions are happening. Every time a customer makes a purchase, there’s a whole chain of events that follows: the payment gets processed, orders are fulfilled, and fees are deducted.

With different payment methods, different commission rates, and transactions happening left and right, it’s easy to feel overwhelmed. That’s when sellers can reconcile payments to get a clear picture of transactions happening on the marketplaces.

You can match the transactions recorded in your internal financial records with the transactions processed by the marketplace platforms. This ensures that the money you receive from sales on platforms like Amazon, Flipkart, Myntra matches up with what you see in your own business records.

Key Challenges in Reconciling Payments for Marketplaces

With a large number of transactions happening, reconciling payments from marketplaces can be tedious and challenging. Here’s a closer look at some major challenges a seller can face in e-commerce payment reconciliation!

1. Operational Leakages

Operational leakages which include overcharges can pose significant challenges in marketplace reconciliation. These occur due to fee discrepancies, hidden charges, incorrect deductions, billing inconsistencies, third-party fees, and complex refund processes. These leakages from sales revenue can lead to financial losses for sellers.

2. Complex Fee Structures

Each marketplace operates with its own fee structures, encompassing various charges such as transaction fees, listing fees, and commissions. These fees may vary based on factors like product category, sales volume, or membership tier. Reconciling these complex fee structures requires attention to detail and a deep understanding of each marketplace’s policies.

3. Different Payment Timelines

Marketplaces often have different timelines for disbursing funds and updating payment information. Some platforms may disburse payments daily, while others may have weekly or monthly payment cycles.

For example, Amazon’s and Flipkart’s settlement process repeats every 7 days while payments for Myntra are processed within 1-2 business days. Managing these different timelines and ensuring accurate real-time reconciliation can be challenging, especially for sellers with high transaction volumes.

4. Multifaceted Operations

Online marketplaces have numerous operational layers, each involving various stakeholders and processes. From order processing and fulfillment to payment processing and dispute resolution, there are numerous touchpoints where discrepancies can arise. Adding to the complexity are third-party providers, such as payment processors or fulfillment centers, whose involvement introduces additional layers of reconciliation.

5. Technical Limitations

Reconciling payments manually or using outdated tools like spreadsheets can introduce technical limitations and security risks. Manual reconciliation processes are prone to errors and inefficiencies, while outdated systems may lack the scalability and functionality needed to handle the complexities of e-commerce transactions.

Benefits of Marketplace Payment Reconciliation

Automated payment reconciliation offers numerous benefits that significantly contribute to the efficiency, accuracy, and overall financial health of e-commerce businesses.

1. Enhanced Accuracy and Transparency

Reconciliation ensures that every transaction recorded in your system aligns with the corresponding transactions processed by marketplaces. This matching process enhances the accuracy and transparency of financial records, providing businesses with a comprehensive overview of their financial standing.

2. Identify Payment Discrepancies

Reconciliation serves as a crucial tool for identifying discrepancies and irregularities in transaction data. By matching UTR (Unique Transaction Numbers) between the business’s records and marketplace platforms, sellers can ensure accurate accounting. Automating reconciliation processes using UTR information streamlines identification, enhancing accuracy and efficiency.

3. Hassle Free Returns Management

From identifying returned and delivered products to tracking pending returns, reconciliation fosters transparency in the overall return process. This approach allows businesses to address potential issues and optimize overall return management seamlessly.

4. Effective Dispute Management

Reconciliation provides a systematic framework for resolving issues with marketplace platforms in cases of billing discrepancies or payment disputes. Businesses can promptly address disputes and maintain positive relationships with stakeholders, preserve trust, and avoid potential financial losses.

5. Improved Cash Flow

Accurate reconciliation helps businesses identify and rectify overcharges, duplicate payments, or negative cash flows, resulting in cost savings over time. Timely reconciliation of payments and expenses provides businesses with better visibility into their cash flow, enabling more effective cash management strategies.

Marketplace Payment Reconciliation

Key Challenges	Key Benefits
Operational Leakages	Enhanced Accuracy & Transparency
Complex Fee Structures	Identify Payment Discrepancies
Different Payment Timelines	Hassle Free Returns Management
Multifaceted Operations	Effective Dispute Management
Technical Limitations	Improved Cash Flow

How Automated Marketplace Payment Reconciliation Works?

