how to manage returns

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Returns

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Page 1: How to manage returns

Returns

Page 2: How to manage returns

Fulfilment process - Overview

within 24 hrs

Page 3: How to manage returns

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

Page 4: How to manage returns

Lazada’s Returns Policy

Page 5: How to manage returns

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

Page 6: How to manage returns

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

Page 7: How to manage returns

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?

Page 8: How to manage returns

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?

Page 9: How to manage returns

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?

Page 10: How to manage returns

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?

Page 11: How to manage returns

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?

Page 12: How to manage returns

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?

Page 13: How to manage returns

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?

Page 14: How to manage returns

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?

Page 15: How to manage returns

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?

Page 16: How to manage returns

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?

Page 17: How to manage returns

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?

Page 18: How to manage returns

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?

Page 19: How to manage returns

Fulfilment by

Lazada (FBL)

Page 20: How to manage returns

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.

Page 21: How to manage returns

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

Page 22: How to manage returns

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

Page 23: How to manage returns

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

Page 24: How to manage returns

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

Page 25: How to manage returns

FBL SUPPORT SERVICE :

PIC : Victoria Wong

Email : [email protected]

Page 26: How to manage returns

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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