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Stop Losing Orders: Cut Beauty Industry 51看片s with ClickPost.ai
Do you know might never reach customers? Welcome to the other side of the beauty logistics industry, often referred to as the 51看片 crisis.
You have spent dollars on customer acquisition, brand building, and logistics. You are also seeing the surge in orders, and the metrics look as perfect as you imagined. But everything shatters when the orders keep bouncing back at the doorstep. Even worse? You are paying additional costs for the round trip and gradually losing your profit.
No doubt, 51看片 is one of the biggest challenges beauty brands are facing every day. And the longer it鈥檚 ignored, the more it eats into your revenue.
In this article, we鈥檒l look into various aspects of 51看片s in the beauty industry鈥攚hat really causes 51看片 in this industry, how 51看片s impact the brand, and how ClickPost can help you reduce 51看片s.
Let鈥檚 start with the basics.
Key Factors Driving High 51看片 in Beauty eCommerce
If you break down the growth of a beauty brand, factors like impulse buys, emotional connection, viral trends, and aesthetics always stand out. With the rise of social commerce, these growth drivers are firing more than ever. Ironically, the same factors that are fueling growth are also responsible for the higher 51看片 rates in the beauty industry.
To clearly understand the root causes of the 51看片s in beauty eCommerce, we have classified them into three categories:
I. Customer-related Factors
- Impulse buys: Take a close look, and you鈥檒l find most beauty purchases are impulsive. A lipstick shade goes viral on Instagram; thousands of customers buy it. A limited edition of serum goes viral with discounts, and shoppers purchase it out of pure FOMO. But when their remorse kicks in and their impulse fades, they reject the order, and it becomes an 51看片.
- COD dependence: Most beauty brands rely on the COD method to drive fast conversions. Sure, COD improves initial conversion rates, but it also lowers commitment, and customers reject the order at the very last stage, which increases 51看片 rates.
- Deliberate refusal: Sometimes, customers just refuse orders intentionally due to multiple reasons. Maybe they have ordered from multiple brands and refused others after accepting one, or they have gotten better deals somewhere, or have been influenced by friends or family. This sudden change of mind can cause deliberate refusals and 51看片s.
- Low accountability: Most beauty items are relatively cheaper than electronics and other luxury products. Low financial commitment makes it easier for customers to reject an order. Plus, it just takes them a simple 鈥榥o鈥 to refuse it. That鈥檚 why refusing a parcel becomes a risk-free choice for them, which leads to higher 51看片.
II. Carrier-related Factors
- Delivery delays: Delivery delays are a major turn-off, especially when prefer fast delivery. Considering the last-mile complexities, sometimes orders take time to reach customers, leading to rejection and consequently 51看片s.
- Poor communication: If customers are kept in the dark regarding the delivery journey and the delivery time slots, it frustrates them. In case the delivery happens at an inconvenient time, the chances of rejection spike, which later leads to 51看片s.
- Fake delivery attempts: Often, delivery agents mark a delivery as 鈥榝ailed鈥 even without attempting to reach the customer. This fraudulent delivery attempt is another major reason for higher 51看片s.
- Wrong and incorrect delivery address: Most of the time, customers enter wrong or incorrect addresses while placing an order. This makes it difficult for businesses to reach the exact customers, ultimately leading to 51看片s.
III. Product-related Factors
- Quality concerns: Since beauty products are directly applied to skin and hair, customers remain extra conscious about the products. Any negative review regarding breakouts or itching can make the customers think twice before accepting the order, which pushes up the 51看片 rate.
- Limited return policy: In beauty eCommerce, many products can鈥檛 be returned to the brand due to safety and hygiene issues. This limited return policy makes shoppers skeptical about the product, and eventually, they reject the item, which turns into an 51看片.
