Effective Delivery and Returns Management. Mark Eldridge Marketing & Business Development Director Spring Global Mail

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1 Effective Delivery and Returns Management Mark Eldridge Marketing & Business Development Director Spring Global Mail

2 Stat Attack! Royal Mail Long term online shoppers spend more, on average p.a. 47% more likely to buy when carrier is known Women send back 42% of clothes items Accenture Around 70% of customers use price comparrison sites E-commFacts German online market passes 20bn in 2011 Italy grew 20% Cisco USA/UK/Japan 53% Online sales by % cross-border growth growth in international but complex Boston Consulting Group BE market growing 9%, value 9bn in % BE purchases from another EU country

3 So What? Ecommerce is booming, but mainly local International Ecommerce 7-10% of total big potential (expected to be 20% by 2017) Barriers to growth: Local language sales channels Payment Channels Getting your products delivered Product Returns

4 The Key to Success? ü Local language sales channels ü Payment Channels Getting your products delivered Product Returns

5 Getting your products delivered..

6 A word about Delivery Parcel delivery companies Courier delivery Postal delivery Mail and Packets Registered Mail Most consumers when given a choice will choose the cheapest option! Delivery speed, cost and security all important but also consumers choice and perception of service Challenge is to match the delivery method to your product and provide the buyer with the local experience

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8 Registered Mail - Service description Chain of custody. Individual barcode. As the item travels from post office to post office it is scanned and registered. Signature on delivery. All worldwide destinations. Only handed over after it is signed for. Copy of the signature is not part of the service.

9 Track & Trace Customers can track their items through the unique barcode numbers via but can also be tracked on the website of the receiving postal operator. Tracking events: 1. Amsterdam 2. Processing at sorting centre in destination country 3. Possible delivery/non delivery scan Current countries that support the Track & Trace via the PostNL website:

10 Product returns

11 A word about Returns What do Buyers expect? Return Label in the Box Print off the return label from your website Drop off on their way to work or close to home Maybe even drop-off in store Don t want to pay for the return Don t want to have to talk to someone to get return information Just give me a label - What is all this RMA stuff about? Want to know before they buy if they can easily return! A quick refund

12 A word about Returns What do Sellers need? Cost effective returns solution Local return option and international return options A way to make the buyer pay for the return Don t want to have to talk to the buyer High value items back in stock quick to re-sell Early data about the return to enable a quick refund Why is your customer returning your product? Want to make sure it really is the item and not a brick in the box!

13 Reverse Logistics

14 The Process Consumer contacts customer call center (call centre, website) Customer provides consumer Spring label with unique RMA Number (via , post or website) Consumer attaches label to box and brings it to local post office who sorts & scans material and forwards to Spring Items sent to customer s Distribution Centers at the agreed frequency Track & Trace information is collected by Spring and shared with various stakeholders Local Spring depot receives and scans the items from the local postal service and delivers them to Spring s central hub Scanning, sorting and consolidation at the Spring central sorting centre

15 Top Tips 1. Visible Returns process: make your returns process and policy clear, before you exit the shopping basket, a clear link on each page not right at the end after purchase! 2. Have clear Returns options in place: Show them upfront Drop-off close to home Collect from home Drop-off at work Drop-off in store 3. Next day or same day Delivery and Returns Don t assume fastest and fully T&T is best perception can save you money Don t apply Delivery rules to Returns getting data back quickly may be the key.

16 Top Tips 4. Just because Delivery is cheap don t expect Returns to cost the same sometimes a much more complicated logistical process is needed for cross-border returns 5. No Return is a bad Return at least the buyer has already traded with you! If you make the return experience a good one consumers buy again. Keep em happy, complain less = spend more! 6. Key to International Delivery and Returns is the Local Experience Treat as an extension of your marketing and sales activity

17 Your passport to international sales Direct Mail Creative Distribution Returns Management

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19 SpringGlobalMail.com Thank you!

20 Back-up process slides

21 National Postal Returns - Economy Consumer attaches local return label (in product pack or on-line) to box and brings it to nearest post office Local post delivers it to the local Spring depot Local Spring depot forwards it to the Spring central sorting centre Delivery at customer Consolidation and sorting at the Spring central sorting centre Return shipments at agreed frequency 21

22 International postal returns Consumer finds IBRS return label in product pack or downloads label online Consumer attaches return label to box and brings it to local post office (Receiver pays) Items sent to customer s warehouse/ Recycle centre at the agreed frequency Local posts deliver items directly topostnl in Rotterdam PostNL consolidates and sorts material