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The Impact of Cross-Border E-Commerce on GCC’s Retail Landscape

Cross-border E-commerce in GCC!

Cross-border e-commerce is on the rise worldwide, and the (GCC) region, comprising Kuwait, Oman, Bahrain, Qatar, Saudi Arabia, and the United Arab Emirates (UAE), is no exception. Technological advancements and consumer inclination towards online shopping have turned the GCC region into a significant cross-border market. In this article, we will explore the growth, regulations, and opportunities in cross-border e-commerce for your business and how Jeebly can help you achieve it!

The Growth of Cross-Border E-commerce in GCC

The cross-border e-commerce market in the GCC region is rapidly expanding and is expected to reach $24 billion by 2022. The UAE and Saudi Arabia account for 78% of the total value, with electronics, fashion, beauty, and health as the most popular products. The top countries from which GCC consumers purchase online include China, the US, the UK, India, and Turkey. Expanding your business to the GCC market can tap into this growth and increase your revenue.

Import Regulations in the GCC Market

Businesses that want to engage in cross-border e-commerce in the GCC need to comply with import regulations updated to 2023. The following are some general regulations that businesses need to comply with:

  • The GCC Standardization Organization (GSO) Technical Regulations, 
  • The GCC Customs Union Common External Tariff (CET), and 
  • The GCC Conformity Assessment Scheme (G-Mark)

Some of the recent and upcoming changes in the GCC import regulations and standards are:

  1. The Harmonized System Convention (HS 2022): Based on changes in environmental and technological needs, the GCC region adopted this regulation on 1 January 2022. It was made to update the previous regulations on tariffs. 
  2. Saudi Arabia has revised its regulations restricting preferential tariff concessions on imports from other GCC countries using Israeli input or made in free zones.
  3. The GCC would implement a common value-added tax (VAT) of 5% on most goods and services by 2023, following the lead of Saudi Arabia and the UAE which introduced VAT in 2018.

Expanding your business through cross-border e-commerce in the GCC market is an excellent opportunity to increase sales, but compliance with import regulations is crucial. Partnering with local businesses can provide valuable guidance to maximize your success.

Steps to Take Before Your Business Considers Cross-Border Shipping

Here are three things you need to do before you dive into the world of cross-border e-commerce and start cross-border shipping:

  1. Conduct Market Research:  Customize products to customer preferences and behavior.
  2. Find a Logistics Partner: Quick, safe, and trusted delivery.
  3. Secure Payment Methods:  Essential for smooth cross-border transactions.

You can partner with local businesses and research cultural and legal differences when expanding in GCC to root your business. The main driving forces that make the GCC region beneficial for your business are the growing population, high living standards, and business-friendly regulations.

How Jeebly Brings Your Business to the GCC Region

Jeebly is a leading tech-enabled logistics company based in Dubai, offering road, air, and ocean freight services for e-commerce businesses in the UAE, GCC, and MENA. Our freight services are cost-effective and designed for the needs of e-commerce businesses.

Our line haul services are specially designed for the GCC region for e-commerce, and we also provide free-zone warehousing services with no taxes or VAT. Additionally, our other value-added services include:

  • 24/7 inbound and outbound operations
  • Associated with custom clearance & shipping partners
  • Last-mile delivery at the speed of smart!

 

Conclusion

Cross-border e-commerce in the GCC presents opportunities for businesses to expand their customer base and reduce costs, but it’s important to research import regulations and market conditions and partner up with a reliable logistics partner like us. Considering these factors, businesses can successfully grow in the dynamic GCC market.
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Cold Chain Logistics & Technologies

Cold Chain Logistics & Technologies

Cold chain logistics solution is the process of transporting and storing temperature-sensitive products under controlled conditions. This specialised logistics industry ensures that products, such as food, pharmaceuticals, and other perishables, are transported and stored at specific temperatures to maintain their quality and integrity.

In this blog, we will delve deeper into cold chain logistics, the challenges faced by the industry, and the innovative technologies used to overcome these challenges.

Challenges Faced by the Industry

Cold chain logistics is a complex industry that requires precise and efficient processes to ensure that temperature-sensitive products maintain their quality and safety. The challenges faced by the industry are numerous and require careful attention-to-detail to overcome.