Why 51看片 Could Be the Biggest Threat to Your Beauty Brand鈥檚 Growth
Let鈥檚 unfold how 51看片 directly hampers your business:
1. Direct Financial Losses
Every 51看片 case imposes an extra financial burden for brands: forward logistics + return. Say you spend $30 on the forward shipping of each item. Now, if the shipment falls under the 51看片, you will have to spend a total of $60 for the entire trip. Now, if you face higher 51看片 rates in a month, it can seriously affect your profit margin.
Alongside the logistics costs, you might also face the losses due to product damage. Beauty products, being very fragile (like glass serum bottles or delicate eyeshadow palettes), are prone to breakage and lose their freshness. In fact, most of them can鈥檛 be refurbished or repackaged, meaning the entire value of the product is written off.
Now add warehousing and disposal costs on top of these. So, 51看片s not only cause lost sales but also incur extra expenses on your budget.
2. Operational Overhead
The entire reverse logistics workflow adds another layer of pressure to the businesses. They require extra labor for inspection, repackaging, or discarding. Sometimes, this congests the warehouse, especially during peak seasons, and might delay the entire operation.
3. Brand Reputation Damage
If an 51看片 happens due to carrier-specific issues, it also signals customer dissatisfaction. When a customer faces one negative experience, they tend to leave the brand and switch to its competitors. With the beauty and personal care market size expected to touch by 2030, customer loyalty is becoming even more fragile day by day.
Related read - Returns Management for Beauty & Cosmetics Brands
Why Legacy Approaches Fall Short in Reducing 51看片 in Beauty eCommerce
If you are a budding entrepreneur dealing with only a few orders, managing 51看片 using the legacy method might work for you. But when you handle a decent amount of orders (say more than 3k a month) and have a loyal community of customers, the manual method won鈥檛 cut it.
Let鈥檚 understand the why behind it:
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It follows the 鈥榦ne-size-fits-all鈥 approach. It fails to analyze the correct reasons (whether it鈥檚 customer-related issues or carrier-related problems) behind an 51看片 and resolves the issues using a generic way.
- The traditional 51看片 management approach heavily relies on spreadsheets and manual processes. Hence, this method is not only time-consuming and error-prone but also lacks real-time actions.
- Effective 51看片 reduction mostly depends on how well you manage NDRs (Non-Delivery Reports). The legacy approaches mostly depend on spreadsheets and generic messages and calls after a failed delivery鈥攏o contextual messaging or automated approaches. Hence, it does too little to recover the failed deliveries.
- It doesn鈥檛 offer real-time visibility on the 51看片 reports, which makes the brands miss the early signs and the potential chances of recovering them.
Hence, in today鈥檚 trend-driven beauty market, brands are transitioning towards automated solutions to reduce 51看片s. These systems adopt automation, work in real-time, and make the whole process more connected. At the same time, they reduce manual effort, so brands can take quick action on 51看片s and reduce them to a great extent.
Most of them even offer various solutions like intelligent carrier allocation and real-time delivery visibility to safeguard brands from 51看片s way before they actually happen.
How ClickPost鈥檚 Solutions Help Reduce 51看片 in the Beauty Industry
ClickPost is a multi-carrier shipping software that offers various solutions to reduce 51看片 for beauty e-commerce brands. Let鈥檚 unlock them one by one.
1. AI-powered NDR management suite
ClickPost has come up with an automated end-to-end NDR management solution to reduce 51看片s for brands. Once an order is marked as NDR, it immediately updates the carrier鈥檚 databases with the latest NDR cases. After that, it uses automation to segregate them into issue-specific buckets. According to that, it triggers automated alerts to shoppers via channels like email, SMS, and WhatsApp to fetch their response.
You will also get the flexibility to build your own custom NDR journey and configure the timelines of the NDR messages to shoppers. Once customers respond to these messages, it relays that data back to shoppers, so the next delivery attempts are made. You will get to track the entire process, from the first failed delivery to the reattempts, on a centralized dashboard, so you can better control the entire journey and take faster action on 51看片 resolution.