Automate reconciliation of payments can streamline the verification of transactions between sellers and marketplaces. Here’s an overview of how it operates:

1. Automation and Integration

Automated reconciliation systems integrate seamlessly with marketplace platforms, enabling real-time data synchronization. This integration automates the retrieval of transaction data and payment reports, eliminating the need for manual data entry and reducing the risk of errors.

2. Matching Transactions and Settlements

Upon integration, the system organizes transaction data into different sections, facilitating easy identification and management:

Reconciled: Contains transactions where payment has been verified and accepted by the seller.
Payment Awaited: Includes transactions for which payment reports are pending from the marketplace.
Payment Overdue: Lists payments that are overdue for settlement from the marketplace.
Disputed: Highlights transactions with visible discrepancies in settlements, allowing sellers to raise disputes with the marketplace.
Return Payment: Tracks returned transactions where payments have been reversed.

3. Addressing Discrepancies and Reconciliation Process

Discrepancies, such as missing payments or disputed transactions, are addressed systematically. Sellers can raise disputes for discrepancies, and the system facilitates communication with the marketplace platform to resolve issues promptly. Returned transactions are also tracked, ensuring accurate reconciliation of payment reversals.

Choosing the Right Solution to Reconcile Marketplace Payments!

It is important to choose the perfect marketplace payment reconciliation solution for your e-commerce businesses, as it directly impacts financial accuracy, efficiency, and overall operational performance.

UniReco is one such solution with advanced algorithm capabilities that facilitate the matching of orders, payments, and returns across various marketplaces. With UniReco, businesses gain access to real-time reconciliation status updates, empowering them to swiftly identify and address any discrepancies with ease.

How Robust Marketplace Integration Transforms E-commerce Order Management

Team Unicommerce — Tue, 09 May 2023 07:04:01 +0000

E-commerce order management is the back-end process for managing and fulfilling online orders. It’s responsible for ensuring that when a customer clicks “Buy Now,” everything flows seamlessly from there on. This encompasses a wide range of tasks, from routing orders and generating shipping labels to handling returns and managing refunds.

The significance of effective e-commerce order management cannot be overstated. It directly impacts customer satisfaction, which in turn affects your business’s reputation and bottom line. One key aspect that plays a pivotal role in the efficiency of e-commerce order management is marketplace integration.

The Role of Marketplace Integration in Order Management

Marketplace integration refers to the process of connecting your single selling platform with various online marketplaces, creating a seamless flow of information between your store and external platforms such as Amazon, Flipkart, Myntra, and others.

This integration enables a centralized management system, streamlining various aspects of e-commerce order management. It acts as a bridge that brings together your product listings, inventory management, order processing, and customer data, creating a unified and synchronized ecosystem.

Let’s take the case of a small business owner who sells handmade crafts on both their Shopify store and Flipkart. Before, they had to manually update product listings, inventory levels, and order statuses on each platform separately.

However, after getting an Order Management Software with integrated marketplaces, when a sale occurs on Flipkart, the inventory levels are automatically updated on both Flipkart and their Shopify store. Additionally, order details are seamlessly synchronized, eliminating the need for manual input and reducing the chances of errors.

Benefits of E-commerce Marketplace Integrations

Here are some advantages of integrating marketplaces with your single selling platform:

1. Streamlined Processes and Reduced Errors

Marketplace integration eliminates manual data entry of orders on multiple channels, reducing the chances of errors and ensuring that information is consistently updated across all platforms. This streamlining of processes leads to a more efficient and error-free order management system.

RSA Global, a Dubai-based digital supply chain and e-commerce logistics solutions provider, recognized the importance of modernizing its logistics operations. To gain access to widely-used e-commerce marketplaces, RSA Global opted for robust order management.

The system seamlessly facilitated RSA’s integration with Amazon, Noon, and Custom Website (WooCommerce). These integrations allowed for real-time data synchronization, simplifying data exchange and reducing the risk of manual errors.

2. Real-Time Inventory Management on All Sales Channels

This integration extends beyond order management, enabling the synchronization of inventory levels across all connected marketplaces and the Direct-to-Consumer (D2C) store. By creating a unified inventory source for all platforms, this approach streamlines processes and enhances inventory forecasting capabilities, preventing challenges like overselling or stockouts.

A well-known footwear brand, Neeman’s, required diverse marketplace integrations such as Amazon, Flex, Flipkart, and Shopify, Neeman’s implemented a solution to seamlessly integrate its inventory and manage orders across all required platforms. This has significantly contributed to Neeman’s ability to maintain a steady inventory flow, meeting the demands of its tech-savvy customer base with efficiency.