  • Temperature Management : One of the most significant challenges in cold chain logistics is maintaining the required temperature levels throughout the supply chain, including for reverse logistics. Temperature fluctuations can cause spoilage, reduce the shelf life of products, and even pose safety risks to consumers.
  • Supply Chain Complexities : Cold chain logistics requires real-time monitoring, visibility, and communication across the entire supply chain. It requires coordination among various stakeholders, including manufacturers, suppliers, logistics providers, and end customers.
  • Heavy Regulations : Logistics companies must comply with numerous rules and regulations to ensure the safety and quality of products. Various safety and regulatory agencies have specific guidelines on the storage and transport of temperature-sensitive food and pharmaceuticals. Logistics companies must comply with these regulations to avoid penalties and legal issues.
  • High Degree of Expertise and Specialisation : A lack of skilled personnel can be a significant challenge for cold chain logistics. Finding and retaining skilled personnel can be challenging for logistics companies, especially as the industry continues to grow and evolve.

Cold Chain Logistics Solutions: Innovative Technologies Used to Combat the Challenges

To overcome the challenges faced by the cold chain logistics industry, innovative technologies have been developed to ensure that products are transported and stored under controlled conditions.

Here are some of the high-tech logistics solutions used by leading brands:

1. Packing Innovation : Innovative packaging solutions help to maintain temperature levels and preserve the integrity of temperature-sensitive products. These solutions can include thermal insulation, vacuum-sealed packaging, and phase change materials that absorb or release heat to maintain a consistent temperature.

2. Warehouse and Distribution Automation: Automated systems and robots are used to streamline operations and reduce manual labour. This includes automated storage and retrieval systems, conveyors, and picking robots that can quickly and accurately retrieve products from cold storage, assist in shelving & managing reverse logistics of the perishables.

3. Automated Payments: To speed up the payment process, some logistics brands have implemented automated payment systems. These systems can automatically process payments and reduce manual processing, making it easier and faster for customers to pay.

4. Other Tech-Based Methods: Other innovative technologies used in cold chain logistics include GPS tracking, IoT sensors, real-time monitoring, and analytics. These tools provide real-time visibility and insight into the supply chain, helping to manage risk, reduce waste, and improve operational efficiency.

Innovative yet Personalised Logistics Solutions by Jeebly

Jeebly is a leading logistics brand that specialises in cold chain logistics. We use high-tech solutions to ensure that temperature-sensitive products are transported and stored under controlled conditions.

Our innovative technologies include packaging solutions, automated warehouse and distribution systems, automated payments, GPS tracking, efficient reverse logistics solutions and real-time monitoring.

We are committed to providing our customers with a reliable, efficient, and cost-effective cold chain logistics service.

Conclusion

Cold chain logistics is an essential industry that requires careful attention to detail, specialised equipment, and advanced technologies. The challenges faced by this industry are numerous, but innovative solutions, such as those employed by Jeebly, are making it possible to transport and store temperature-sensitive products safely and efficiently.

With a commitment to quality and a focus on high-tech logistics solutions, Jeebly is a reliable partner for businesses seeking cold chain logistics services.

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Your Guide To Tackling Customs Clearance In GCC!

Your Guide To Tackling Customs Clearance In GCC!

When it comes to doing business in the Gulf Cooperation Council (GCC) countries, navigating the complex world of customs clearance can be a significant challenge. With a variety of regulations, procedures, and paperwork requirements to consider, it's no wonder that many companies find themselves struggling to manage their customs processes effectively. Here are some tips and insights that can help you streamline your customs process so that you focus on what really matters: growing your business.
The custom’s department in the GCC region includes six countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Each of these countries has their own customs regulations and procedures, making it a complex and time-consuming process for businesses.
However, with the help of Jeebly, a global logistics and customs clearance platform, businesses can streamline the customs clearance process and ensure smooth delivery of their goods across GCC. One of the biggest challenges businesses go through is in clearing customs in GCC countries and ensuring that they have all the required documentation. Documents are necessary for customs clearance in GCC countries so that customs authorities can verify the details of the shipment, ensure compliance with import/export regulations, determine the appropriate duty or tariff rate, and prevent the entry of prohibited or restricted goods. The documentation needs to be in perfect order for smooth custom clearance. Failure to provide any of the necessary documents can result in delays and even the rejection or seizure of the goods.

