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Zenkraft Blog

Zenkraft Blogs about Logistics, LSPs, Integration with CRM, ERP and WMS applications.

Returns in Europe - using postal services to save $1.1m per year (and increase conversions)

Published on 22 August 2019 by in europe salesforce commerce-cloud returns 

US based retailers will find it challenging to establish B2C reverse logistics (RMA/Warranty/Exchanges) in the European market. Europe had 50 countries, 25 official languages and 28 different currencies. There are also many more postal providers and consolidators providing more options compared to the US.

But making returns easy, and cost-effective will have a profound impact on the success in this market.

To help retailers setup for success, we’ve outlined a 8 step process to build out the most cost-effective returns network within Europe. The model below has the following benefits:

  1. It’s best for the consumer as it takes advantage of many countries local postal providers. 
  2. It’s best for the retailer since many postal providers are as low as 30% of the cost of a local vendor.

Here is an overview of the model:

 

 

It’s worth noting that this most is more suited to retailers who ship smaller packages weighing under 1 KG. 

The financial model to achieve the below ended up saving the retailer $1.1m/year in logistics costs. If you'd like us to share this Excel model, please contact us.

The steps to setup a European-based network are outlined below: 

1. Analyse your existing returns data

Before overhauling your returns model in Europe we’d encourage you to look at your existing returns data, if available. Which countries in Europe have the highest number of returns but also the highest return rates? It doesn’t make sense to setup a consolidator warehouse in a country with low returns volume. Also, are there areas where you can reduce the return rate ahead of this project? For consumer electronics companies a report by Accenture found that a staggering 95% of returns are unconnected to product defects! Perhaps setting up extra product documentation, better images, an omnichannel customer service experience might be the first step before embarking on the below. 

2. Engage with consolidator warehouses

Initially we’d recommend just starting with 2-3 consolidator warehouses. Typically we see these being based in the UK, Germany and France or the Nordics. A problem retailers will face is that the vast majority of 3PLs won’t want to work with them. Fulfillment centers make money by taking a cut of the shipment cost and charging a picking fee. Handling inbound returns from postal vendors means that a large percentage of their profit goes away. There are companies that are prepared to help though. Once a retailer finds a vendor that is prepared to work with them - they should analyse their capabilities and costs. Some questions a retailer should ask are as follows:

  1. What is your inbound handling fee? Typically we see €2-3/item
  2. What are your IT setup costs? Typically we see €1500-3000 one-time setup
  3. What is the daily pallet storage rate? Typically we see €0.1-0.3/day

Consumer electronics companies may want to ask if they offer a service to analyse whether they can offer a service for No Trouble Found “NTF” shipments. The faster they identify this the faster the item can be restocked and resold. The consolidator can also sort the goods before they’re transferred to a 3PL. E.g. they could send 2 pallets per week - 1 for restocking and 1 for liquidation. 

3. Decide upon your returns software platform 

A retailer will need a centralized platform to handle the returns data that integrates with their e-commerce platform and helpdesk tool. 

Zenkraft can handle this for the Salesforce platform but there are other platforms that handle this outside of the Salesforce ecosystem. Here is a quick checklist of capabilities to look for in a returns solution:

  • Carrier integration - postal vendors are notorious for providing bad APIs, does the solution integrate with the postal services in the countries with the highest returns? 
  • Integration - what does integration look like with your Service tool, CRM, e-commerce platform and OMS/ERP? 
  • Reporting - what are the reporting capabilities? Can you schedule reports, create dashboards? Can you automatically share them across other departments e.g. “Return reasons” reports to merchandising? 
     

4. Select returns channels

Will a retailer accept returns directly from their e-commerce store or will require their customer contact their call center first? Or both? The experience will be slightly different for each company: 

On a retailers e-commerce store

A retailer should include workflow that asks product-specific questions about why something is being returned. This should then potentially generate a label with an RMA number embedded. This will help the 3PL scan the shipment for identification which can update your system notifying the consumer that the package has been received. Once a return label has been generated the retailer should show DOPU “Drop Off Pick Up” locations nearest to their customers address for the convenience. DOPU data accessibility varies by country. Some carriers have a really nice API such as PostNord in Sweden: https://developer.postnord.com/api/docs/location
 

In your Service Center

Service agents should be able to email a shipping label to the retailer's customer. They may also want to include a dynamic script to for their call center agents to ask questions about why the item was returned. The email with the label attached should be branded and show the customer the nearest 3-5 locations for dropping the parcel off. 


 

5. Collect data about why returns are happening

How can you improve if you don’t know is going wrong? We worked with an apparel retailer that used Zenkraft reporting to highlight a single garment had a return rate of 60% and 75% of the returns were due to the item being too small. This data was passed back to the merchandising team who subsequently suggested to the manufacturer that the garments size should be increased.