3. Automated Order Processing

As your business scales, manually processing orders becomes impractical. Marketplace integration establishes seamless connections between the business’s selling platform and various online marketplaces. This integration allows for the automatic transmission of order details, eliminating the need for manual data entry and reducing the risk of errors.

The integrated system automatically updates order statuses, providing customers with timely information about their purchases from confirmation to delivery. Automated order processing expedites fulfillment tasks, ensuring products are picked, packed, and dispatched efficiently. The result is a smoother transaction process and reduced manpower costs.

4. Seamless Returns Management

Efficient returns management in e-commerce is achieved through the seamless integration of marketplace platforms with a robust Order Management System (OMS). This integration centralizes returns processing, allowing businesses to handle both Customer-Initiated Returns (CIRs) and Returns to Origin (RTO) with ease.

The streamlined communication between multiple sales channels ensures real-time data exchange, reducing manual intervention and enhancing visibility into return trends. The automated features of the OMS, such as generating return labels and updating inventory levels, contribute to cost reduction by minimizing manual efforts.

5. Data-Driven Decision-Making

Marketplace integration serves as a powerful tool for businesses, consolidating data from diverse platforms to facilitate informed decision-making. By seamlessly connecting with various online marketplaces, businesses gain access to a wealth of information, including customer behavior, sales trends, and product performance.

Analyzing trends becomes more nuanced as businesses can identify patterns in consumer preferences, popular products, and peak buying periods. The real-time synchronization of data ensures that businesses are working with the most current information, enhancing the accuracy of trend analysis.

Let’s Leverage the Power of Marketplace Integrations!

A well-functioning order management system is crucial for the success of any e-commerce business. Marketplace integration emerges as a key player, seamlessly connecting your single selling platform with external marketplaces for a smoother operation. Any business that is not capitalizing on the power of marketplace integrations may find itself navigating unnecessary challenges.

In today’s competitive e-commerce landscape, where every click counts, the imperative is to leverage this integration as a strategic advantage. Therefore, the call to action is clear, let’s leverage the power of marketplace integrations to propel your e-commerce business forward.

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E-commerce Apparel Industry in the Philippines: Opportunities, Challenges and Solutions

Team Unicommerce — Fri, 24 Mar 2023 10:53:19 +0000

The fashion and retail industry of the Philippines is rapidly evolving. It is projected to experience strong growth in the coming years, with a CAGR of 15.01% and a market volume to reach US$ 1,363 million by 2027.

With a population of over 110 million people and a rapidly growing middle class, consumer spending power is also increasing. This has led to a surge in demand for fashionable clothes and accessories and opportunities for businesses to thrive.

Highlights of the E-commerce Apparel Industry in the Philippines: Opportunities & Trends

The Apparel market is on the rise, with a projected revenue of US$779.10 million in 2023.
Robust growth is anticipated, with an annual growth rate of 15.01% between 2023 and 2027. This will lead to a market volume of US$1,363 million by 2027.
While the Philippines is seeing growth, China dominates the market with a staggering revenue projection of US$131,300 million in 2023.
The number of users in the Apparel market in the Philippines is set to increase, reaching an estimated 34.2 million users by 2027.
User penetration in the market is growing steadily, starting at 22.4% in 2023, and is forecasted to reach 27.5% by 2027.
The average spending of each user, or ARPU, in the market is projected to be US$29.62.

However, along with these opportunities comes a unique set of challenges for the retailers operating in this region. So, let’s explore the challenges, opportunities, and solutions of the Philippines’ booming fashion industry.

Overcoming E-commerce Apparel Industry Challenges with Solutions in the Philippines

The apparel industry is known for its ability to adapt to ever-evolving styles and trends. However, this state of flux brings notable challenges, including the following:

1. Real-time Inventory Management

In the fast-paced fashion industry, managing inventory is crucial. The task of mapping an extensive SKU base with orders on various marketplaces like Lazada, Zalora, Shopee, etc., can become tedious and error-prone if handled manually. For Example, manual mapping can sometimes lead to the same products being marked with different SKUs, causing them to be counted as separate items.

Adding to the complexity, the fast-changing trends in the apparel industry lead to short product life cycles. Fluctuating demand and rapidly changing fashion trends can lead to overstocking or stockouts, both of which can be costly for retailers.