Here’s a list of documents you need to have for Custom Clearance in the GCC Countries:

  • Commercial Invoice
  • Packing List
  • Certificate of Origin
  • Bill of Lading or Airway Bill
  • Permits or licenses (if required)

Jeebly helps businesses overcome these challenges by providing a robust customs clearance platform that ensures all necessary documentation is submitted in a timely manner. The platform also provides real-time tracking and alerts, so businesses can stay informed throughout the customs clearance process.

In addition to documentation, businesses also need to navigate complex customs regulations and procedures in GCC countries. This can be especially challenging for businesses that are new
to the region or are unfamiliar with the customs regulations.

The customs clearance process in the GCC countries can take anywhere from 3 to 14 days. This includes the time it takes for customs officials to inspect and verify the goods, as well as the time it takes for businesses to submit the necessary documentation.

GCC Customs Clearance Made Easy

Jeebly makes the process easier by providing expert customs clearance services. The platform's team of customs experts have extensive experience working with GCC customs officials and can provide guidance and support throughout the customs clearance process. Jeebly has also a platform that is integrated with major shipping carriers and airlines. This allows businesses to easily track their shipments and ensure timely delivery of their goods.
Clearing customs in the GCC countries may seem daunting to many businesses while others find it an extremely time-consuming process. With Jeebly's robust customs clearance platform and expert customs clearance services, businesses don’t have to worry about tiresome processes that take their time away from their core function. Instead, they can secure Jeebly’s smooth customs delivery/documentation services and efficient customs clearance for their global trade.
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Ways To Reduce Last-Mile Delivery Costs

How To Reduce Last Mile Delivery Costs

Last mile delivery or last mile logistics is the concluding or final leg part of the supply chain process, where goods are transported from a distribution hub, local warehouse, or fulfillment center to the customer’s door. The primary goal of last mile delivery is to ensure timely, efficient, accurate, and affordable delivery of packages to customers.
An efficient last mile delivery setup significantly impacts customer experience and offers the company an edge over its competitors. However, last mile delivery can turn out to be a considerable cost for e-commerce businesses and logistics companies.
To bring down last mile delivery costs while simultaneously ensuring trustworthy and efficient service to customers, companies can deploy a wide range of solutions.

5 Ways to Reduce Last Mile Delivery Costs?

1. Optimised Route Planning and Mapping

One of the best ways to reduce last mile delivery costs is to plan efficient and optimized delivery routes by implementing a trusted route planner for multiple stops. A reliable routing solution can help your drivers opt for the most efficient route for their deliveries, thereby bringing down fuel costs and delivery times.

2. Flexible Delivery Options

Another great and consumer friendly way of reducing last mile costs is offering flexible delivery options, such as same day or next day delivery. You can use software similar to Jeebly Now App that can optimize delivery routes in real time, thereby helping you make changes as needed. This way, you can ensure effective utilization of your resources, while also targeting customer satisfaction.

3. Live Tracking Updates

Implementing live tracking updates can help you reduce errors, and missed deliveries, and optimize information. By offering real time updates about the delivery status, you can ensure that the drivers take the most efficient route for delivery, thereby minimizing delays and guaranteeing timely delivery to your customers.

4. Regular Quality Checks and Prompt Service of Delivery Vehicles

Systematic checks of delivery vehicles and timely servicing can minimize avoidable mishaps and risks. Planned servicing ensures that your vehicles are in good condition, thereby reducing the chances of breakdown and accidents and saving on repairs and insurance costs.

5. Automated Structure of Dispatch and Delivery

Using software to automate dispatch and delivery structures can help bring down last-mile costs significantly. Automation of these crucial aspects ensures timely deliveries and efficient utilization of all critical resources.

Conclusion

Learning how to reduce last mile delivery costs is crucial for businesses to succeed in the contemporary e-commerce environment. Implementing optimized route planning solutions, flexible delivery options, live delivery status tracking, regular checks and prompt servicing of delivery vehicles, and automated delivery and dispatch structures are great ways to bring down last-mile delivery costs.
These strategies can increase your delivery efficiency and keep your costs low, thereby helping you stay competitive in the market.
Unlock the secrets of reducing last-mile delivery costs with Jeebly! We are a tech-driven delivery logistics company offering end-to-end customized last-mile courier solutions for all businesses- big or small. Our fleet of services, including same-day, next-day, and special bullet delivery services, live delivery tracking, electronic delivery proof, and automated routing, dispatch, and delivery ensure efficient last-mile delivery processes, increased visibility for businesses, and improved customer confidence and trust.
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Fast Mile Revolution in the Last Mile Industry

