Return to Origin (RTO) in Logistics: overcoming challenges with advanced e-Commerce systems
The explosive growth of e-Commerce has revolutionised the logistics sector, presenting new challenges and opportunities.One such challenge is the return to origin (RTO) in logistics, which occurs when the products are returned to the seller instead of delivered to the consumers.
Whenever a shipment doesn’t reach its destination, it means a missed sale, subsequent financial loss, and the rise of unexpected and unanticipated expenses. This reflects poorly on the company’s logistical capabilities and can lead to the erosion of consumer trust.
Furthermore, the return of these products to the warehouse can result in additional losses, such as handling and shipping expenses, as well as potential product failure.
This blog focuses on how advanced technologies (like e-Commerce management solutions and logistics management solutions) can help turn difficulties like return to origin into opportunities for more efficient e-Commerce solutions.
Reasons for returning packages to their origin
Before discussing potential solutions, it is necessary to get to the bottom of the problem and understand the root cause of why returning to origin in logistics happens in the first place.
The following are some causes and reasons why some packages wind up back at the warehouse.
1. Incorrect delivery addresses
One of the most common reasons for the high return to origin in e-Commerce (RTO) rate is the incorrect registration of delivery addresses.
Even a simple typo or missing a minute detail in the address can result in the product being returned to the seller.
As a result, a minor mistake like this makes a big difference and could lead to significant issues for the company.
2. Delivery failure due to customer absence
Despite their best efforts, delivery drivers occasionally fail to deliver the items to the customer, primarily because the customer is away or the address is difficult to locate.
3. Refused deliveries
There are also incidents where customers refuse to accept deliveries, which can result in a high return to origin (RTO) rate.
This may occur because consumers occasionally receive the incorrect product, have a change of heart about the product they ordered, or receive a damaged product they wish to have replaced.
Aside from the reasons listed above for the high return to origin rate, there are external events that no one can control, such as severe weather, clogged highways, and road accidents, which might cause packages to be returned to the seller.
Also Read: 4 ways to streamline your e-Commerce operations with a logistics management software
Technological solutions to reduce the return to origin in logistics
Now that all the issues are addressed in detail, let’s understand how technology can help tackle these issues, ensure smooth delivery, and minimise RTO.
1. Smart delivery address verification
Smart address verification helps solve delivery problems caused by wrong addresses. Invest in technologies that can auto-fill consumer information based on postal codes and nearby landmarks, resulting in fewer delivery errors and a speedy checkout process.
2. Sophisticated delivery tracking system
Another technological solution to minimise return to origin (RTO) in logistics is the advanced logistics tracking solution, which helps track your package’s journey in real-time. No more guessing and being nervous about the shipment’s location and delivery date.
Real-time tracking of the consignment provides transparency about the exact location of the package to both customers and sellers, increasing customer satisfaction and repeat business.
In addition, the technology includes real-time notifications, which provide clients with timely updates on the shipment’s status, predicted delivery schedules, and information about any unforeseen delays. This keeps customers informed and engaged, which builds trust and improves their overall experience.
3. Automated non-delivery report management system
In instances when the delivery fails or does not proceed as anticipated, resulting in the shipment ending up in the warehouse, an automatic non-delivery report (NDR) is generated.
The report highlights in detail the problems behind the non-delivery of the shipment, whether it’s the incorrect address or the receiver not present at home.
Logistics management solutions, like Ordazzle, automatically log and maintain any non-delivery reports, assisting in determining the root cause of the failed delivery and the appropriate actions to take to rectify the mistake.
As a result, real-time updates make it easier to understand the problems, allowing for faster resolution and preventing items from being returned to their origin while also keeping consumers satisfied.
4. Automated return management solution
Sometimes, when a customer wishes to return a shipment, the automated return management solution makes the job easier by streamlining the entire return process and eliminating any difficulties.
Such an e-Commerce management system handles everything from refund requests to inventory updates and return shipping.
Additionally, the data collected and analysed by the automated system provides insights into return trends and assists in making informed decisions to minimise returns of products in the future.
Minimise return to origin in logistics with Ordazzle
Reducing return to origin in logistics necessitates an integral approach combining advanced technology and strategic planning.
Business owners must become acquainted and acclimated with these technologies to advance and compete in the cut-throat logistics market.
Furthermore, by adopting advanced technologies like smart address verification, automated return management solutions, sophisticated delivery tracking systems, and automated NDR solutions, businesses can reduce operational costs and improve overall efficiency.
For business owners seeking to boost profitability by decreasing the return to origin in logistics, Ordazzle is the perfect answer to your problems. Our state-of-the-art logistics management solutions yield a low RTO rate and provide top-notch delivery service that will help you scale your business and enhance customer satisfaction.
Get in touch with our experts to learn more.