Solution – Implementing Barcode Inventory Management System

Retailers should implement a robust Barcode Inventory Management System to tackle these challenges. This system enables real-time tracking and accurate monitoring of inventory levels. The centralized SKU mapping enables retailers to streamline operations and ensure consistent product identification across various sales channels.

With precise insights, retailers can optimize stock levels, minimize stockouts, and enhance order processing efficiency. Brands like Luxurious Cravings have successfully leveraged these automated systems to stay ahead in the competitive market.

Moreover, these automated systems not only streamline inventory control but also provide comprehensive reports. These reports offer valuable data and analytics, empowering retailers to make informed decisions and anticipate future demands.

Given the rapidly changing pace of the fashion industry, these reports provide sellers with the latest trends. They provide insights into the best-selling and lowest-performing SKUs, allowing retailers to form their strategies effectively.

2. Order Processing and Fulfillment

Retailers in the Philippines face significant challenges with processing and delivering orders. Businesses need to handle this task well to uplift the post-purchase experience of their customers. The region has different kinds of areas, some with modern facilities and others with fewer resources.

Also, the presence of islands within the Republic of the Philippines adds a distinctive layer of complexity to the logistical landscape. The country consists of more than 7000 islands, and shipping and returning goods between these islands require a refined transportation and coordination strategy to guarantee timely and undamaged deliveries. This can make it tricky to process and deliver orders on time, especially in remote areas.

Solution – Automating the Entire Order Processing Workflow

Implementing a robust order management system can centralize and streamline the entire order processing workflow, from order placement to delivery. Retailers can consider investing in systems with solid integrations with 3PL (Third-Party Logistics) providers. These established logistics companies have expertise in navigating the region’s diverse landscapes, resulting in timely deliveries and higher order fulfillment rates.

Leading brands like Ellana Cosmetics have successfully achieved faster, better, and more efficient deliveries through automation. The brand achieved an impressive 99.99% order fulfillment rate by implementing a robust e-commerce order management system.

3. Product Returns and Reverse Logistics

Returns management is crucial in establishing a solid brand reputation, especially in the apparel industry with high return rates. A cumbersome and slow returns process can result in customer dissatisfaction and negatively impact brand reputation.

Businesses must also be vigilant about fraudulent returns, where some customers may abuse the process for personal gain. For example, some individuals may return used or damaged items, claiming they are faulty, in order to receive refunds or replacements.

Solution – Using a Robust Returns Management System

To address these challenges, it’s essential to implement an efficient returns management system that facilitates smooth and quick handling of product returns, ensuring a positive post-purchase experience for customers.

The system should include features like easy return initiation, seamless reverse pickup, thorough quality checks, inventory reconciliation, refund processing, and more. This can help retailers minimize return processing time, reduce operational costs, and maintain a positive brand image.

4. Changing Landscape of the Retail Industry

One of the biggest challenges facing fashion retailers is the industry’s changing landscape. With advancements in technology and shifting consumer preferences, traditional brick-and-mortar stores are facing intense competition from online retailers.

D2C brands are investing heavily in technology to build a strong supply chain ecosystem and drive traffic to their brand websites. The convenience and accessibility offered by online shopping have revolutionized how people shop for clothing and accessories. As a result, many traditional retailers have had to rethink their strategies and find ways to integrate online platforms into their business models.

On the other hand, digital-first brands, which initially started as online-only entities, have recognized the value of offline presence and are expanding into physical retail spaces. This convergence of online and offline retail indicates a shift towards a more holistic approach to retailing, where brands are exploring multiple ways to connect with consumers.

Solution – Building a Strong Omnichannel Presence

In this ever-changing landscape, it has become essential for retailers to build a solid online presence. However, it is equally important to maintain a physical store as well. Adopting an omnichannel approach allows retailers to seamlessly integrate their online and offline channels, providing customers with a cohesive shopping experience across all touchpoints. For instance, with an omnichannel strategy, customers can order online and return offline and vice-versa, or they can choose products online and try them in person.

For this, businesses need to have a user-friendly website or mobile app that offers convenient browsing and purchasing options while ensuring that brick-and-mortar stores are visually appealing and provide exceptional customer service. By creating a seamless online and offline shopping experience, retailers can attract and retain customers in an increasingly competitive market.

Leading omni brands like Edamama have successfully implemented an impactful e-commerce strategy to strengthen their presence in the market.