Fast Mile Revolution in the Last Mile Industry

Author: Vikrant, Head of Operations

Until a year ago, customers delighted in next day courier service for their online orders. However, with the multifold rise in the volume of necessity-based products during the COVID-19 pandemic, the customer demand window has shrunk from the next day to the same day and even 30 minutes in case of certain deliveries. Customers are becoming increasingly impatient and want delivery in the shortest possible time.
If e-commerce companies can’t fulfill customers’ expectations using courier services, they are ready to shop in brick-and-mortar stores to meet their urgent delivery needs. There is no doubt that the demand patterns have changed drastically since the pandemic across the globe, including in the GCC market. The goal of e-commerce companies is to gain customers over physical stores by offering on-demand delivery to customers in the shortest amount of time. It has become a major competitive differentiator for them.
EZ Dubai Report 2021 highlights that the e-commerce market in the MENA region grew by 15% from 2020 to USD 31.7 billion in 2021. It is estimated to become a USD 18 billion market in absolute value terms over 2021-2025. UAE is at the forefront of this massive growth in the MENA region. The UAE market size reached USD 5 billion in 2021, nearly doubling from 2020, and is expected to surpass USD 8 billion by 2025. Consumer demographic and behavior are the primary driving factors behind UAE’s e-commerce growth:
  • 22% of UAE’s population is below the age of 25, with one of the highest rates of internet usage, not only in the GCC but globally.
  • 34% of UAE consumers shop online weekly.
  • UAE has a higher online transaction size on average (USD 122 in 2019-20) as compared to both emerging (USD 22) and mature e-commerce markets (USD 76).
  • More consumers purchased online across all categories during 2021 as compared to 2020, with an average of 75% of people typically purchasing online in 2021 vs 72% in 2020.
With GCC driving the e-commerce boom in the Middle East, local 3PL logistics companies and delivery partners also now face a herculean task to manage same-day or rather immediate deliveries with complete control of the cost. This had led Jeebly to revolutionize the category by changing its company DNA by calling itself a ‘Fast Mile Delivery’ company rather than the Last Mile delivery company. Jeebly CEO Raman Pathak envisages a paradigm shift in the business processes of e-commerce logistics and an increase in the adoption of cutting-edge tech-enabled processes to overcome the limitations of traditional operational logistics.

Challenges That Come Into Focus As Customers Expect Same-Day Delivery

1. Ineffective Routing Solution

Despite the availability of automated routing solutions, many last mile solutions providers rely on the drivers for their ground-level knowledge of the delivery location. As a result, drivers try to optimize self-projected routing solutions. The manual routing process makes it difficult to get visibility across 40-50 delivery locations.
Even if the logistics companies use the cloud routing software, it may not take into consideration real-time conditions such as traffic, weather, road closures, etc. The route mapping tool may also miss situations where a driver can just walk across the road to the delivery point, but the vehicular route might show a U-turn probably a few hundred meters away. Such inefficient route planning not only increases the turnaround time of delivery but also undermines the utility of cloud routing systems. And that’s not all, as customers also demand the convenience of last mile tracking so they can stay updated about the exact location of the shipment.

2. Incorrect Delivery Address

Most courier service companies have system integration with e-commerce ordering platforms to receive customer details and addresses. If the address is incorrect or incomplete, it leads to more miles, time, effort, and cost for the entire ecosystem, especially for the last mile solutions providers.

3. Shrinking Turnaround Time (TAT)

Increased demand for the same-day delivery tagged alongside an increase in vehicular traffic and congestion works against TAT. The security process at entrance gates in urban residential and commercial areas are a few more roadblocks that come in the way of the last mile solutions provider’s success.

4. Just In Time (JIT) Inventory Process

The concepts of JIT and Kanban made Toyota a world-renowned success. The supply chain industry has tried implementing JIT to cut down idle inventory at each leg. However, the new wave of consumerism via online platforms along with same-day delivery has compelled e-commerce platforms to store more inventories, especially for fast-moving items. This leads to additional cost, forecasting time, storage requirements as well as inefficient delivery tracking for the entire value chain, undermining the advantages of JIT.

