how to manage returns
TRANSCRIPT
Returns
Fulfilment process - Overview
within 24 hrs
Missing parts
Wrong Item
Seller Penalties
- Work with most trustworthy suppliers
- Conduct strict quality control with
frequent sample testing
- Take actions once products are
returned due to the products are
defective
- Rechecking of the items packed in
the boxes delivered to the
customer
- Make sure to pack all items stated
in “What’s in the box” on website
before ship out the order
- Pay extra attention when packing
the orders, especially during high
volume campaign days
- Rechecking of the items packed in
the boxes delivered to the
customers
Penalty fee imposed:
RM50 per item + GST%
Penalty fee imposed:
RM50 per item + GST%
Penalty fee imposed:
RM50 per item + GST%
Defective
Ordered Delivered
Lazada’s Returns Policy
Return process - Overview
- Product returned
within 14 days?
- Product returned in
good complete
condition?
Quality team check returned item
Convenient return:
Does not fit
Below expectation
Ordered by mistake /
Change of mind
Inconvenient return:
Wrong product
Parts missing
Defective
Damaged product
Wrong advertisement
Product condition
Investigate
returned item
against return
reason
Valid return?
Return item to
customer
Return item to
seller
YesYes
No
No
Order
delivered
date
Cut-off for customer to
initialize returnCut-off for Lazada to
ship the item to Seller
14 days 45 days
Order return timeline
Customer Returns
Item to Lazada
Warehouse
What causes High Returns?
Wrong packaging by supplier
Wrongly picked and packed by seller
Shipping label swapped by 3PL
Part missing within original sealed packaging
Seller forgot to include free gift
Damaged due to 3PL handling
Damaged due to insufficient packing
Defective batch from supplier
Insufficient instructions on how to use the item
User manual in foreign language
Wrong advertisement
Selling Unauthorized / Counterfeit Items
High Returns - Wrong packaging by supplier
Overview: Sometimes the supplier wrongly packs the item. The package
and the item within do not match
Impact: Seller will be penalized for delivering the wrong item
1. If the SKU is delivered in a unsealed box: Perform 100% QC if the inbounded
quantity is low, sample check if the inbounded quantity is high.
2. Prioritize incoming QC for SKU's with high return rate due to wrong packaging
3. Keep track of the return rate and feedback to supplier for improvement.
4. Perform outgoing QC for SKU’s not in a sealed package.
Solutions – What do I have to do to avoid wrong packaging issue?
High Returns - Wrongly picked and packed
Overview: Seller picks, packs and sends out the wrong item to customer
Impact: This leads to a very unhappy customer, and seller will be
penalized for delivering the wrong item
1. Clearly label storage racks and bins
2. Use Seller Center Stock Checklist with pictures to aid in accurate picking
3. Check once again before packing the item by comparing the item against what is described in the invoice.
4. Measure picker's performance accuracy. Constantly coach pickers who are performing poorly.
Solutions – What do I have to do to avoid wrong item issue?
High Returns - Shipping label swapped by 3PL
Overview: Sometimes the shipping label you place in the pouch might
fall out.
Impact: 3PL could accidently swap the shipping label with another
parcel, leading to customer receiving a wrong item. Will lead to item
return and a lengthy investigation and dispute resolution.
1. Paste the receiver copy directly onto the parcel. By doing this, the
chances of the shipping label going missing is reduced to almost none
Solutions – What do I have to do to avoid swapped shipping label issue?
High Returns - Part missing within original
sealed packaging
Overview: Suppliers can sometimes miss out certain parts of an item
Example: The earphones are not included along with the phone when in fact
it was advertised with the earphone
1. Feedback to supplier to make them aware of the problem
2. Consider turning off the SKU if the problem persists with specific SKU’s until supplier resolves the issue
Solutions – What do I have to do to avoid missing parts issue?
High Returns - Seller forgot to include free gift
Overview: Seller forgets to include a free gift as advertised. Customers are
entitled to returns such orders
Impact: Will lead to item return and a lengthy investigation and dispute
resolution.
1. Train pickers and packers to pay attention to free gifts that is stated in the invoice / picklist
2. Communicate with pickers and packers everyday to ensure they are aware of free gifts for specific SKU’s
Solutions – What do I have to do to avoid forgetting free gift issue?
High Returns - Damaged due to 3PL handling
Overview: Parcels or items within can get damaged due to mishandling
by 3PL. Sellers can help minimize this by making sure the packing is
robust
1. Contact Partner Support through the forms to lodge complaints on 3PL mishandling
2. Apply a fragile sticker if the parcel contains fragile items
3. Always ensure there is sufficient protection for your item within the parcel to avoid
any possible damages. Use bubble wraps, corrugated box, fillers and shrink wraps
Solutions – What do I have to do to react with Damaged items issue?
High Returns - Damaged due to insufficient
packing
Overview: It is the sellers top priority to make sure the parcels arrive at the
customer doorstep in the best condition
1. Ensure you use bubble wrap, carton boxes, shrink wrap to protect the item
2. If the item has loose parts in it that might get damaged by knocking into each other,
use packing materials to wrap the parts separately e.g. Coffee cups
3. Generate a packaging guideline by product type to ensure your packing staff have a
clear reference on what is a good and sufficient packaging standard
Solutions – What do I have to do if items are damaged due to insufficient
packing?
