Undelivered shipments plague one out of three online businesses. Once the first attempt to deliver the consignment fails, the courier partner automatically flags a Non-Delivery Report or NDR.
Depending on the carrier partner’s protocols, 3-5 attempts are tried in the next few days. Should the item remain undelivered, the courier company will have no option but to mark it for Return to Origin, or RTO.
There is no doubt that unmanageable numbers of NDRs and RTOs can quickly eat away at your company’s bottom line if you do not take rapid, correct, and planned action.
Most businesses turn to NDR management systems to ensure that this pesky problem (that of undelivered goods) is handled faster by professional and specialized software.
Most businesses usually ask themselves a simple question when they find that most shipments are being shipped back:- “Why was the package not delivered?” The question might sound innocuous, but it can aid in delving deeper into this starting point of most E-commerce woes.
So, why do failed deliveries occur? Do read on.
Common reasons for NDRs
Let’s start with the most well-known reasons for NDR followed by some slightly unheard of ones. A potential solution is also listed below after each reason.
1) There was no one to receive the package
Solution: This is an extremely common scenario. At times, packages arrive before their due dates, leading to unwarranted confusion. In this case, the delivery agent can leave it with a neighbor or at a local depot for the customer to retrieve it.
Note that using an NDR management system is essential here as it automatically reaches out to the recipient and asks for further instructions. The feedback is then delivered to the boots on the ground.
2) Damaged items
Solution: Customers will not take delivery if an item is damaged. Shipping certain items from one part of the world to another can be quite challenging. In such scenarios, damages are often sustained.
Try to tie up with a courier partner, renowned for shipping fragile items over long distances. Repacking a damaged product rarely works.
3) Incorrect address
Solution: A large number of NDRs are generated if the recipient’s address is either completely incorrect or incomplete. Even if identifying landmarks are mentioned, they are seldom of any help.
Double-checking the address before dispatch is one option. Post-dispatch, you can rely on the NDR management system to indicate an incorrect address.
4) Hard-to-reach address
Solution: Across India, there are innumerable smaller towns and cities which are difficult to reach. They often have unpaved roads and cul-de-sacs. Most unplanned cities fall into this category.
Connecting with a courier partner that specializes in servicing a particular inaccessible or remote area is probably the best way to go forward. They will be able to provide the essential last-mile service.
5) Damaged labels or Barcodes
Solution: Damaged or disfigured barcodes cannot be scanned by the delivery partners. The only solution is to ensure that the relevant labels are affixed firmly in good condition and are waterproof. If possible, multiple identical labels/barcodes can be used.
6) Amount for COD orders not present
Solution: Although there are over 100 million active E-commerce customers in India, a good percentage of them opt for Cash-on-Delivery orders.
Mostly, they are wary about sharing debit/credit card details with the online vendor. But they may not have the money ready when the delivery agent reaches them!
Many courier companies provide POS machines to their agents that can process card payments. This is a great way to deliver the order since the transaction is happening in front of the customer. Otherwise, the delivery agent has to ask the customer to choose another suitable date.
7) Package contains illegal/forbidden items
Solution: NDRs are sure to crop up if the customer orders items that are deemed forbidden according to local or national laws. These items are usually detected by the courier partner during their scanning process.
From lithium batteries and harmful chemicals to counterfeit medicines, there are plenty of items that are expressly forbidden. Unless customer can produce a permit from concerned authorities that she/he is allowed to receive such packages, it is wise not to ship them.
8) The customer won’t accept the item
Solution: At times, the consignee may utterly choose to refuse the item. The delivery agent might try and convince the customer, but it might not work. There is no other option but to return the item to the base!
9) Fake delivery attempt by the carrier
Solution: One of the more common reasons why businesses receive non-delivery reports is due to their fake or disingenuous delivery confirmations. In this scenario, a carrier agent falsely updates or reports order delivery completion to the seller and doesn’t do it in reality.
The Non Delivery Report (NDR) Management software can mitigate such risks and decrease unwanted activities by implementing stringent vigilance of undelivered parcels. They can take steps to verify the genuineness of deliveries through photos and electronic signatures.
10) Bad weather or natural disasters
Bad weather can be another common reason for non-delivered items. It occurs more often than the other reasons. However, the procedure following this is the same, where an NDR is sent by the carrier person attempting the task.
During these situations, brands coordinate with the carrier company and ensure another attempt on the next working day. Also, this process becomes easier and faster when there is automated NDR management software at play.
Final Word
NDRs (Non-Delivery Reports) in eCommerce are also received when parcels are not cleared by the Customs Department and when the consignee believes that the parcel has been delivered by mistake.
That said, we have listed the top common reasons for NDR in eCommerce and how to promptly handle them. As a business, you can get a clear idea about NDR issues and their solutions from the list above.
Despite these commonalities, one is always welcome to use common sense and top-of-the-shelf NDR management systems to fix them.
