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Ecommerce Inc.

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Ecommerce Inc.

  1. 1. E-commerce Inc. By Marco Piras
  2. 2. Women’s Fashion was the cause of an increase in returns. Within this category, four items were the reason. 13% 14% 15% 16% 17% 18% 19% Week 13/12 Week 20/12 Week 27/12 Week 3/1 % Weekly Return Rate by Supercategory Electronics Home & Kitchen Men's Fashion Mobiles & Tablets Women's Fashion All Supercategories 12% 14% 16% 18% 20% 22% 24% Week 13/12 Week 20/12 Week 27/12 Week 3/1 Weekly Return Rate by Category Boots Dress Materials Jackets & Coats Jeans Skirts Sunglasses Tops & Tees All Categories Product Code Category 366 Jeans 404 Jeans 420 Top and Tees 446 Sunglasses
  3. 3. The increase in product returns during the first week of January was caused by four items that were recently introduced. Customers complained about their quality and receiving the wrong items. 3800 4000 4200 4400 4600 4800 5000 27000 27500 28000 28500 29000 29500 Week of 12/27/15 Week of 1/3/2016 Productreturns Numberoforders Seasonality: Number of orders vs Product returns Number of orders Product returned 0 10 20 30 40 50 60 70 80 90 100 Week of 1/3/2016 Week of 12/27/15 Women fashion products returned for performance or quality not adequate 0 2 4 6 8 10 12 14 16 18 Week of 1/3/2016 Week of 12/27/15 Women fashion products returned because the wrong item was sent 0 100 200 300 400 500 Week of 12/13/15 Week of 12/20/15 Week of 12/27/15 Week of 1/3/2016 Reason of return for women fashion products RT01 RT02 RT03 RT04 RT05 RT06 RT07 RT08 RT09 RT10 RT11 RT12 RT13 RT14 +5% +15%
  4. 4. Key recommendations: By auditing and fixing the current supply chain for these products and introducing a systematic QA process to execute before any future product lunch, Amazon can substantially decrease product returns. Causal Factor Why? Recommendations: PRODUCT CATEGORY: Return rates increased within the Women’s Fashion super-category. •Return rates increased substantially for the category Jeans. •Some wrong items were sent: •366 (Jeans) •404 (Jeans) •420 (Top and Tees) •446 (Sunglasses) •They were products introduced recently. It may be that there were errors in the shipping process (e.g. the wrong codes were assigned in the software that is used to manage deliveries). •Performance or quality wasn’t adequate for them. •They were products introduced recently. It may be that some mistakes were made when they were produced. Or that merchandisers, designers and suppliers are causing issues even before production starts. •Focusing on these 4 products: •Do an audit of the production process. •Do an audit of the shipping process. •Do an audit of the suppliers. •Do an audit of the rest of the supply chain. •Create a systematic QA process that reviews the entire process that goes from design to supplier selection to shipment and is executed before any future product launch.

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