Let’s Make Fashion Business Easy in the Philippines!

While there are challenges facing the fashion retail industry in the Philippines, there are also immense opportunities for growth and success. Retailers can navigate the evolving landscape by staying agile, embracing technology advancements, and understanding consumer needs. As the Philippines continues to be a hotbed for fashion innovation and consumption, it is crucial for retailers to stay ahead of trends and constantly innovate to stay relevant in this dynamic market.

Frequently Asked Questions (FAQs)

1. What factors affect the fashion and retail industry in the Philippines?

Factors affecting the fashion and retail industry in the Philippines are the shifts in consumer preferences, the economic fluctuations of the country, the changing landscape of the e-commerce industry, the growing online penetration, increased competition, and the ever-changing supply chain dynamics.

2. What is the weakness of the fashion industry in the Philippines?

The weakness of the fashion industry in the Philippines lies in various factors, such as its reliance on imported raw materials, limited infrastructure, and inconsistent regulatory frameworks across different regions in the country.

3. What are the popular fashion trends in the Philippines?

Fashion trends in the Philippines can vary from city to city, but some popular trends in the region include a fusion of traditional and modern elements, vibrant colors, intricate patterns, and a mix of Western and local fashion influences. Moreover, streetwear, sustainable fashion, and athleisure are gaining popularity among the younger demographics.

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Cosmetics Industry in India – Trends, Opportunities, Challenges & Solutions

Kshitij Sahney — Sun, 22 Jan 2023 06:29:12 +0000

The Cosmetics Industry in India has witnessed a remarkable evolution over the past few years and is projected to register a compound annual growth rate (CAGR) of 4.23% over the next five years. In this dynamic landscape, it’s crucial to recognize that the cosmetic industry isn’t limited to makeup but encompasses all beauty and personal-care products, showcasing a diverse range of offerings. With brands like Mamaearth, The Man Company, Sugar Cosmetics and WOW Skin Science rising in the industry, it is evident that consumer trends are also changing with time.

Currently, the trends are shifting towards organic and natural products, along with an increased demand for Men beauty essentials, which underscores the new customer’s need for more personalized products. However, opportunities come with a set of challenges. Many brands have trouble coordinating the inventory across offline stores and online channels, including batching the inventory and expiry circulation of products, which leads to ineffective customer return management.

In this blog, we’ll delve into the exciting world of the cosmetics industry in India, exploring its trends, challenges, and realistic solutions in detail that would shape the future of your brand.

Trends and Opportunities in the Indian Cosmetics Industry

1. Growth of Natural and Organic Products

One of the most prominent trends in the Indian cosmetics industry is the shift towards natural and organic products. Consumers are increasingly seeking products with fewer chemicals and more natural ingredients. Take Mamaearth, for instance, a brand of the parent company Honasa Consumer, which progressed after the COVID-19 pandemic with a mission to provide 100% natural and toxin-free products with a blend of natural ingredients. Mamaearth’s dedication to providing customers with what they want resulted in a 400% growth amid COVID-19.

This inclination towards natural beauty has paved the way for homegrown brands that emphasize the use of herbal and organic components, which also makes the trend ever-relevant in the cosmetic industry.

2. Digital Influence on Beauty Choices

The digital age has brought about a revolution in the way consumers discover and purchase cosmetics. Social media influencers and beauty bloggers play a pivotal role in shaping consumer preferences and many brands promote their products in this way. Can you guess some of these brands?

In the vibrant realm of cosmetics, titans like Nykaa and Lakmé have carved their mark, particularly in the dynamic world of social media. Here, beauty enthusiasts seek recommendations tailored to diverse skin types and tones. These brands have recognized the immense potential of social media and influencers and used this power to create beauty products that cater to customers’ individual needs.

3. Male Grooming on the Rise

The male grooming segment is witnessing significant growth. The Man Company, among many brands, realized that men are now more conscious of their appearance and are willing to invest in grooming products. This shift in mindset has opened up a new avenue of men-centric cosmetic products that understand the difference between men’s and women’s skin types and cater to the specific needs of men. This specificity is what paved the way for The Man Company’s Success.

4. Personalization and Customization

In a market as diverse as India, consumers are seeking products tailored to their specific needs and preferences. Customized skincare and makeup solutions are gaining traction, allowing brands to offer unique, personalized experiences that cater to specific skin types, tones, and concerns, creating a unique experience for each consumer.

