Better, Faster Return Inventory Management for eCommerce

Today’s consumer has no tolerance for late, missing, and incorrect orders. They also don't think twice about returning merchandise purchased online and asking for a replacement (or refund), even if the item is still perfectly saleable. These “new realities” have made a sizable impact on the distribution environment, and are pushing technology vendors to add better precision management capabilities into their systems.

Until product is rejected, eCommerce Business Entities expect it to be a sale at any cost, and receive income in the form of Cash-On-Delivery Payment. But, once rejected, eCommerce Vendors want it to be returned faster and in same (better) condition.

One of the major reason, eCommerce Companies expecting better and faster return in current scenario in Nepal is, eCommerce with:

• all most no stock

Warehousing products in low quantity, intend to cover as many categories as they can.

• using stock from 3rd party vendor

Never practice the method of warehousing, rather use direct supply strategy from third party supplier vendor after the possible sales or enquiry has been generated.

So, on the returns front, for example, more companies are rushing to put the right business processes in place to deal with these different kinds of returns (i.e., those that can be returned to inventory and sold).

Faster expection of returns leads to higher losgistics expenses.

Different Reasons of Return in case of Nepal

• Return due to Customer Avoiding Last Mile Contact

Many customers do not respond to the communication about the packets being delivered to them. Some of the customer do establish a very good communication before last mile delivery. But, at last, avoid the phone calls. There are many customer who even do not want to face the delivery person, see the product and reject it if he/she is dissatisfied.

• Return due to disimilar product, high price comapared to quality, as promised by the seller

Not every time, sold product is rejected or returned with no reasonable reason. Sometime, seller doing mistakes in packing disimilar product or no quality product as compared to price tag leads to reasonable returns or dissatisfied customer. This kind of situation is frustrating for every customer.

• Return due to damaged product delivered

In one hand, this scenario can totally point towards the poor packaging technique. On the other hand, sometime mishandling of consignment by the cargo or transport is also one of the major reason. Few courier companes using untrained workers is also a reason for mishandling of consignment and cause for the damage. Ultimately, giving bad experience of online shopping to the customer and leaving bad impression about Native Business Entity.

• Return due to Miscellaneous reasons

• Product delivered before expected.

• No Money at the moment.

• Delay in delivery, both from delivery agency or eCommerce vendor with unrealistic promises.

• Competitor/Friend's eCommerce portal enquiries being theft.

• Using multiple delivery agency for the same order by eCommerce Vendors.

That’s where WMS is stepping in to help. At the end of the day, WMS is an inventory system. So, while these systems certainly help companies pick, pack, and stage, they are also inventory systems. As items get returned, shippers need to be able to return those goods to inventory. The WMS needs to be able to handle that task as well.