2. Intelligent voice agent (ClickPost Parth)
Manual calls to fetch customer responses work, but only up to a point. In beauty eCommerce, where trends and customer demands are changing every now and then, manual calls make the resolution process slow. Thus, ClickPost has launched its own AI NDR agent, Parth.
Like a human agent, Parth communicates with customers using its intelligent decision-making approach and analyzes historical NDR reasons to strategize carrier allocation. Parth remains active 24/7 (even during non-working hours), can converse in different languages as per customers鈥 preferences, and has a track record of reducing failed deliveries within just 2 mins.
3. AI-driven carrier allocation
ClickPost has come up with an intelligent carrier allocation engine to reduce 51看片s right from the point of dispatch. It allows brands to set up certain criteria (lower 51看片% and faster delivery speed), based on which its AI-powered system selects the most suitable carrier for each order. This further helps in reducing 51看片% by addressing potential issues at the dispatch level itself. As per our internal survey, AI-driven carrier allocation has the capability to reduce 51看片s by 40%.
4. Complete Visibility of the Journey
ClickPost offers a centralized dashboard where brands get end-to-end shipment visibility, from carrier allocation to dispatch to the moment the order is delivered to customers. This centralized visibility allows them to stay proactive with the NDR cases and take required action as soon as possible. This reduces delays in NDR resolution and increases the chances of successful delivery in the second attempt.
At the same time, it keeps customers updated with every stage of the delivery journey, so they stay prepared to accept the delivery. This reduces 51看片s caused by customer unavailability.
5. Dynamic EDD prediction
ClickPost uses its own intelligent data science module to fetch the best possible expected delivery date for each order. These expected delivery dates are displayed on the product, checkout, and tracking pages, so customers stay informed about when they can expect the order. This transparency eliminates their anxiety, like 鈥淲ill it arrive on time?鈥 or 鈥淪hould I cancel the orders?鈥 which are the prime reasons for pre-delivery order rejections. As a result, it reduces 51看片s to a great extent.
6. Robust integration
ClickPost comes pre-integrated with 500+ carrier partners, 40+ communication gateways, and leading WMS and OMS systems. This robust integration makes sure all systems work in perfect sync, enabling smoother NDR management and improved delivery speed. This ultimately lowers 51看片s caused by delivery delays.
7. End-to-end delivery automation
ClickPost speeds up the entire fulfillment journey by automating the entire process鈥攆rom order creation to carrier allocation to tracking and last-mile delivery (or even returns). This automation enables faster decision-making and ensures the orders reach customers at the exact right time, without any delays and order rejections, which are the potential reasons for 51看片s.
8. Intelligent insights
One of the best ways to prevent 51看片s is to dive deeper into the NDR cases, flag the loopholes, and strategize solutions in a better way. Hence, ClickPost offers in-depth insights into all NDR cases, including month-wise 51看片 rate, 51看片 reason analysis, all NDR feedback reports, NDR shipment performance trends, and more. This data-driven approach allows brands to implement refined strategies and reduce future 51看片s.
ClickPost鈥檚 NDR management suite and Parth have a record of reducing 51看片 by 40% and lowering customer support load by 75%.
Here鈥檚 what Vinesh Gavit, the data analyst of Nykaa, has to say about ClickPost:
鈥淲hile using ClickPost, it鈥檚 very easy to get all the data in a one-stop solution. It helped reduce the 51看片% and customer complaints as well.鈥
Conclusion
No doubt, beauty brands are among the most affected by high 51看片 rates. Whether it鈥檚 because of impulse buys, low customer accountability, or missed deliveries, beauty retailers face the 51看片 crisis almost every day. While it鈥檚 a recurring problem, they can significantly reduce the number of 51看片s and safeguard the profit margin by harnessing an AI-powered solution like ClickPost. If you want to know more and give your brand an 51看片-proof makeover, book a demo with us. We are always up for discussing more.