When operating an ecommerce business, the likelihood of order cancellations is higher compared to traditional brick-and-mortar stores. According to data from the Government of India, the National Consumer Helpline received a total of 68,506 complaints in the e-commerce sector from April to November 2018. Out of these, 40,669 were referred to convergence companies, of which 33,612 were resolved. All businesses face the challenge of dealing with the negative impact of order cancellations, but some experience higher rates than others. While it is natural for customers to return products, a high volume of cancellations can be concerning for business stakeholders. In this article, we will explore 4 effective ways to reduce doorstep cancellations.
To reduce the frequency of order cancellations, it is crucial to identify the underlying cause, which is typically linked to customer dissatisfaction. By gaining a comprehensive understanding of customers' wants, needs, interests, preferences, and behaviour, one can align their business operations accordingly to meet expectations. This customer-centric approach enables one to innovate, market, and communicate more effectively, based on specific requirements. To achieve this, one way is to reach out to customers via email or phone to gather feedback and identify the issues leading to cancellations. It is also essential to note that order cancellations may not always be initiated by the customer, as delivery executives may cancel orders due to logistical issues. Therefore, identifying the root cause of cancellations can help address the underlying problems and prevent future mistakes, leading to more satisfied customers and better business outcomes.
Inventory shortages can cause shipment delays and ultimately result in increased rates of order cancellations. To avoid such scenarios, it is crucial to keep track of inventory regularly and estimate sales. This practice provides valuable insights into stock and allows one to update their website or application with accurate information on product availability. To minimise order processing time, it is essential to coordinate with courier partners and ensure that the orders are processed as quickly as possible. Expedited delivery mechanisms are popular among customers who prefer to receive their products quickly. By offering such shipping options, the chances of returns are less. Partnering with a reliable delivery platform like Roadcast can help streamline the delivery process and ensure timely deliveries.
To avoid substantial losses, it is essential to confirm a customer's availability before shipping a high-value COD order. This can be achieved by fixing a delivery slot with the customer in advance. For areas with a high rate of return orders, it is recommended to confirm the order and delivery method with the buyer via email. Additionally, it is crucial to validate the pin code and address to ensure accurate delivery. Before shipping any order, it is essential to verify that the phone number provided by the buyer is correct so that the delivery executive can easily contact the buyer. To ensure a smooth delivery process, one should double-check all necessary details before shipping any order. By following these practices, businesses can reduce the likelihood of unsuccessful COD orders.
By investing in technology, businesses can offer customers a more personalised experience and keep them informed about their orders. This transparency builds trust and increases customer satisfaction, ultimately leading to a larger customer base. When customers can easily track their orders and stay informed about any delays or issues, they are more likely to trust the business and feel confident in their purchase decision. This transparency also helps sellers identify areas for improvement and optimise their processes to reduce return orders. Investing in technology to offer a transparent and personalised experience can ultimately lead to greater success and a stronger reputation for businesses in the e-commerce industry.
For online sellers, cancelled and returned packages can have a significant impact on their business operations and expenses. That is why it is crucial to find ways to minimise returns and cancellations. These actions can help reduce operational costs, which have no return on investment, and prevent negative reviews, which can harm the seller's overall rating on ecommerce platforms.
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