High Returns - Defective batch from supplier
Overview: Seller must always investigate and keep track of customer
returns
1. Track return rate from different suppliers and feedback to suppliers for improvement of goods delivered.
2. Seek alternate suppliers with better quality track record
3. If a defective batch of goods is identified, return back to supplier and request for a replacement batch.
4. Disable the SKU temporarily on Seller Centre while the high return rate is investigated.
Solutions – What do I have to do if items are defective batch?
High Returns - Insufficient instructions on
how to use the item
Overview: Learn to see from a customers perspective. Always ask yourself how
easy it is to use your item
1. Request from suppliers for a more complete instruction sheet with pictures if
possible. This is especially important for items that require assembly.
2. Build and include your instruction/FAQ page based on common customer
questions/complains
3. Add notes, instructions, pictures and videos in your product description page to
educate customers during purchase of the item.
Solutions – What do I have to do to avoid the insufficient instructions?
High Returns - User manual in foreign
language
Overview: Be aware of what language the manual and instructions sheets
are in. Your customers might not speak the language
1. Request from supplier for translated manual. Ensure manual is easy to understand
2. Prepare your own translated instruction sheet if supplier is unable to provide one
Solutions – What do I have to do to avoid such situation?
High Returns - Wrong advertisement
Overview: Sellers often use images and item descriptions from other
sites to describe their products. Make sure the pictures, videos and
descriptions match correctly to what you sell
1. Always check and verify the product description on the site matches the actual
product e.g. Product description for Iphone 6s used for Iphone 6.
2. Only use pictures of the actual product for advertisement. Do not use alternate
product pictures
3. If the product details are being obtained from the manufacturer webpage, make sure
the webpage region is selected correctly. e.g. www.samsung.com vs
www.samsung.com.my
Solutions – What do I have to do to avoid wrong advertisement?
High Returns - Selling Unauthorized /
Counterfeit Items
Overview: Ensure the stock on sale is genuine, does not infringe on any
copyrights or patents, and you have the proper authorization to sell.
1. If the items sold are not fake, be sure to obtain the proper
authentication/authorization documents from the brand principle or supplier.
Solutions – What do I have to do to avoid wrong advertisement?
Fulfilment by
Lazada (FBL)
Lazada will be responsible for your order fulfillment
We store, pick, pack & deliver all orders for you
You send
products to
the Lazada
fulfillment
center
Lazada
stores
your
products
Lazada
takes care
of the pick
& pack
Lazada
delivers
products to
customer
Customer
purchase
your
products
Return
management
handled by
Lazada
End-to-end fulfillment solution
Full flexibility to only use FBL for
parts of your assortment
What is FBL and How it works
Fulfillment By Lazada (FBL) is a hassle free fulfillment solutions provided by Lazada for sellers.
Increase customer satisfaction
Save on warehouse cost
Get better marketing exposure
Improve your operations
4
3
2
1 • Conversion rate is higher on FBL• Net Promoter Score (NPS) increases for FBL
products and leads to repeat purchases
• No fixed cost for rent and labour• Only variable cost of RM1.99 per item delivered
• SKUs are eligible for Express Delivery and related promotions
• Better boosting increases visibility on the Lazada website
• Unlimited Order Volume Limit (OVL) for FBL SKUs• No penalties (for cancellations, fake RTS or
wrong/incomplete items)• Faster payment• Easier returns management
FBL is the best way to increase your sales and
ops performance while reducing your costs
Full flexibility to put only parts of your assortment on FBL
No penalties for cancellations, fake RTS or wrong product sent
Easier returns management as re-sellable items go directly back into stock
Unlimited Order Volume Limit (OVL) for FBL SKUs
Faster payments
FBL simplifies all of your operation processes to
make your life easier
Direct delivery from your supplier to the Lazada fulfilment center can reduce cost
even further
FBL charge
RM1.99per item
Includes manpower for pick & pack
Includes cost for packaging materials
Includes storage cost (rent, utilities, insurance)
FBL only charges you an all inclusive fee per item
and eliminates all your fixed cost
Normal 3PL vs FBL
Order
received
on Seller
Center
Prepare
documentations
Drop off
items to the
nearest 3PL
Pack
accordingly
Customer
receives the
order
3PL Process | On Daily Basis
FBL Process | On Monthly Basis
3PL
Pick items
from
inventory
Seller sends products
to Lazada WH
When customer orders,
Lazada picks & packs
and deliver to customer
Lazada Stores
your products
LAZADALAZADA
I have a question!
If I sell products through FBL, can I still sell other products through drop-shipping?
Yes! You can sell your products through different fulfillment models simultaneously
Are my FBL products covered by insurance? Yes! All FBL products are fully covered by Lazada’s insurance (against loss, damage, fire, etc.)
How long does the inbound take? Generally, 24 hours, but if the documents are incorrect or the packaging is faulty, it can take longer
Can I get my products back from Lazada’s WH? How long does it take?
Yes, through SC. In 3 business day you are free to collect the product from our wh
I need to match the product serial number with the Customer order. Is it possible with FBL?
Yes! Lazada’s WH team can track this information and share it with you
Can I monitor my stocks and my returns? Yes! You can monitor your stocks and returns directly on SC
Is FBL expensive?No! Actually, with FBL you avoid additional personnel, packaging and WH costs for the fulfillment of your orders
Does FBL mean that I need more stock? No! With FBL, Lazada helps you to optimize your stocks and avoid unnecessary inventory costs
Do I need to update the stock on SC? No! Stocks will be automatically updated by Lazada
Do I receive the Customer Returns? If the items are in good condition, they will be stored back in Lazada's fulfillment center and get ready for sale. However, you can place an order on SC and retrieve them back
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