How can it reduce RTOs for E-commerce?

What is NDR or Non-Delivery Report?

In the Indian eCommerce market, NDR is also known as Non-Delivery Report and it is a common occurrence that implies failed delivery attempts. This simply means that when a delivery fails, eCommerce businesses have a limited timeframe to convert that failure into a successful delivery. 

If unsuccessful, the failed delivery is marked as RTO, or Return to Origin. This means that the order is canceled and it must be shipped back to the origin warehouse.

This process incurs significant losses for eCommerce companies, as the ecommerce brands have to pay for both the forward and reverse logistics costs. NDRs also contribute substantially to the overall RTO percentage, which can affect an ecommerce brand’s image and also lead to poor customer satisfaction. However, effective NDR management can reduce these losses, let’s discuss this in detail in this article.

What Does NDR Mean for an eCommerce Brand?

An NDR indicates the status of an order after an initial delivery attempt has failed. When a delivery fails for any reason, the carrier partner marks the order as an NDR. E-commerce enterprises monitor the flagged NDR orders to convert them into successful deliveries and avoid RTOs. 

Carriers typically make 2-3 delivery attempts before marking the order as an RTO. NDRs can disappoint customers and lead to a greater loss for the company, including the loss of a sale, forward shipping charges, and challenges in returning the order to the origin warehouse for resale.

Benefits of NDR Management for eCommerce Businesses

NDR management involves promptly handling non-delivery reports (NDRs) to ensure future successful deliveries. Establishing a clear and stable workflow for managing NDRs offers multiple benefits beyond preventing delivery failures.

An efficient NDR management system can significantly enhance your eCommerce business by improving overall shipping operations and addressing complex aspects of the delivery process. 

Here are just a few of the immediate benefits you’ll gain by employing effective NDR management techniques: 

1. Slash Your RTO Rate by 50%

High NDR rates significantly contribute to high Return to Origin percentages, as many NDRs end up as RTOs instead of getting successfully delivered. Effective communication and proactive NDR management can drastically reduce the number of NDRs converting into RTOs, cutting the RTO rate by half.

2. Eliminate Fake Delivery Attempts

NDR management requires detailed information on the reasons for delivery failures, making identifying and tracking fake deliveries easier. By consistently tracking and addressing fake delivery attempts, businesses can significantly reduce NDR occurrences and improve overall delivery reliability.

3. Keep Customers Informed

Customers dislike delayed deliveries, but they dislike being uninformed even more. Effective NDR handling involves reaching out to customers for information, ensuring they are updated and aware that their order is being worked on. This transparency helps maintain customer trust and satisfaction.

4. Optimize Last Mile Delivery Operations

Last-mile delivery is prone to mix-ups and exceptions, contributing to high RTO rates and poor customer experiences. By analyzing NDR occurrences and their causes, eCommerce brands can identify and implement solutions to common issues in last-mile delivery operations, improving overall efficiency.

5. Boost Ecommerce Order Fulfillment

The ultimate benefit of NDR management is increased order fulfillment. Ensuring a higher number of successful deliveries boosts order fulfillment rates, contributing to the growth and profitability of eCommerce ventures.

How Does NDR Management Work for the Indian eCommerce Market?

Now that we understand the requirements and benefits of NDR management, it’s clear how it can help eCommerce businesses better handle customer orders and drive online growth. 

Here’s a step-by-step guide to implementing effective NDR management in the Indian eCommerce market, ensuring your business thrives by improving delivery success and customer satisfaction.

1. Stay Alert with NDR Notifications

Carriers typically send daily reports of NDR notifications at the end of each day. These reports inform you about which deliveries failed and in which areas, enabling you to take appropriate action.

2. Uncover the Cause

Each NDR notification should ideally include the reason for the failed delivery. Understanding the cause helps determine if the NDR can be resolved and what steps are necessary to address it.

3. Communicate with Customers

Once the cause of the NDR is identified, communicate with the customer to gather the necessary information for successful delivery. This may involve obtaining a contact number, address details, or alternate delivery timings.

4. Update Carrier Information

After receiving the information from the customer, relay this updated information to the respective carrier. This allows the delivery agent to make the next delivery attempt with accurate and relevant details.

5. Follow-Up Diligently

In eCommerce delivery, there are certain instances when even after the second or third attempt, the delivery fails. 

By consistently following up after each delivery attempt, you can ensure that any remaining issues are addressed promptly, improving the chances of successful delivery on the next delivery attempt.

This makes it important to follow up with both the customers and the courier partners after every failed attempt. This helps you note the reason for each failed attempt and work with the customers to fix these issues for the next attempt. 

E-commerce businesses can effectively manage NDRs, reduce RTO rates and improve overall delivery success with these steps.