Australian Etailers Are Neglecting Back-end Operations, APT Says

Australian online retailers are failing to efficiently handle product
returns from consumers who buy online, according to a new study released by
online research firm APT
Strategies.

The report – ‘Successful eFulfillment: the last mile in e-business’,
which surveyed 8,438 Australian online shoppers over the past year, found
that return rates on products were reaching up to 30 per cent.

The report shows that many etailers are racing to develop online
front-end strategies and interfaces without due consideration about
fulfillment, logistics, customer service and returns processes and
systems.

“Our research indicates that e-fulfillment is an afterthought driven into
the forefront when crisis occurs,” said e-business analyst and report
co-author Paul Koffler.

“We recommend that the traditional retailers continue to reconstruct
their logistics and fulfilment processes or segregate their bulk delivery
systems from their one-to-one Internet channels to compete with dot com
rivals,” he said.

A further recommendation of the report is for etailers to partner with
service stations and convenience stories. APT Strategies e-business
principal and fellow co-author Anthony Rosenberg said the number of
respondents surveyed who used service stations rated highly.

“The after hours accessibility, convenience and location of service
stations and convenience stores provide an excellence opportunity to
capitalize on the e-fulfillment revolution,” he said.