Agile, Flexible, And Scalable Solutions To Fast Track The Fast Mile Deliveries

1. Effective Route Modeling

It is imperative that last mile solutions providers forecast and plan their routes efficiently to optimize deliveries. Deploying cloud-based route planning software or online tools for vehicle and performance tracking in real-time and add-on capabilities such as geo-fencing and off-route alerts can help optimize the overall delivery performance.

2. Real-Time Shipment Scheduling

Location scheduling and last mile delivery tracking by customers ensure their availability at the delivery location thereby reducing the bad address attempts. However, companies must use this feature judiciously because a zone change by the customer can still lead to confusion and delayed delivery. One of the ways to handle this scenario is to allow customers to update their location before the consignment is out for delivery (OFD). This will massively improve fast mile delivery.

3. Alternate Delivery Locations

Amazon has leased 39 car parking services in central London to convert them into micro hubs. The e-commerce giant also offers Amazon Hub Locker facility in certain US locations for free pick-up and drop-off service for its customers. These are brilliant examples of alternate delivery locations.

Alternate delivery locations such as micro hubs, local stores, or even drop boxes can convert the last mile into fast mile delivery. It is a quicker option but likely to incur additional costs to the company. Hence, logistics companies should adopt this approach based on the success- improvement ratio.

4. Auto Dispatching and Segregation

Manual segregation and dispatching of consignments, especially of bulk volume, make it challenging to stay abreast with swift geopolitical changes. The software-based dispatching system automates the entire process, saves time, and provides a consistent fast mile delivery matrix. However, it is recommended for logistics companies to do their homework in terms of capacity planning layout and volumetric measurements of shipments for auto dispatching.

5. Last Mile Crowdsourcing

The core success of last mile delivery lies in the density of deliveries as it saves the travel time and dead kilometers significantly. So, the logistics companies need to aggregate both the supply and channels for an effective fast mile delivery solution supported by last mile delivery tracking. Channel aggregation here refers to the utilization of unused delivery sources in local areas including local grocery or pharma delivery manpower. They are able to combine their resources and cover the last mile during their free time on a per successful delivery basis.

6. Micro Warehousing

It is not feasible and cost-effective for e-commerce companies to transfer consignments from the mother warehouse to each location for faster delivery. Hence, it has become extremely important for them to stock inventories at multiple micro hubs. A couple of e-commerce aggregators have put the onus of maintaining minimum order quantities at multiple locations on their sellers. Even several logistics companies are introducing shared micro hub services across the region. Store-based deliveries are also a welcome step for the e-commerce industry toward changing last mile delivery to fast mile delivery.

Matching the pace of the e-commerce industry with the rising consumer expectation is the need of the hour. With most companies dealing with competitive products, delivery performance including the ease of last mile tracking plays a pivotal role in defining the consumer experience. Fast mile delivery can be considered the latest revolution in the last mile industry that is pushing the logistics benchmark of delivery from a few days to a few hours. The hyperlocal industry has paved the way for e-commerce to realign its inventory placements and delivery parameters. Innovative solutions including micro hubs, milk run, and tech-enabled routing will continue to be the key pillars of the change.
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Customer Centricity: Buzzwords or Strategic Intent!

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Customer Centricity: Buzzwords or Strategic Intent!​