Challenges Faced by the Cosmetics Industry

1. Seasonal Demand Fluctuations

Seasons change drastically in India, ushering in a massive shopping spree with the holiday season arriving simultaneously. The cosmetics industry witnesses a substantial surge in product orders and delivers them to customers in the shortest possible time, and the challenge arises to keep the inventory streamlined. Lack of knowing your customer preferences may lead to overstocking and stockouts, which most brands experience during these times. This not only leads to unwanted inventory in the warehouse but also cuts down revenue and results in a bad customer shopping experience.

2. Inventory Expiry Management

Cosmetics are subject to strict regulatory standards. Mishandling products with an expiry date can lead to dire consequences for your brand, from losing products before they even leave the warehouse to compromising revenue and valuable storage space. Moreover, shipping expired products not only erodes customer trust but also complicates return issues.

3. Returns Management

Managing returns in the cosmetics industry is crucial for customer satisfaction and brand reputation. Despite best efforts, returns are inevitable. However, if not managed efficiently, it can lead to significant product waste. Inadequate processing and quality check of returned products not only result in wastage but leaves a hole in your brand’s finances and leave customers dissatisfied.

4. Order Fulfillment across channels

Cosmetic brands like Mamaearth and Suger Cosmetics operate through various channels, including e-commerce platforms, physical retail stores, and their own direct-to-consumer (D2C) websites. However, synchronizing inventory across these diverse platforms can pose a significant logistical challenge. This lack of inventory integration between offline stores and online marketplaces may lead to sudden stock outs or overstocking, leaving the customer hanging and losing potential sales.

5. SKU Proliferation

The cosmetics industry grapples with a diverse range of SKUs due to variations in shades, packaging, and formulations. Striking the right balance between offering a wide range of such products and maintaining a lean inventory can be quite a juggling act. This is especially challenging, considering the ever-changing trends and evolving customer preferences over time. Brands, unable to keep up with these changing trends in the industry, tend to get dissolved with the competition.

6. Limited Shelf Space

As the cosmetic industry continues to grow, warehouses may face constraints in terms of available space. Inefficiencies in storage space utilization can impede your brand’s ability to maximize its potential storage space. This limitation might be the very factor holding your brand back from reaching its full sales potential and accelerating business growth due to limited inventory in the warehouse.

Industry-based Solutions for Challenges

1. Detailed Report Snapshots to Track Demands

To achieve high efficiency during seasonal fluctuations, employing a warehouse inventory management system is crucial to map fluctuations and adjust inventory levels accordingly to maintain slim inventory. Utilize flexible storage solutions for your brand like consumer buying patterns and filter it from SKUs to geographical locations to track product success throughout the country and accommodate changes in product demand.

2. Implementing Batching

The strategic practice of ‘batching’ the inventory enables utilizing the first-expiry, first-out (FEFO) and first-in, first-out (FIFO) options to ensure that older products are used or sold before newer ones, minimizing waste and maximizing profits.

The Man Company faced a similar challenge, batching 1,000+ SKUs across 11 warehouses. But with batch-level traceability, The Man Company is able to track inventory using important attributes, such as cost, expiry, manufacturing, vendor, etc. Additionally, the batching feature also allowed the brand to identify soon-to-expire inventory and liquidate them accordingly while achieving minimal expiry and spoilage.

3. Efficient Return Management

Returns management, being one of the most cumbersome tasks, requires rigorous visibility of stock and returns processes that include a thorough product inspection. Additionally, quality-checking the product after returns in order to appropriate disposal of damaged or expired items and restocking of acceptable returns. See how Mamaearth rose above this challenge and achieved a faster inventory turnaround while attaining a drop in returns by 300%.

4. Managing Inventory Across Multiple Channels

Implementing an omnichannel strategy would empower your brand by creating a unified inventory pool for all your sales channels, not only minimizing logistics costs but also saving precious time. Additionally, you gain access to detailed real-time reports, all from a single dashboard. So, the need to manually update inventory to online channels and physical stores would become obsolete, subsequently giving your clients a unified shopping experience.

5. SKU Management and Barcode Scanning

Implementing robust SKU categorization and management techniques can significantly enhance inventory control which includes barcode scanning and labeling technology, ensuring accurate and efficient tracking of products, making the process smoother and more streamlined. Many leading cosmetic brands, among Wow Skin Science, Sugar Cosmetics, etc., use SKU categorization and barcode scanning to manage their complex warehouse operations in an effortless manner.