 


6. Have your consolidator send a single pallet back to a single facility each week 

Depending on your volume and restocking requirements, retailers may want to send the pallet back to your centralized 3PL weekly. They could even ask the consolidator to send 1 pallet back to the 3PL for restocking and the other to a liquidator for disposal as below:

 

7. Provide Real-time visibility to your customer

Retailers should provide tracking notifications and status on their website to show the status of the return. Often consumers are left in the dark about the status of their return and have to check their credit card bill daily to see when and if the refund occurs. Providing real-time status updates along with email notifications provides transparency to customers: 

 

 

8. Provide real-time reports and dashboards

Once the system is up and running retailers should monitor its performance. Zenkraft’s customers are using Salesforce’s built-in reports and dashboards to create Control tower-like visibility of their operations. This enables them to identify problems and respond quickly.

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Estimated Delivery dates (EDD) in Salesforce Commerce Cloud

Published on 06 August 2019 by in salesforce ecommerce commerce-cloud 

Introduction

When it comes to shipping, studies show that what users really care about is not “shipping speed” but rather the date of delivery, as in: “When will I receive my order?”

The majority of e-commerce sites still provide shipping options such as “delivers in 3-6 days” or “next-day delivery” with a cut-off time such as “Order by 5pm”. This creates a bad user experience for the customer because they have to work out a.) what dates are 3-6 days out b.) if there weekends which will affect the delivery date c.) holidays d.) whether the order cut-off time has passed e.) whether it’s a peak time in the warehouse which will delay the order. 

What is the best way for retailers to provide Estimated Delivery Dates in Salesforce Commerce Cloud? There are two options:

  1. Build the logic themselves. This will involve a combination of carrier shipping API integration, some logic to determine the points mentioned above plus some knowledge of the carrier networks and how different service types perform across zones.
  2. Use a Cartridge like Zenkraft’s  to provide drop-in functionality.

Below we are highlighting 5 examples in Salesforce Commerce Cloud of where the Zenkraft Cartridge’s Estimated Delivery Date (“EDD”) can be used effectively: 

 

1. Get estimated delivery dates on the product page

According to Baymard’s Product Page study, 64% of users looked for shipping costs on the product page, before deciding to add a product to the cart. Why shouldn’t you implement the same on your page like below:

 


2. Add estimated delivery dates to the checkout process

We recommend having a free standard and expedited shipping method available in checkout. In addition, if you have physical stores, you should offer in-store pickup. If you don’t have physical stores you might also consider UPS MyChoice or FedEx Office drop-off locations. 

You might choose to display the name of the service type along with the actual cost.

 

 

Or with some CSS styles and formatting you can apply a better user experience such as in the page below. This is taking into account holidays and warehouse cut-off times: 

 

 

3. Support Drop Off and Pickup Locations

Having your parcel delivered to a drop-off location provides the most flexibility for the cost. It’s often cheaper than other methods. Most delivery and collection points are open 7 days a week and are always found at the most convenient places. Often, they can be found in petrol stations, local shops, supermarkets and high street stores. Within the US, it’s pretty straight forward to offer Drop-off options with our FedEx and UPS locations plotted on the Google Map as shown below:

 

 

In Europe, it’s slightly more challenging because there are many more carriers (DHL, DPD, Hermes to name a few). Most have a drop-off network or partner with a third-party service such as Collect+ in the UK. Please contact us for more information. 

Better still, if you’re an omni-channel retailer you should clearly show that in-store pickup is available on the product page and during checkout as an additional shipping option. It can act as a permanent free shipping option for your customers.

 

4. Add EDD to your tracking pages

Once the order is shipped it’s possible that the carrier might change the estimated delivery date. Therefore you should add the estimated delivery date to your tracking page. On our tracking page below you can see that we’ve added Einstein Product Recommendations using a content slot on the right hand side. The page is built using ISML so you’re free to edit and style it as you choose:

 

 

5. Send Changes to your EDD directly to your customer

If there is a failed delivery attempt, or the shipment is delayed due to bad weather, then you should alert your customer as soon as possible. Email is generally the best way which you can either send directly from Commerce Cloud or you can integrate into your ESP (email service provider) to send from there:

To summarize, using Estimated Delivery Dates effectively on your store will have a profound impact on your conversion rates both on product pages and during checkout. They’ll also increase customer satisfaction because you’ll be keeping your customers up-to-date with the shipment status. As the founder of FedEx Fred Smith once said,  "The information about the package is as important as the package itself."

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Using Email templates for Returns

Published on 14 May 2019 by in salesforce ecommerce returns 

 

As you know, thousands of users every day use Zenkraft to manage returns in service cloud. From Multi-carrier version 1.42, you are now able to use Salesforce email templates to send return labels. This means you can:

  • Add merge fields into the email template to include extra information such as order information, account information.
  • Add your branding to the email, you can even include upsell promotions to the email too. This will enable you to provide a consistent brand experience with our branded tracking add-on.


To learn more, checkout the documentation or watch our release overview video from 8m 42.

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