Author: Ravi Tharoor, Chief Strategy & Commercial Officer

The theory of customer centricity or customer centric organization was born in 1954 when Peter Drucker in his classic “The Practice of Management” said “it is the customer who determines what the business is, what it produces and whether it will prosper”. Though a focus on customer was a central theme of retail businesses since beginning of 20th century when Harry Gordon Selfridge proclaimed “customer is always right”, it was during the 1990’s that the concept of customer centricity began to develop as a component of market orientation.
Since then Academics, Management Consultants, CRM Sales Gurus and others have written and prescribed plethora of ways and means to be customer centric. But as my title queries – are they merely buzzwords or can an organization or a small business or even a single business operator/owner truly care about its customers and put them at the very center of their focus as the term “customer centric” suggests?
I submit that they can, if they treat customer centricity as a strategic intent and not just a marketing phraseology. Gary Hamel and C.K.Prahlad in their brilliant article defined strategic intent as an obsession to win at all levels of an organization and sustain it over a long period of time to achieve global leadership. I am borrowing from them to convey something far simpler as in making customers happy and keeping them happy.
In my business experience spanning several continents and industry segments, three principles have helped consistently in attracting, retaining and maintaining happy customers:
Be genuine: Don’t let the salesman or saleswoman in you oversell yourself or the product/service. Humbleness and humility are the key to winning over the person on the other side of the table regardless of the type of product or service you are pitching. Listen (don’t forget to take notes!) a lot more so you understand your customer and their business and don’t be afraid to say “I don’t know” if you really don’t know! As Ozan Varol explains in his book “How to think like a Rocket Scientist” – when we utter the three dreaded words “I don’t know” – our ego deflates, our mind opens and our ears perk up!
Be truthful: Do not lie to your customers or prevaricate! You may embellish but not to the extent of being proven completely untrustworthy. State the correct facts and do not be afraid to discuss failures with other customers but at the same time point out what you or the organization has learnt from the failures which would help not repeat the same mistakes and make improvements in your product or service. There will always be unhappy customers but as Bill Gates said “your most unhappy customers are your greatest source of learning”.
Be caring: Caring is not exclusive to Hospitality or Healthcare! You must show and practice a great degree of care to your customers by being concerned about their business, the impact of your service levels or your products in their success. Do not be superficial and always incorporate a personal angle by enquiring about their families, understanding their hobbies and interests, read up on their culture, pick up some basic sentences from their language, try their cuisine etc. This will create a conversational topic and a connect that will help you build a lasting relationship beyond the business scope.
Peter Kaufman in his famous speech on Multidisciplinary Approach to Thinking, highlighted several nuggets of wisdom that reinforces my principles but, undoubtedly, more eloquently. I take away three and I quote them below:
  • Keep it simple: So, if you think about things beings complex as being sophisticated like most people do, you think the more complex it is, the more sophisticated it is. Albert Einstein once listed what he said were the five ascending levels of cognitive prowess. Everyone wants to be level one. Right? No one wants to be at level 5! Wait until you hear what these levels are, it’s going to be a revelation! So number five he said, at the very bottom, was smart. The next level up, level four, is intelligent. Level three, next up, is brilliant. Next level up, level two, he said is genius. What? What’s higher than genius? He must have that backward. No, he doesn’t. Wait until you hear what number one is according to Albert Einstein. Number one is simple. Simple transcends genius!
  • Be the List: Our entire lives we are on a quest, an odyssey, a search for an individual or business partners you can 100% absolutely and completely trust. But who is not just trustworthy, but principled and courageous, and competent, and kind, and loyal, and understanding, and forgiving and unselfish. Everyone has this list in their heads and every single one of your interactions with others, be the list! You do this with the other human beings you encounter in life. They are all going all in, and not because it’s your idea. Most people spend all day long trying to get other people to like them. They do it wrong. You do this list, you won’t be able to keep the people away. Everybody’s going to want to attach to you. Because you are what they have been looking for their whole lives! Kaufman refers to this as a twenty-two-second course in leadership. No need for B Schools, or books or motivational speakers!
  • Mirrored Reciprocity: Kaufman’s Elevator example is brilliant for its simplicity! You are standing in front of an elevator. The doors open. And inside the elevator is one solitary stranger who you have never met before in your whole life. You walk into the elevator; you have three choices for how you are going to behave as your walk into this elevator. Choice number one: you can smile and greet this person. 98% of the time the person will smile (or may be not) and greet you back. You can test it. Choice number two: you can walk in and you can scowl and hiss at this stranger in the elevator. And 98% of the time, they may not hiss back at you, but they will scowl back at you. And option number three. This is where the wisdom comes. You can walk into the elevator and do nothing. And what do you get 98% of the time? Nothing. It’s mirrored reciprocation. You want to go positive; you want to go first. There is a big obstacle though! Daniel Kahneman, the Noble Prize winner in Economics (more specifically Behavioral Economics) explains this as a huge asymmetry between standard human desire for gain and standard human desire to avoid loss. Why do people not go positive and go first when there is a 98% chance that one is going to benefit from it and only a 2% chance that one is going to fail or feel horrible or lose face, and all the rest of that? That’s why we don’t do it – the thought of the 2% negative!

