Top 7 Reasons for NDRs in E-commerce and How to Fix Them
Introduction
Every e-commerce business will aim for efficient and timely delivery of customers’ orders. Despite this, delivery delays and non-delivery reports (NDRs) are common challenges in e-commerce delivery. There are a variety of reasons for NDRs, but the end result is always the same: customer dissatisfaction, anxiety, and frustration. If not addressed quickly, this frustration could find vent on social media, negative reviews, and lost return business, not to mention negative word of mouth. For businesses, not addressing delivery issues quickly could result in a real financial cost if the NDR becomes a Return to Origin (RTO).
As unfortunate as they are, NDRs are a common frustration in e-commerce. Even the best businesses have faced. While NDRs are unavoidable, there are steps that businesses can take to reduce them and fix them, when they occur.
Today, we will talk about the top reasons why orders might not be delivered and how to fix NDRs.
- Incorrect or Incomplete Address Details
One of the most common reasons for NDRs is simply an error in the shipping address. The courier arrives but can’t find the location, leading to a failed delivery. Maybe the customer mistyped their street name or forgot to include an apartment number. It’s an easy mistake to make, but it can halt the delivery process.
How to Fix It:
The best way to tackle this is by offering address verification tools during checkout. You can use software that auto-fills address fields or validates the address in real time to ensure it’s accurate. For example, Amazon does this through its “Address Verification” tool that checks if the address exists. You can also prompt customers to double-check their details before finalizing the order, which helps in fixing incorrect addresses.
- Delivery Service Failures
Sometimes, even if everything is in order on your side, the delivery company can cause delays or fail to deliver at all. This could be due to a variety of factors like logistical issues, wrong routes, non-serviceable routes or even weather disruptions.
How to Fix It:
Choosing reliable, reputable courier partners is essential. Keep track of delivery statuses, and consider working with multiple carriers to mitigate any risk. Also, make sure your e-commerce platform provides easy ways for customers to track their orders and get updates if delays occur. For instance, a customer in a remote area orders a product, but the delivery service has no access to their location due to road conditions. In this case, providing an alternative courier or offering in-store pickup could solve the issue and prevent frustration.
- Incomplete Or Incorrect Phone Number
It’s possible that the customer entered the wrong contact number by mistake. As a result, the delivery agent may not be able to contact the customer if they need directions to the drop-off address. In such a situation, the order would be marked as an NDR.
How to Fix It:
The best way to tackle this is by verifying the number entered by the customer with an OTP. For example, Amazon validates numbers in real time. When customers enter their phone number, the system checks for the correct number of digits and prompts the user if the number seems invalid. For high-value purchases or account security, Amazon occasionally requires customers to verify their phone numbers via SMS by sending an OTP (One-Time Password). If an NDR occurs, Amazon’s customer support team quickly facilitates phone number or address updates. Customers can easily update their details through their account settings or by contacting Amazon support directly.
- Missed Delivery Attempts
Many customers expect their orders to arrive at their doorstep, but sometimes they’re not home when the courier arrives. This can lead to missed delivery attempts, and if the courier can’t find an alternative location, the package might be returned.
How to Fix It:
Offer flexible delivery options, such as allowing customers to choose a delivery window, leave the package with the building’s security guard, or reschedule the delivery time. Many services, like UPS, already offer delivery rescheduling, so providing this flexibility can go a long way.
- Customer Rejects the Delivery
There will be times when a customer rejects the product at the time of delivery. The customer could be dissatisfied with the delivery process, the condition of the package upon delivery or find the product is damaged. Sometimes, customers simply change their minds about the purchase! This is more likely to happen for orders with COD payments, where the customer has not yet paid for the product.
How to Fix It:
There are several steps you can take throughout the product delivery journey to ensure that customers do not reject the delivery. Communicate with customers and enable customers to track their packages at every point to reduce anxiety and confusion. Provide customers with a precise time window for delivery to avoid missed delivery attempts due to timing issues. Use order verification to help customers double-check the order details (product, size, colour, delivery address) before the delivery process begins, either via an automated review or a manual confirmation from the customer. Make sure your Returns Policy addresses whimsical rejection of products. As far as possible, try to provide an exchange to ensure there is no lost business.
- Customer Unable to Pay (COD)
This is mostly applicable to Cash on Delivery payments. The customer may not have the exact amount in cash or does not have change. Sometimes, they have the cash, but the delivery agent could not have the change to return. This amounts to an inability to pay for the order.
How to Fix It:
If a cash delivery is not possible, allow customers the option to pay via UPI using a QR code or by tapping their credit or debit cards. This helps in improving customer delivery experience by providing options. A delivery agent who is short of change could accept the payment in cash and return the change via a UPI payment to the customer’s ID. Delivery agents could be encouraged to carry adequate cash to return as change. These simple solutions help reduce NDRs that could result from the COD method.
- Fake Delivery Attempt by The Delivery Agent
Fake deliveries are one of the most troublesome Non-Delivery Report in eCommerce businesses. In this case, the order is still marked as a failed delivery even though the delivery employee did not attempt to deliver it to the customer’s address. They may negatively affect the customer experience if not resolved swiftly and effectively.
How to Fix It:
Selecting reliable courier partners is the first step in ensuring reliable delivery processes. When you receive an NDR, the customer service team should contact the customer to confirm the reason for NDR. If it is genuine, then work out a re-attempt by getting confirmation of the date and time for the re-attempt. This process becomes a lot easier if your shipping logistics partner handles NDRs for you. For example, Ship Delight has an NDR management solution that offers automated NDR management by creating scenario-based rules, actioning the right resolution, and monitoring.
Final Thoughts
Non-delivery of products doesn’t have to be the end of the road for your e-commerce business. By addressing common NDR issues like incorrect addresses and contact numbers, and delivery service failures, you can create a more reliable and satisfying experience for your customers. Responsive management also helps mitigate the financial impact of NDRs and RTO cost for businesses. Stay proactive, transparent, and responsive — and you’ll build trust that keeps your customers coming back for more!
Ship Delight is an award-winning logistics technology company. One of India’s best logistics partners for e-commerce, we offer NDR solutions to tackle some of the most common NDR problems. Get in touch with us to discover how we can help your business.