6. Implementing WMS

To overcome limited shelf space challenges, implementing a comprehensive warehouse management system (WMS) would enable your warehouse’s optimal shelf capacity for specific inventory and let you efficiently store products in the warehouse. Additionally, make use of high shelves to maximize vertical space. Investing in efficient storage solutions like pallet racks and mezzanines can significantly increase your storage capacity.

By strategically organizing your warehouse, you can unlock untapped potential for storing cosmetics and ensure seamless operations. Many leading brands among Plum Goodness have implemented a strategic warehouse management system that enables them to seamlessly track inventory and fulfill customer orders. With full visibility on the inventory, Plum Goodness was able to get detailed reports of their overall business operations and experience a 69% growth in sales.

By addressing these challenges, the cosmetics industry in India can ensure efficient warehouse and inventory management, ultimately contributing to business growth and customer satisfaction.

Unicommerce Recognized as Notable Vendor in the Forrester Order Management System Landscape, Q4 2022

Team Unicommerce — Fri, 30 Dec 2022 07:50:43 +0000

With the e-commerce landscape rapidly changing, more businesses are now adopting advanced technology to increase operational efficiency. Using an Order Management System (OMS) has now become a key part of e-commerce business, enabling them to focus on growth and increased profits.

To help digital businesses compare and choose OMS based on their functionality, Forrester released its Order Management System Landscape Report for Q4 2022. The report identified a set of 24 vendors providing innovative solutions across different stages of order management. And we’re honored to be listed as a notable vendor in this report.

Unicommerce believes in providing multichannel retail businesses with flexible, dynamic, and scaleable order management solutions that help them power their growth. Standing out in this landscape is no small feat, but we’re proud to have earned this distinction. We ensure that our order management solution offers unprecedented flexibility and scalability with a commitment to elevating the post-purchase experience.

OMS Features that Contributed to Our Success

Order management systems (OMS) can be an incredibly powerful tool for businesses in the e-commerce space. It helps decrease operational costs, increase productivity and streamline operations. Unicommerce’s OMS is no exception and offers customizable features that adapt to business e-commerce needs.

Forrester overview identifies Unicommerce OMS specialty use cases as pick and pack orders for fulfillment, support international selling, and manage store inventory, receiving, cycle counting.

Our centralized Order Management System manages orders in bulk over multiple channels, such as offline stores, online marketplaces, carts, and D2C websites.

We enable quick order fulfillment for businesses by facilitating the following:

Efficient order processing through hundreds of channels
Improved product visibility and performance
Reducing the risk of errors in order processing
Enhanced operational efficiency with plenty of seamless integrations

How Unicommerce Can OMS Help You Achieve Higher Operational Efficiency?

Unicommerce OMS is the right choice if you want to improve your business’s operational effectiveness. Here is why:

Your business will never run out of stock thanks to automated order placement for out-of-stock products.
Get a single scan to create an invoice that is tax-compliant.
Businesses can generate shipping and regulatory forms for all orders with our OMS in just one go.
Get access to simplified order manifest generation leading to convenient and faster order dispatches.
For precise order tracking, businesses can enable automatic emails to customers.
Integrate an ERP system to process orders effortlessly and manage them on a unified panel.
Manage order returns seamlessly with a comprehensive returns management system.

Unicommerce’s Vision for the Future

The market is changing rapidly as more people are turning to e-commerce for their everyday needs. Being the market leader, Unicommerce’s vision for the future is to simplify e-commerce selling for online sellers, retailers, and brands across the globe.

The mission of the Unicommerce team is to make e-commercing easy, efficient, and profitable. We are focused on providing large brands with a unified platform that enables them to seamlessly sell their products across multiple channels and boost business sales.

About Unicommerce

Unicommerce eSolutions is India‘s largest e-commerce focused supply chain SaaS technology platform. Founded in 2012, Unicommerce provides businesses with integrated software for multichannel selling, order management, inventory management, and warehouse management. The solution is designed to meet the business needs of e-commerce and e-tailers across sectors and has served over 20,000 satisfied customers globally.

We are currently present in ten countries across the Middle East, Southeast Asia, and African markets with 50+ international clients. Unicommerce currently manages over 3000+ stores and 8000+ warehouses and processes over 600 Mn+ transactions annually, amounting to USD 7Bn+ GMV.