At Jeebly, our endeavor has been to nurture and sustain relationships and have experienced a great degree of success, judging by the WOM references we get. There have been failures but not because of how we have managed the association. The pandemic has surely made relationship building more complex since virtual meetings do not give the same connectivity opportunity that physical meetings do but we try! As more businesses return to normalcy, we are carefully accelerating the physical meet option to build on the foundations we have laid.

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5 Reasons why Reverse Logistics is important for your Business

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5 Reasons why Reverse Logistics is important for your Business

Author: Vikrant, Head of Operations

Importance of Reverse Logistic
In this pandemic-stricken world today, e-commerce business has grown leaps and bounds as compared to the traditional retail businesses. Last-mile deliveries have become an important norm due to changing consumer habits from shopping in a store to conveniently getting orders with the tap of a button. According to Brian & Company, the e-commerce sector in the MENA region is expected to reach US$ 28.5 billion by 2022, which is a major shift from its US$ 8.3 billion valuation in 2017. This upsurge in the industry has led businesses to update their processes and look for convenient solutions in their logistics processes.
However, e-commerce business is maturing with every passing day and is coping to retain customers with increased customer satisfaction and process optimization. While it is quick and convenient to order online, customers are facing issues over sizes, quality, damages, and the look and feel of actual products in online shopping. These factors have contributed to the return of shipments, posing a major challenge for all e-commerce companies. With every return, there is customer dissatisfaction, delays in receiving the actual order, held-up payments, and a few more negatives to count upon contributing to why reverse logistics is important. While companies are consistently working on improving the quality and user-friendly interface to reduce the return share, the primary importance remains in the quickest possible return process.
The return process is a sheer wastage in terms of cost for the company in the value chain and thus needs to be looked at very carefully. Companies have realized that an efficient reverse logistics strategy within the supply chain encourages profit-generating opportunities for companies. Here are a few more reasons why reverse logistics is important to businesses.
Improved Customer Loyalty and Retention
Improved Customer Loyalty and Retention

While return is always associated with customer dissatisfaction, an effective process can convert it into an opportunity to build better customer loyalty. The longer a reverse logistics pickup takes, the more agony is added to the customer. On the other hand, a quick return attempt increases the level of trust in the customer and pushes them further to stick to the platform. Many companies have now moved to a no-questions-asked policy for returns just to boost the customer’s confidence. Many companies have started seeing the return percentage as an increasing trend in their relationship with customers.
Improved Inventory Optimization with Reverse Logistics

While improving every step of the supply chain, an effective reverse logistics solution can significantly impact the asset recovery of a business and, as a result, positively contribute at an operational level as well. From the time a customer raises a return request to the time the product has been returned to the seller/company, it stays as dead inventory in the chain, causing wastage in cost and inventory. So, apart from customer satisfaction, a quick return also adds the opportunity for the return product to be resold or treated as per the status.
Improved Transparency in value Chain

Reverse shipments allow a company to closely monitor the quality of the product, and a high return rate acts as an alert to relook into the quality. Returns due to size issues have acted as a catalyst for improvements with features like size charts, size guides, and virtual trials. Such continuous improvements in the UI help in attracting better traffic to the platform. Additionally, companies can identify quality sourcing partners through simple data analytics to reduce returns.

Improved ROI and sustainability

A cost-effective reverse logistics system can not only help the company reduce its return cost, but the speed of returns can further help in customer retention and improved revenue. Reverse logistics is sometimes considered a dead cost and is not prioritized by e-commerce companies. However, one must remember that while half of the customer experience is drawn by the web interface and products, the other 50% of the consumer life cycle consists of fulfillment and logistics.

Operational Optimization With returns and replacements becoming an unavoidable menace in the e-commerce business, it is important to look at a cost-effective and optimized reverse logistics solution. There are several 3PL logistics companies that have developed significant expertise in reverse logistics, especially in the MENA region. Companies like Jeebly-Last Mile Delivery & Logistic Company UAE provide quick single-day return facilities also renowned for reverse logistics solution. In our next blog, we will also understand how some of these companies have developed an effective network clubbed with their first-mile fleet to offer a cost-effective solution to e-commerce companies. Along with this, there are many more reasons that go a long way in proving the necessity of a streamlined reverse logistics strategy for a business. Therefore, it is important for e-commerce companies to effectively choose their 3PL partners who have a strong and credible network to perform their to and fro deliveries.

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