Problem
One of our beauty clients faced a problem where a lot of their orders were getting cancelled (around 40%). They wanted to reduce this to less than 10%.
Solution
After looking into the problem, we discovered that most cancelled orders were not cancelled by customers but by Amazon because the orders were not being shipped. About 70% of the orders were staying in a pending state after customers placed them. Because Amazon didn't send these orders out, they automatically cancelled after 5-10 days.
Why focus on search term data? Because it tells you a lot about how customers look for products. By studying this data, you can find keywords that shoppers use to find products in your category. You can also see which search terms consistently get attention and lead to sales for your products. Looking at the Search Term Report is like listening to your audience to understand what they want and how they behave.
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When someone orders on amazon, the order starts as pending
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Once it's packed and sent out. it changes to shipped.
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When it's delivered. it's marked as delivered
We found out that the GST registration for their FBA (Fulfillment by Amazon) in the backend of seller central didn't work. This meant even though orders were getting to FBA, they weren't being sent out.
We submitted the GST documents again for each failed FBA, and just like that, our pending orders went to 0 and cancellations dropped to less than 10%.
